11
THE MORXIXG OREGOXIAX, FRIDAY, MAY 6, 1910.
RECEIVER DIO HOT
KNQWOFGOHTRAGT
Devlin Says Morris Did Not
Tell Him Oregon Trust Had
Telephone Bonds.
KNOWLEDGE WAS ACCIDENT
Japers Found by Assistant in Vault.
Fried to Be Called Questions
of Gordon About System of
Accounting Are Puzzles.
TV. Cooper Morris, ex-cashier of the
Oregon Trust & Savings Bank, didn't
tell Receiver . Devlin that the contracts
for the purchase by the bank of Pu
ge't Sound Home Telephone stock were
In ex'stence, according to Mr. Devlin's
testimony on the -witness stand yes
terday afternoon in the case where
in Morris is on trial for the al
leged embezzlement of $125,000. Dev
lin said one of his assistants stumbled
upon the contracts in the vault. They
were found in one of the 25 or HO
files of miscellaneous papers, tve said.
He was questioned by M. J. Gordon,
counsel for Morris, its to the value of
the Puget Sound Home Telephone
bonds, which a large number of Ore
gon Trust depositors took in lieu of
cash, and said he never considered them
worth par. He denied ever having
encouraged depositors in newspaper
articles to take them.
In the midst of Ms re-cross examina
tion Judge Gordon asked Devlin if he
could on his oath, say he could tell
from an examination of the bank's
books that Morris or Moore ever took
one dollar from the bank for
bank checks, notes or drafts. To
t his question Attorney A. E.
Clark, representing the state, ob
jected,, saying this was a question for
the jury to pass upon. Judge Gan
tenbeln overruled the objection and al
lowed Devlin's answer, that he could
not, go to the Jury.
Presence of Bonds Questioned.
A. C. Potter, auditor for the Puget
Sound Home Telephone Company, was
examined after Devlin's testimony was
finished, the state endeavoring to show
by him that Morris had no Puget
Sound telephone stock at the time he
Is said to have Juggled stock into the
bank and $75,000 worth of notes out.
The state had finished questioning him
at 5 o'clock, when Judge Gordon an
nounced he woud make Potter his
own witness.
Deputy District Attorney Fitzgerald
naid last night the state will call Leo
Fried e as a witness to show that what
ever entries and counter entries were
made to loans and discounts, cash or
bonds and warrants on December 15,
1905, were made without authority from
the board of directors. This is expected
to place the entire blame on Morris.
"You were asked if Morris explained
everything to you when you took over
the bank's affairs,' said Attorney Clark
on re-direct examination. 4'Did he ever
expla'n to you how this note was can
celled?" "He said once he would rather not
discuss that with me," replied Devlin.
"He never did discuss It with me to
the extent of making any explanation."
Morris Didn't Mention Contracts.
"Did he ever talk to you about the
purchase of this Puget Sound Home
Telephone stock until December, 1907?"
This question was objected to by
Judge Gordon as not proper re-direct
examination, but Judge Gantenbein
allowed it to be answered.
"Morris had never told me anything
nbout the contracts for the telephone
bonds," answered Devlin. "It was
spoken about at the time this matter
came up, along in December, 1907, or
it may have been later than that."
On re-cross examination Devlin was
asked when and where his conversa
tion with Morris took place when Mor
ris declined to talk. He replied that
Morris was sitting at the left of his
desk in the bank at the time. Devlin
couldn't give the date, but it was after
Morris returned from his trip East,
just before the bank closed its doors.
"I had never heard of the existence of
these contracts, so had never questioned
him about it,' said the witness.
A copy of the contract by which the
German-American Bank took over the
assets of the Oregon Trust Bank was
introduced by the defense yesterday, a
mild protest being made by Attorney
Clark for the state.
How Depositors Took Bonds.
The purpose of this is believed to
be to show that all depositors of the
Oregon Trust were paid in full. But
upon the re-dlrect examination yester
day afternoon Attorney. Clark called
attention to the provision that con
tracts previously made by the Oregon
Trust whereby depositors were to take
bonds in lieu of their cash were to be
carried out by the creditors. Devlin
paid Puget Sound and Omaha bonds
were disposed of to depositors to the
amount of between $7000 and $S000,
par.
"Under this contract these depositors
had no option to take anything but
bonds," said Devlin.
A complication of entries and coun
ter entries was then taken up, and
Judge Gordon asked on re-cross ex
amination, "is there any law against
carrying (these accounts in loans and
discounts?"
"Yes, sir, there is." replied Devlin,
firmly. "There is the law of com
mon right."
"Would it make any difference where
it was carried? Wouldn't it be just a
matter of figures?" persisted Gordon.
"It would make a difference," was the
Answer.
Counsel then put a long question In
which he asked if it would make a par
ticle of difference to the financial con
dition of a bank whether, if $50,000 was
pent for improvements, it were charged
to the "betterment" account or to "fur
niture and fixtures."
"This bank had no "betterment ac
count." said Devlin. "If this were car
ried as furniture and fixtures.' people
doing business with the bank would know
it was invested in furniture and fix
tures." 'Would the disappear nee of an Item
necessarily indicate that anyone had
taken the money? was then asked.
Finance Stumps Devlin.
"That kind of finance is beyond me,"
a n r we red Devil n-
"I am not asking for jour judgment
ps to whether this is the way you would
hnvA it."
"Well, I don't think I could answer that
question."
"You can't conceive, then, that that
would be a mere matter of bookkeeping?"
"Not according to my methods."
"Would it necessarily indicate that the
' jnmey was taken?"
I don't think $50,000 was expended for
the eafety deposit vaults, was the an
swer. Judge Gordon asked to have it
stricken out and discontinued this line
of examination after Devlin had said he
couldn't swear that Moore o'r Morris ever
took a dollar of the bank's money,
A large part of Devlin's testimony re
lated to entries in the general ledger.
This testimony was much the same as
that given in the trial of W. H. Moore.
The witness said he did not know what
was meant by the letters "O. D. Ub P.
T." opposite anentry for $50,000 on the
debit side of the loans and discounts ac
count on December 15. 1906. An entry
for the same amount appears on this
day, he said, on the credit side of the
surplus account. Bonds and warrants
were debited $90,404 on the same day,
and the cash balance decreased by $64,
614.81. the balance December 14 being
$144,063.79, and December 15. $79,448.9S.
Testimony is expected to be brought
In before the conclusion of the case to
the effect that K. E.' Lytle paid for his
$25,000 in stock with a check for $35,000
ALASKA INDIAN WILL BE THE
SPEAKER AT Y. M. C. A.
SUNDAY MEETING.
i
...
r ' ..!
!
1
Edward Marxden, Educated Mem
ber of Tslmpiieiui Tribe.
Edward Marsden. of Saxman,
Alaska, a full-blooded Alaska In
dian of the Tslmpsean tribe, will
be the speaker at the regular
meeting in the auditorium of the
Young Men's Christian Associa
tion next Sunday afternoon at
3:30 o'clock. The boys meeting,
which is usually held separately,
will be merged with the men's
meeting on this occasion.
Mr. Marsden Is a graduate of
the Carlisle Indian School, of
Marietta College and of an East
ern theological school. Since com
pleting his education he has been
doing missionary work among the
Indians at Metlakahtla on An
nette Island, Alaska.
on August 1, 1907. This check was given
to cancel his note for the .same amount,
previously given.
SEWER BUTTLE AT
TERRA COTTA AND CEMENT
CONCERNS TO COMBAT.
Two Proposed Ordinances, Bearing
on Matter, Will Be Considered
by Sewer Committee.
Another skirmish between the repre
sentatives of terra cotta and cement
sewer pipe is scheduled to take place
this morning at 10 o'clock, when the
sewer committee of the City Council is
to meet. Two proposed ordinances are
to be considered. One by Councilman
Drlscoll prohibits the use of any but
terra cotta pipe, and the other, by
Councilman Kills, amends the specifica
tions so that glazed cement may also
be used.
A great fight Is in progress, with the
Oregon & Washington Pipe Company,
commonly called "the trust,' on the one
side, and the Portland Glazed Cement
Company on the other. Mayor Simon
Is deeply interested in the subject from
the standpoint of competition, to the
end tlflat the property owners of the
city may be relieved from what he de
clares to be excessive prices for sewer
pipe. He favors amending the specifi
cations, and is therefore desirous of
seeing Councilman Ellis' ordinance rec
ommended for passage at the meeting
to be held this morning. City Engi
neer Morris is also favorable to this
action.
Councilman Rushlight, who Is one of
the chief master plumbers of Portland,
is favorable to the proposed ordinance
which prohibits the use of any but
terra cotta ttrust) sewer pipe in the
city. He is backed by Plumbing In
spector Hey, who has declared in a let
ter now before the committee that ce
ment pipe is worthless, being unsani
tary. He declares he will refuse to
permit Its use unless compelled to act
otherwise by an ordinance.
It Is generally believed that the
sewer committee of the Council will
this morning vote to pass the Drlscoll
measure, and that it will go to the
Council with that recommendation; that
the Ellis ordinance will be recommend
ed not to pass, and that the "trust"
will thus win a temporary victory.
However, with Mayor Simon strongly
opposed to It, there is certain defeat
ahead for it, even should the Council
pass it which is not by any means
sure. It is regarded as a close ques
tion, but the Mayor said yesterday that
he believes the Council will amend the
specifications by passing the Kills
measure sooner or later. But should
the Council pass the Drlscoll ordi
nance, it is certain the Mayor will veto
it and that his veto will be sustained,
as enough votes to sustain his objec
tion are known to be safe.
RECORD LAND PRICE PAID
Minnesotan's Purchase Is 6000
Acres for $500,000.
The highest price ever paid for tim
ber lands in the Nehalem Valley was
paid for a-tract of 6000 acres, which
has. just been purchased by -Mike Kelly,
of Duluth, Minn. Mr. Kelly bought
6000 acres located in township 5, range
7 west, Clatsop County, from A. S.
Kerry, of Seattle, through Elwood &
Snow, the agents for Mr. Kerry. The
price paid for the timber land is given
as $500,000 even.
This great body of standing timber
was purchased by Mr. Kerry from the
original entrymen only a few years
ago at a remarkably low figure, and
the profits realized by the Seattle man
are said to have been enormous.
The land is all heavily timbered with
a fine stand of choice timber. Mr.
Kelly, the purchaser, is a timber in
vestor and not a logger, and has no
plans for logging the land, but will
hold it for a resale at some later date.
The land is, however, accessible and is
connected with the main- routes of rail
transportation by a logging railroad
running In from the Columbia River.
LIEN LAW IS UPSET
Notice on Building Not Protec
tion, Rules Judge.
IMPROVEMENT NOT EXEMPT
Decision Regarded as Almost Revo
lutionary in Effect Upon Pre
vailing Practice and New Liti
gation Will Be Result.
That a notice posted upon a build
ing, stating that the owner will not be
responsible for "unauthorized . work,
does not protect- the building from the
operation of the mechanics" lien law,
is the purport of a decision by Judge
Morrow in the suit of Fuller & Co.
against McLaughlin. The decision was
upon a demurrer to the defendant's
answer. the court sustaining the
plaintiff.
This decision is considered to be al
most revolutionary in its effect upon
the prevailing practice. It has been
customary for owners to protect them
selves by placing notices upon their
buildings, giving warning that they
will not be responsible for any work
done thereon wtihout the owner's au
thority, and it always has been con
sidered that this notice absolved the
owner from liens "upon his buildings if
work were ordered by any other per
son. Judge Morrow finds that the law
does not expressly state' this rule.
Through an obscure and involved
wording of the statute which gives
these notices effect, their operation is
made effective upon the land, but not
upon any buildings on the land, holds
Judge Morrow in his opinion.
The decision, so long as it stands,
will cause a considerable tangle among
property-owners and new litigation is
likely to result.
TWO WIVES WOULD BE FREE
Suits for Separation Are Filed In
Circuit Court.
Mae Whitfield filed a divorce suit in
the Circuit Court yesterday against
Willla P. Whitfield, whom she married
at Chehalis, Wash., July 5, 1906. She
alleges he deserted her in October, 1906.
She desires to resume her maiden
name, Mae Lough.
L. F. Mathews, whose wife, Mrs.M.
Emma Mathews, is suing him in the
Circuit Court for a divorce, says in an
affidavit filed yesterday morning, that
he and his wife went to live with his
mother-in-law immediately after the
wedding. They lived there for three
years. But as soon as he went to
work for Monroe Purvine on the lat
ters ranch in Polk County, his troubles
began, he says. Purvine making love
to his wife Matthew,s says that when
he first met Mrs. Matthews he was
earning but $30 a month as clerk of a
Salem grocery store. He was earning
$40 a month at a general merchandise
store at Mill City, he says, when mar
ried. His wife knew his financial con
dition, he declares, when she married
him.
To her charge of non-support he
replies that he has provided for her
as well as he could. He says he is
now out of work and cannot advance
$150 attorney's fees and the $50 sup
port money she asks.
COBBLER ALLEGES INJURIES
Car Started too Quickly, Says Plain
tiff, In Suit for $50 00.
Asserting that he was hurled to the
street through the carelessness of a con
ductor in starting his car too soon, Frank
DeBroen appeared in Judge Gatens' de
partment of the Circuit Court yesterday
afternoon to prosecute a suit against the
Portland Railway, Light & Power Com
pany for $5000 damages.
The case is being heard before a jury
DeBroen declares that he is a cobbler and
that last December he was proceeding
homeward on a Williams-avenue car and
was about to alight when the car started
forward suddenly, throwing him to the
ground, making him unconscious and
causing an attack of neuritis which un
fits him to pursue his vocation. The
streetcar company alleges contributory
negligence.
In Judge Bronaugh's court Wednesday
night, a similar case of Antoinette Rand
against the same company 'resulted in a
verdict for the plaintiff for $200. The
plaintiff sued for $3500 for injuries re
ceived when alighting from a car on
Villa street last January, asserting that
she was taken paet the proper stopping
place and forced to alight on a rockpile.
Dakota ns Sue In Oregon Court.
The morning session in Judge Gatens
department of the Circuit Court was oc
cupied by a uit between two residents
of North Dakota on a contract. The
litigants were J. S. Sueve and G. S.
Swartz. Sueve alleged in his complaint
that he had. In August, 1909, sold to
The Bud Is Opening
Each day is bringing nearer to completion
plans which have been in course of development
for months plans which have to do with the
building of a retail business in Portland, of
Portland and for Portland with the establish
ment of a store that shall win the confidence of
the public by meriting the patronage of the public.
Thousands of dollars worth of merchandise
for which careful buyers searched diligently for
months throughout the Eastern markets is
now being unpacked.
Watch for the
Blooming of the Rose
mm
is.:
Swartz about 4000 bushels of grain and
some farming implements for $3265, in
part payment of which he was to take
$3500 worth of nursery stock, to be de
livered in Oregon, where he intended to
start a large orchard. He alleged that
only $300 had been paid and asked judg
ment for the remainder, $2965. Swartz
in his answer set up a claim of various
advances and denied the debt. The case
was tried before a jury and resulted in
a verdict for Sueve in the sum of $2965.
Sirs. Gadsby Gets More Alimony.
An increase of monthly alimony from
$62 to $75 has been granted by Judge
Morrow to Beatrice L. Gadsby, who is
suing Walter M. Gadsby for divorce. The
suit Is now pending on the decision of a
demurrer by the defendant to Mrs.
Gadsby's amended complaint. .
Court Notes.
A claim for $595 for medical services,
including a surgical operation, was filed
In Probate Court yesterday by Dr.
Byron B. Miller against the estate of
James L.' Cavanaugh, recently deceased.
Woodard, Clarke & Co. are the plain
tiffs in a suit against R. T. Royal, do
ing business as the Rex. Dental Com-'
pany, for $377.79, due on accounting.
The estate of Lydia Rodney, who died
recently, was submitted yesterday to the
appraisment of George D. Schalk, Her
man Moeller and C. J. Mlchelet by an
order made in Probate Court.
Caroline Schmidt was appointed yes
terday by Judge Cleeton administratrix
of the estate of Houis Schroeder, under
bonds of $2600. The estate is valued at
$4300.
Minerva J. Tuttle, a daughter of the
legator, was yesterday appointed by the
Probate Court administratrix of the
estate of George St. Clair Segur. Bond
was not fixed by the court for the time
being.
R. W. Wilbur, .guardian of Stuart Free
man, one of the heirs of the W. C. Noon
estate, yesterday filed his annual report,
showing his disbursements on behalf of
the ward to be $1208.45 for the year. An
order was made in Probate Court author
izing the guardian to send the boy to at
tend Phillips-Exeter Academy at An
dover, Mass.
Articles of Incorporation, with a capital
stock of $150,000, were filed with the
County Clerk -yesterday by the Stewart
Timber Company, the incorporators be
ing John Stewart, David S. Stewart and
William H. Powell. The company, which
is backed by Eastern capital, will operate
generally in timber in the northern part
of the state.
The Purity Cream Company was Incor
porated yesterday by William Schulmer
lch, J. W. Shearer and C. A. Bell, with a
capital stock of $20,000. The company will
operate creameries and deal in milk
products. '
HOBSOFi IN PORTLAND
K1PARIA POSTMASTER BLAMES
ANOTHER FOR TROUBLE.
Prisoner Hints That Former Gov
ernment Employe's Machina
tions Behind Charges.
Asserting that his troubles are more
or less the direct result of the machina
tions of the man he supplanted in the
Government service, William Hobson.
late Postmaster at Riparia, Wash., was
brought to Portland yesterday, under
arrest upon a charge of embezzlement.
Hobson nervously twisted his hands to
gether as he sat in the office of Deputy
"United States Marshal Hammersley
awaiting bondsmen, and was only slight
ly cheered by a visit from his wife and
two little children.
The ex-Postmaster is accused of
informally resigning the responsibilities
of his position and failing to account for
$149.13 of postal funds. He was arrested
at The Dalles while at dinner with his
family.
Hobson did not give a lucid account of
his predicament, but hinted that the
trouble was the result of the influence of
Charles E. Shepherd, who was assistant
to ex-Postmaster W. H. Stewart.
Hobson accused Shepherd of paying at
tentions to a sister-in-law of the prisoner
and intimated that it became necessary
for him to Interfere.
"Shepherd was let out as Assistant
Postmaster when I received my commis
sion in August, 1909. Since then I have
run the- postoffice, as well as attended to
the business of Mr. Stewart, who is an
old man. -
"I left a note for Stewart which should
have made everything plain, and told
him to keep the stamp cancellation ac
count due me as well as the wages which
I had not collected, and to remit this
money to the depository. I told him to
let me know at The Dalles if he failed
to send the money and I would have a
friend sell his team and send the money.
"My family left Riparia the day before,
and after I joined them we drove to The
Dalles. I do not care to say why I left
in the manner outlined, but will say that
I had no intention of going further than
Portland. It was my intention to re
turn to Riparia, where I have interests
which I could not afford to abandon."
Hobson had not been able to furnish
the $1000 bond required by the court.
Gardiner Gets Water Pipe.
GARDIXER, Or., May 6. (Special.)
The schooner Lily, arriving from San
Francisco, brought, besides general mer
chandise, one and a half miles of six
and eight-inch water pipe for the new
water system of the Gardiner Mill Company.
Some Sweet Day
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ost
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i and Cream.
Then you will
know what a dain
ty, tempting food
you have been miss
ing. '
Every serving
wins a friend
"The Memory Lingers
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Called for by
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ORDER DIRECT OR FROM ANY FIRST-GLASS FAM
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