VOL. XLTVI . XO. 14,689.
PORTLAND, OREGON, MONDAY, JANUARY 6, 1908.
PRICE FIVE CENTS.
FULTON TELLS OF
BHOWNELL LETTER
No Deal for "Protec
tion," He Says.
RELATIONS WITH JOHN H. HALL
Reappointed District Attorney
at Instance of Heney Alone.
STEIWER AND PUBLIC LAND
Asked Hall Merely If Civil ' Prosecu
tion Against Ex-State Senator
Would Not Be Sufficient.
Full Text of the Letter.
Senator Fulton last night told the
story of the now famous Brownell let
ter, explaining hl relations with John
H. Hall and commeuting on sundry
other matters in controversy between
himself and Francis J. Heney. There
was no deal for the' reappointment of
John H. Hall to be United States Dis
trict Attorney for Oregon, he says, for
neither he nor Senator Mitchell, nor
others of the Oregon delegation, were
for' Hall, though Fulton at a delega
tion meeting once voted for him, and
none of them was consulted by the
President in making the Hall reap
pointment. The President named Hall
to succeed himself because Heney asked
It. Senator Fulton admits that he
was friendly to Brownell and was anx.
lous to help him "in any proper way;""
Reference to Steiwer Case.
As to State Senator Steiwer and his
prosecution for fencing public land,
Senator Fulton says that in a conver
sation with District Attorney Hall, the
Steiwer matter was brought up and
Fulton inquired only if the ends of Jus
tice might not be fully met by a civil
action. There was no arrangement as
to Steiwer and there was no other con
. vers&Mon or correspondence about him.
The interview with Senator Fulton Is
as follows:
That Brownell Letter.
"I leave for Washingtotn In the morn
ing. It is important that I shall arrive
there on the earliest possible date, aa the
committees will he. meeting regularly
after Congress reconvenes. Have I any
thing further to say relative to Mr.
Henry's charges? Only this: It is quite
evident that he refers to the old charge
that Senator Mitchell and I agreed to
support John Hall for reappointment in
consideration of his protection of George
C. Brownell against Indictment. This
charge Mr. Heney bases on a letter writ
ten in January, 1904, by Mitchell to
Brownell and concurred in by me. I so
assume from the fact that he refers for
his specifications to the article which
appeared about one year ago in Collier's
Weekly. In that article only an extract
from the Mitchell letter was published,
although It was so published as to Indi
cate that it constituted the entire letter,
as will be seen by reference to the re
. production thereof in this morning's Ore
gonian. Letter a Long One.
"Now, the truth Is that it was a long
letter covering some four or more pages
and was devoted almost entirely to the
subject of Mr. ' Brownell's candidacy for
Congress. I have no recollection of in
' dorslng the letter, but assume that I did
so, as It was quite common for Senator
Mitchell to write a letter and bring It to
me and request me to join in It. Indeed,
when this excerpt was first published I
could not recall the letter at all. The
Oregonian, however, shortly thereafter,
in December, 1906, I think, published the
entire letter. I then recalled the cir
cumstances. I would be pleased to have
it published again, for a person reading
It will readily see that I concurred sim
ply in the suggestions relative to
Brownell's candidacy for Congress.
Honey's Inference Incorrect.
"Mr. Heney infers from that portion
of the letter he quotes that we had prom
ised to support Hall for reappointment
on condition that he would protect
Brownell. Such a proposition was never
suggested, to my knowledge. Mitchell
had told me that Brownell was complain
ing to him that Hall was threatening to
have htm indicted. I spoke to Hall about
it when he was in Washington in Janu
ary. i!M. and asked htm what there was
shout the talk that Brownell might be
Indicted. He answered that he personally
knew nothing about It; that he under
stood the department had some evidence
against him, but it had not been sub
mitted to him. I expressed the hope that
there was nothing in it and said I hoped
he would be as lenient as consistent with
his duty, as I did not believe Brownell
purposely violated the law.
"I am perfectly willing to admit that I
was anxious that Brownell should not
he Indicted. He was and had been my
friend and I am always willing and
, anxious to aid a friend in any proper
way.
No Agreement to Support Hall.
"That we did not agree to support Hall
is quite clear from the fact that we never
did do so. The letter in question was
written in January, 1904. After Congress
adjourned and the delegation had all re
turned to Oregon we held a meeting and
endeavored to agree on a district attor
ney, and Anally Mitchell, Hermann and
Williamson voted for and agreed to sup
port Judge Moreland, of this city. ' I
voted for a number of others, and among
them Mr. Hall, but as we could not agree
on a man nothing was done, and some
time thereafter, I do not recollect the
date, Mr. Hall was reappointed on the
recommendation of Mr. Heney himself.
Not a member of the delegation recom
mended him or knew he was to be re
appointed until the announcement was
made from the White House.
Steiwer Land-Fencing Charge.
"Another charge I understand Mr.
Heney makes against me is that I sought
to or did Influence Mr. Hall not to have
Hon. W. W. Steiwer indicted for having
public lands fenced. The proposition is
utterly absurd and there Is absolutely
nothing to it. Mr. Heney and his asso
ciates would have known nothing about
the conversation on which they base the
charge, probably, had I not told It my
self. Be that as it may, the facts are
that some time In the Spring of 1903 I
t tiiiiiiiiflll t
.jr lit
Horace Boles. ex-Governor of Iowa,
ill in an Kl Paso hospital , bat
whose condition In reported im
proved.
was on my way to call on Mr. Hall and
met a gentleman who told me that Stei
wer was to be Indicted for fencing pub
lic lands.
"When I saw Hall I asked him if it
were true. He said he did not yet know,
but that all fences inclosing public lands
must come down. I asked him if he
could not have them removed by a civil
suit. He said he could. X then stated
that I thought that the be'tter way, as
I did not think a good citizen, such as
Mr. Steiwer was, should be subjected (o
the humiliation of being Indicted when a
civil suit would . answer every purpose.
"Hall said that if a party had any color
of right to maintain such a fence he
would proceed against him by civil ac
tion, but did not know the facts in the
Steiwer case yet. That was the end and
substance of the only conversation I ever
had with Hall on the subject."
TEXT OF BROWNELL LETTER
Senators! Mitchell and Fulton to the
Oregon City Man.
That the public may see now again
just what the Brownell letter con
tained, and all that It containedex
tracts from which only were pub
lished In Collier's and the American
Magazine it Is herewith reprinted in
full:
WASHINGTON. Jan. 18. 1904. Hon. Geork
C. Brownell, Attorney at Law. Oresron City,
Or. My Dear Senator and FYiend: I have
delayed answering your letter reoelvwd some
ten days ago In which you state that, you
think the time has corn for you to make
the race for Congress, and you want to know
whether Senator Fulton and I can help you.
There la no question, my dear friend, ' about
our destre to help you in any way in our
power, but there are a good many thingw to
be considered, as It seems to both of us, look
ing to your "own interest, before we attempt
at thla long rang to Inaugurate a campaign.
In other word, what I mean is this: It does
seem to- me. aa also to Senator Fulton, after
discussing the matter fully, that if we com
mence writing letters In .your Interest In re
gard to the Congressional nomination, we are
liable to do you more harm than good. We
are liable to array every other man that thinks
he Is entitled to go to Congress against you,
to start on; and It certainly will array Her
mann, who fa here on the ground, and who
would be sure to hear of It, against you. It
im Impossible for us to conduct a campaign
of that kind from here by letter, without it
becoming known all over the state.
You know there are quite a number In the
different sections of the state who would like
to go to Congress Gatch, in Salem, perhaps
one or two others, probably Geer, Till Ford,
Kelly in Albany, probably Harris or Wood
cock, or both. In Ehigene; Vawter in Med
ford; probably Carter, of Ashland, Eddy of
Tillamook. Huston, of Htllsboro, and perhaps
others.
The moment it la known that Fulton and I,
neither of whom live In this district, are tak
ing an active, aggressive 'part as against all
of these and In your favor, is simply to array
the whole crowd against both you and us, to
gether with all their friends, and a cam
paign will be. at once commenced by each
one of them to pull you down.
Now, I will give you an idea of the way in
which you ought to proceed In order to win
the prize. Simply look out for your own
county and eee that you get a good solid
delegation from that . county to the district
convention men that will stand by you first,
last and all the time. Io not try to Inter
fere, make no special effort except as you
can do so quietly, without open antagonism
to any other probable candidate, to secure the
votes of delegations in counties that will have
a candidate. Keep on friendly terms with
all the candidates, and1 in this shape go to
the convention, and then will be the time,
or at least shortly before then, to make com
binations that will win. You may then be
able to do it by compromises and arrange
ments with the different candidates, or with
enough of them to control the convention.
Now, friend Brownell. yon may think, ' Oh,
this is a very floe way for Mitchell and Ful
ton to get out of helping me,' but I sub
mit to you, think over this whole business,
and 1 am sure your good political sense and
shrewdness will lead you to the conclusion
that this is good advice.
We may be able, when the time comes, to
help you. and to help you materially. And I
am eure it will be impossible to have any
understanding between you and Hermann at
thlw time, so as to stand by each other, and
whoever . has the longest pole takes the per
plmmcn. It is entirely too early to expect to
be able to make any euch arrangement with
Hermann.
I did write one letter in your interest to
Mr. Goode, and also one to Senator Booth, as
I knew they could be trusted to treat the
t Concluded n Page 8.)
STATE'S HOMICIDE
.RECORD FOR 1907
Fitty-Six Persons Die
by Violence.
FEW SLAYERS FOUND GUILTY
But Three Convictions Ob
tained in 17 Trials.
NONE IN FIRST DEGREE
Twenty Out of 33 Counties Wit
nessed Bloodshed During; Year.
Fifteen Are Hilled in Mult-
nomah Alone.
i OREGON'S HOMICIDE RECORD ,
t FOR 1807.
Number of slain 56 I
uonvwuea or aecona degree muraer z
Convicted of manslaughter 1
Acquitted 14
Slayers committed suicide 10
Not apprehended 11
Cases awaiting trial 13
.... ..... 4
Oregon's criminal blotter for the year
1907 shows the commission of 56 homi
cides. For thes crimes not one con
viction of murder in the first degree has
been secured. Only two of the homi
cides were convicted of murder in the
second degree, and are serving sentences
in the State Penitentiary. One other was
convicted of manslaughter, but he Is out
on bail- pending an appeal to the Su
preme Court. Fourteen were acquitted
for different causes, ten committed sui
cide, 11 have not been apprehended, and
13 cases are pending in the courts. Of
the 13 defendants awaiting trial nine
will plead self-defense. Bight of the 14
acquitted homicides were discharged' on
the ground of self-defense or justifica
tions three went free because. of tack ot
evidence, two were acquitted as insane
and one successfully pleaded the', "un
written" law.
One Legal Execution.
During the year there was but one exe
cution at the State Penitentiary. Early
in the year- Holliver Megorden was
hanged for the murder of . his wife in
Malheur County over two years ago. Four
murderers were received at the peniten
tiary for the 12 months, as follows: C.
M. Forest, Clatsop County, manslaughter.
Indeterminate sentence; William Blosh,
Douglas County, murder second degree,
life sentence; Francisco Guarjodo, Colum
bia County, murder second degree, life;
James Sawyer, Umatilla County, man
slaughter, 15 years. Forest and Blosh,
while received at the prison during the
year 1907, committed the crime for which
they were convictd prior to January 1,
1907.
Firearms In Favor.
Of the 56 persons who were slain, 44
were killed by firearms, seven were either
stabbed or struck with some missile, four
were probably killed with a hatchet and
their bodies burned and one was assas
sinated with a bomb. In 16 of the 51 sepa
rated tragedies one or both of the princi
pals was under the Influence of liquor, or
had "Been drinking.
There were no murders during the year
in 13 of the S3 counties of the state aa
follows: Benton, Crook, Curry, Gilliam,
Grant, Harney, Josephine, Lincoln, Linn,
Tillamook, Washington, Wheeler and
Yamhill. Estimating the population of
the state at 500.000, the ratio of persons
killed by their fellowmen was one to
every 10.000 of population.
Lets No Slayer Escape.
In the detection of murderers, their
prosecution and conviction, Umatilla
County has a creditable record for 1907.
Three murders were committed, and In
each case the murderer was appre
hended. One was convicted of second
degree murder and sentenced to the
penitentiary for 15 years, another was
found guilty of manslaughter and has
appealed his case to the Supreme Court,
while the third was acquitted on the
ground of self-defense. In this case,
the defendant was a woman, who shot
her abusive husband.
Lincoln's Clean Recofd.
"Lincoln County has a clean sheet in
her criminal record for the year 1907,"
writes C. B. Crosno, of Toledo. "Not
a single homicide in the county during
the year, no grand jury was called,
and no Important criminal' litigation
was held; in fact, our regular terms
of the Circuit Court nave never oc
cupied one full day at either term. Our
people are law-abiding and at peace
with each other. ' Lincoln County has
no saloons and apparently seems . to be
without one of the great factors that
is prominent and aired in the courts of
our state" under the name of 'temporary
insanity.' Our people have cause to
be proud of their lack of a criminal
record, and the minimum of our court
expenses."
Hot Shot for Governor.
"There have been no homicides in Til
lamook County since Hembree- murdered
his wife and daughter two years ago at
Sand Lake," reports Fred C. Baker, of
Tillamook. "The parole of Hembree by
the Governor gives, license to others to
commit murder, when it is known they
can get off so easily. The whole trend of
EVENTS OF COMING WEEK.
"Washington Center - of Interest.
With the exception of the Thaw
trial, beginning Monday, and such
special developments as may. rise
from a number of dinners and meet
ings In behalf of various political
movements, the news interest of the
week will be chiefly In Washington
City, where Congress will reassemble
after the holiday recess and begin in
earnest the business of the long ses
sion. Jackson Day Dinners.
Jackson day dinners and a number
of meetings and speeches are sched
uled for the . week. " Secretary Taft
w11 speak at Cooper Union, New
York, on' Friday, and on Tuesday, at
the same place, the New 'York State
League . of Democratic Clubs, the
Bryan organisation, will hold its
convention.
The formal Jackson day dinner wilt
be given at the Waldorf-Astoria
under the auspices of the Democratic
State Committee. Another politi
cal gathering of importance will be
the Bryan banquet, to be given by
the Jefferson Club at Chicago on
Wednesday. (
Activity for . Hughes.
In all this political activity. Gov
ernor Hughes Is not overlooked, for
on Thursday night'the Republicans of
the Twenty-ninth New York Assem
bly District will give a dollar dinner,
the Invitations to which state that
It Is for the entertainment of Hughes
delegates to the convention.
Druce Case Aaaln.
The Druce estate case wilt reap
pear in the courts of both London
and New York. In London the prose-
cution of Herbert Druce for perjury,
in connection . with the claim of
George H. Druce to be the Duke of '
Portland, and In New York of Robert
Caldwell, the American whose t'estl
mony at London caused his arrest
on perjury charges when be arrived
here on December 21, will be given
a hearing.
Fleet Will Rearh Rio Janeiro.
If all goes well. Rear-Admiral
Evans' fleet will arrive at Rio
Janeiro on Saturday or Sunday and
the officers and men will be enter
tained on a most lavish, scale:
Noted Russian Coming.
When the steamship Carmania ar
rives, probably Saturday, she will
bring one of the most Interesting
figures who has visited this country
in many months Paul Milyukoff,
head of the Constitutional Demo
crats of Russia and President of the
first Douma. He comes to America
solely to address the Civic Federa
tion at its meeting in New York next
week, and after four days' stay here
will embark for his return to Rub- '
sta, to be present at the reassembling
of the Douma.-
bur courts and with the people is to hold
life too cheap. The custom in England
Is, after a person Is found guilty of mur
der, he is executed about two weeks af
ter the death sentence is pased, for
motion for hew trials, errors, technicali
ties and appeals from one court to an
other are not allowed. Stop these foolish
things in Oregon and string up the mur
derers. It is enough to make every news
paper in Oregon disgusted with the way
murderers and - others get free In the
courts. The Hembree case, for example.
Good Comes From Evil.
"Well, The Oregonian Is showing the
connection the saloons have with murder
and crime. Hembree was a drinking man
and C. B. Hadley, who hung the Jury, ,1s
an ex-saloonkeeper and ran one of the
most objectionable joints In this city. His
resort was largely the cause for this
county 'going dry.' " .
Writing from Bums, Harney County,
Frank Davey says: . "
"I take much pleasure In stating that
not a single murder has occurred in Har
ney County this year; also that not a
serious crime of any kind has disturbed
the peace of our prosperous county in
that time." Our jails are empty, our peo
ple are contented, happy and law-abiding,
having no disturbance amcng themselves
or quarrels with the outside world."
Fifteen in Multnomah.
Of the other 19 counties in the state,
Multnomah leads with 15 murders. Of
that number, five of the murderers have
not been apprehended, four committed
suicide after committing their crimes,
two were acquitted because of insufficient
evidence, another was adjudged Insane,
another escaped conviction by pleading
the "unwritten"' law," and two cases are
pending in the courts.
A brief statement of the t murders
committed in Multnomah County fol
lows: Multnomah County.
January 6 Fred B. Martin, ex-city
salesman for the Pacific Coast Biscuit
(Concluded on Pago 4.)
CONTENTS TODAY'S PAPER
National. - '
Roosevelt airs his controversy with Admiral
Brownson. Page 3.
Congressmen will be allotted, rooms in new
office building by lottery.' Page 2.
Domestic.
Serious anti-high rent riots in New York.
Page 2.
Member of English nobility sell birthright
and becomes wanderer. Page 14-
Richard T. -Crane of Chicago tells the rich
their duty to the poor. Page 3.
Mrs. -Thaw may not be permitted to repeat
her story on witness stand. Page 3.
Bryan says truth, tariff and railroads will
be main Issues in coming campaign.
Page 3.
Pacific Coast.
Japan call home her Russian war veterana
Page 1..
Right Rev. John Helnrlch. vicar-general of
Baker City diocese, dead. " Page 10.
Wild revelry In San Francisco New Year's
eve. Page 2.
Henry E- Reed tells of progress of Seattle
Exposition. . Page 8.
Portland and Vicinity. '
Senator Fulton denies, deal for "protection"
of Brownell. Page 1.
Dr. William H. Heppe says religion Is prac
tical and should be lived' in everyday
surroundings. Page 9. .
Oregon's homicide record for 10O7 shows 56
deaths and but three convictions, none In
first degree. Page 1. i .
Secrets ' of frensled finance - revealed by
probe in Title bank. Page 6. ;
Oregon Trust ft .Savings Bank depositors in
dorse merger plan. Page 1.
DEPOSITORS FAVOR
THE MERGER PLAN
Ask Court to Approve
Consolidation.
INDORSEMENT IS UNANIMOUS
One Thousand Attend Meeting
at the Armory.
WILL WAIT TWO YEARS
Agree to Give Promoters of Reor
ganization Ample Time to Pay
. All Claims Against Oregon
Trust & Savings Bank.
3 LN- "
STORT OF ARMORY MEETING
BRIEF
Action Taken By Depositors. Plan
for the absorption of the suspended in
stitution by the German-American
Bank indorsed. Resolutions" adopted
petitioning State Circuit Court for an
order directing that the proposed plan
of reorganization be carried out.
Agreed unanimously to wai'. for two
years for the 'jayment of claims
against the bank.
Views of Louis J. 'Wilde. I don't
think anything now stands in the way
to defeat the proposed reorganisation.
Before making any definite statement,
however, I desire to ascertain if the
expression of the depositors' meeting
ls representative of all depositors and
satisfactory to the press and to the
general public. I expect to determine
the general feeling In this matter to
morrow, when I may make a further
announcement.
More than 1000 depositors of the de
funct Oregon Trust & Savings Bank, at
a meeting held in the Armory yester
day afternoon, heartily Indorsed the
proposed merger of the .suspended bank
with the German-American Bank. After
the details of the new plan of reorgan
ization had been explained and a num
ber of addresses made, the depositors
without a dissenting vote, adopted res
olutions agreeing to wait for two years
for their money, and requesting the
State Circuit Court to grant an order
accepting the proposal of the German
American Bank.
Jack Day, president of the Depositors'
Association, occupied the chair, and
at 2:80 o'clock called to order the meet
ing, which completed its work and ad
journed within an hour. B. E. Clem
ents, who Issued the call for the meet
ing, was Introduced, and explained that
the conference had been called for the
purpose of considering the plan that
had been proposed by the German
American Bank. Said he:
Clements Outlines Plan.
If T understand rightly, the German
American Bank has submitted to the re
ceiver of the Oregon Trust & Savings
Bank a plan whereby it is to absorb and
take over the assets of the bank, and
pay each and every depositor in 18
months, which will be explained to you
later; and the bank will resume busi
ness as soon as the court will accept our
proposition. Now, as I am not interested
in the bank, other than as a depositor,
and have little knowledge of the details
of the proposed plan, I will leave this
for the next speaker. I wish to men
tion, however, that if, after the plan is
fully explained to you, you acquiesce in
it, and the court accepts the plan the
receiver expects to- report the bank will
reopen in about ten days.
Receiver Devlin Explains.
Thomas C. Devlin, receiver of the
Oregon Trust & Savings Bank, was the
next speaker. He supplemented the re
marks of Mr. Clements by giving in
detail the plan for the taking over of
the suspended bank by the German
American Bank. Beginning with the
time that he was appointed receiver of
the Oregon Trust, Mr. Devlin said it
had been his impression that the in
stitution could be closed out under the
receivership and pay about SO cents on
the dollar. That was in anticipation,
he explained, that business conditions
would continue as they had been: but
the financial stringency later had de
preciated the value of the bank's secur
ities to the extent that a settlement on
a basis that satisfactory was not like
ly. Continuing, he said:
It then came about that we had sub
mitted to us a plan which you have
heard, in a measure, outlined. That is,
to combine the Oregon Trust & Savings
Bank with the German-American Bank,
which has a capital of $125,000. wtth an
authorized issue of capital of $500,000. The
German-American Bank is in excellent
condition, and it represents among Its
present stockholders the best financiers
upon the Pacific Coast, men of very much
ability wno, i am loiu, in we agRirfiiiio
represent more than $0,000,000. This $125.
000 of capital, or assets, of the German
American Bank, would become, at the
moment that it merges with the Oregon
Trust & Savings Bank. Immediately avail
able for the payment of the liabilities to
you people: In other woVds. you become a
preferred creditor against that stock, and
before they can realize a dollar from it
every dollar due the depositors must be
paid.
Gives Many Figures.
In addition to that there has been $200.
000 of additional subscribed by persons
interested in the Oregon Trust AV-Savings
Bank for stock in the German-American
Bank- That reduces the liabilities of the
Oregon Trust & Savings Bank to that
extent, and in turn makes the remaining
assets more valuable to you. In addition
to all this, the remaining stock required
to make up a $500,000 of capital for the
Oregon Trust & Savings Bank has al
ready been applied for. There are more
people wanting stock in that bank than
we can supply, and more stock has been
applied for than we have to sell. There
fore the pledge has been given to you.
or will be given to you. In the event that
this merger goes through, or that the
German-American Bank absorbs the Ore
gon Trust & Savings Bank, that the
stockholders of that bank shall put up
$500,000 as a guarantee that they will pay
you what Is coming to vou.
The liabilities of the Oregon Trust A
Savings Bank at the present time are
about $2,100,000. Of this amount about $1.
100,000 has at the present time been euo
scribed for bank stock and for telephone
bonds. This would reduce the Ilabtltttes
to about $1,000,000. When that transfer is
made It is then proposed that the $100,000
subscribed for stock in tl-.e German
American Bank will be Increased Dy
$125,000. which it has at present, making
:225,O0O. There will then be another sub
scription of $100,000 In certificates of de
posit of the Oregon Trust & Savings
Bank, thus reducing to $900,000 the liabili
ties of the new bank, and accordingly
increasing the capital stock to the same
amount.
.Will Be No Watered Stock.
The remaining portion of the $500,000 of
the new bank will be subscribed for and
paid for in cash, and there will not be one
dollar of watered stock, or one cent o
bonus stock in this new bank.
I pledge you my word as a man, and
that of Mr. Reed, that these things will
be carried out in the letter and In the
spirit, as we conceive them. You will
............
j!t J ' I
j Caleb Powers, In Whose Case Jury 1
f Again Failed to Agree. J
then notice that the best security to you
is this fact: That the liabilities of the
Oregon Trust & Savings Bank have been
reduced to $900,000: that in the remaining
portion of its assets its bank furniture
and fixtures, etc., valued at $100,000. Its
remaining portion of bonds, its $400,000 In
notes, its $75,000 In one ' bunch of bonds
alone, its land, its property, its all, goes
to pay that $900,000. and as a guarantee
$500,000 for more stock is to be added to
this. It has all of the security In the
world that anybody can want.
As to the payment of interest, I Be
lieve that is a matter which will be de
termined either by the court or by the
board of directors of the new bank. It
is a matter that I could not pass upon
at this time, but I can assure you that
the time required for liquidation will be
very much less than you expect. It Is
going to be the first endeavor of the
new bank to pay you, for this reason:
Of the $900,000 that is owed Dy the bank.
$400,000 Is owned by the man or men or
companies represented by the National
Securities COmpanv that owns the bank,
or one and dne-half interest in the bank.
You ean therefore see that the entire as
sets of the Oregon Trust & Bavlngs Bank
and its $500,000 of new capital is pledged
for the payment of about $600,000 or less,
which is due the vast number of deposi
tors in the old bank.
Interest Is Immaterial.
It seems so perfectly plain and clear
to me that it cannot be questioned: and
I would say that more than one-third of
that amount will be on hand immediately
and the liquidation of the liabilities of
this bank will commence Just as soon aa
the necessary work can be done, aim
after the ' bank lias opened under tne
order of the court. I belyeve that you
will have little reason to demand the in
terest on your deposits, because the time
will be so short before the payment of
them.
8. G. Reed, cashier of the Portland
Railway, Light & Power Company, who
is to be the president of the consolidated
banks, followed and expressed his full
est confidence in the proposed plan. Dis
cussing the terms on which stock in the
new bank will be 'disposed of he said:
Every dollar of the stork that will be
Issued and will be taken by the new sud
scribers will be paid for In cash, or In
taking up money from depositors wno
have subscribed for stock. There will
be no bonuses, nothing given to anybody,
except on the basis of a. dollar ror every
dollar of liability Issued. Now,, the only
thing that I have to say further is that
I hope you will be unanimous in consider
ing this matter now.
Other Plan Cannot Win.
I believe that if the reorganization is
continued in the line of liquidation that It
will be very difficult, under present finan
cial conditions, to get for you more than
a part of the money which you have in
the defunct bank. I am perfectly will
ing and am very glad to undertake this
responsibility, and I wish to assure you
that before any money ts returned, as
dividends or otherwise, to the stockhold
ers, every dollar due the depositors will
be paid in full.
After number of . letters had been
read from out-of-town depositors
heartily Indorsing the ' offer of the
German - American , Bank, Jefferson
Myers and Captain R. Chjlcott warmly
commended the plan as the most feasi
ble that had been suggested. But it
remained . for Herman Wittenberg . to
arouse the meeting to enthusiasm.
After explaining that he held $13,000
worth of certificates in the suspended
bank, Mr. Wittenberg said:- -
Mr. Myers truly states that it is
foolish to ask these people in opening
this bank to do so on three, or six, or
nine, or twelve months'' time in 'which
to liquidate claims of depositors. In
three months the bank will be just
about ready to get its bearings. It
would have made no money as yet; it
would not be in business to any ex
tent: it would merely have attempted
to give proof to the people that it is a
banking institution. In six months it
would begin to establish a little good
feeling. - In nine months people would
begin to have confidence In it. In
twelve months the depositors will
come In. In eighteen months the coun
try will have developed and the people
become enlightened to such an extent
as to begin to realize the fact that we
have a bank, and that this bank will
be able to maintain payments. Is not
that better than to settle on the basis
of 40 or 50 cents on the dollar in a
longer time than that? Better, ladies
and gentlemen, than to work it out in
the receiver's hands and have everyone
get naif as much, and have it cost
you a great deal more time and money?
Promises Dollar for Dollar.
Therefore I say to you that this is a
sane business proposition, for the German-American
will guarantee to you
100 cents on the dollar within two
years. 1 understand there are over
10,000 depositors I don't know but
there are more than 15.030. Why, gen
tlemen, you ran make this the strong
est bank in the City of Portland if you
work for it; with the 10.000 or 15,003
(Concluded on Page, 2-)
SOLDIERS GULLED
no
Hundreds Are Leaving
Vancouver.
GATHERING IS MYSTERIOUS
Will Not Admit Receiving Any
Order to Return.
KN0WNT0 BETRUE.THOUGH
Since Sailing: of Fleet for Pacific,
Reserves Are Known to Have
Been Called Back Brown Men
Are Coming From States.
VANCOUVER, B. C, Jan. 5. (Spe
cial.) Hundreds of Japanese,' whose)
terms of service in the Mikado's army
had not been completed or who were on
the reserve list of fighting men, have
been called home to Japan.
Dosens of Japanese quit their work in
Vancouver yesterday, and many mora
are coming into town today. Already
they are securing passage on vessels
outbound across the Pacific from Van
couver and Victoria. March IS Is givfm
as. the day when they must report ready
for whatever duty is in store for them.
The gathering of the Japanese is be
ing carried out with much mystery. No
less than 200 landed in a bunch this
morning from a small American steamer,
which slipped In and out of the harbor
before daylight and neither entered nor
cleared from the Customs House.
Since Friday there has been ( a steady
stream of the brown men from the log
ging camps. No Japanese In the city
will admit the coming of the order for
the return of the soldiers, but officers of
the Asiatic Exclusion League declare
that they have absolute information that
this order has been received in.'Vancouver
since the departure of the American fleet
for- Pacific -waters. Many of. the- men
now arriving here on their way to Japan
are from the states of Washington and
Oregon.
JAP AS WOULD TAKE OFFENSE
Attempted Exclusion Will Provoke
Insult, Says Aoki.
PARIS, Jan. 6. The newspapers con
tinue to give much space to the American-Japanese
situation. The papers
print an alleged Interview with Count
Aoki, the retiring Ambassador of Japan
at Washington, in which he Is quoted
from San Francisco, as saying Japan
would consider as an offensive action
any attempt on the part of the. United
States to exclude the Japaneee, and
take this as a text for long articles.
Viscount Aoki's denial of this Inter
view has not yet been published here.
Lacking this denial, the Journal Des
bats thinks that in his interview Count
Aoki has placed his fingers on the real
danger spot.
"Japan refuses to admit that any
where on the globe the Japanese are
socially Inferior to any other people,"
says the paper. "Japan claims to have
won the absolute right to be treated aa
a great power everywhere, and under
all circumstances."
In the opinion of Eclair, If the two
governments accede to the sentiments
of the people and the logical necessity
of the situation, a conflict would ap
pear very imminent. "But Japan is
without money. America is not ready,
and we shall doubtless see both nations
champ at their bits awhile longer."
The Gaulols believes that the friend
ly and tactful powers at Washington
will prevent a break. It fears only
that the American people may become
excited. . Baron Karulno, the Japanese
Ambassador to France, today gave out
a statement that he was convinced that
Viscount Aoki only meant that Japan
would consider legislation offensive to
Japan as, for instance, if an ex
clusion act is proposed like the Chi
nese. RECEPTION TENDERED AOKI
Japanese of San Francisco Entertain
the Viscount.
SAN FRANCISCO, Jan. 5. Viscount
Aoki today attended a reception given in
his honor at the residence of Chozo
Korke, the Japanese Consul-General. Tha
Viscount received all of the attaches of
the Consulate and many of the members
of the San Francisco Japanese colony.
Later the Viscount paid a personal visit
to President Pudsumi, of the Yokohama
Specie Bank. Tomorrow Aoki will go to
Oakland to investigate the affairs of the
Japanese In that city.
Kl'MOR DENIED; FACT REMAINS
Consular orfice Will Not Discuss the
' Situation, but Men Pour In.
VANCOUVER. B. C, Jan. 6. Consul
Merlkawa has left here for a furlough
In Japan, and his office denies that
there have been received orders for
the soldiers to return. The fact re
mains, however, that several hundred
men have arrived from the southern
side of the international boundary line.
It is reported that a steamer brought
a large number yesterday from Puget
Sound. .
JAPAN