Morning Oregonian., October 29, 1909, Page 13, Image 13

TO
ACCUSED OFFICERS
Hearing of Oregon Trust Bank
ers Is Continued Pending
Grand Jury's Action.
CASE IS NEARLY COMPLETE
II. A. Grave Is Only Important Wit
ness Yet to Be neard S. G. Reed
Slrows Contracts for Tel
ephone Bonds.
Intrenched behind an Imposing array
of counsel. Walter H. MoorE. E. Ly
tle W. Cooper Morris. Leo Frlede and
Honry A. Moore, tho omcers and direc
tors of the wrecked OreSon Trust &
.Savings Bank, were arraigned before
Jurlce Bennett In the Municipal Court
yesterday morning to answer to the
charge of having received funds In
their bank when It was Insolvent.
Charles W. Fulton. ex-United States
Senator, appeared as spokesman for the
numerous attorneys representing the
defendants, and asked that the cases be
contlneud for a week.
This request was granted by Judge
Bennett with the consent of Deputy
District Attorney Hennessy. who. after
reading to the arrested bankers the In
formation accusing them of a felon.
informed them that an Indictment was
confidently expected from the grand
jury on the same charge within a short
time, in the event of which h uld.
have the hearing in the Municipal Court
dismissesd and the prosecution begun
Immediately In the Circuit Court.
The demeanor of the accused bankers
showed that all of them felt the gravity
of the charges brought against them.
Without an exception they appeared
pale and concerned. All of them ar
rived some time before their case was
called, and spent the time gossiping in
the ante-room. Rumors that the pres
ent charge was merely one of several
which would be presented by the grand
Jury in the form of indictments reached
the group of bankers, and were dis
cussed with Interest.
Hostilities Not Resumed.
There was no resumption of hostili
ties between Mr. Lytle and Mr. Morris.
They passed each other without word
of greeting. The other members of the
party chatted sociably. Some hints. It
was said, were held out by attorneys
for Mr. Ivtle and Mr. Frlede that doubt
was entertained as to whether they
could be convicted under this charge, it
being held that they were In ignorance
of the bank's real condition.
Even were this contention upheld. It
was declared bv the District Attorney's
office. Mr. Lytle and Mr. Frlede have
slender hope of escaping conviction un
der the charge because of the opening
of the bank on the last two days of its
existence. It is pointed out that all of
the directors were notified of real con
ditions by a committee of the clearing
house on Saturday night. August 17,
and that even after this they allowed
the bank to open on Monday and
Tuesday. August 19 and 20. and re
ceive deposits. Although no Intimation
has been given out as to what Indict
ments will be found by the grand Jury,
It Is believed that Mr. Moore and Mr.
Morris will be indicted on several
counts. The final report will be made
tomorrow.
While the banker were being ar
raigned before Judge Bennett the grand
jury went busily ahead taking testi
mony and continuing its investigation.
Virtually all of the Important testimony
which the grand Jury will want has
been taksn. except that of H. A. Graves,
formerly assistant cashier, who Is In
California, but who has signified his
willingness to return and Is expected to
arrive In Portland today. The remain
der of the time between his appearance
and their adjournment on. Saturday will
be occupied with the consideration of
the legal points Involved and the actual
drawing up of hidlctments.
S. G. Reed Examined.
Perhaps the most Important witness
examined yesterday was S. G. Reed,
president of the German-American
Bank. Mr. Reed had in his possession
the original contract between the Ore
gon Trust & Pavings Bank and the own
ers of the telephone bonds which were
bought. This contract proved the state
ments made by Mr. Morris before the
Jury to he false. Mr. Morris said that
under the arrangement by which the
bonds had been bought he and Mr.
Moore received $100,000 of the stock
bonus. When the contract was pro
duced by Mr. Reed It was shown that
the hank owned all the stock and that
Mr. Moore and Mr. Morris had no title
to It whatsoever.
It was also brought out by Mr. Reed
that a most extraordinary plan had been
resorted to by the officers of the Oregon
Trust & Savings Bank to Increase the
numerical strength of their depositors.
It was a scheme which cost the bank
several thousand dollars and furnished
a new evidence of mismanagement. A
contract was entered into between the
bank and some men in Chicago, whereby
the Chicago men were to secure new de
posltors and receive for each new ac
count 13.50. The Chicago men, it is saio,
wttnvH fnr n few dummv depositors.
whose names they sent In with Jl each
to onen an account In the savings depart
ment. Hundreds of these accounts of $1
were on the books when the bank failed
and were uncalled for. The Chicago
fakers, after making a nice clean-up,
were not heard from again.
Ijytle'B Position fpheld.
tp. s Stanley, who Is one of Mr. Lytle's
bondsmen, was a witness. He testified to
hnvlncr heard the conversation which oc
curred between Mr.-Morris and Mr. Lytle
In Medford relative to the Pacific
Eastern Railroad deal. In this conversa
tion, he said, Mr. Lytle had refused to
have anything to do wltn me rauroaa
which he characterized as "scrap iron "
Frank Robertson, a stock broker, was
called to tell of Mr. Frieda's knowledge
of the bank conditions. Mr. Robertson
could not tell anything showing that
Mr. Frlede had any knowledge of the
deals so frequently referred to, but said
that Mr. Friede had come to him with
tnle of marvelous prosperity at the bank.
He had said that the money was rolling
in by the thousands and that they were
looking for Investments in good bonds
and other securities.
A depositor brought the grand Jury a
little advertising pamphlet, which he sata
had induced him to put his money on de-
rw!t there. The pamphlet reads:
We lead, nth ars follow. Tho officer and1
director of tho OroKon Trust A fiavlnfr
Fank aro men of achievement and handle
;our money ax a sacred truet u well aa a
matter of pride. In the savings department
the wane-earner can accumulate his aav
ln(t. the auardlan or trustee can have his
.mat funds safeguarded, earning 4 per cent
Interest. The funds of the savings depart
ment are loaned only on improved reej es
tate, at 40 per cent of Its value, or municl
nal bonds or warrant. All other funds of
CHARGES
READ
the hank are loaned only on high-grade
collateral, having a ready market value con
siderably in excess of the loans, the officers
and directors ever having In mind, above
every other consideration, safety to Its d
positora In view of the reckless manner In which
the funds of the savings department are
known to have been handled and loaned
out on any kind of collateral or used to
pay out checks, the Jury decided to keep
the advertising circular and turn it in
to the court with Its other evidence and
findings.
Actor Misses His Train,
Pays $325 Penalty
Ernest Lawford, of Blllle Burke
Company, Hlrea Special to Take
Him to Seattle JFrom Portland.
ERXEST LAWFORD. of Miss Billle
Burke's Company, wlhch is to be
seen here, at the Bungalow Theater, the
latter half of next week, deserves the
medal as the most conscientious' actor
on the American stage.
Miss Burke appeared at Sacramento,
Cal., on Saturday evening, October 23,
and Immediately after the performance
boarded a train for Seattle, where she
was booked to open a week's engage
ment last Monday evening. The com
pany arrived in Portland early Monday
morning, and finding that they had
nearly four hours to wait for the train
to Seattle, several of them wandered up
town to pass the time. Mr. Lawford
was one of these. 'All of the others re
turned in good time to the depot. Mr.
Lawford. however, tarried, and when
the time came for the train to pull out,
he was still among the missing.
Naturally, Miss Burke was very much
worried, and Mr. Lawford's under-sludy
went into executive session and began
to study his lines. At one of the way
stations up the line, however, a tele
gram was handed to Miss Burke. It
read:
"Den't worry. Am coming on special,
shall arrive at seven.
"ERXEST LAWFORD."
And sure enough, promptly at 7 P.
M., a special train consisting of an en
gine and one coach, pulled Into the sta
tion at Seattle, with Mr. Lawford as the
sole passenger.
"It cost me $325 that little Jaunt,
said the actor later on. "but it served
me right- I oughtn't to have been such
an ass as to get left."
It may be mentioned, incidentally,
that Mr. Lawford is one of the wealth
iest men on the American stage,
and consequently a little thing like
paying J325 for a special train doesn't
amount to as much to him as it might
to some other actor3. That fact, how
ever, doesn't detract from his merit as
the most conscientious actor on the
American atage.
PICKLE STORY NOT TRUE
Iioy Admits Tale of Long Fast Was
Only Myth.
TMIh ftaHharvlt h 10-veaT-Old lad
who waa found by his mother hiding in
. waaH,iw1 rtr five days' absence.
turned out to be another variety of nature-faker
yesterday, when his tale of
having lived for four days without food
or adequate shelter was Investigated by
Chief Probation Officer Teuscher. It,
was learned that the boy really spent
nn nltrht In the woodshed, the
other three nights of his absence hav
ing been spent In a neignooring oiui..
.nnH.v1 him bv sympathetic
l V7Jli ..". , " -
neighbors so that the youngster s yarn
of four days on a diet of atmosphere
and a single pickle was shattered.
m.- n.nt the entire forenoon
on the case, aa it seemed an unusual one.
At first the boy stuck ny nm ai.-rjr
fasting but the officer did not believe
him because of the well-fed appearance
of the boy. Philip nnaiiy wmiuru
ing taken liberties wun uie iruui.
?- i tr that the boy
has been frequently and severely pun
ished by his parents.
. j v,. loii la inclined to be
louna vim l ' " . .
rather Incorrigible. After the investiga
tion was concluded it waa u.u. -leave
the boy with his Parents who
were told to treat him better in the fu
ture The little fellow is exceptionally
bright for his age; being in the fourth
grade and attending school regular y.
KIs parents promised to be easier on him
hereafter and Philip, for his part, prom
ised to be a better noy.
.o At a laborer, and the ram-
lire, in its' own home at 930 East
Twelfth street, jsortn.
AFTER HOTEL DEAD-BEATS
Detective Agency Engaged by West
ern Association to Nab Swindlers.
. i ihA convention of the
Weetern Hotel Men's Protective Associa
tion in San Francisco last week?, the ho
tel men of the West are to be accorded
much better protection m "
against dead-beats.
"We turned me emim " "
the Thiel Detective Agency." said Man-
TMnuin.n of the Oreson Hotel, who
was a delegate to the convention from
. . . .. .3 r. ..nr rtlan
Portland, "we nave psrw'
whereby we hope to reduce to a minimum
the operation of 'dead-beats.' Of course
It will be impossible to eliminate their
workings entirely, but from now on I
believe the proportion will be far lees.
"In the past the plan has been to try to
secure the money later from those who
go away without paying their bills. In
the casea of people connected with good
families we have often dropped the mat
ter entirely. There will be no more of this
In the future. Now we will prosecute
every case to the limit, send the detec
tives out to bring those who try to de
fraud us back to Justice, and will refuse
to allow the persons to obtain their free
dom by settling the account. Instead, we
will carry the prosecution through, and
seek to" secure a Jail sentence or a fine.
"We will also have a system of photo
graphs and descriptions to send all over
the West describing people who have op
erated in one locality to the detriment of
hotelkeepers. By this means we believe
. ' . - Ai K. nrnfMHnnfll ifoad-beatfl
1 1 1 A I 11 lOll J Ul ...a "
will be apprehended and much money
saved ine noiei men.
11 HRS.30 MIN.T0 SPOKANE
Via North Bank Road.
Kaw tlma schedule effective Sunday.
October SI, S. P. & B. train S leaves
Pnr-tidrVl :2f A. M.. arrives Spokane
9:25 P. M. Train i leaves Portland 7:30
P. M.. arrives 7 A- M. Passenger sta
tion, Eleventn ana rioyr, streets.
Sausage and Headcheese Candies
Create the laugh and delight trie pal
ate. Be sure to see them at Pearce's
(Royal Bakery), Washington and Park
streets.
BACK TO NATURE.
Wat u re supplies a r-iev --
dlseasos, and when such a remedy Is
tnnnd It should be ased. Oregon Herbs
j a tea) is a combination of herbs pre
scribed by nature for kidney and blad
der diseases, and should be used as
nature Intended her medicines to be
. used, namely aa a tea. Ko alcohol to
UillMlb, 11 U llld L yuull
the syte.n. .ai .1 e. .' 1 " '
tea. easily prepared and easily taken.
All dealers should have 1L Price 60c
Harris Trunk Co. for trunks and bags.
BOND PLAN DOUBTED
Wilde's Scheme to Redeem
Telephone Paper' Rejected.
INQUIRY WILL BE MADE
Portland People Who Hold Omaha
Securities Turn Down Offer to
Effect Settlement at 50
Cents on Dollar.
Efforts of Louis J. Wilde to form an
association of the Pacific Coast hold
ers of Omaha Independent Telephone
bonds has aroused tho suspicion of
Portland men who hold large amounts
of these securities. In circular letters,
which have been sent to depositors of
the Oregon Trust & Savings Bank, sus
pended, Wilde has proposed through
such an organisation to secure for the
holders of such bonds a settlement on
the basis of about 50 cents on the dol
lar. Portland people, who accepted
these bonds in part settlement of their
claims with the defunct bank are not
enthusiastic over Wilde's proposed plan
of settlement. On the contrary, they
are resolved to inquire into the situa
tion and take such steps a) may be
deemed advisable for their mutual pro
tection and at the same time insure
larger returns from the bonds they
hold.
Bondholders In Session.
To that end, ft meeting of a number
of the men most heavily concerned in
these securities was held yesterday
afternoon. At this conference the text
of Wilde's letters was discussed with
the result that it was decided unani
mously to reject his proposal, and
through a separate organization of
these bondholders, to co-operate in
some definite plan which will insure
even better returns. The Omaha com
pany has defaulted In the last two pay
ments of the interest charge. This
fact only adds to the interest the hold
ers of these bonds have in the value of
their securities and has stirred them to
the action that has been taken. Ap
proximately $250,000 of these bonds are
held by Portland people.
As a result of the Informal meeting
of these bondholders yesterday, which
was held at Rosenthal's shoestore,
Seventh and Washington streets, C. E.
Rumelin, Jacob Rosenthal and Eugene
Cohn were appointed a committee to
look after the Interests of the deposi
tors with relation to these telephone
bonds. Of the members of the com
mittee, Mr. Rumelin holds about $16,000
of the Omaha, bonds, while Messrs.
Cohn and Rosenthal have each acquired
about $20,000 of the same class oi se
curities.
Call Issued for Names.
m.t v. nr a mnv K concerted action
nf thn bondholders, the
committee has decided to request every
person noiaing omana lempnuuo ui".
11 4 . V. amnunt Of their
rejtaruicoo vi i .. . .. ..
holdings, to send their names and ad
dresses to Asniey at Kumenn. umnw ,
of this city, together with the amount
. i. v. th.v ma v have. When
Ul BUCIl iwiiua j ...u-
this Information has been secured, it Is
the purpose of trie committee i"
- . - m.atlnfr to which will be
invited all depositors who havo any of
these bonds. ai mia niwii oui..,
definite plan of action will be adopted.
The purpose of this movement In
opposition to Wilde's activities is to se
cure for the holders of these bonds all
that It is possible to realiza therefrom.
Portland people do not enthuse over
Wilde's plan and are averse to having
any further dealings with him. They
refer to the fact that Wilde was largely
responsible for me romiuin umv
defunct bank these securities in the
or,, their ira disnoaed to look
to other sources than Wilde and any
scheme he may suggest ror ri's
adequate returns from their securities.
n..ti.n4 ninii who hold these se
curities, contend that in any settlement
which may be made, those who have
paid cash for their bonds should be the
first to receive coiwoerauuu. inua
who have acquired the bonds .otherwise,
. . . -w. j .it.. MhnnlH coma sec
ond, while the stockholders, being un-
preferred creaitors, snouiu ua.no
place.
DEFENDS 'PHONE COMPANIES
Many Depositors Paid Through
Their Sacrifices, Says Wilde.
SAN DIEGO, Cal., Oct. 28. (To the
-c- i n- t nm atimrlsed it has taken
two years to discover the alleged condi
tion of Oregon irusi, aim wuu
investigation or liquidation of assets by
the German-American. Provision was
made to pay all depositors by reason of
the telephone companies' sacrifices under
the court's order after thorough investi
gation. I am perfectly willing to state what
Information I have regarding any trans
actions I had with that bank or any
other bank. I was never officer or
director, nor was I connected with
the management of the Oregon Trust in
any manner directly or Indirectly. Many
hundreds of depositors have received
their money or a greater part of It
through the telephone compnles' sacrl-
Ml narannfll tttfnrtn And it Ir
ill co aim iii j yiiDvu.i . -. . - , -
ungrateful to speak disparagingly ot
theee interests at this late date.
I sold many banks on the Coast, in
cluding Ladd & Tilton and the Merchants'
National, of Portland, telephone securi
ties. The Oregon Trust paid no more
nor no less than the established price,
and all references to the contrary are
untrue.
I am proud of my business record at
Portland. I made good absolutely to
everybody and hope I am above suspi
cion with my friends. My enemies can
go to. J-i. j. w 1 1 ,) ;m.
TO DEFINE "CHOCOLATE"
Department of Agriculture Will Hold
Hearing In Washington.
PORTLAKD, Oct. 28. (To the Ertltor.)
The following may be of interest to soma
of the wholesalers In Portland. I have Just
received a notice from the Tjnlted States
renartment of Agriculture. Washington, u.
C aaylng that a Bearing- will be held In
Washington In the board room. Department
of Xirtculture, at lO A. M-, November z.
1909. They wish to have more Information
as to the use of the terms Cocoa ana cnoo
olate. At this hearing the following points
will be considered.
What la the proper slgnlflcanoe of the
term "Ohocolate" and Its correlative term
"plain or bitter chocolata," "sweet choco
late." atcf
What Is the proper application of the
term "cocoa" and Its correlative term "sweet
cocoa," etct
A. I KINSBtiT.
Acting Chief, Portland laboratory.
$30 REWARD
.-'or any case of Kidney, Bladder or
Rheumatic trouble Halls Texas won
tier cannot cure if taken in time and
irlven a fair trial. One bottle often per
fects a cure. Sold by all druggists or
man, ii.oo. send tor testimonials, ur,
E. W. Ball. S926 Olive St., St. Louis. Mo.
FRID
$5 Values $4,
Ss!mWblmMllAtkiB i-
GRANT PHEGLEY. Manager.
EDDIE FOY SERIOUS MAN
COMEDIAX REFUSES TO COMEDE
BEHIXD THE SCEXES.
Pores Over Ancient Tomes, Dlscnsses
Bacon Myth and Doubts That Dr.
Cook Reached North Pole.
TTHt ttviv- veteran clown comedian.
lives tr-ue to the rule in that he's the
mi aprlnua of men the moment his
back is turned to his work. Even while
an audience is yet convulsed with the
quite Irresistible Foy brand of fun you 11
(d h source of It shut In his dressing-
room with brows knotted over some seri
ous tome.
vot Via Intends always to play the
clown so far as his professional career
is concerned.
von T can't take people seriously
enough to try to appeal to their serious
natures. " h? explained last night in nis
What Preparations Are
You Making for
Music This Winter?
ENJOY the gems of opera
during the long Winter
evenings. Select the record of
any songbird; place it on' the
Victrola. Sit back in your easy
ehair. All the world of song is
yours to enjoy with a Victrola
by your fireside.
Tree concerts daily In our Vic
tor Salesrooms.
Yictrolas $125, $200, $250
Improved Victors $10 Up
erman lay&Ca.
Wholesale and Retail
Jth and Morrison, Op. Postoffice
til"
k if- f
sv It 1
PEGIAI
AY SATU
G
Awa
AND
FRIDAY
Our Suits at $15,
in Portland; it's an opportunity for you
money by coming to us.
BRING THE BOYS HERE FOR KNICKERBOCKER SUITS
1000 BOYS' SUITS, ages 4 to 16 years; made from the same fabrics as our
Men's Clothing;, tailored by men tailors, will be sold at the following; prices:
$6.50 Values $5,
HTTTFTTTERS TO
diveslng-room at the Portland Theater,
reluctantly putting as-lde a doleful ap
pearing volume of medieval extraction.
"I've been so utcd to the laughing Bide
of people that It' a too late to try to re
form and turn to the business of mak
ing them think. Anyway it may be tnat
it's more useful to make them laugh.
"Now, do you know, I've got pretty
good reasons for believing that Cook
never reached the North- he broke
over. .
"Oh, yes, about the comedy business.
Well, a man who follows the comedy line
is foolish from a financial point of view
anyway." he said. "Look how Crane and
a lot of the others broke away from It.
I don't blame them. It's too expensive.
"By the way," he broke away again,
"have you been reading this rot about
Shakespeare's productions being finally
traced to Lord Bacon through crypto
grams They seem bound to bunco
Shakespeare out of the credit of Me great
works. I can prove"
"You were saying the comedy line Is
unprofitable." he was interrupted.
"Why, yes, of course It is- The man
with a serious role can get a little com
pany of a dozen or so and hit out through
the country, with small expense. The
comedian has got to get a great big com
pan and a costly production OT
t Sincerity
for young men are properly
smart. Good taste never runs to ex
tremes and good style is just good taste,
possess fitness but their fit is just as note
worthy. That's because they're made of
London Shrunk fabrics. The. shrinking keeps
the cloth from warping, just as seasoning keeps
wood from twisting. Yoil can be sure that
Sincerity lapels will always be as flat and smooth'
as at the dealer's, and Sincerity collars never,
pull away from the neck. To have
this perfect we must Use fifteen" per cent of the
materials, but don't lose your good will. It s
to the mill's advantage to make the least' wool into the most
material; it's to our advantage to have the most value make,
the most custtmers.Find this label or. find A betfer shop.
mikimt- Wrtu
Kuh. Eathaa
MAKERS
0 FIVE DOLLARS' worth of Men's
1. yrm. oe Furnishing Goods. All new, up-to
(H II the-minute merchandise, consisting
V ViLJL of Hat shirts. Collars, Sox, Un
derwear,
"JL--f-ic
yown articles and take them
home with you, or, if you
orefer. we will issue a
.Free!
With
Our
OTHERS MORE EXPENSIVE
AND SATURDAY
$18, $20 and $25 are the
$8 Values $6, $10
MEN AND BOYS
" Seventh and Stark Streets
falls down. This here 'Mr. Hamlet of
T 1 hnnAea irtcta C-UWl ft Wplc.
Uilll J li 11 ... 1 .1
Can t you see where tne comeaian gem
the raw end of the thing from a financial
standpoint.
"Now about that fellow Cook," he per
sisted, a look of determination settling
over his face as he broke away from
shop talk for the third time. "The rea
son I think Cook 1s a faker is on account
of the man that backed hlra. He made
his money out of gambling devices sure
thing devices, at that. When he backed
anyone to go north It must have been
on a sure thing, knowing the man who
came back with the tale of a discovered
pole would have no trouble In picking
up $100,000 or so."
Foy then wandered away Into ft dis
sertation upon the remarkable advances
made recently In the science of aviation.
"The next time my troupe comes to
Portland I feel sure we'll travel by the
aerial limited," h was predicting when
the summons came to go on.
Delicious Salted Almonds.
Blanching almonds Is an art Why
bother when you can get them ready to
serve more perfectly done at Pearce s
(Royal Bakery).
Clothes t
U tmt w M. I
6 Hsctust To
3
! CHICAGO
0
9?
RDAY
Gloves. Umbrellas,
pfv Chnnse vouf
credit memo, good for $5
worth of furnishing goods
which you may call for
at your convenience.
best clothes values
to save a piece ot
Values $7.50
nSHOB
FOR.
A good look al
THE PACKARD,
will convince any
man of its sup
erior merits.
Giveyour feet
thetenefilof
'our 27year$
experience.
Packard gualily
mulliplies.com-
fort. Askyour
1 i .... u
i
aeaier no mauer
where.
PHILLIPS SHOE CO.
100 Sixth St.,
Portland, Oregon
rT1
'APENTA!'
BoiTUO AT me .Swvss. Bum Pest, Huhoakt.
Colorado Sprlnua, Colo. Cracksmen se
cured batimn $0f0 and M(O0 In tamp bjr
blowlnr Ibo aale at the Colorado City poat
oftlce Tnursdaj' morning.
r
B t