VOL.. XLVI. NO. 14,683.
PORTLAND, OREGON, MONDAY, DECEMBER 30, 1907.
PRICE FIVE CENTS.
DREAM OF ILLICIT
LOVE 15 ENDED
Rev. Jere Knode Cooke
Is Located.
HAPPY WITH ELOPING HEIRESS
Spends Life in Toil for the
Woman He Loves.
CHILD BORN TO THE PAIR
After Eight Months In Hiding, Ex
Fashionable Treacher Is Found
in San Francisco Goes Back
to Face Abduction Charge.
SAN FRANCISCO. Dec. 29. (Special.)
Hunted tor eisht months, Rev. Jere
Knode Cooke, Tale graduate, formerly
pastor of St. George's Church, of Hemp
stead. L. I., one of the most aristocratic
churches in the United States, who cre
ated one of the sensations of the year
by leaving his wife and eloping with a
17-year-old heiress, was located with the
young girl this afternoon in a flat at 1199
Green street, in this city.
During the eight months after his dis
appearance, while the police of the coun
try have been endeavoring to And him,
Cooke has been' living quietly in Los
Angeles and San Francisco, working as
a painter and decorator and, when cir
cumstances were against him, doing the
hardest kind of manual labor to eke out
an existence for himself and Loretta
Whaley, the girl . for whom he threw
overboard all that the sacerdotal world
had to offer, all the success and emi
nence of a favorite divine of the wealth
iest classes in the United States.
Child Born to the Two.
During that eight months a child
has been born to theiri and the two
have stood by one another, hungry,
hunted, but happy, finding in their
common love what the .oMer -!. an
heiress could not offer and the con
veniences of a pampered priestling
could not give.
Since the day when he startled the
drawing-rooms of the East and club
dom of Meadowbrook by sending in
his resignation, asking to be un
frocked, and eloping with the child
heiress, Cooke declares he has spent
the happiest time of his life.
Now the dream of love has ended
and Rev. Jere Knode Cooke is waiting
for the warrant which shall take hira
back East to face a charge of abduc
tion. All the ambition, all the
strength of purpose which marked his
early life and placed him in one of the
most favored rectories of the country
have vanished. He wants nothing more
than' to work at his trade and to go
home to the girl who tossed aside a
life of ease to accompany the man she
loved.
Goes Home to Face Charge.
Dr. Cooke was located today by means
of a photograph by a reporter of the
San Francisco Call. At first he denied
his identity and said that his name was
Bonam. When pressed, however, he broke
down and confessed all. Then as his des
perate plight burst upon him, he cried
out:
"My God, have mercy on me. Give me
three days to get away. Otherwise I
must go to spend my days in Sing Sing.
Do this for me. Do it for the girl and the
little one," and he pointed to the ad
joining room, where the young heiress sat
crooning to the infant, unconscious of the
tact that their secret had been dis
covered. A quiet explanation to the pastor con
vinced him that his only chance lay in
throwing himself upon the mercies of
the erstwhile friends at home and finally
he agreed that this was the best course
to pursue.
ASK GOVERNMENT , ALMS
Army of Xew York Unemployed
Make Appeal for Aid.
NEW YORK, Dec. 29. Declaring that
over 125,000 persons were out of work,
the Central Feneration Union, at a
meeting toaay, voted to have its execu
tive committee undertake Immediately
a plan for Governmental relief and sub
mit It at a meeting next Sunday. The
Socialist delegates declared that the
city's army of unemployed was three or
four times as great as it usually was
at this season. It was stated at the
meeting that 25.000 skilled mechanics,
50.000 In miscellaneous trades and 50,
000 unskilled laborers were now out
of work. One Socialist delegate de
clared that all warehouses should be
thrown open and the poor clothed and
fed and that the Government should
supply work for the Idle.
0PE GIVES AG0LD CROSS
Monsignor Kennedy Is Recipient of
Valuable Presents at Rome.
HOME, Dec. 29. Monsignor Thomas F.
Kennedy, rector of the American College,
was consecrated as titular Bishop of Adri
anapolis today. He received thousands of
telegrams of congratulations and many
valuable presents from America, as well
as from a large number of prelates who
had gathered here for the ceremony. The
presents include a beautiful gold p:cto il
cross from the pope, an episcopal miter
and crozier from the students of the col
lege and an episcopal ring from MonBlg
nor Farrelly, Archbishop of New York,
spiritual director of the college.
The ceremony of consecration was per
formed by Cardinal Gotti. prefect of the
propaganda. assisted by Archbishop
Rlordan. of San Francisco, and Dr.
Giles, rector of the English College and
dean of the rectors.
Hundreds of prelates and distinguished
personages were present at the services.
Refreshments were served in the re
fectory after the ceremony, the great
room being decorated by .the American
and papal flags.
Cardinal Gotti gave a dinner in honor
of Monsignore Kennedy, the guests in
cluding Archbishop Riordan. Monsignore
John Farrel, Monsignore Bonzana. rec
tor of the propaganda college, and Mon-
Thomas Drnce, Alleged to Be In Re
ality tbe Fifth Duke of Portland.
signore Veticia, secretary of the propa
ganda. SELLS HER UNBORN CHILD
MARY OWES, OF PORTLAND, IS
PARTY TO CONTRACT.
Left Destitute by Death of Husband
in Seattle, Widow Arranges
for Baby's Care.
SALT LAKE, Utah. Dec. 29. (Special.)
To carry out her part of a contract on
record at the county offices here and In
Portland. Mrs. A. A. Bird, wife of Dr.
Bird, of Murray, near here, left today for
Seattle. When she returns s.ie w;il bring
with her a baby girl, born December 7.
The mother of the child is Mrs. . Mary
Owen, of Portland.
The agreement on record says In part:
Know all men by these presents, that
this agreement entered inte this 12th day of
November, 1907, between Mary Owen, residing-
at Portland, Oregon, party of the
first par,t, and Mrs. Arthiir Bird, of Murray,
8tate of Utah, nart-y of the second part;
Wltnesseth, That the party of the first
part expects to become a mother at some
period early In January. 1908. and for a con
sideration hereinafter named, agrees to sur
render all her right and release the expected
child to the party of the second part and
her husband.
The consideration is that Mrs. Bird pay
all hospital expenses of Mrs. Owen during
accouchement. The contract is signed
in the presence of W. Davis and A. L.
Rlx and was drawn up by F. H. Rix, of
Portland.
Dr. and Mrs. Bird have a family of
been left destitute by the death of her
husband in Seattle about six months ago,
where a building for which he had the
contract, collapsed and he was caught in
tne ruins.
Dr. and Mrs. Bird have afamily of
their own.
FIGHT FIRE ABOARD SHIP
THRILL.IXG experience on'
SCHOONER JAMES ROLPH.
Captain Olscn Cuts Hole in Galley
Roof and Water Is Passed Up In
Buckets to Quench the Flames.
SAN PEDRO, Cal., Dec. 29. Battling
for more than an hour with a fire which
threatened to destroy the vessel yester
day morning in the Santa Barbara chan
nel, and at the same time sailing at a
ten-knot speed, was the thrilling ex
perience of Captain Olsen and crew of
eight men, of the schooner James Rolph,
which arrived here today from Astoria
with a cargo of lumber.
The fire was caused by . an explosion in
the cook s quarters. The crew was un
able to get at the hose, as the flames had
already spread to the - donkey-room,
where It- was kept. .-Captain Olsen cut a
hole in the galley roof and the men
passed water in buckets, cans and any
thing else they were able to lay hands
on, and It was dashed through this aper
ture. After a hard fight, this method
was successful and the fire was ex
tinguished. CANNON IN ' CONFERENCE
Meets Indiana and Missouri Pol It
'' leal Leaders In St. Louis.
ST. IX5UI3. Dec. 29. Speaker Cannon.
District Attorney Joseph B. Keeling, of
Indianapolis,- and Thomas K. Nledring
haus, of St. Louis, ex-ehalrman of the
Missouri State Republican Committee,
held a conference tonight at the Planters
Hotel. Speaker Cannon arrived today
and did not register at the hotel. Mr.
Keeling registered from Chicago. The
purpose of the conference, which lasted
until late tonight, was not divulged by
the participants, all declining to make
any statement.
. Fear Cave-in on Rescuers.
ELY, New, Dec. 29. Rescue work
upon Alpha shaft is still progressing
slowly. The ground Is very loose, and
may cave in at any time. About 10
feet of earth baa. been removed the last
24 hours. There is still over 400 feet
to be removed before the miners can be
released
SPARKS TO CALL
SPECIAL SESSION
Accedes to Request of
the President.
OTHERWISE, RECALL TROOPS
Not Certain, However, Legis
lature Will Take Action.
PLAN TO SETTLE STRIKE
Ksmeralda County Grand Jury Rec
ommends Appointment of Board
of Arbitration New Aspect
on the Labor Situation.
RENO, Nev., Dec. 29. A special ses
sion of the Nevada Legislature will
be called tomorrow by Governor John
Sparks. The Governor said tonight
that he will issue the proclamation in
the morning, and that the date of the
convening will be in about two weeks.
The call will be made at the request
of President Roosevelt, who has noti
fied Nevada's Governor that such ac
tion must be taken or the troops now
stationed at Goldfield will be re
moved. Notification of the decision to as
semble the Legislature has been trans
mitted. Sparks says, to Washington.
PEOPLE BACK VP GOVERNOR
Not Certain, However, Legislature
Will Meet Sparks' Demands.
GOLD FIELD, Nev., Dec. 29. The an
nouncement made here today that
Governor Sparks has telegraphed word
to President Roosevelt, that he will
call the Nevada Legislature together
In special session as soon as possible
has put an entirely new aspect upon
the labor situation here. At least, a
portion of the Federal- troops will, it
is thought, remain In Goldflcld for an
Indefinite period, and all fear of any
serious disturbance growing out of the
dispute has vanished. It is not at all
certain the Legislature will act In ac
cordance with the wishes of Governor
Sparks, but the calling of the special
session will have the effect of keep
ing Federal troops in Goldfield for
several weeks, and will make the pos
sibility of serious trouble more re
mote. The Governor has asked many prom
inent citizens of Nevada for an expres
sion of opinion regarding the special
session and has received only favor
able replies. '
The Esmeralda County grand jury
has recommended the appointment of
a board of arbitration to attempt a set
tlement of the strike. George Wing
field, prominent as a member of the
Mlneowners' Association, Is a member
of the grand Jury.
Tbe Governor will give at least ten
days' notice of the convening of the
Legislature and the call will be issued
Monday or Tuesday."
Rosenthal Will Not Resign.
RENO, Nev., Dec. 2. County Com
missioner Rosenthal, of Goldfleld, asked
for his resignation by Governor Sparks,
has refused to vacate his office, and
Sparks said today the refusal had been
received at the Executive office. Rosen
thal was thought by the Governor to
be working contrary to Sparks' Inter
ests. KILLS HIS MOTHER-IN-LAW
Farmer Holds Posse at Bay AH
Night, Then takes Own Mfe.
BERTON, Vt., Dec. 29. After shooting
and killing his mother-in-law, Mrs. Lydla
M. Dunkee, 70 years old, driving his wife
and children from home and holding at
bay a Sheriffs posse, which surrounded
his house all Saturday night, Edward
Butterfield, Sutton farmer, was found
dead in bed today, having shot himself
with a rifle. Butterfield Is supposed to
have been crazed by liquor. He was SO
years old.
SNOW IN THE MIDDLE WEST
Blanket of White Spreads Over the
Dakotas, Iowa and Nebraska.
OMAHA, Neb., Dec. 29.. A snow
storm is general tonight over Ne
braska. Western Iowa and . parts of
South Dakota. Points In the Missouri
Valley as far northward as Pierre re
port a fall which averages four inches.
The temperature is normal and there
is but little wind.
SECURE FAMOUS PAINTINGS
Americans Outbid Europeans for
Pick of Kann Collection.
LONDON, Dec. 29. The pick of the
Kann art collection, purchased by Du
Veert Brothers last August for a sum re
puted to be in the neighborhood of $4,000,
000, has gone to America, one of the chief
purchasers being Mrs. Collls P. Hunting
ton. The pictures taken by Americans
Include several Rembradts, among them
being the famous "An Old Woman Cut
ting Her Nails," painted in 1668, and his
THE OREGO.MAN'S NEW YEAR
ANNUAL.
From first page to last. The
Oregonian's New Tear Annual,
which will be published Wed
nesday morning, will be filled
with special articles, statistics
and pictures descriptive of Ore
gon and Its natural resources
and industries. As has here
tofore been announced, the An-',
nual for 1908 will be largely de
voted to the horticultural prog
ress made by the state during
the year ending tomorrow. Apple-growing,
In which Oregon
now excels ail other states of
the Union. Is to be featured,
and the leading commercial or
chard districts of the state are
to be described in separate ar
ticles illustrated with the best
photographs ever taken In the
apple districts.
Another subject to which
much space for text and illus
tration will be devoted Is the
livestock Industry, on which
the leading article has been
written by one of the foremost
authorities of the Pacific
Northwest. The topic is cov
ered exhaustively and the arti
cle will be read with interest
by stockmen and farmers
everywhere. This article and
the articles on dairying, wool
growing and kindred industries
will be illustrated by nearly
two pages of the finest photo-,
graphs ever published by any
Oregon newspaper.
Mining In Oregon Is a topic
to which an entire page of
space will be devoted, illus
trated with fine photographs.
The special articles on mining
will be of special interest to
readers in- the West and to
Easterners ,who are seeking
mining investments.
As usual, the progress made
by the City of Portland , during
the year will be given adequate
space and Illustration in the
AnnuaL Well-known Portland
men will contribute articles set
ting forth the city's social and
business advantages.
Send The Oregonian's New
Tear Annual to your friends
and relatives in other states.
It will answer all their ques
tions and save you much weari
some letter writing.
The price of the Annual will
be 5 cents: postage, to any part
of the United States, 3 cents.
!
noted . work "Crossing the Atlantic."
There are several by Franz and Roger
Van der Weyden and Verner's "Young
Girl Asleep" and the only Velasquez in
the Kann collection, "Bust of a Youpg
-Girt."- - " ' -' ''
America has also secured El Oreco's
presentment of Cardinal Nino de Guevera
and Coyas" "Bull Fighter."
Russia. JTance, Germany and Holland
have also secured some of the collection.
Joseph Du Veen has sailed for New
York on the Lusuanla. The names of
Americans who outbid the Europeans tor
these works of art have not been made
public with the exception of that of Mrs.
Huntington.
FATAL ROW OVER 5 CENTS
BAY CITY PASSENGER SHOOTS
AND KILLS CONDUCTOR.
Angry Foreigner Slapped In Pace,
Pulls Gun and Slays Arthur
Sassman Police Stop Riot.
SAN FRANCISCO, Dec. 29.-Arthur
Sassman. a conductor of the United Rail
roads, was shot and killed today at the
intersection of Twelfth and . Folsom
streets by Bonaventura Arcleri, a passen
ger. Previously Arcierl had tendered a
transfer which Sassman had refused to
honor. He then paid a cash fare and be
gan to argue the matter. Sassman slap
ped Arcierl In the face and the latter
drew a revolver and shot Sassman. A
small size riot followed, which was
quelled by the police.
Pekin Educator Deposed.
PEKIN, Dec. 29. The president of
the Imperial University has been re
moved in accordance with the govern
mental edict looking to the suppression
of student agitation.
CONTENTS TODAY'S PAPER
i The Weather.
YESTERDAY'S Maximum temperature, 42
degrees; minimum, 32. t
TODAY'S Rain or snow: easterly winds.
Foreign.
Lord Curxon persuaded to re-enter English
politics. Page 3.
Work of opening Druce grave under way.
Page 4.
" " ' National.
Taft brings peace message from Mikado.
Page 1.
Monster shipment of war material on San
Francisco docks billed for Manila. Page 1.
Fleet leaves Trinidad on second stage of
Journey. Page 4.
Domestic.
Autopsy reveals method of murder at Hack
ensack. Page 3.
William Adlcr. New Orleans banker, pursued
by bad luck until ruined. Page 3.
Governor Sparks will convene special ses
sion Nevada Legislature. Page 1.
Pacific Coast.
San Francisco streetcar conductor killed In
row over transfer. Page 1.
Rev. Jere Knode Cooke, who eloped -with
heiress from Hampstead. L. I., located
in San Francisco: Page 1.
Portland and Vicinity.
Title Bank officials will be Indicted January
6, says District Attorney. Page 1.
Rabbi Wise addresses men's meeting at Y-
M. C. A. Page 9.
Draymen's Association prepares for light In
Council today. Page 8.
Epidemic of grippe appears in Portland.
Page 10.
Multnomah and St. Louis football players
listen to sermon by "Fullback Rader.
Paga 8.
Fourteenth Infantry packs baggage for trip
to Philippines. Page 5.
School Board favors 3-miH levy rather than
bonding of school district. Page 8.
ii
WE WANT PEACE,"
SAYS THE MIKADO
Message Taft Brings
to Roosevelt.
EMIGRATION WILL BE CHECKED
Tokio Government Will Re
move Danger of Rupture.
AGITATORS ARE SILENCED
Sending or Warships to Pacific Dem
onstrates to Masses That Yankees
Will Fight if Forced to Do So.
Effect Is Wide in Extent.
BY WALTER WBLLMAN.
WASHINGTON, Dec. 29. Speclal.)
"We want peace with the United States
and nothing but peace, now and always."
The Mikado of Japan to President
Roosevelt.
This Is the message brought from the
Orient by Secretary of War Taft. Noth
ing more cheering In regard to our for
eign relations has been received by our
Government in a long time. It removes
what little anxiety there had been.
What the Mikado said to Secretary
Taft was echoed by all the . important
members of ' the Government. At the
Japanese capital they do not believe there
will be war between the two countries
within this generation. If ever.
Understanding Is Complete.
This message Is in full accord with all
the information which our Government
has received through the regular diplo
matic channels.. The understanding be
tween Washington and Tokio is now
complete.
The Japanese government will under
take to co-operate with the Government
at Washington - to the extent of its
power In' minimizing' the' emigration of
coolies from Japan to the United States.
At Tokio -they hope to be able to re
strict emigration through various conr
sular and other regulations to such small
volume as to remove that which is con
sidered the chief if not the only danger
to the cordial relations which exist be
tween the two countries.
. At Tokio as well as at Washington exists
recognition of the fact that if this eml
gration of cheap Japanese labor to the
United States assumes such proportions
as to lead our Congress to enact a Jap
anese exclusion law trouble might fol
low.
War Would Spoil Plans.
- The difficulty at Tokio is precisely this:
Japan has a constitutional government, a
Parliament, political parties, newspapers,
public opinion. It also has popular pre
judices, national passions. All these the
government must deal with. The aims of
the leaders of Japan are Industrial, co
lonial. Japan has a small world open
ing before her in Corea, In Manchuria,
in Formosa, above all, In China. For
Industrial and political expansion the
Japanese are eager. War might ruin
everything.
The acute phase of the difficulty with
which the Japanese government has to
contend has been carefully explained at
Washington through the regular diplo
matic 'channels. There are powerful syn
dicates in Japan which make money by
the exportation of coolie labor to the
United States and to other countries.
These syndicates comprise influential
men, who know how to reach public
opinion and to play upon popular pas
sion. They bring their guns to bear up
on the government, which is trying to
minimize that emigration.
Agitators Start War Talk.
President Roosevelt knew something of
all this when he ordered our fleet to the
Pacific. He knew that the agitators in
Japan were constantly . crying. "Why
does our government bow down to the
Yankees? The Americans have no navy.
They have nothing to fight with, and
dare not stand against Japan." x'hls
sort of talk found millions of believers
among the Ignorant masses. ' The Ori
ental mind is always open to impres
sions of force. Nothing appeals to him
like a demonstration of power.
The dispatch of bur fleet was a demon
stration of the ability and willingness
of America to fight, if fight she must
It took the words out of the mouths of
the agitators.
SHIPPING GUNS TO MANILA
Large Consignment of AVar Material
on San Francisco Docks.
SAN FRANCISCO, Dec. 29. (Spe
cial.) The largest consignment of
war material ever sent to the Philip
pines in two vessels Is assembled on
the transport dock at the foot of Fol
som street and on Pier 42 at the foot
of Second street, ready for transporta
tion to Manila the coming week.
The greater part of the material,
amounting to 2000 tons and including
6,240,000 rounds of cartridges and a
vast quantity of commissary supplies,
boilers, wagons and other freight. Is
to be carrjed to the Philippines by the
Pacific mail steamer China, sailing
Tuesday afternoon. The remainder of
the material already assembled, con
sisting of 7500 new Springfield rifles
and much equipment for submarine
mines, as well as a full cargo of gen
eral war supplies, will fill the hold of
the transport Sherman, to depart for
Manila January 6.
The huge shipment of cartridges to
be carried by the China is in 5200
boxes, containing 1200 rounds each, all
of .30. caliber, for the new Springfield
rifles, and comes from the Frankford
arsenal. .
The great weight of bullets occupies
a wide space by itself on the mail
dock, under the care of a watchman,
and will be placed aboard the steamer
tomorrow. Its presence on the dock
was at first denied yesterday, and
later Army representatives referred to
it as an ordinary shipment. The mean-
i
t
t Lord Curxon, Who Has Agreed to Re
I enter English Politics.
ing of this shipment Is known only to
the War Department.
T BEGIN LIFE
MAX DESERTS HIS HUNCHBACK
WIFE.
Decamps With All the Money, Leav
ing Her With 2 -Year-Old Boy
to Look After. '
SEATTLE, Wash., Dec. 29. (Special.)
Divested by her husband of tne earnings
of years, left with but a few cents with
which to support herself and two-year-old
baby, Mrs. Abraham Rackner, a lit
tie hunchback woman, found herself in a
sorry plight yesterday morning. She re
turned from Tacoma, where she had
gone to engage housekeeping rooms, only
to find that her husband had left, taking
$1000 of her money and a diamond ring.
Police detectives are now looking for
Rackner.
A short time ago she applied for the
arrest of her husband. Rackner and she
made up and he finally induced her to
sell a lodging-house she had obtained.
She did this, and gave him for safe
keeping the $1000 she secured by the deal,
He induced her to let him have her
diamond ring later.
Saturday he asked her to go to Tacoma
and engage housekeeping rooms. She re
turned on the last car and had left just
one dollar when she arrived here. She
went to her room and found that her
husband's trunk and all of his belong
ings had been taken away.
The heartbroken little woman told her
story to Irving Ward, Police Captain
who detailed detectives on the case. With
one dollar capital and a baby as a handi
cap she has decided to start anew and
work to make her living, keeping up the
bunt for the husband.
BLUE LAWS FOR COLORADO
Gambling Must Cease and Prize
'Fights Will Be Prohibited.
DENVER, Colo., Dec. 29. If the or
ders issued by Governor Henry A.
Buchtel are obeyed by District Attor
ney of the State, the laws on the stat
ute books against gambling and in re
gard to the liquor traffic, will be vig
orously enforced, in the future.
The Governor, in his proclamation,
Instructs all District Attorneys . and
peace officers to vigorously enforce
these laws and announces that he has
arranged with Attorney-General Dick
son to prosecute all violators if the
local officers do not act.
The law against prize-fighting will
also be enforced, and tonight District
Attorney J. W. B. Smith, of the First
Judicial District, announced that he
would stop the fight planned for New.
Tear's day at Petersburg, a suburb of
Denver. ''
EXPLORE WILDS OF BRAZIL
Boston Party Proposes to Begin a
Five-Yea r Task in July.
BOSTON, Dec. 29. The exploration of
the vast unknown region in the southern
watershed of the Amazon River between
the fourth and tenth parallels is the ob
ject of an expedition which is being
organized in this city under the super
vision of George M. Roynton. It is expected
to begin operations at Pemamubuco
next July, and through five relay expe
ditions In five successive years to open
the region, which Is known to contain
great commercial ' resources. Plans for
the expedition are nearly perfected. The
co-operation of the Brazilian government
and the Royal Geographical Society of
London has been obtained, and good
progress in getting donations of a finan
cial nature Is announced. An escort of
Brazilian soldiers will accompany the
expedition, as the country is very wild
and the Indians are hostile.
WILL LECTURE IN AMERICA
Countess' of Warwick Hopes to. Make
Money and Become Editor.
LONDON. Dec. 29. The Countess of
Warwick announces her intention of
starting early next year on a lecturing
tour of America, the proceeds from
which, as well as the proceeds from her
memoirs, which she is now writing, will
be devoted to realizing "my great am
bition, owning and editing a pacer."
-A - , L
BANK OFFICIALS -TO
BE INDICTED
Manning Will Proceed
on January 6.
GUILTY ALL TO BE PUNISHED
District Attorney Astounded
by Expert's Discoveries.
LADD KNEW OF CRIMES
Minutes of the Directors' Meetings
Prove That He Attended Sessions
Up to Last July The Books
Show Ross' Cunning.
President Ross will be forced to dis.
gorge the 49?4 per cent interest held
by him in the Commercial building
which Interest is valued at $146,000
should he fall to give over the shares
voluntarily for the benefit of the dead
bank's creditors.
Seps will be taken to compel him
to surrender the books of the Commer- -cial
Trust Company, which owns the 1
building. Theso books will reveal
shady deals in the purchase of the
building in 1902 from the United
States Mortgage & Trust Company, of
New Tork, and in the acquisition by
Ross of his interest in the building.
District Attorney Manning declares
he will indict on January 6 all persons
responsible for the wrongdoings of the
bank, and that the records are the
most criminal Portland has ever known
in finance.
The American Surety Company and
the state authorities In Salem have put
the probe forces under tho direction
of Manning lour expert accountants
and three lawyers W. C. Bristol, M. L.
Pipes and Seneca Smith with whom
is working Attorney-General Craw
ford. Big rake-offs were made by Ross in
transferring property from one com
pany to another, through individuals of
the bank, orthrough N. Coy or W. W.
Reid, dummies, and charging up en
hanced values.
The books show a very complicated
system of cross entries, which were
used to cover up funds diverted.
Minutes of the directors' meetings
show that W. M. Ladd attended numer
ous meetings while an officer of the
bank up to last July. Experts and at
torneys for state and surety company
say this shows knowledge by Ladd of
the unlawful transactions.
Ladd & Tilton, as depository for the
Title bank, charged heavy rates for
collecting state money for the Title
bank. The Title bank kept the great
bulk of Its cash In the Ladd & Tilton
bank vaults, retaining only small sums.
The state code contains numerous
statutes for punishment of officers of
the wrecked bank.
Should Ross not give up his Title bank
gains, of his own accord, or in answer to
the call that will be made for them, steps
will be taken to force him to yield, either
by court order or by pressure. It ia
expected, however, that he will endeavor
to ward off prosecution, in treating for
the release of any part- of his $X)2,O0Q
property.
Ross' most valuable holdings are 131
shares out of 303 In the Commercial
building, inventoried by himself at $146,
000; three-fifths interest In the Ladd-Ross
trust at Mount Tabor, worth $20,000; and
one-fifth Interest in Rossmere, worth
$12,000. All these properties he acquired
in bank deals.
Deceived His Partner .
His stock holdings in the Commercial
building date from 1902, when be and J.
W. Cook and a third person, a- well
known citizen, of Portland, bought a.
Sheriff's deed of sale to the building '
from the United States Mortgage & Trust
Company,- of New York, for $140,000,
paying $15,000 cash and giving a $12o,000
mortgage. Ross formed the Commercial
Trust Company to buy the building, and
the three men were to have 100 shares
each. Ross engineered the deal and rep
resented the purchase price as being $155,
000 whereas it was but $140,000. Each man
was to put up $10,000 cash.
But Ross and Cook, acting together,
put up only $5000 instead of $20,0u0, and
all the time were deceiving the third
party as to the real buying price. Finally
a year later the third party perceived
that he was being victimized by Rons,
forced Ross to refund his $10,000, and
severed connection with the building.
Pocketed the Profit.
Ross then took to himself Cook's 100
shares, which Cook had been holding
merely as trustee. Ross kept the 300
shares also three additional shares is
sued subsequently until June, 1907, when
he sold 152 of them to the Title Bank,
through N. Coy and W. W. Reid. taking
in exchange shares of the Title Bank
at a considerably less value and credit
ing to himself the difference on the books
of the Title Bank.
There Is no doubt that Ross' money
for this transaction from the first came
out of the Title company; also the $5000
annual reduction in the mortgage, until
i
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