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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 14, 1910)
14 TIIE HORNING OREGONIAN, THURSDAY, ArRIIi 14. 1910. FUND AIDING DAI MAY HIDE FRAUD Grand Jury Likely to Investr gate Louis J. Wilde's Phone Bond Sale. LOST CONTRACT INVOLVED $300,000 Paid Depositors of Oregon Trust Said to Be "Wilde's Coin raid to Cover Sum Which Was Xot Refunded. There Is excellent reason to believe that Louis J. Wilde, of Omaha and Pugret Bound telephone stock fame will be made the object of a searching: investigation by -the grand Jury. The bond transaction between Mr. Wilde and the Oregon Trust & Savings Bank by which the bank bought more than tl, 000, 000 in telephone bonds will be the basts of the inquiry, the object of which will -be to ascertain if Mr. Wilde may be held for embezzle ment. Although no announcement has been made officially from the District Attor ney's office that this course will be pur Bued, It la positively known that Investi gations have been and are now under way looking toward the Indictment of the California promoter. Incidental to these Investigations, dis closures have been made which are said to Involve P. L. Willis, the well-, known capitalist now at the head of tho German-American Bank, President S. G. Reed, of that institution, and Thomas C. Devlin, receiver for the Oregon Trust. All three are alleged to have entered into a conspiracy with Wilde to cover the alleged fraudulent transactions of the bonds which might have been forced back upon Wilde under the provisions of the contract by which they were bought and the money thus refunded used in paying off all the depositors In cash in stead of part of them in bonds. To prevent the return of the full amount of this money to the bank. Wilde and his associates. It is said, advanced the $300,000 which was used by Mr. Willis recently to pay off the remaining depositors who had claims standing against the wrecked bank Local Financiers Mentioned. Conflicting with this allegation, how ever, was information from a reliable source received yesterday which shows that Instead of this money having come from Mr. Wilde or any of hla associates, inreeilty it came from financiers in Port land, who did not want their connection with the deal to become known to the clearing-house and arranged the transfer off-he money to Mr. Willis and the German-American Bank through the Anglo-London-Paris National Bank of Ban Pranclsco, Cal. The name o( A. L Mills, president of the First National Bank of this city, 1b mentioned as the principal who ar ranged the loan with Mr. Willis. Mr. Mills, who is a member of the Clearing House, had attended the meetings at which it was decided that assistance to the German-American Bank in rais ing the 1300,000 would be refused ex cept on condition that the bank close and liquidate its business. It had been adopted unanimously that the loan to Mr. Willis would not be made. For this reason', it Is said. Mr. Mills did not wish to have it become known to his associates in the Clearing House that he negotiated this loan. That Mr. Mills made the loan is denied, however, by Mr. Willis, who, although denying that the loan was negotiated by Mr. Mills, would not deny that it originated In Portland. One of the banks In this city, hav ing a balance on deposit with the San Francisco bank, the story goes, merely drew a draft on their balance there, thus preventing the transaction from passing through the Clearing House- of Portland. At the time the negotiations with Mr. Willis were started It is said that this bank had only a small amount on deposit in the San Francisco bank and that to increase it to the amount necessary to conclude the Willis deal drafts for more than $200,000 were sent rrom Portland to San Francisco and the whole amount then sent back to this city. Wilde Called Wily. The Intimation that he or his asso ciates might be In any way connected with Louis J. Wilde was denied in dignantly by Mr. Willis yesterday "I had heard that Wilde would come under the investigation of this bank, but had . considered him so wily that he could squirm himself out of the way of the grand jury. "The rumor that Wilde had anything to do with the payment of the 1300,000 is false. That money was all mine; very cent of it. Wilde did not put up a nickel of it. The money was lent on my own personal securities and came to me from a private source, not a banker. I can readily prove that Wilde or his associates had nothing to do with it. '"The very idea that he would have had anything to do with this deal is surprising to me, as he has never been very friendly to me. or. as far as I know, to Mr. Reed or Mr. Devlin. All his acts have been unfriendly to the German-American and he has not on. e rated with us. P "I. personally, had thought that Wilde nad not done the right thing at all I haven't the slightest doubt as to the hon esty and integrity of Mr. Reed and Mr Devlin, however. The whole story is an utter falsehood, started by someone for ome purpose unknown to me." Devlin to Resign. Mr. Devlin said: "1 don't know where Mr. Willis got the 30O.O0O. but I don't believe that Wilde or any one remotely related to him had any thing to do with It. I am preparing my report for the court and will tender my resignation from the German-American Bank at the next meeting of the board of directors. I am too busily engaged on the work of the receivership to mointain my duties as cashier of the bank, and for this reason will ask for the acceptance of my resignation." The next board meeting win be held mlthin a few days. The charges against Wilde have grown out of the revelations, made for the first time in the trial of W. H. Moore, that the contract for the telephone bonds stip ulated that the money paid for them might be demanded in return and the deal repudiated within a certain period, which did not expire until nearly a month after the Oregon Trust & Savings Bank had suspended payment. Wilder knowing this condition of the sale, the prosecuting officials will con tend, ekould have made this known, but Instead willfully concealed It and con spired to hide the contracts which would free him from the enforcement of this clause. Inasmuch as the funds of the bank were invested In these bonds in violation of the by-laws of the corpora tion, which strictly prohibited the in vestment of the savings deposits except in certain approved securities, the pur chase of the bonds will be held in court. it is believed, as an embezzlement. Wilde Liable, Alleged. Wilde's attempts to conceal this-make him liable as aiding and abetting the embezzlement, and under the Oregon statutes one aiding and abetting a crime may be tried for the commission of the crime. under this reasoning ilde "will in all probability, be called upon to an swer to the charge of embezzlement. It is also said that Receiver Devlin may be asked . to explain some trans actions which he , habN with . Wilde with out the knowledge or permission of the court. It is said that he paid W ilde about $38,000 In cash in settlement of a claim, a short time after the bank closed without getting permission of the court thus making Wilde's claim preferred over those of the depositors. It is also intimated that a civil suit may be instituted against Wilde by the bondholders In this city seeking to compel him to refund the purchase price of the bonds, alleging that the money had been obtained and held under fraud. Wilde acted as a broker for the Port land Home, the Tacoma, Home, the Northwestern Long Distance, and the Omaha Home Telephone companies. The National Securities Company of Los An geles, Oal., were the underwriters of the bonds of them all except the Omaha bonds. M. V. Meade, manager of the National Securities Company is Wilde's brother-in-law. Wilde sold the bonds to the Oregon Trust & Savings Bank and received an enormous commission which was shared, it is said, with the officials of the bank. Commission Relieved Enormous. It is said that ignorance of the refund clause in the sele contract was main tained by all concerned -to prevent the return of this commission, which is said to have reached an enormous sum. One authority in the case in a position to be well Informed has offered the opinion that the . owners of the bonds did not receive more than 50 cents on the dollar out of the original purchase. At the time the bank closed the con tracts between Wilde and the bank could not be found. The contract for the Omaha bonds has never been found. After the criminal prosecutions were be gun search was made in . the bank and Receiver Devlin found the contracts for the other bonds tucked away in a safe deposit vault. The terms of this docu ment, he said, had been unknown to him. Mr. Moore said that he was not aware of the clause about the return of the money and passes this point for explana tion up to M. Cooper Morns, who, he pays, drew up the contracts and should have known what they contained. Mr. Moore says these contracts were signed with the knowledge and consent of the full board of directors, including Mr. Lytle and Mr. Friede. The prosecut ing officials say that the truth about the contracts will be ferreted dut and it is Intimated that at the same ' time it will be defintely known now and by whom the loan of $300,000 to Mr. Willis was made. A man close to the friends of Wilde says that the investigation of the allega tions that Messrs. Willis, Reed and Dev lin have made a deal with Wilde will prove this rumor to be untrue. Wilde, he said, secured -commission out of the deal, but had no deeper relations with the National Securities Company. Wilde is now In California, but Is ex pected to come to Portland to fight the charges which may be filed against him. CLERK FIELDS GIVEN CAKE Four Strong Men Can Barely rry Birthday Present. It was all four husky deputy clerks could do to carry into County Clerk Fielos' office yesterday . morndngr the ponderous birthday cake presented to him by his deputy clerks, etalT of stenog raphers and friends in the County Clerk's office. The occasion was the 4Rth anniversary of Mr. Fields' natal day and, , while everyone was most careful to avoid any allusion to his approaching- gray hairs. the most felicitous speeches were made both to and by Clerk Fields. Towards evening1 Clerk Fields was clearly , bothered whether to keep the wonderful cake on exhibition at his office or transport it to his home. Its fragile nature made him somewhat chary of intrusting" an expressman with the enormous piece of pastry, covered with Its pink and white decoration. Eventual ly he decided to call a carriage, and obtained the assistance of the office staff to move the cake. DEAL CL0SEDF0R $26,000 II. II. Prouty Acquires East Side Property in Holladay Addition. , II. H. Prouty has purchased a half block located on Kaet Third street, ex tending from Hassalo to Multnomah streets, from W. L. Archambeau for $25. 000. The property Is described as the west half of block 65, Holladay's Addi tion. Two modern residences, one cor nering on East Third and Multnomah streets and the other on East Third and Hassalo streets, occupy the property. The deal was negotiated through the agency of the Standard Realty Company. Between the two residences there Is a large vacant space over 100x100 feet in else. This part of the property Mr. Prouty will at once improve with a large modern apartment-house. It will be built of brick- THREE NEW SUBDIVISION'S NOW SUGGESTED BOUNDARIES OF LANE AND DOUGLAS. vjjqm Cocsmr ? covsrrr MAP SHOWING PROPOSED COIXTIES OK XESMITH, OIPQIA AXD WILLIAMS. NEW EXECUTIVE BOARD IS NAMED Commercial. Club Committee Welcomes Three Members on 1910 Body. TOM RICHARDSON MAY STAY Appointment of Manager of Public ity Duty Which Develops on Xewly-ehosen Organization. 2 7,00 0 Hear of Oregon. Harvey Beckwlth, president of the Com mercial Club, yesterday named the mem bers of the new executive committee of that organization for 1910. With the ex ception of three, all -the former members of the executive committee were re named. The new members of the committee are: Harvey Beckwlth, who, by virtue of his position as president of the club, is made. a member; B. I Thompson and C. ti. Jackson. Alembers of the old executive committee who' have been reappointed are: T. B. Wilcox, chairman; J. C. Ains worth, A. L. Mills. W. K. Woodward, Walter F. Burrell, William M. Ladd, George F. Johnson, Frank B. Kerr, W. J. Hofman, B. S. Josselyn, I. M. Flelschner and A. H. Devers. Richardson May Be Renamed. One of the first duties to be attended to by this committee will be the ap pointment of a manager of publicity. Tom Richardson has been filling that position of late years, and it is believed that he fwill be reappointed. Mr. Richardson's contract with the club expired January 14. The Portland Commercial Club has two functions, the advertising of Ore gon and the entertainment of visitors and newcomers. Of late the club has gained distinction for its expensive campaign of promotion for Oregon at large, appropriating $60,000 a year for that purpose. It Is estimated that the literature of the Commercial Club, descriptive of Oregon, has reached 27,000.000 people In all parts of the world. There have already been received this year 10,000 letters of inquiry, resulting from the club's advertising of the . state. Some idea of the amount of corre spondence done - by the -Commercial Club in Its work of promotion may be seen from the fact that during 1909, the club paid out $3151.62 for postage stamps, although -much literature and mailable material was sent by express. Affiliated with the Portland Com mercial Club in its campaign of promo tion for the state, are 108 other organ izations belonging to the Oregon De velopment League, which represents every district of the commonwealth. While the Commercial Club co-operates with the smaller organizations, the lat ter pay the expenses only of adver tising their respective localities, while the Commercial Club bears the full ex pense of the general advertising of the state. For promotion purposes, the club, has built up an Intricate machine that not only prepares literature for advertising purposes and cares for the great volume of correspondence dally, but also sends regular news letters to periodicals all over the country, the purpose being to familiarize the world with what is be ing done here. . . The publicity department of the club is preparing to enter on the most ex tensive advertising project in its his tory. This will be launched soon, that It may turn the Spring tide of lmmi gratlon this way. . Although the club spends such a large amount yearly for promotion work, none of the money thus used comes from the dues paid in by mem bers of the club. The money used for publicity purposes comes entirely from subscriptions made by public-spirited men. Deaf Man Is Struck by Train. TAQUINA, Or., April 13. (Special.) C. H. Gillette, of Toledo, was struck by the ' Corvallls & Eastern train near To ledo and seriously Injured last night. As yet he has not fully regained conscious ness. Mr. Gillette, who is 72 years old, was returning . from Altress sawmill, where he is employed, walking along the track with his head down. Being very deaf, he did not hear the train approach ing. The engineer could not see him on account of being obscured by a curve in the road. Gillette was quickly removed to a nearby farmhouse, owned by his son-in-law, Edwin Stanton. He may re cover. Aviator Burkhart Visits Portland. ALBAXY, Or., April 13. (Special.) Aviator John C. Burkhart, who Is con ducting experiments at this city with his biplane airship, left last night for a visit in Portland. WITHIN covjrT-y: ........... - oyal Sep IpVfe Best NOTICE THE WORD "ROYAL" IN THE BOTTOM OF THE LOAF A FIRM could advertise ten times as much as we do, and by so doing could probably increase their output, temporarily, in" proportion to the publicity given their product. BUT if that product wasn't RIGHT, the output would decrease.. " . IN" other words, if "Table Queen" was not the perfect bread it is, it would be folly for us to represent its merits to you by advertising. IT is so wholesome, pure, sweet and nutritious that the family wants MORE. IT is the one bread that can stand the test of Public Opinion YOU can get it of your dealer, no maiW in what part of the city you live; it comes to the store ' you trade with, fresh every day. . IF there is such a thing as a-dealer having a Royal loaf left over from the previous day, we take it off his hands, so that you can buy nothing but fresh ROYAXi BREAD of him. FAB NEW COUNTY ASKED Drain Would Be Seat of One Called Williams. COTTAGE GROVE OPPOSES Encroachment Upon the Proposed Boundaries of Nesmith Creates Opposition Other Petitions Already Are Filed. Another new county movement has been started in portions of Lane and Douglas counties, backed, it is said, principally by the citizens of Drain, who have county seat ambitions. The proposal provides for a new county, to be called Williams, in honor of the late George H Williams. ( As the proposed boundaries take in a large part of the proposed new county of Nesmith, Cottage Grove resi dents are opposing the-new movement vigorously, and whether a petition signed by a sufficient number to bring the issue to a vote next Pall is secured is yet to be determined. Other Petitions Filed. In any event the voters will te called upon' to decide "whether there shall be two counties framed out of portions of Lane and Douglas. The movement for the creation of Nesmith County, occu pying the east central portion of the territory embraced in Douglas and Lane, comes up on initiative petition, as does also the question of forming Umpqua County out of the northwest ern section of the combined area. The initiative petitions affecting both pro posed counties have already been filed and will have places on the ballot next Fall. The leaders in the movement for the creation of Nesmith County, it is un derstood, are not opposing the crea tion of Umpqua County, but do object to the Williams County scheme. Xesmith Advocates Active. The Nesmith County promoters have started an advertising campaign' and have published literature giving a bio graphy of James Willis Nesmith, in whose honor the new county will be named if It is created. Colonel Nes mith held the following civil offices: Judge under the Oregon Provisional government, 1845-46; member of the Provisional Legislature. 184S; United States Marshal. 1856-6; superintendent Indian affairs. 1866-69; United States Senator, 1861-67; member of Congress, 1878-75. Figures art given in the leaf lets published showing that the joint area of Lane and Douglas counties, 9241 square miles, is 455 miles greater than the combined areas of Clatsop, Columbia, Washington. Yamhill. Polk. Tillamook. Marion, Clackamas, Multno mah and Hood River counties. There are indications that the south ern portion of Douglas and the north ern section of Lane counties will make a fight against the proposed division. - Governor Hay To Visit Schools. OLTMP1A. Wash.. April 1. (Special.) Governor Hay will start Saturday on a tour of the state, during which he will hold conference with President Bryan, of the State College; President Kane, of the Table Queen" Sells Itself the Steam Sizzle Out of the Crisp, Crackling Crust HJE QUEEN THE SCIENTIFIC LOAF SHipped Everywhere West of the Rockies University, . and the principala of tho three normal schools regarding the rec ommendations made In the report of the legislative invest! grating' committee. The Governor -will attend the Good Roads Convention at Ch eh ails Friday and from there go to Spokane. WAGNER ON JUNK WAGON Constable, Seizing Vehicle and Un sightly Horse, Drives Away. Constable Lou Wagner drove a most disreputable-looking Junk wagon, hauled by an as equally disreputable-looking horse through the main streets yesterday. By pulling his hat over his face the Con stable endeavored to hide his identity. Following- Constable Wagner's morning drive a little gathering of Russians hied to the office of the Constable. They sought possession of the wagon, but to obtain it they had first to give J216 to satisfy a debt. This they did willingly, but when it came to -paying $3 costs due the Justice Court they protested long and strenuously. Just as strenuously they protested against the payment of 60 cents to the keeper of the stable where Con stable Wagner hid away his stately equipage. MORE GRADING ORDERED (Continued From First Page.) Klamath is developing into a stoc-k-shlpping center, about 1000 carloads having gone out of there last year and the transfer difficulties with live stock from steamer to cars are not difficult. Colonist Travel Great. Mr. Stevens returned to Portland with glowing .accounts of crop oonditlons and the volume of colonist travel to the West. "Spring in North Dakota Is a month ahead of even Portland," said Mr. Stev ens. "Crops have a good start and the weather is like Summer. Coming through North Dakota the other day the thermometer in our car registered 87 degrees. I saw Mr. Hill a few mo ments in' Chicago as he passed through from New York and he is very opti mistio over the Western conditions in view of the crop prospect. All along the Great Northern I heard of Indica tions of unpreceuented yields. "Westward travel is tremendous. On the train they told me that the day before No. 3,- the slow train on the Great Northern, went through in sec tions and carried 1600 people. "From Havre west for 112 miles whole towns have sprung into existence since I passed over the road three months ago. Along that stretch of road there are switches about . every five miles, which X built myself. A few months ago at nearly every one of these switches small settlements were starting. Now many of them are full- fledged towns and in some of them I saw 125 'to 150 buildings in course of construction. Wonderful Transformation Noted. "Along other sections of the Great Northern in Montana, on land where 1 t.id not suppose, when the road was built, that one could raise a disturb ance, there are thriving towns each with four or five big grain elevators and the country is producing big crops of wheat. These conditions are' ex tending throughout the West and are Indicative of the growth that is In prospect for Central Oregon. It is the greatest rush of home-seekers I ever saw, with the exception, possible, of the rush to the Red River Valley, which I witnessed 30 years ago. Concerning the Columbia River i nr. -v bridge at Ceiuo, Mr. Stevens said that when in Chicago he looked over the numerous bids submitted on the con struction, but that the contract uad not yet been let. . Baker to Have Baseball. BAKER CITY, Or. April 13. That Baker City is to have amateur base ball this Summer is declared by Lou Lawrence, who is perfecting arrange ments whereby Huntington, Cove, Union and Baker City will form a four- team league to play Sundays and holi "T,e i i. pavo in ro FREE? THE AOakCK- T Y Eilers Piano House Will Give Aero Flying Machines to Boys and Girls ABSOLUTELY FREE A Genuine Frying Machine will fir by its own power over on hundred feet, in a circle or straight away. This wonderful toy was an original modal, developed In the mak nr of a s-ocoesaful man-carrying ma chine. Bulrt on totally new scientific principles, and acknowledged by lead-, ins; student In Aeronautics as the most wonderful invention of the age. Mmuiw 14 inches across, 8 Inches tiigb. f rooties long; weighs leas than jone oism; will carry more than its own weigtrt. Very durable, amusing and instructive to both voting and old. Interest increases with every flight. If started upside down It will right it self and continue flying. Sold every fSFtksm'at tt-OO- ! HOW TO GET ONE War a limited tlmsl we will artva, awnv absolutely free one of these great fly- bringing in a cash Tuning Order an d II. ot, 'U, .nm-nauDW " .11 C Y B 1 'eerl-r Tunlnsr Order. Our nhlect Is simply to call special attention to our Tuning and Repairing Department. No raise In rates J.80 for a single tun- lng the same as heretofore. Phone -a a teA . . 1"- w VUK" BBS Weshtmwtei Street Remember, there are only limited Bixnoar si tying : actus. act ' jm; nT BREAD days. A schedule Is being arranged. Next Sunday Cove will play at Baker City and Union at Huntington. A Healthful Hint. A bottle of the Hood Brewing Com pany's famous Bock Beer to ward oft that tired feeling. Phone H. 139, B. 1319. The rapid growth of mahogany U shown in Southern Nigeria, -where the site of a town destroyed 60 years nxo has been covered with & forest containing; mahogany trees, some of which are more than ten .. pis. m. iso rush csssti Flying Machine a word about tuning Few people rustlsn the Impor tance of bavins tlMr planee tuned and ersnwned resiiisilj by Bxperta The tone, aettoa and dsn-abuttey of a plane is Imperiled m not bavins it onrefully and isaeleil taned and looked after. A plane may send In fsariy seod tune and yet perbene Re at luurm in a nair tone or ui piven or . It Is built t siMWshi In snob oases the plane emnnet produce the quality or amount of tone Intended. Chances In temperature keenly affect the delloate meohaaiam: I It ma episJa to yom hew onr I save yon money ana Insure your 1 - - J PflOf in tUBS I and. best of alL will . I xt feat asprselatlng la vaioe. I w w . - . V. ,Z ' rT J "1 - f No k 7 "VT.TU I concern nu & more kiltMi I corp. of export piano tuner. ' .v...v . u per form the most exacting .mf . -i lest. work. All work nwu- Sill I Telephone or mmlt orders reoerea WARNING! cation eardst. Always insist on Mdnf this oss-s, ff fa Aovbt UkphOM Frivaio Sx. 2S, A !