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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Nov. 14, 1907)
THE MORNING OREGONIAN, THURSDAY, NOVE3IBER 14, 1907. 3 BANK LOOTED BY WALSH'S SCHEMES Government Says He Got $14,000,000 for Worth less Bonds. SOLD THROUGH DUMMIES x-Presldcnt of Chicago National on Trial for Financing Private En terprises With Bank's Funds. All Warnings Ignored. CHICAGO, Nov. 13. The trlaS of John R. Walsh, ex-president of the Chicago National Bank, on a cnarge of misuse of the funds of that Institution, for mally opened today. The Jury was completed shortly after noon, and As sistant District Attorney Fletcher Dobyns at the opening of the afternovn session commenced the ' preliminary itatement In behalf of the Government. The Government will attempt to show that Walsh took from the Chl cago National Bank, the Equitable Trust Company and the Home Savings Bank $14,000,000. In his statement to day Mr. Dobyns declared that Walsh obtained the ownership of various large properties without cost to him self, by using the funds of the banks. He said: Sold Bank Worthless Bonds. Watered stock to the probable amount of $25,000,000 or $30,000,000 was Issued. Mr. "Walsh, through ' his employes, voted the stock to himself. He then sold this stock to the banks, taking the money to build up his private enterprises. All ot the stock so sold by Mr. Walsh was practically valueless. It was the practice of Mr. Walsh to make loans to one of his companies and then sell the bonds of that company to the bank. These bonds were practically worthless. The assistant District Attorney then stated to the jury how Mr. Walsh had induced various people to sign accom modation" notes for the bank, and he continued: Then he signed the names of peoDle to notes. Checks were .made out payable to bearer and credited to the personal account of Mr. Walsh. Bonds were made out to the same "dummies" who were on the notes, and the credits were made to Mr. Walsh's account. Ignored Repeated Warnings. In 1903 Mr. Walsh was told by the bank examiner that the Chicago National Bank was being loaded down with the securities of Mr. Walsh's personal enterprises. The examiner ordered him to take the securities out and Mr. Walsh promised to do so. In 1904 the bank was found in the same condi tion, the warning was repeated and Mr. Walsh again promised to remove the se curities. Another examination showed that the bank was in a worse condttloa than ever, and it was then ordered closed. While the selection of the Jury was In progress 500 books of the Chicago National Bank were carried into the courtroom, in accordance with an order issued by Judge Anderson. Least Objectionable leal. As an Illustration of Mr. Walsh's pro cedure in matters of finance Mr. Dobyns cited the Peoria Gas & Electric Company, which he referred to as "perhaps the least objectionable of any of Mr. Walsh's en terprises. He said: "his company was organized in 1899 and the capital stock was fixed at $.100.4KK. Two hundred thousand dollars was paid in and it was all paid by others in the company than Mr. Walsh. Mr. Walsh was to hold $300,000 of the stork, and Issued certliicates for bonds to that extent. These were worthless, but he put them in his bank and took out money for them with which to build up the company. An objection by the defendant's counsel at this point was sustained by the court and Mr. Dobyns passed to consideration of the Southern Indiana Railroad Com pany, reviewing its history up to the time Mr. Walsh purchased it for $175,000. Mr. Dobyns said: Bonds of Railroads Deposited. He had issued to himself $:100.000 in bonds at the very time it was organised and those bonds had no value. He put them into the Equitable Trust Company, selling them at par. then lssuod another S10O.O00 of bonds and sold them at par. Ho took money from time to time from the Chicago National Bank and from the Equitable Trust Com pany to develop this property, depositing worthless bonds until he had deposited with the former $300,000 and with the later $M50. 0. He tried to get the bonds listed on the New York Stock Exchange, but was told to show their distribution and the matter was laid over. Later he stated that they had been distributed. They had been distributed in his own banks at his own price. In 1901 and 1902, the prosecutor told the Jury, various amounts of money were taken from the banks with the unmarket able bonds as collateral until more than $3,000,000 had been removed for the per sonal use of Mr. Walsh. Got $1,400,000 Stock as Gift. Mr. Dobyns then took up transactions relating to the Illinois Southern Railway, another of Mr. Walsh's enterprises. He declared that money to finance this road was advanced by the Equitable Trust Company on receivers' certificates and that 136,000 of these certificates were after ward declared invalid. He continued: Mr. Walsh arranged with the bondholders for the purchase of the road' and $SOO,000 of the company's bonds were voted him. He put the bonds In the Chicago National Bank and his other banks. About $22.000 o them were put in at 80 and later taken out at par, so Mr. Walsh had tl.4OO.000 of the company's stock without its having cost him anything. He Intended to connect the road with the Southern Indiana, but found he needed more bonds, so the capital stock was increased to $5,000,000 and a bond issue for the amount was also made. An attempt was made to market these In New York, but the attempt failed and they were put in the Walsh banks. After many other similar details had been told the Jury, Judge Anderson In terrupted the speaker and adjourned court until tomorrow morning. GREAT RAID ON LOTTERY Secret Service Agents Arrest Men and Plant In Several Cities. CHICAGO, Nov. 13. The biRgest lottery In operation in the United States, which has been running for more than 20 years, with headquarters in Chicago, was ex posed last night by arrests in this and other cities. The United States Secret Service men say that the promoters of the scheme have mads millions of dollars and that there are big men behind it who will be "reached through the prosecution of the men now under arrest. Under the name of the Old Reliable Guaranty Loan & Trust Company, it Is alleged the lottery maintained luxurious ly furnished offices in Chicago. All four of these establishments were raided last night and thousands of tickets, lottery paraphernalia, checks and returns from agents, an. the plates from which the tickets were printed were seized. D. H. Jones, alias D. H. Ktssam. who has lived in very expensive style, was ar rested as the head of the concern; John E. Miner, as a partner: Miss Cora Green, the confidential secretary of Jones, and Walter Schimbaky, the bookkeeper, at the local headquarters were also arrested. George B, Gelsler, the St. Louis agent of the Concern, was arrested in that city and a large number of lottery tickets and records confiscated. Frank Falker, agent at Fort Wayne; Charles and Royal Hammer, at Indianapolis, and John T. Markland, at McKeesport. Pa., were all arrested and held under heavy bonds. The Secret Service men, from the rec ords they have obtained, expect to make more than 200 arrests in various cities of the country. An attempt will also be made to Involve the express companies all over the country as agents or ac complices under the Federal act of 1895, forbidding the operation of lotteries, as It is believed that they handled the busi ness of the company with the knowl edge that it was a lottery scheme in violation of the law. Commissioner Foote early today held Jones without bail. Jones is more than 70 years old and very feeble. He la a sufferer from heart trouble and was allowed to go to his apartments under surveillance. as confinement In Jail might prove fatal. Miner was held In $2000 bail and Miss Green in $500. Un der Its various names the lottery has been conducted on the regular lottery scheme, except that the prizes have been out of all proportion to the receipts and the commissions very heavy. HUPS SOT EASY PUCES JAPANESE CROSS BOUNDARY FROM CANADA. Employment Agent Makes Startling Statement to Immigration Com missioner Thousand Come. VANCOUVER, B. C, Not. 13. (Spe cial.) Fred Yoshy, a Japanese employ ment agent, who imports large numbers of his countrymen, startled Immigration Commissioner King this afternoon witn the statement that thousands of Japanese come here in order to reach the United States. "I have seen maps sold to my country men on which were marked points at the boundary line around Blaine and Sumas And other places where Japanese could easily cross Into the United States. There is no fence at the boundary, you know," said Yoshy. Yoshy was formerly secre tary of the Japanese consulate in Van couver. MILIj burned for retenge Japanese Crew Employed and the Whites Are Angered. BELLINGHAM. Wash., Nov. 13. (Spe cial.) Set on l.re for revenge because the entire white crew had been replaced by Japanese last week, the King Sawmill, near Wickersham, was burned to the ground last night. The fire did not start in the boiler-room of the mill, but at the end of the structure. The building and machinery are a total loss, estimated at $25,000, little Insurance being carried. The mill has been working steadily. Last week orders were given to lay off the white men. and the mill closed. The neighborhood was surprised to see it in operation again and to find that a Jap anese crew was In charge. Ugly threats were made at the time, and it is believed that last night's fire was the outgrowth of the feeling engendered by the employ ment of the Japanese. JAPANESE CLAIMS ADJUSTED Orientals Paid $10,7 75 for Van couver Riot Damages. OTTAWA, Ont., Nov. 13. A report from W. L. MacKenzle-King to the Secretary of State says that the final adjustment has been made of all the damages claimed by Vancouver Japanese In con nection with the riots of September last Mr. King awarded damages totalling $10, 775 on 56 claims presented. The total amount asked for was $13,500. Canadian Minister In Japan. TOKIO, Japan, Nov. 13. Rodolphe Lemieux, Postmaster-General and Minis ter of Labor of Canada, arrived here on the steamship Empress of China tonight. He was received at Yokohama by Count Terashlma, representing the Japanese De partment of Foreign Affairs. He will toe received in audience by the Emperor on the latter's return from the army maneu vers. The Japanese government under stands that Mr. Lemieux comes as a rep resentative of the Canadian government for the purpose of discussing and Investi gating Immigration matters, and that he brings an Indefinite proposition for their settlement. The Japanese government considers that its present plans now In progress looking toward the control of emigration will' be satisfactory" to Can ada, and it is not likely the visit of Mr. Lemieux will result in any material change. Japanese Army Maneuvers Near. TOKIO, Japan, Nov. 13. The Japanese army maneuvers, beginning on November 15 and continuing for four days, will be attended by 40 foreign attaches including Brigadier-General Pershing, from ' the Philippines, and Lieutenant-Colonel Irons, stationed in this city. The forces en gaged will number 100.000. They will be divided into two armies, one attacking and the other defending Tokio. The maneuvers, which will be the most extensive since the war with Russia, will close with a grand review by the Em peror on November 19. On the same day a luncheon will be given to the foreigners in attendance by Minister of War Ter anchi. WILDLY CHEER MEXICANS Los Angeles Audience Denounces Arrest of Revolutionists. LOS ANGELES. Nov. 13. Nearly 500 sympathizers with the Imprisoned -alleged Mexican revolutionists, Ricardo Flores Magon, Antonio Villarcl, Llverado Rosarla and L. Gutierrez de Lara met last night in the Auditorium to. voice their sentiments in favor of the prisoners and arouse public feeling in their favor. Attorneys for the accused Mexicans Bpoke at length, roundly denouncing what they termed an "international official con spiracy" against their clients. Their remarks were greeted by the .wildest enthusiasm, the crowd cheering the nery denunciation oi tne authorities. Band music and a collection for the benefit of the Imprisoned revolutionists were features. The men are held in the Los Angeies County Jail on technical charges, awaiting possible arraignment or extradition to Mexico. Aid for Entrymen. PENDLETON. Or., Nov. 13. (Special.) In answer to his appeal to the Secre tary of the Interior on behalf of the Oregon land entrymen, Congressman Ellis today received a message from Secretary Garfield, saytng that Oregon land offices had been instructed to re ceive arfd suspend proofs in cases where applicants cannot withdraw their funds from banks to make payments. v KiEKS.. Nemo Corsets, Smart Set Corsets, Butterick Patterns, Columbia Yarns, C. B. Corsets The Pure Food Law of the United States Govt. Guarantees the Purity of All Drugs Sold by the "OWL" DRUGSTORE Lowest Prices in Oregon on Drugs Toilet Artic!e,Standard Remedies .'' ' ' ' vV V; ' T - - - LOIktrCrTi WOMEN'S . ItmO w-j And men's Men's and las, tape cases and flf J - lilt derful special value. amend m Hughes Appoints Committee to 'Propose Changes. ALL NEW YORK BANKERS Six Men to Recommend New System of Supervision for Banks and Trust Companies Given a Month to Report. ALBANY, N. Y., Nov. 13. Governor Hughes tonight gave out a letter in which he requests that A. B. Hepburn, Edwin S. Marston. Edward W. Sheldon, A. S. Frlssell, Stephen Baker and Andrew- Mills, all banking or trust com pany officials of New York City, shall act as a committee for the purpose of collecting facts, receiving suggestions and expressing their views with refer ence to changes deemed advisable in the laws of the state relating to the Incorporation, conduct of business and supervision of bankB and trust com panies. The Governor asks that this com mittee undertake, this work solely as a matter of public service, without pro vision for compensation or indemnity for expense, and says he will be glad to receive its report on or before De cember 15, 1907. It is believed that all the men named will serve. FACTORIES CUT DOWN FORCES Many Men Thrown Out of Work in Chicago. CHICAGO. Nov. 13. Large reductions in working forces in many industries in Chi cago have been made within the last few days, owing directly to scarcity of orders and business depression. Several hundred men were laid off yesterday in various wood-working establishments. The fol lowing list shows the industries in which the greatest number of men have been laid off: International Harvester Company, ap proximately, 1000; Republic Iron & Steel Company, 600; Griffin Wheel Company, 400; Hines Lumber Company, 300; AUls Chalmers Company. 250; Brunswick-Balke-Collender Company, 100; F. I. Abbott, woodworkers. 100; L. B. Becker, soda foun tain fixtures. 100; Bush & Gerts Piano Company, 100. In addition to these concerns there are several which are running short time In an effort to maintain their forces. Nearly 1000 machinists in Chicago are idle and railroads west of Chicago have laid oft an aggregate of 25,000 men em ployed in construction work, maintenance of way and in the mechanical depart ments. CORTELYOU QXJIETS IDLE TALK Denies Rumor That He Will Draw on Banks. NEW YORK, Nov. 13. Secretary' of the Treasury Cortelyou arrived in town and immediately set at rest the Wall-street rumor that he had decided presently to call upon the National banks of the country for 10 per cent of their Govern ment deposits. "Of course," said the Secretary, "I have done nothing of the sort" Then he added: 'This is no time to deal in rumors, es pecially as to the actions of the Secre tary of the Treasury." Mr. Cortelyou is here to address the Merchants' Association tomorrow. OVER $60,000,000 IS COMING More Gold Engaged Abroad and $8,0000,000 More Arrives. NEW YORK, Nov. 13. More than $60. 000.000 in gold has been engaged abroad for import to the United States since the present movement began. Announcements today of engagements of $00,000 by the First National Bank of Chicago, $500,000 by the Illinois Trust & Savings Bank, and Established 1850-FIFTY-SEVEN YEARS IN BUSINESS Good Merchandise Only Umbrellas $2.50 Values at $1.85 Women's Union Silk Umbrel edge, best paragon frames, bulb runners, cases and tassels; with princess, horn, ebony, pearl and gun- metal handles. Regu lar $2.50 values 1.85 Men's and Women's Fine Mercerized Gloria Umbrellas with tape edge, steel rods, paragon frames, with princess, horn, gunmetal, 'silver-trimmed wood handles; tassels. Won $1.15 Trefousse Gloves Lipman, "Wolfe & Co. are the only Port land agents for Trefousse Gloves. It is rumored that other stores represent their gloves 'as "Trefousse. Do not be deceived. Look for the "Trefousse" stamp. J1.000.000 by banks In New Orleans brought the grand total up to $60,330,000. Gold to the amount ot $8,000,000 arrived here today on the steamship Oceanic from Liverpool. SENDING OUT BANK NOTES Applications Continue to Be Heavy at Washington. WASHINGTON, Nov. 13. Applications for additional treasury-note circulation continue to be received from National banks in ail parts of the country. From the first of the month up to last Satur day shipments of additional bank .notes had been made to the amount of $11,182. 150. On Monday this amount was in creased by $2,582,960 and on Tuesday by $3,099,870, so that the total to date is $16,844,970. ' Rush Bullion to Mint. CHICAGO, Nov. 13. The American 6meltlng & Refining Company which employs 400 men at refining gold and sil ver bullion in its South Chicago plant, Is filling "rush" orders .for the Government by operating the works night and day. Within the last few days the company has doubled its usual shipments of gold and silver to the mints. The usual daily shipments have been 45.000 ounces of sil I ver and 15,000 ounces of gold. Now the shipments are 100.000 ounces of gold and 30,000 ounces of silver dally. Payrolls In Fiat Money. CHICAGO, Nov. 13. The Chicago Clearing-House Association today de- i cided to issue Clearing-House checks I for the purpose, of meeting payrolls. The general managers of the 23 rail roads entering Chicago have declared to the Clearing-House Association that they will issue orders to their em ployes to take the checks in payment of all railroad business. New Orleans Mint on Overtime. , NEW ORLEANS, Nov. 13. The mint here has received an order directing overtime - in order to coin monthly $200,000 of subsidiary coin in addition to the regular coinage of $500,000 per month. Stocks Depressed in Berlin. BERLIN, Nov. 13. n the Bourse to day the continued demand of America for gold had a depressing influence up on prices. KISER HAS MOVED. Scenic Photos. 248 Alder street. Catarrh A Blood Disease Whether it manifests itself in the nose, throat, stomach, bowels or other organs, catarrh ia a blood disease be cause it depends on impure blood. Therefore it must be treated with a blood medicine for a radical and per manent cure. Hood's Sarsaparilla is the most suc cessful. It purifies the blood, strength ens the stomach and other organs, and "builds up the whole system. It radically and permanently cures. lThe most easily developed form of Catarrh is Nasal Catarrh, in the treatment of which Hood's Sarsaparilla is greatly aided by Antiseplets or Catarrlets, which afford prompt relief.' Hood's Sarsaparilla In nsual liquid form or chocolated tablets known as Sarsatabs. 100 doses $L 411 druggists. Antiseplets 50c., druggists, or mail. C. L HOOD CO., Lowell, Mass. TEA Why- throw-away money and comfort in buying poor tea? Tour rrocer returns your money If yo don't ilk Schilling's Beat; we pay him. 3. Monogram Stationery wi sifi x co. WASHINGTON' BUILDING. Quality Considered Our Prices Are The sale takes place Friday on the 2d floor, near Rug department. POWDER TO CONTROL UTES GUNS ALSO SENT TO SCENE OF TROUBLE. Three Squadrons Are Now on the Ground and New Route for Supplies Is Suggested. - OMAHA, Neb., Nov. 13. Forty tons of powder ajid shells passed through Omaha yesterday over the Missouri Pa cific and the Northwestern on the way to Gettysburg, S. D., the scene of the Ute Indian trouble. The shipment was from Fort Leavenworth, and included several Gatling guns. Colonel West, Second Cavalry, from Fort Des Moines, wires the army of ficers here from Thunder Creek, S. D., that all three squadrons of the regi ment are now there. He suggests a new route, involving less haul for sup plies, and changing the point of sup plies for the troops who are now in the field to guard the runaway Utes the latter point being on the Milwaukee extension from the river west. XO BATTLE WITH UTE BRAVES Superintendent Denies Report That "Troops Killed Indians. UTE AGENCY, Ship Hock, N. M., Nov. 13. Superintendent Shelton, of the Ute In dian Agency at this place, positively de nies the report sent out from Durango, Colo., that another battle took place yes terday between the dissatisfied Utes and the United States .troops now in the field here to subdue the redskins. The report had It that six Indians were killed by the soldiers. Superintendent Shelton further states that all of the dissatisfied Utes are now under arrest at Ship Rock and that no further trouble from them is expected. Furthermore, all the troops that were G. P. RUMMELIN & SONS 'MM,- Established 1S70. Flatware for Thanksgiving . A multitude of handsome patterns to select from and in all wanted articles for serving purposes: A specialty of chests in one, two or three drawers, including everything for utility. Our prices will surely attract. The engraving' is a feature. - Corner Third and Washington Streets Manufacturing Jewelers Opticians Diamond Importers - Established 1850 THE VICTOR Talking Machine, $1 Down, $1 a Week Come in and Hear the New Rec ords at Our Victor Hall Always the Lowest ' ' - FOR FRIDAY SALE. 1200 Dressed and Undressed Dolls Valttes"to"7,Tilday"Sale.at 25c . i m " ' 1200 Dollies of every kind, dressed and undressed, bisque, china, papier mache and rag dolls. The great opportunity of the year to buy for Christmas. and a very few even higher sent Into the field against the Indians for the purpose of rounding fhem up and subjugating them have arrived at Ship Rock, having finished up their work. Superintendent Shelton says he cannot imagine how the report of a battle started. READY FOR POWERS' JURY Will Be Drawn From Strong Demo cratic County. GEORGETOWN, Ky Nov. 13. The third day of Caleb Powers' trial opened, with increased attendance. The first movement of the defense was the filing of three important depositions bearing on the validity of Taylor's claims to the Gov ernorship, making good his pardon issued t8 Powers. Qne was from Attorney-General Griggs, under President McKinley, instructing the Postoffice Department to instruct the postmaster of Frankfort to deliver mail to state officials actually holding office. An other was from Taylor himself, asserting his right as Governor and accompanied by a copy of his commission as Governor. The third was from United States Dis trict Attorney Wilnam Smith, bearing on the same point. The defense announced readiness for the trial, on assurance from the court that attendance of any absent witnesses would be compelled. The list of the defense's witnesses revealed the fact that ex-Governor Taylor and ex-Secretary of State Fin ley, both now in Indiana, will be brought back to testify In favor of Powers. Ar guments proceeded as to wh:t county the court should go to select a special venire from which to draw the Jury. Judge Morris decided this afternoon that the Jury will be drawn from Harrison County. Sheriff William Warren was in structed to summon 200 men from that county to report next Friday. Harrison is a strong Democratic county. Burton Kelly Not Drowned. STOCKTON. Cal., Nov. 13. Dr. F. A. McCann received a letter and postal card this morning from his nephew. Burton Kelly, who had been reported in the press dispatches Monday as having been snip- 126 Second St Bet. Washington and Alder CHOICE FURS Black Lynx Stoles and Muffs Mink Scarfs, Stoles and Muffs Sable Neckwear and Muffs Chinchilla Neckwear and Muffs Alaska Sealskins, London Dye, Oar Specialty FDR COATS, FUR RUGS 8 ROBES Send for Catalogue ILJ Regular prices up to 75c There are hundreds of dollies in this sale-and so many more on display that you couldn't count them if you tried all day wrecked and killed while on his way from San Francisco to Point Bennett on the schooner Glenn, some weeks ago. The letter was written November 9. SHOULD REVISE TARIFF Schurmann Wants Workmen's Nec essaries Cheapened Now. ITHACA, T.. Nov. 13.-1 Special.) President Schurmann, of Cornell Univer sity, told the members of the Civic Club today that hard times are immi'.-ent and that it is desirable to know what part the tariff has played in regard to com modities that the workingman needs and vises most, an that there should be im mediate revision of the tariff wherever it was necessary. The president declared that too much money was spent on the Army and Navy, which was dedicated peace, and added that vlt would be better for the United States "to get out of the Philippine Ar chipelago and to get out of "the Oriental problem, to keep out of the troublesome Pacific." Cheviots, Tweeds and Cassi meres regular $30 and $35 values in a wide variety of patterns ; also black and blue Serges, Thibets and Cheviota regular $30 and $35 quali ties MADE TO YOUR MEASURE. Made for You in the style most becoming to you. Made of Ex clusive Fabrics different from the common place sorts universally car ried in nine out of ten stores. Made to retain a Dressy Appearance First to Last not to sag out of shape when the original creases have disappeared. Columbia Tailoring is good tailoring. Take advantage of this, week's special offer you'll gain in satisfaction and save in cost. Grant Phegley, Mgr. Elks Bldg. Seventh and Stark. Three Days More am ir. m m hi C