THE MOItXIXG OREGOXIAX, SATURDAY, J EBIILART 8, 190S.
WELCOME INLAND
EWE TOURISTS
Arrangements for Reception
Are Completed by Com
mercial Club.
EXCURSION HERE TODAY
liuincs People Will Be Kovally En
tertained During Brief Slay in
v Portland on Their Way
to California.
That i he prcat Inland Empire has
contributed much to the upbuilding
of Portland as a seaport of impor
tance Is a fact recognized by every
body at all familiar with the growth
of the :ity. That the bis-hearted
people of that section of the Pacific
Northwest hang out their latchstringa
when Por.tlunders visit them has been
evidenced many times; only a few
months aro a delegation of repre
sentative business men from this city
wore royally entertained at different
cities and towns in Eastern Oregon
and KusU-rn Washington when an ex
cursion whs sent into that region.
Today there will arrive in Portland
a special train from the Inland Em
pire carrying about 220 excursionists,
which left Spokane last night and will
tome into Portland this forenoon at 11
o'clock. Portland is ready to receive
hospitably these visitors. The train is
said by William McMurray, general
passenger agent of the Harriman
lines In Oregon, to carry the largest
excursion ever sent out on the North
west Pacific Coast, and a telegram re
ceived by him yesterday from the
Harriman agent at Spokane says that
tlio special attracted so much admira
tion that many additional applications
for tickets were made after It ,was
hauled into the yards at that point.
The railroad , officials have done
much to make the trip interesting and
comfortable for the excursionists.
They have even added an illuminated
tailpiece to the last cr showing in
electric lights the words, "Inland Em
pire Special.'
Winn the O. R. & N. train reaches
this city the coaches will be 'switched
to the Southern Pacific tracks and a
gaily decorated locomotive will then
lake the special to Ashland.
Auto Trip at Medford.
Word was received yesterday from
tin; Commercial Club .of Medford re
questing that the members of the
party arrange to disembark at that
place and proceed by automobile to
Ashland through the orchard districts,
promising that no time should be lost
by the change of plan. That matter
will be considered upon the arrival of
the train here.
Excepting those who engaged trans
portation late yesterday afternoon, a
roster of the excursionists is as fol
lows: From Spokane AcufT, "W. H.. Barton,
Mrs. IS. .1.. Blldner, Val.. Bildncr, Mrs.,
Miss"tt, Mrs. Mary. Blair, Jt. . Blair, Mrs.
II. C. Brattaln. Mrs. R. R.. Brower, Dr.,
Hrower. Mrs., Burcft, Dr. I,, v., Burch. Mrs.
I.. V.. Burch, I.lla, Carmcl, D. A.. 'armel,
Mrs. l. A., Chamberlain, II. I.., Conley, W.
J , Conley, Mrs. W. J., Crx. John. Cox, Mrs.
T. B.. Dart, I S., DpvlMe, J., Doerr, George
M., Doerr. Mrs. VIeorpo H., Herman, O.,
Dnrman, Mrs. O., Doust. Mrs. W. J.,
Jn-nmlifller. l. M.. Kdwards, Mrs., Klllott,
Harry R., Klliott, Mary Kerguson, Mrs.
Charles. Ferguson, O. L.., Fink, J. II., Korfl
ltani. M.. Kranke, William. Calhruttli, Mrs.
K. r., Gardner. F. M., cloodall, F. tiray,
lr., (';reenoiih. J. B., GreenouRh, Mrs. J.
B.. Harrison. Mrs. "William, Hellman, Mrs.,
Hindi. J A., Hlndle, Mrs. J. A., Horst
nmn. H., Huetter, John. Huntley, Georjje H.,
Hutchinson. It. A-, Hyde, E. J., Jamlrson,
A. C . Janiiepnn, Mrs. A. C, Jonrs, Alfred,
Jonfs, Mrs. Alfred, Kessler.'J. Fred. Knost
inan. William, Koons. cJ., Koons, Mi's. .,
Krum. Charles. ,arkln. O. H . I-nscr, Ed.,
Manley, Mrs. (')iai-les, Mccreary, W. M., Mc
Crfary, Mrs. W. M-, McDonald, 1). K-, Mo
Klroy, Mrs. Sadie. McKenzic, Dr., Mc
Whorter. .1. K., Mocks, F. J., Meeks, Mrs.
F. (i., Merrill, K. B.. Mitchell, A. P.,
Mitchell. Mrs. A. P., Monroe, I,. Moore,
O. .:.. Miimon, II. C, Oakes. J. "W., Oakes;
Mrs. J. W., Paine. J. I,., Parent. Mrs. N. A.,
Parsons. Dr. Effic. Pllsch, Adolph, Porter,
A. 1,., Porter, Mrs. A. U, Porter, TV. II. ,
Porter, Mrs. W. H., Reed, L.. T..
T.eed. Mrs. T,. C., Rldpath, Colonel
TV. M., Robertson, F. R., Robertson,
Mrs. F. R., Sanders. Kd. ganders, Mrs. Kd.
Sanders, P. W., Sanders, Mrs. P. W.,
Schueie, m., Shaw, K. H., Slilpman, Carrie
B. . Skinner, Miss Bertie, Smith, S. M.,
Smith, Mrs. P. M.. Staples, c. G., Swadner.
B. R., TVadman, ir. B., Waters, Mrs. Mary,
Watklns. .1. M.. Watkins, Mrs. "J. M., Wat
son. William, Watson, Mrs. William, TVIi-k-ersham,
C. K., Wolf. Mrs. I. B.. Wooster,
W. W., Wooster. Mrs. W. W., Ycarsley, W.
From Walla Walla Aufrustavo. Mrs. H.
H . Baumistcr, Max. Raninlster, Mrs. Alvina,
Bfrr man. J. K., Beriyman. Mrs. .1. K.,
Blalock. Dr. N. t;., Cookerly. Mrs. Mat tie
C Coleman. Miss Hazel, Coleman. Miss
Krma. Cox. C. (J., Devries. Miss Grace,
Dmnilicller. Oscar, TirumheStcr. Mrs. Oscar,
Holloway, Mrs. K. A., .lolly, Mrs. T. I,
Kaser. F. W., Kaser. Mrs. F. W., Kasebcrg,
Mrs. W- 11.. Malloy. TV. S.. Morse. A A..
Muntlnga. J. U.. MuntlnRa, Mrs. Albert. Mc
cormick. K. K., Me.-ormick. Mrs. N. K.. Mc
.Tonnler. F. K.. Painter, Joe Ed. Painter.
Mrs. Joe Ed, Severance, A. W., Severance,
Mrs. A. TV.. Smalley, K. L.
North Yakima. Wash. Allen. Ed, Calla
han, J.
St. Maries. Idaho McCarter, Mr. and Mrs.
William.
Wallace, Idaho Welghtman,' Mr. and Mrs.
C. D.
Colfax, Wash. McCroskey, V. T, Poteet.
J. TV.
Roekford. Wash. Mattern. J. M.
Harrington. Wash. Newland. T. W.
Lewlston. Idaho Brown, Mrs. C O.
Coulee. Wash. Button. H. JI., Paul. Dan.
Coeur d'Alene. Idaho Johnson. P w
Johnson. Mrs. p. w.. Sander. Mr. and Mrs.
V. TV., WiK8"ctt. J.
Wenatchee. Wash. Llttlefield. II C .
Minefield. Mrs. H. C. Wells. Mr. and Mrs.
A. 7... Williams. Mrs. Mary.
F.r.dlcott. Wash. Macliin, J.
Moscow. Idaho David. F. A.. Hodglns, Ti .
Orland. Hal, Wyatt. Miss A. V.
Freeman. Wash. Thomas. Mr. and Mrs.
CP.
Pullman.Wash. Enos. c. P.. Murrav, Mrs
.T. J., Murray. Miss Neva, Sander. Mrs D
M.. Sparr. Mr. and Mrs. Marlon.
Sand Point. Idaho Farmin, L. D., Farmin.
Mrs. I.. D.. Richards. O. Ii:
Rosalia. Warh. Flsk. R. J., risk. Mrs. R.
ffj.. Flsk. Miss Rosalia.
WaltsbnrK. Wash. Brining. John, Hosklns.
F. M.. Shaftcr. Charles. 'Shaffer. Mr. and
Mrs. TV. B., Shaffer. Miss. Watt. Mrs. M L. .
Watt. Miss. Woods. Mr. and Mrs. Joel.
Milton. Wash. foe. Miss Lena. Elam, Mr.
and Mrs. A. M.. Elam. Miss Bertie.
Pomeroy. Wash. Ford. J. p., Parlet. Mr
and Mrs. W. R.
Tacoma. Wash. Lawler. Georjre, Miller,
Miss Jennie. Pearce. Miss J. D. M.
Dayton, Wash. Pletrzyckl. Dr. and Mrs.
M.. Price. G. F.
rtltsvllle. Wash. Snyder. Mr. and Mrs.
William.
Arrangements Tor Reception.
The special train bearing the party will
arrive this jorning at 11 o'clock. Ar
rangements for the reception of the
visitors were yesterday completed. Sixty
sutoiriolbles have been engaged to convey
the member? of the party on a brief trip
about the city. L.uncheon will be served
at 12:3i) o'clock in the Hotel Portland. Im
mediately afterwards the visitors will
be given a trolley ride to various point,
of interest. At 7 o'rlock they will be
the guests of the Portland Commercial
Club at dinner at the Hotel Portland.
Among those who will speak, at the re
ception tonight at the Portland Hotel are
Governor George E. Chamberlain, H. W.
Scott and Theodore B. Wilcox. At the
conclusion of the dinner there will be a
reception for the visitors.' The party will
rfsume ile journey to California at 11
o'clock. . "
At the conclusion of the dinner there
will be a reception for the visitors.
The party will resume its journey to
California at 11 o'clock. r
Show cards bearing inscriptions, of
welcome were yesterday placed in, the
windows of many of the business
houses and at points to be. passed by
the visitors in their trip about the, city.
These cards read: "Spokane and
TValla TValla Do Things Right." "The
Inland Empire makes Portland the
Great Wheat Shipping Port of the
Coast," "The Inland Empire Made
Portland; You Own the Town."
The. reception committee from the
Commercial Club is composed of the
following:
W. B. Glafke , J. W. Ganotig
Edward Ehrman R. B. Miller
Sfg Slehel Julius Meier
E. H. McCraken W. W. Cotton
Dr. J. R. Weatherbee Whitney I Boise
W. E. Prudhomme H. S. Butterflcld
W. P. Olds A. W. Umhert
D. C. Pelton William Killingsworth
Jefferson Myers A. c. -Jackson
H. W. Mitchell A. P. Tlfft
C. J. McPherson W. D. Wheelwright
C. A. McCarRar John S. Bealls
Dr. K. A. Mackenzie Dr. Sandford Whiting
S. B. Lonenbcrg . E. E. Trent
S. M. Wears T. N. Stoppenbach
R. J. Holmes Paul C. Bates'
E. B. McNaughton , TV. H. Chapin
M. J. Buckley IF. H. fctowe
Ceorse W. Boschke J. M. A. I,aue
W. E. Coman J. W. Casey
D. J. Malarkey . F. S. Dornbecher
George W. Hoyt H. G. Reed
C. M. Gunn W. D. Fenton
T. ('. Devlin I,. Gerllnger.
J. P. O'Brien C. F. Swigert
William Gadsby R. F. Prael
DEATH OF PETER J. FLYNN
Contractor Passes Away After Un
dergoing Surgical Operation.
Peter J. Flynn, for the past 30 years a
resident of Portland, and one of the best
known contractors of the Pacific North
west, died at St. "Vincent's Hospital
Thursday night after a short severe ill
ness followed by an operation for i cir
rhosis of the liver. Mr. Flynn, who was
a robust, hearty man, had- never been ill
before in his life. He had not been feel
ing well for at least two months and al
though knowing that he was suffering
from some serious ailment his rugged con
stitution and energetic spirit kept him
on his feet until he was forced to place
himself in a physician's hands.
He entered the hospital last Sunday and
his condition was found to be so serious
that an operation was performed on -Monday
but the disease by which he had been
attacked had progressed too far for surg
ical aid, and aside from taking such pro
phylactic measures as were found ex
pedient the object of the operation had to
be abandoned. It was seen that he could
not survive the extensive operation his
condition called for, and it being believed
that He would live perhaps for a month
or two it was thought best not to under
take it.
Air. Flynn was a native of the state of
Pennsylvania, having been born in Phila
delphia on April 19, 1857. His early life
was spent in Youngstown, O., where he
has relatives, and from whence he came
to Oregon with George Langford SO years
ago, making his home in this city. From
the time of his arrival here he engaged
in the contracting business and remained
in it until two years ago, when he re
tired from active work. Mr. Flynn built
some of the most important structures
in the city, among them being the Union
Depot. While operating largely alone in
his business he has been associated at
various times with James McBride and A.
J. Bingham, well known In the contract
ing business.
In June, 1SS2, Mr. Flynn married Miss
Elizabeth Beutgen, of this city. Besides
the widow, who is a sister of ex-Representative
Beutgen, of this state, Mr.
Flynn is survived by four sisters and two
brothers. Mrs. Sarah T. Gribben. of
Youngstown, O. ; Mrs. William O'Hare.
of San Francisco; Mrs. Mary O'Mara, of
Anaconda, Mont.; Jlrs. Rose Heffernan,
of this city; James Ij. Flynn, of Youngs
town, O.. and J. K. Flynn, of this city.
The funeral will be held at the Flynn
residence, 161 Twenty-first street. North,
probably Monday.' The interment will be
made in . Mount Calvary Cemetery.
Mr. Flynn was widely and popularly
known in this city, bearing the reputation
of strict business and moral Integrity. He
leaves many friends in both business and
social circles. During his career in busi
ness in Portland he prospered and he left
a large number of valuable pieces or real
estate to his heirs.
COURT TO DECIDE RATES
Temporary Agreement on Lumber
May Be Keaclicd.
SEATTLK. Wash., Feb. 7. (Special.)
That there will be absolutely no com
promise in the tight being waged in
the courts by the railroads and the
lumber interests is the announcement
made today by men directly Interested
In the outcome. Not until the Su
preme Court. has decided the question
will the rate controversy cease:
The railroad officials are willing to
consider some plan tending toward an
amelioration of present conditions,
pending the final result of the rate
tight. The legal forces of the rail
roads will ascertain if there is any
way in whicli resumption of the lum
ber industry can be made possible,
without affecting the rights of the rail
roads before the court.
IXSPKCT VAST TIMBEK IiAXD
Eastern Capitalists Penetrate FVjr-
csls on Vancouver Island. ,
SEATTLE, Wash., Feb. 7. (Special.)
Acquirement of vast timber inter
ests in the Pacific Northwest is the
avowed object of a trip Into the forests
of Vancouver Island now being taken
by officials of the Chicago, St. Paul &
Milwaukee Railroad. At the head of
the party Is President A. J. Earling,
who Is accompanied by H. R. Williams,
local president of the railroad, and
Potter Palmer, the young Chicago mil
lionaire. The party left here three
days ago, accompanied by timber
cruisers and guides.
CHAXGE IX THE AXTI-SAIXOX
State Superintendent to Become Ed
itor of Xicague Publication.
. SEATTLE, Wash., Feb. 7. (Special.)
It was announced today that Ernest
H. Cherrington, for more than two
years state superintendent of the Anti
Saloon League of Wash4ngton, has re
signed and will go to Chicago to as
sume tlio duties of associate editor of
the American Issue, the league's offi
cial National organ. Cherrington. who
ramo here in 1905 from Ohio, will be
succeeded by Rev. Itoyal V. Raymond
of Wilmington, Del.
Girl Slioots Herself In Head.
Susie Cloninger, daughter of Thomas
(Toninger, a rancher living two
miles north of Scappoose, was
fcring from a severe gun wound
in me neaa. nie gin sustained
the wound early yesterday morning, while
alone In her room. Whether the shooting
was accidental or with suicidal intent is
not known. The girl is 15 years old and
.her parents say they know of no reason
why- she should attempt self-destruction.
While in a precarious condition, she was
resting well last night and hopes for her
recovery were entertained.
AMAZING ORGY OF
FRENZIED FINANCE
(Continued From First Pasc.)
having the public share some of its responsi
bilities, a savinRa bank departnu-nt was or
ganized (June 3(. 1004), by the pretense of
setting aside of sundry notes which assi'e-
gated tlO.000, and the issuing of $4v',wo of
bondfl on a safe' deposit vault which had
cost $9200. Of course this pretense of setting
aside of securities for the purpose, of secur
ing the deposits In the bank, was only for
appearance, a It was not in the power of
the company by any mere bookkeeping ruse
to exempt part of its aseets from its general
liabilities and create a special Hen upon them
In favor of any particular class of its credit
ors. With this meager protection, the savings of
children and working people were solicited.
These deposits soon grew to a larg sum by
reason 01 me connoence 01 ine puonc m
the wealth and etanding of its principal
stockholder, and were invested in the various
enterprises of the company. The company
also became the depository of state funds to
a large amount and these were invested in
the same manner.
The leading fixed expenses of the company.
such as salaries, rent and interest, were a
heavy drain, and It is questionable as to
whether the legitimate departments of the
company produced sufficient profit to meet
them, eliminating the extraordinary itema of
Inflation, from the earnings account, conse
quently the sum disbursed in the various en
terprises were in the main from the three
eources heretofore described. I.e. from Laud
& Tilton, from depositors and from the state.
Disaster Follows Disaster.
In a review of the accounts of these specu
lative companies disaster after disaster ap
pears. Many have been wholly or partially
charged off. the result totalling a large
amount, and others Indicating by their char
acter a still further Iocs.
. Nowhere in the record of the minutes of
the company does there appear a single pro
test as to its policy of speculation. Appar
ently Its president expected to profit by he
large per cent of interest earned on the
sums advanced, which provided an -outlet
to his capital, and on prospective earnings
from his stock, of which he held a majority
interest until a quite recent period; and the
other officials, reason of their stock earn
ings and outside speculations.
With continued prosperity, some of the
ventures of the company might have proved
successful and established the company on
a firmer basis, but its policy was ill fitted
to withstand the storm which overwhelmed
it, without further protection.
In time of war our people look to those
who have assumed the, responsibility of their
protection to remain behind their guns. This
requires both moral and physical courage.
So in time of financial strife our people look
to those who have, assumed the responsibility
of the care of their money to remain behind
the guns. In the care of this. bank, when the
attack came,- the 'gunners had deserted, and
the bank failed.
It is a matter of public knowledge that
there was ample wealth among the major
ity stockholders to protect this, bank, whose
condition was a direct resuft of their own
acts, but at the time of crisis the bank was
lef$ to its fate.
Results of the Failure.
The result of this disaster directly has
brought hardship and suffering to Its de
positors, and indirectly, through the tying
up of capital and- general lack of confidence
created, has affected the people at large, and
our proud city, which has long boasted of
its financial strength, has been humiliated
by the publicity which this scandal has
brought upon it.
It is but Just to Mr. L,add to say that,
some time after the closing of the bank, he
came to the rescue of Its creditors and as
sumed all Its liabilities, thus partially reliev
ing the dis-trees caused by the failure.
Reveals Grab Methods.
Significant of the grab methods of the
bank was the absorption of thte revenues
of the Marquam building. This was done
In order, obviously, that if the court
should order the company to hand back
the building to its original owner, Mar
quam would get none of the earnings of
the last few years. The total of the ex
cessive charges is between $00,000 and
$250,000. One of the items is $140,000. pro
ceeds from the sale of the Marquam
theater, in . April, 1907. This money, in
the. form of a note given by the pur
chaser of the theater, was paid as divi
dend by the Oregon Company, possessor
of the building, to its stockholder, tlio
Title bank, and the Title bank -conveyed
it to Ladd & Tilton, to be exoditcd on
the big debt owed by the Title hank,
then amounting to some $780,000. Should
Marquam regain his building he should
have the theater with ft, but that will
be confronted by the claims of an inno
cent purchaser.
Other Big Charges.
Other biir charges against the building
are for services rendered by Ross and
his bank, attorney fees, and eommissio'ns.
One of Ross' grafts was the insuring of
the building, given to J. T. Ross & Co.,
insurance agents, the profits of which
were wholly absorbed by them person
ally. In June, 1905, Ross and Munly were
credited with $10,883 attorney fees, for
compromising county's tax recovery suit
against the Marquam building. On these
matters th& report says:
Kxliibit No. 2.'. Ths i an exhibit of ac
covfnt of J. Thorhurn Ross, trustee of Mar
quam property. It shows something of the
transactions concerning one of the com
pany's most valuable assets, and some
rather extraordinao entries in connection
therewith, among which is one, December
15. 1900, cash paid Ross. $S000; December
1900, cash paid Ross, $15,774.83. These eri
tries are void of any explanation on the
books. June 30. 1901, item chtrged (by
Title Company) $23.i:'. explained as "ac
cruted equities not heretofore charged."
Exhibit No. 24 is an exhibit of the ac
count of thcJDregon Company. This shows
the transactions concerning the Marquam
property from the time it was turned over
to the Oregon Company (in 1901) by J. T.
Ross, trustee, to date. Among other things
noticeable In this account Is that the lire
Insurance on the . Marquam property, the
premiums amounting to many thousands of
dollars, was given entirely to J. T. Ross &
Co. (insurance agents), the profits of which
was whollyabsorbed by them (personally).
Also item of June, 190o, crediting Ross and
Munly attorney (-personal,, for services in
compromising county) tax recovery suit,
$10,883.98. On June, 1903, appears charge (of
Title Company) for services 16 months,
$1333.33 and 3 per" cent commission on renfs
collected. $2093.57 and one-sixth increased.
Income per annum, $1 100.60. June, 1904,
charge (of Title Company) for partial pHy-
IN winter no amount
of warm clothing will
make you safe if your vi
tality is low. Warmth inside
is what you must have.
Scott's Emulsion
of Cod Liver Oil supplies
carbon to the blood and
tissues and makes you
warm and comfortable all
over. It is a safeguard
against colds and all the
ills that follow them.
Small, easily taken doses
will do it
All Drnscuts: 50c aad $1.00.
ment Interest and servlts, J1S (no details
given). June. l'.XM. charge (ot. Title Com
pany), for partial payment for interest and
services rendered. $1fi.HM). , June, I'.mmj.
(charge by Title Company) ' for services
earned and rendered, $12,ooo.
Deals With Iafe Pence.
The Lafc Pence Companies, byname
the Portland Pevelopment Company
and the Colonial Investment Company,
owe the bank $399,000. Arthur W.
Jenks owns practically all of the stock
of the Development Company. Until
the appointment of the bank receiver
hp drew from departments of the
Title Company $200 a month salary,
from the Development Company ?200
and from the Investment Company
$-00, making- a total of $600 a month.
"The Hawkeye Investment Com- !
pany," says the report. "seems
to be a company formed, so
far as we could ascertain, for the pur
pose of having- run through It trans
actions where bonuses were to be re
ceived and disposed of. and matters
which apparently the Title Guarantee
& Trust Company did not care to
openly handle. It appears that at least
one of its transactions was a case
where M. B. Rankin applied for a loan
of $42,500. but instead of making the
loan to' him directly, the Hawkeye
Company took his note, secured by
some stock in the Independence Coal
& Ice Company, as collateral. The
Hawkeye Company gave the Title Guar
antee & Trust Company its note for
a like sum and turned over with it
collateral it had received. The Title
Guarantee & Trust Company still holds
this note and the Hawkeye Company
still holds the note of Rankin.'.'
Burkhart and Ross had two prune
partnerships. One was the C. W. Laver
Trust, the other the Laver Partner
ship Trust. Both borrowed money
from the bank and lost heavily. The
sum of $25,000 of the Laver Trust was
charged to the suspense account of the
bank and then to loss and the Trust
still owes the bank $67-10. -l-'or the
Laver partnership trust $3000 was
charged off to suspense, and there Is
still a balance due the bank of $19,756.
"These accounts charged to sus
pense,'.' says the report, "were after
ward charged off as losses by order
of the board of directors. Thus it ap
pears that these two partnerships, con
sisting of Burkhart and Ross, were
advanced cash by the Title Guarantee
& Trust Company, both the sums
charged to suspense and afterward
charged off to losses, and the additional
sums remaining as balances, amounting-in
all to $56,495, for which as part
ners each of them would seem to be
personally liable to the Title Guarantee
& Trust Company.
Loaned to Themselves.
"Of course, these two men being in
control of the bank and its funds, ap
parently loaned these large sums to
themselves as partners, and then as
officers of the bank excused them
selves from repaying to the bank the
loans thus made and received by
them."
Further on the report says regard
ing similar deals:
Along in 1902 and 1903 there was organ
ized the Great Ccnjral .Railroad Company, a
corporation that was to construct a railroad
from Coos Bay, Oregon, via Roseburg. to
Salt Lake City. One L. D. Kinney was the
-chief engineer and Dromoter of this enter
prise, and in common with many of. the
other fake corporations mentioned, succeeded
in getting its and its promoters hands in the
treasury of the Title Guarantee & Trust Com
pany, and we find In the suspense account
that finally by the resolution of the Board
of Directors. September 17, 1907, eliminated
. from the hook as permanent, the Title Guar
antee & Trust . Company suffered 'an aggre
gate I0S3 from its misplaced confidence in
this high-sounding enterprise, of $:t5,195.
Tlie Gold Coast Company, another enter
prise1 organized in those years, by which
credulous patrons were Induced to part with
their, money on the Representation that It
was to be expended In prospecting for and
discovering mines anywhere hereabouts, wis
organized by one D. H. Stearns and through
this company and other enterprises of said
Stearns the Title Guarantee & Trust Com
pany lost $is.ao.
Other Losing Ventures.
Other companies which caused the
bank to lose money heavily are the
Oregon Land & Water Company (Irri
gon), whose bonds amounting to $225.
000 the bank holds and in addition
favored it with an overdraft of $92.
131; Gold Bug Syndicate, Union Light
& Power Company, Levens Gold Min
ing Company, Fourth Plain Kvaporat
ing Company, Mill Plain Fruit Com
pany and Hawkeye Investment Com
pany. AH these losses have been made
public and the report contains nothing
new about them. The report does not
summarize the total losses which the
bank suffered from its ventures, but
the total is probably about $7,-0',000,
as nearly as it is possible to ascertain.
The organization of the bank de
partment in 1904 the report criticises
severely, showing up the fake $50,300
.capital which the officers set apart
(on paper) as a decoy to depositors.
Of this capital $10,000 was notes, mort
gages and contracts and $40,000 was
bonds on the safety deposit vaults.
These vaults had cost $9200. This
$50,000 'capital was largely fictitious.
The report says:
Of course, the whole of this was a mere
sham intended to deceive the children or
their parents, who were to make the depos
its and fill the little iron boxes that were
distributed among them. It Is an interesting
query as to whether in encouraging the
prospective depositors by publishing this
so-called capital of the bank they apprised
them of the fact that the company's treas
ury was in arrears to the treasurer (Ladd &
Tiltcm) in an enormous constantly increas
ing amount. Could the company sequester
its assets, whether safety vaults or other
assets, or by any bookkeeping process give
them to any of Its departments fo as to
With
7 - I w 1
',5
u
I
deprive Mr. T.add of his right to recover his
debt from the company out of whatever it
had.
Under Xew Hanking; Law.
The new State banking law requires
that whenever an officer of a bank bor
rows money from a bank, the loan must
be approved by a special committee of
the Board of Directors.
In June, when this law became opera
tive, such a committee was appointed in
the Title bank composed of Secretary
Aitchison, Treasurer Burkhart and As
sistant Treasurer Kopf. Of course, the
function of this committee was a mere
sham. As a matter of fact there is no
record of Us ever having passed on
any of the loans. The futility of this
committee is pointed out by the report
as follows:
"Judging from the fact that the subsi
diary corporations and partnerships
owned or officered largely by the offi
cers and employes of the company now
owe the company large sums of money
aggregating an enormous sum. besides
other sums aggregating also very large
which have been charged off to profit
and loss as complete losses, it seems to
be apparent that the locking of the stable
door at this late date came too late to
avert the ruin that has fallen upon the
business of the company."
Regarding the suspense account, which
was a junk pile of bad accounts, "old
hoss" items, and Inflations generally,
the report says:
"A lanye number of items in ..8 ac
count show that the account was a sort
of limbo in which doubtful items were
placed and also that it was used in in
flating and enhancing values when de
sired, and on the whole, without going
into details, this account will furnish
much food for thought and merits a care
ful examination."
As to Suspense Profits.
The report next treats of the suspense
earnings account, which showed a prolit
last June of. $124,000, and says:
To illustrate the nature of this bookkeep
ing Increase in the earnings and holdings of
the 'company, and to show that It largely,
at least, was moonshine, it will only be
necessary to cite briefly the manipulations of
the plant account, which is included in it.
In the first place the plant account is put
in at $125,000. which the books show is in
flated about $40,000 over what is cost. After
ward the plant value was raised to $100,000
from labor charged to tt. and then by an
arbitrary edict of a resolution the valuation
was reduced to $60. "O0. Then on June 30.
190(1. by resolution the valuation was raised
to $125,000.
There was another account called the gen
eral, earnings, which the report says appears
to have been genuine In the early part of
the company's business. But later, items
appeared with inflated figures. On July 30.
1903. the general earnings are credited by
an entry "safe deposit vaults for art oi
advanced value on basis of . $30,000 total."
On June 30. 1904. appeared credit entry
"safe deposit vaults $10,000 and suspense
$10,000. enhanced value of, vaults in excess
of entries heretofore made $20,000." It
would appear from this that they wanted a
showing of earnings Instead of $20,000. so
they charged $10,000 to safe deposit vaults
and $10,000 to suspense, although the entry
undertakes to make it appear that the whole
$20,000 Is enhanced value of vaults.
"Of course, all such earnings are purely
fictitious. The profits of the safe deposit
business may possibly have increased but
that would not increase the value of the
vault any more than it would the chairs and
desks in the office. Their value depends
upon what similar ones could be purchased
and installed for."
Methods of Inflation.
The profit and loes account shows the
same method of inflation. On June 30,
1907, the balance on the credit side was
$64,381. "Were these Items eliminated,"
says the report speaking of inflation, "the
credit profit balance would melt away and
the balance would be on the other side
and would show a loss of considerable
amount Instead of this gain. There are
other accounts standing on the ledgers
which, if investigated and properly
charged up, we are of the opinion would
considerably further increase the showing
of loss.
"One of these is the surplus account into
which was transferred the yearly balances
and profit and loss account. On June 29,
1907, for some reason unexplained, an
entry was made transferring from, profit
and loss to surplus the sum of $9S76,
thereby increasing the surplus account to
an even $125,000. As we have previously
shown if the proper entries were made,
relative to uncollectible and 'depreriative
accounts it would show the balance on
the other side by a considerable sum.
And further, if the water in this credit
balance, owing to the system of Inflated
values we havo referred to, were squeezed
out of It, the balance on the debit or
loss eide would be still further largely
increased."
WOMAN'S COUNSEL SCORED
Terjury and Bribery Charged in the
Dora McDonald Trial.
CHICAGO, Feb. 7. A bitter denuncia
tion of the tactics of the defense was the
keynote of the address of Assistant
State's Attorney Day, who began the
concluding arguments in the trial of Mrs.
Dora McDonald, charged with killing
Webster Guerin, this afternoon. He made
charges of perjury, treachery and brib
ery against the opposing witnesses and
counsel.
There was no hint of the death penalty
in Mr. Day's address. He asked the
jury to find the woman guilty of murder,
but gave it to understand that a peniten
tiary sentence will satisfy the prosecution.
Soda Crackers that -crackle as good
Crackers should
needa Biscis
meals for meals between meals
tgjjlffi In dust tight,
V ft ISIS J jf-tr
Neper sold in bulk.
NATIONAL BISCUIT COMPANY
BRIDGE PROJECT
Gil RIG BOOST
Mass Meeting of Citizens on
East Side Addressed by
Governor and Mayor.
STEEL BRIDGE INADEQUATE
President Munly, of North Eant Side
Improvement Cluo. Gives Figures
ShoxVing How Section Has Out
.g row ii Present Facilities.
An audience of more than 500 citizens
gathered last night In Woodmen Hall,
on Russell' s'reet, under the auspices f
the North East Side Improvement Asso
ciation, to assist in boosting the pro
posed high bridge across the Willamette
River north of Sullivan's Gulch. M. G.
Munly, as president, delivered the wel
come and set forth with figures and sta
tistics the need of this bridge. He showed
the great growth of population and prop
erty valuation on the East Side and the
consequent congestion of traffic on the
present bridges, and declared, that It was
absolutely necessary to have another
bridge, high enough to permit vessels to
pass under and wide enough t accom
modate traffic for 50 years.
In speaking of property valuation, Mr.
Munly pointed to the taxable valuations
on the East Side for 1908. showing the
following: Seventh, Eighth. Ninth and
Tenth wards, total, $46,850,305; total soutn
of Sullivan's Gulch, Seventh and Eighth
wards, $23,009,340; north of Sullivan's
Gulch, Ninth and Tenth wards, $.843.
965; excess valuation north of Sullivan's
Gulch, $S37,331. He said that the total
population of Portland in 1890. Alblna.
East and West Sides, was 64.891. but in
1907 it was 205,000, or. according to Polk's
directory, 225.000. North of Sullivan's
Gulch it was 65.000. south of the gulch
47,000. He said that these figures had
been Increased so that it now stands
60.000 north of the gulch and 50,000 south
of the gulch, or making a total for the
East Side of 112.000 January 1, 1908.
Figures were given for the school pop
ulation to show the growth of the East
Side, the total in 1892 for the entire cits'
being 4164. and now is 32.304. about 12.000
children being north of Sullivan's Gulch
and 10.940 south. Judge Munly said that
the statistics showed the growth of the
Kast Side, and they were the basis r
demand for this high bridge.
Governor Chamberlain was introduced
and spoke strongly for an adequate
bridge that would serve for many years.
He said that this bridge , should be built
for the future. He declared It would
receive his hearty and most active sup
port. Mayor Iano followed with a short talk,
in which be reviewed the progress of the
city and said -none of the present bridges
were adequate. He pledged his assist
ance to the new bridge project. In con
cluding he declared no mistake should be
made in preparing plans for the bridge
and that it ought to be ample for all re
quirements for years to come.
W. M. Cake said that the -figures pre
sented demonstrated that the trend of
population and business was toward the
peninsula, and declared that the West
Side must support the efforts to build
this bridge. In order to facilitate trans
portation between both sides. Whitney
L,. Boise, representing the section south
of Sullivan's Gulch, brought the greet
ings of that section to the North Knst.
He' said that the people south of. Sulli
van's Gulch would help the people north
and would expect their help in getting
a new Madison bridge.
Joseph Buhtcl, "the well-known pioneer,
who helped start the Morrison bridge,
was received with hearty applause- as.
he stepped on the platform, where he
delivered one of the most effective talks
of the evening. In the course of his
address he spoke of the efforts being
made to' regulate the opening and clos
ing of the bridge draws, and asked the
support of the North East Side Improve
ment Association. Dan McAllen. was In
troduced as the father of the Iewls and
Clark Exposition and talked with Ills
usual optimistic spirit for the new
bridge.
After the addresses the actual work
of circulating petitions was started. The
petition la addressed to the City Council,
asking that the matter of erecting a new
bridge across the Willamette river at
some point between the railroad bridge
and the Albina ferry be submitted to the
voters: that an ordinance be passed as
prescribed by sections 81 and 84, and that
plans, estimates and propositions for the
construction be obtftlned.
The. petitions will be signed up as soon
as possible and presented to the City
Council for action. The meeting was
liarneterized by great enthusiasm.
Soda
it
ill
1 luP
A mother who is iu good physical
condition transmits to her child the
blessing of a good constitution;
sickly, ailing mothers, the reverse.
The tiny babe brings to her a liv
ing responsibility. At such a time
too great care cannot be taken to
build up the mother's general con
stitution, and restore her feminine
system to a healthy, normal con
dition. The greatest assistance that
any woman can have in accomplish
ing this all-important work is
LYDIAE.PINKHAI1'S
VEGETABLE COPOUO
Mrs. M. Gilmer, of West Union,
S. C, writes to Mrs. Pinkham,
Lynn, Mass.
" I was greatly run down in health,
suffering from a weakness, peculiar to
my sex. I beg-an to take Lydia E.
Pinkham's Vegetable Compound, and
I was not only restored to health but
am the proud mother of a fine baby
girl. I wish every sick and ailing
woman would give Lydia E. Pinkham's
Vesretable Compound a trial."
Mrs. Paul Oliver, of St. Martin
ville, La., writes to Mrs. IHnkham :
" For years I suffered from the worst
form of female troubles, and the doctor
said I could not pet well without an
operation. Lydia E. Pinkham's Vege
table Compound restored me to perfect
health, and I have the sweetest little
baby girl. I will never cease to
praise Lydia E. Pinkham's medicine."
FACTS FOR SICK WOMEN.
For thirty years Lydia E. liuk
ham's Vegetable Compound, made
from roots and herbs, has been the
standard remedy for female ills.
Hid has positively cured thousands of
women who have been troubled with
the worst forms. Why don't you
try it?
VKsUliVjiht-d 1R70.)
Cares Whllt ton Sltrp
Whoopirtg-Coug h, Croup,
Bronchitis, Coughs,
Diphtheria, Catarrh.
Confidence can be placed in a rem
edy, which for a quarter of a century
has earned unqualified praise. Restful
nights are assured at once.
Cresoieae Is a Boon to Asthmatics
All Druggists
Stnd tostal for de
scriptive booklet.
Cresolene Antiseptic
Throat Tablets for the
irritated throat., of
your druKprist or from
us. 10c. in stamps.
The Vapo-Cresokiie Co,
180 FoltM St., N. Y.
C. GEE WO
The lYHI-Knows
Reliable
CHINESE
Root and Hrrh
DOCTOR
Has made a 111 iudr
nf roots mil nerba. and
4 In that study discovered
Sl and 1 glvlni to tne
world hie wonderful
ramtili
iv.. .r....... . ..i.una or l)ru-e Used lis
Cures WUnoul Operation, or Without tba
Aid ot the Knife. He uaranteea to cure
Catarrh. Asthma. Lun(. Throat, Rheuma
tism. Nervousness. Nervous Debility. Btotn
ach. IJver. Kidney Troubles; also Lost Mao
hood. Female Weakness and All Private
Diseases. CAJJCJ,R CVRX
Jnst Received from Feklnie. China Safe,
(jure and Reliable. IF YOU ARE AT
FLI0TKt. DON T DETLAT. PELATB ARB
SAN4EROCS. If you cannot call, write for
ymptom blank apd circular. Inclose 4
cents In stamps CONSULTATION FREE.
The C. lice Wo Chinese Medicine Co.
16211 First S- Cor. Morrison.
Portland. Oregon.
t riemse) Mention Xuie Faner.
rlsverythloO
and very
black. Paint it j
on. Is better
than enamel.
Dries quicker,
wears longer.
For aale by Hexter. May at Co.. distributors.
FOR WOMEN ONLY
Ir. Sanderson's C o m p ound
Savin and Cotton Root Pills.
The best and only reliable
remedy for DELAYED PER
IODS. Cure the most obstin
ate cases In 0 to 10 anya. no
per box, or three boxes i. Sold by
druggists everywhere. Address T. J.
PIERCE. 181 First St.. Portland. Or.
W- TUB IMAMONI rtRAND.
'lake 110 oiner- riny or Ton r v
tomcalnt. AfcWnrClll.CireS-TERU
DIAMOND i:UM PILLft. for C&
yersknown M Best. Safest. Always ReH la
SOLO RV fW'fir.KTs. FVFRYWRE
I mmecy tor OoDorroma,
fjMoct. spormatorrbfBa
Whites, unnatur&l
' nrt ta Jt rtvr. cnargei, or any loiwniniw
PrfTau eniiri. tion of uucoop mo nr
IthpEmnS QHEMICM.no, brnueo. Non-aitricccnfe
LOiNCitiiUTi.O.rTl Sold Irafrgtat,
or 3nt In plain wroprr.
by jxvresft. ttrmid. fot
$l.no. or 3 bu!, 33.7ft,
Free from harmful drugs.
Cure coughs and hoarse
ness. Relieve Asthma.
V
V'V Lndfcrl Asli your urilnt for i
aT( Clit-ehes-tcr'e liemondTiruedV
feilVjC fills in KrtS sua bold metallic W
affO; J bo.M, seaid ith Blue Ribbon. V
1