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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (June 14, 1915)
8 THE MORNING OREGOXIAX. 3IOXDAY, JUNE 14r 1915. BURAL BANKS -TOPIC A.C.Shute,of Hillsboro, Heard : at San Francisco Meeting. BROADER VIEWS ARE URGED Country Banker's Part In JeT elop ing His Section Described and Law Aimed to Restrict For eign Companies Advocated. Among the interesting" addresses of Northwest bankers at the recent joint convention in Ban Francisco was that cf A- C Shute, president of the Ameri can National, of Hillsboro, whoso sub ject was "The Relationship of the Country and City Banks." In develop ing his subject he said: It U with candor that I admit that I am a country banker and that my field for in vectlffation Is limited and my Ideals warped by the narrow field In which I act. but tbr WEEK'S STATEMENT OP FED ERAL RESERVE BANK: FOR TWELFTH DISTRICT. SAN FRANCISCO, June 12. (Special.) Increases of approxi mately 11.000.000 in sold coin and certificates and $687,000 in net deposits within a week are shown Jn the etatement of the Federal Reserve Bank of San Francisco for its 30th business week ended June 11. The statement, issued today, follows: Resource. Gold coin and gold cer tificates $10,245,000 Lejral-tender notes, sil ver certificates and subsidiary coin Bills discounted and loans ITn vestments Due from other Fed eral reserve banks... All other resources.... 7,000 2.858,000 1,474,000 1.037.000 1,442,000 Total resources Liabilities. Capital paid in Deposits (net) $17,063,000 $ 3,933,000 13,130,000 Total liabilities $17,063,000 Gold deposited with Federal reserve agent to retire outstanding Federal reserve notes. $ 2.040,000 1b one subject upon which I feel competent xxt apeak, and that 1b the relationship existing- between the banker of the ctty and of the banket of the country. The country banker upon occasion Journeys to the city and ac cepts the hospitality of his correspondent. He seeks to learn and to acquire from such association and personal Investigation a measure of knowledge as to the activities of the city banker. He calls upon the city banker for advice and suggestions with re wpect to the financial world In which the city banker has hla being and plays his part But what, may I augest, does the average city banker know about conditions In the country, or of the practical side to country banking? All his knowledge is second handed and comes to him In a superficial way. Why Is not the visitation of "the country banker to hla city friend followed hy a like visitation, or at least an occasional one, so that the city banker can obtain at first hand an Insight Into the conditions under m-hich his country correspondent does his workT Country Bankers Fart Described. I urge upon you city bankers who are lulled to sleep by the feeling of security en gendered by the contributions of your coun try correspondents to realize that your own views are limited by your surroundings and even though your field of activity may be large, your ideas may be broadened and your conceptions enlarged as to the busi ness methods, demands and financial con ditions of the entire territory In which you do business. It Is up to the bankera to assist In rural development. Our State Bankers' Associa tion has already provided funds for indus trial work among the school children of our late and, by having approved a plan of the North Portland Serum Company, made it possible for more than 300 head of high grade swine to be distributed to the school children of Oregon aod Washington. in many Instances local banks are f urn tuning the children with the money necessary for the purchase of swine on 10 months' time either without interest or at a very low rate of Interest. This la but one small Illus tration of the opportunity afforded to assist In the great work of rural development. Vpon the whole, the past year has been a prosperous one for Oregon banks and their condition Is safe. A more friendly feeling amnnr Oregon bankers has been engendered and a better understanding and relation ship has been brought about. The Oregon banker today Is no longer a mere money changer, but a man w ho endeavors to fa miliarize himself with general financial conditions, and particularly with conditions In his own particular community In which be lives. I am grateful for the assistance w hlch has been rendered to me tn the ac complishment and achievement of our asso ciation during the past year. New Law Iropaed. T would submit to you. however, for fu ture consideration! this recommendation : That the next measure of import advocated by the Oregon Association, and by it caused to be enacted Into law, be a -requirement upon foreign insurance comiianlrs doing busi ness within the ttate of Oregon, to rein vest a certain percentage of the amount re ceived by them from premiums in Oregon securities, Puring the present year 93.35M. :irt were paid by Oregon policy-holders to foreign life insurance companies, all of which w an Immediately taken directly from the statsv inasmuch as some of these companies dis criminate against the State of Oregon and all states west of the Rocky Mountains In their Investments, they shoxiM be restricted from dolnr business within the state except upon terms which will not react In hard ship to the companies, but yot will require of them the reinvestment of Oregon funds in Oregon securities. it sfTorda me great pleasure to mention the excellent and ef ficient work of our last Legislative commit tee, and I would recommend that our next Legislative committee be appointed for to yonrs, so as to fully co-operate with the com mission soon to be appointed, by our Ci ov er nor. After the European war has been brought to a close, which, let us trust, will not be in the fnr distant future, and the demand for money h:a become increased, the banks of the frl'ed States will be the best sup plied commercial agencies In the entire .r!d. A merlca. and not France and Eng land, must soon become the banking-house -f the entire orM. and It is, therefore, en cumbent upon the bankers associations of eiteh state, no matter how Insignificant In the financial world, to see to it that the lv o Its state are sufficient to enable It. v lihout telnK hampered, to play the game of banking business as it must necessarily be played In the future. DALLAS CLUBS TO MERGE Movement Afoot to Combine Booster Organisations. DAIiAS, Or.. June IS. (Special.) Following the example set by many other cities of the state, a plan Is now In the making for the union of the rallas Commercial Club and the La Creole Club. The Commercial Club is the official booster organization of this city, and leads in all progressive move ments inaugurated in the county. The La Creole Club is a purely social club, to which practically all the business men of the city belong. It Is believed that a union of the two rganisatlona will tend to build up and strengthen the larger organization. Committee have been appointed to draft a plan of actios ELSIE FERGUSON HERE IN NEW YORK SUCCESS Star at HeHig In "Outcast, Supported By Same Company She Had Daring Six-Month Ran of Play In East. . ............ t V ' ' - It I ' ' . ' - " I I s I t :- - " - I I !t rr : f "i:z'7 ! It' I " ' ' " v vv- - H t u - - ! tr ... . i ' . - - h i " ":s li t MISS E1LSIB FERGUSON. I IN the London and New Tork success, "The Outcast," and supported by the Identical company which appeared with her during the six months' run of the play in the latter city, Elsie Ferjruson comes to the Hellis Theater, Broadway at Taylor street, for a week's engage ment beginning: tonight at 8:15 o'clock. with matinees Wednesday and Saturday. "The Outcast" is the work of Hubert Henry Davtes. an English dramatist who was responsible for "Cousin- Kate" and "The Mollusc," among other plays, and is in four acta The time is the present. The principal characters are Miriam, an American girl, who finds herself bankrupt in London, which char acter is played by Miss Ferguson, and Geoffrey, a handsome young broker who COUNTY DEPOSIT ASKED BANKS BID FOR AGGREGATE Institutions Agree to Fay 3 Per Cent on Dally Balances and Give Adequate Security. County Commissioners have received applications of 17 banks to be desig nated as depositories for county funds, the maximum being set at $3,435,000. The applications have been approved. Interest amounting to 2 per cent on dally balances and proper security for the funds entrusted to tneir care are promised by the banks. Institutions, applications of which found favor with the Commissioners and the maximum amount each bank stated they would care to handle were: Lumbermens National, $750,000; First National of Portland, $650,000: North western National and United States National, $500,000 each; Merchants' Na tional, $300,000; Ladd &-Tllton. $200,000; Bank of California and Hibernian Sav ings, $150,000 each; First National of St. Johns, Peninsula National and Se curity Savings & Trust Company, $50, 000 each: Scandinavian-American. $25. 000; First National of Linnton, $20,000; Bank of Kenton, $15,000; Bank of Sell wood and Citizens Bank, $10,000 each, and First Trust & Savings Bank of St. Johns. $5000. The Montavilla Savings Bank put no limit to the amounts it would receive on deposit, and the Commissioners ap proved its application up to the amount of $10,000. WATER DISTRICT PLANNED 125 Landowners Would Establish Project Near Prosser. NORTH YAKIMA. Wash.. June 13. (Special.) Plans were put into effect yesterday at Prosser for the' establish ment of" the Horse Heaven irrigation dtstrlct. Petition for establishment of the district were signed by 125 land owners. These will be presented to the Benton County Commissioners early in July, and about August 1 it is expected the election to create the district and choose Its directors will be held. The district includes 100.000 acres of irrigable land lying in Benton. Klick itat and Yakima counties on the Horse Heaven plateau. In connection with the irrigation of these lands, a 600-foot drop in the main canal within i distance of a mile and a half is ex pected to make possible development of 60,000 horsepower of electricity. H. M. Street, of Seattle, is president of the association which has the plan in charge. Stock Dividend Announced. Frank G. rrum. president of the Pa- LOANS Improved Farms Inside Business Property Residences Commerce Safe Deposit and Mortgage Co. 91 Third St Chamber of Com. Bldg. has had an unfortunate love affair, and with whom Miriam falls in love. Their positions in life are quite different, as the man has money and a position in society while Miriam is what the play's title would suggest. "The other woman' in the cAst, as may be surmised, makes her appearance, and the story has to do with the heart entanglements of these three. If there are - occasional te.-rs. there is also plenty of laughter. Miss Fergusan, in addition tc the great success she made in New Tork In "The Outcast," scored heavily In Chi cago, where she played a highly pros perous engagement for two months. Her tour was to close there, but arrange ments were made for her to visit Seat tle, Portland. San Francisco and Los Angeles, which she will do in the order named. ciflc Gas & Electric Company of Cali fornia, has issued a circular to the stockholders .. giving notice that the board of directors will meet June 30 and declare a common stock dividend amounting at par to 6 per cent of Its outstanding common stock and that such dividend shall be issued in two In stallments, one-half on July 15 and the balance on December 15. 1915. The divi dend will be in the form of new com mon stock, this action having been au thorized by the Railroad Commission of California. LA GRANDE BANKER DEAD J. B. Thorsen Passes After Opera tion for Appendicitis LA GRANDE, Or.. June 13. (Spe cial.) J. B. Thoreen. 52 years old, for the past 10 years cashier of the Elgin National Bank and one of the best known bankers of Eastern Oregon, died this afternoon after an operation for appendicitis and a complication of diseases. His case has been hODeless for several days. Dr. Ilocky. of Port land, was called In Friday for a sec ondary operation. About 80 years ago Mr. Thorsen came to this country from Sweden and carried hod at Perry. Penniless, he went to Klondyke in the gold rush, but didn't strike it lucky and returned to La Grande and commenced to build up a fortune for himself. J. V. Scriber. former La Grande banker, staked him and he made good, and it was Mr. Thor sen who unconsciously, by uncovering some worthless papers, brought to pub lic attention Mr. Scriber's financiering. wnicn nan wrecaed ttie farmers and Traders' National Bank here several years ago. Toledo Sawmill to Resume. TOLEDO. Or., Juhe 13. (Special.) The Toledo saw mill will reopen In the near future. In a few days, the logging camps will also start operating. The first load of the steamship Bandon from San Francisco will be steel rails for the extension of the logging road. It is the Intention of the Estabrook Company to put the steamships Ban don and Fifleld on the run between To ledo and San Francisco, carrying freight to Toledo and lumber on their return trip. Licenses Granted at Pasco. PASCO. Wash, June 13. (Special.) County Auditor L. D. Conrad issued a marriage license to Russell E. Brock and Mamie M. Hart, both of Walla Walla, Wash, on Thursday, and yester day issued a license to Grover Glen Gauidin and Myrtle Adeline Wood, both of Kennewick. and also one to Ar thur Jacobs and Emma Ingalls, of Toppenish, Wash. The Canadian Bank of Commerce HEAD OFFICE Toronto. Canada. Established 1867. A general banking business transacted. Interest paid on time deposits. Commercial Letters of Credit laoaed. Exchange on London. Enslnnn, Bosikt and sold. PORTLAND BRANCH. Corner Second and Stark Sts. P. C MA LP AS. Manager. BANK RULES FIXED Federal Reserve Act Aims to Give United System. PLANS BEING PERFECTED Charles S. Hamlin, Governor of Board, Announces Provision for Withdrawal of State I nsti tu itions From Membership. "A united banking system, embracing In Its membership the well-managed banks of the country small and large, state and National Is the aim of the Federal reserve act, writes Charles S. Hamlin, governor of the Federal Re serve Board. In a pamphlet just Issued, in which the workings of the new cur rency system are explained. "Membership in the Federal reserve system." he says, "carries with It priv ileges and guaranties of great value, not only to the banks themselves, but to their customers as well. It may be confidently expected that, with the further development of the system and the fuller appreciation by the publio of its meaning and value, membership will come to be regarded as evidence of banking solidity, and that the access afforded by membership to the facili ties and resources of the system will add to the prestige of even the strong est Institutions; so that in time the public will recognize in the new bank ing organization, which Is In process of realization, two principal classes of banks those which belong to the Fed eral reserve system and those which do not. or "member banks' and 'non- member banks.' " Member kip Is Different. Discussing the relations of National and state banks to the reserve plan Governor Hamlin says: With respect to the matter of status, there are Important differences between the mem bership or Rational banKs ana OI state Dana- Ins Institutions In the Federal reserve banKs. Membership of Rational banks is not elective, but is prescribed by the law. So ions as a bank is a National bank it must be a mem ber bank. When It ceases to be a member bank it eeasea by the same fact to be a It a. tional bank, the law having- provided no method by -which a National bank can sever its relations with a Federal reserve bank except by process of liquidation. All this is set forth In definite terms in the Federa, reserve act. The situation of the state banks is funda mentally different. National banks are member banks as a matter of necessity: State banka become member banks aa matter of choice. Menberhip in a Fed eral reserve bank is an incident in the life of a state institution, not an essential part of its being;; and Its continued existence as a state institution would not be threatened or Interrupted it its membership should cease, its status being fixed by the laws ot lta stats, not. as in the case of the National banks, by the Federal reserve act. State Bank Plan to Be Settled. The conditions of membership of state in stitutions are, furthermore, prescribed only In reneral terms in the act. the further and final elaboration of them being; left to the ederal reserve board, which is vesteo. wita the necassarv discretionary- authority. In view of this discretionary authority, the Board believes it a duty to define clearly terms and conditions upon which state banks and trust companies may withdraw from membership, since otherwise those charged with the management ot these institutions might not feel authorized to enter a system under which by future regulation the scope of their operations might be restricted. It U not to be expected that much use will be made of the withdrawal privilege; lndeea, it Is the belief of the Board that aa the system develops membership therein will carry with it guaranties of safety and security which will be of inestimable value; at the same time it recognizes the responsibilities of those intrusted with the management of the state Institutions and has. therefore, clearly defined the conditions upon which any state institution may withdraw rrom member ship. - CREDIT MEN GO TO UTAH Portland Delegation Joins - Seattle and Tacoma Parties for Salt Lake. Joining the delegates from Seattle and. Tacoma who arrived In Portland yesterday, the local delegation of Credit Men left at 11 Vclock by special train for Salt Lake, where the convention of the National Association will be held from tomorrow until Friday. The party will return by way of 10 Semi-Axinual Interest p q TO ON O DENOMINATION $100, $200, $500, $1000 Lumbermens Trust Company FiftH and Stark Streets The First National Bank Fifth and Morrison Streets. Capital and Surplus, $3,500,000. A Savings Account is the wisest way to get something ahead. A Savings Account may ment is our specialty. We invite your patronage. The Bank of Personal Service Courteous, competent Service in every depart ment is our specialty. We invite your pa tronage. 4 Interest Paid on Savings Deposits. Merchants National Bank Founded 1886. Washington and Fourth Sts. Portland fiund&y, on the big special from New York, which is to carry the Eastern delegates, who attended the alt Lake convention, to the San Fran cisco exposition. At that time the visit ing excursion party of ISO persons will be entertained under the auspices of the Portland Chamber of Commerce. An automobile ride about the city will be enjoyed in the forenoon and in the evening Council Crest will be visited. The visitors will be entertained at breakfast and dinner at the Multnomah Hotel. - . The Seattle and Tacoma delegation were entertained yesterday at break fast and taken to Council Crest The local reception committee included J. J. Sayer. XV. W. Downard. E. M. Drake, G. L. Eddy. F. S. McCord. E. G. Leihy and W. J. Henderson Portland's delegates were Mr. and Mrs. W. K. Knapp. Mr. and Mrs. B. M. Dennlson, E. M. Underwood and C B. Woodworth. From Seattle were H. M. Taylor, 8. A. Rosenfeld, O. L. Woods. C. H. Dodds. A. K. Matzger, H. F. - Potter, W. E, Slater, A. G. Foster,. J. S. Ferguson, W. H. Preston and R. A. Wright. Tacoma' s delegates were W. A. Evans, W. T. Davlea and W. Schlarb. Jr. PROFITS ARE $7,463,231 HARVESTER COMPANY HAS ASSETS OF 129,260,181. Business Restricted lay War, bat Do mestic Conditions Excellent Le gal Decision Is Appealed. Net profits of $7,483,231 for the 'year 1914, with a surplus at the end of last year of $22,972,029, are shown In the annual report of the International Har vester Company, of New Jersey, which has just been made public Income for the year is given as $12,208,227. Assets of the company are set forth as 280,181. of which amount $42,267,011 le property. Net working capital on De cember 81. 1914, was $56,424,351. In summarizing operations for the year it Js asserted that crop conditions in 1914 were satisiactory. witn an ex ceptional yield' and high prices for the farmer. The volume of sales of the company's product was cut down by the war and net profits suffered to some extent. The strictest econamy. it is saia. was practiced throughout the entire organi zation. Current liabilities were reduced to the amount of 4,70u,quo. in me latter Dart of the year, the reduction in export orders, due to the interrup tion of European business, necessitated running the works on much shorter .hours with smaller forces. Stockholders of the company number 7018, of whom more than half are employes. The decision of the United States District Court against the company on August 12, 1914, is referred to In the reDort as follows: "Judges Smith and Hook, while exonerating the company from all charges of wrongful or op presBive trade practices, held that the original organization and the resulting lurtre Dercentage of tne traae in har vesting machinery violated the Sher man law. Judge Sanborn vigorously dissented. The case was promptly ap pealed to the United States Supreme Court, was argued there on April 7-9, 1915, and now awaits decision." Recent Bond Sales Listed. Red Lodge, Mont. Bonds in amount of' $9000, authorized for erection of manual training and domestic science building for city school, system, have been sold to Central Savings Bank & Trust Company, Denver. Bonds run for 20 years and bear 5 per cent inter est. Bid of Denver bank was par and accrued Interest, blank bonds and $11 premium. Ilwaco, Wash. School directors, J. A. Howerton and C. H. McKinney. district 25, have awarded issue of $27,000 bonds to State of Washington at par, with S per cent interest. Lebanon. Or. Council awarded Sooth Main street improvement bonds to First National Bank of Lebanon at par and accrued interest: $2418.68 amount of issue. Saanich, B. C. R. C. Mathews & Co., Toronto, will purchase Saanich paving debentures. Will take $150,000 of issue at 89. Boise, Idaho The $5000 bond issue authorized by District 7, the Belfry or Valley "View School, were sold to Sweet, Causey, Foster & Co., of Denver, at par less $84 attorney fees, 6 per cent in terest. Seattle, Wash. Dexter Horton Na- Municipal Bonds INCOME TAX EXEMPT Reasons Why You Should Have a Bank Account Your payments are systematized; loss of money by theft or carelessness is prevented; you always have the right change; each check shows date, amount and payee; paid check is a pos itive receipt; the bank gratuitously as sists you to keep your books; mer chants prefer that you pay by check; checks are clean, safe and convenient; it adds to your business prestige. Let us open an account for you today. Lumbermens National. Bank Fifth and Stark. That First $1000 was the foundation of each of America's great fortunes. The way to get it is to save and deposit in our SAVINGS DEPARTMENT. Liberal Rate of Interest Paid on Savings by The United States National Bank Third and Oak Sts. Portland, Oregon Capital and Surplus, $2,000,000.00 tional Bank has been awarded J100.000 bonds of Seattle commercial waterway t Our Facilities for Handling Your Account Are the Best You "Will Find the Service Rendered Is Unexcelled THE Northwestern SIXTH AND THE BANK OF CALIFORNIA NATIONAL ASSOCIATION ot San Francisco. Founded 1S64 Capital Paid in.. $8,500,000.00 Surplus and Undivided Profits $8,131,242.14 Commercial Banking. Savings Department. PORTLAND BRANCH Third and Stark Streets TRAVELERS' GCTDE. FRENCH LINE Comptvgnle Generate TraoMtlJtBtlqne. POSTAL. SERVICE. Sailings from NEW YORK to BORDEAUX ROCHAMBEAU . June 19, 3 P. M. NIAGARA June 26. 3 P. M. CHICAGO July 3, 3 P. AL ESPAGNE July 10, 3 P.M. FOR INFORMATION APPLI C. V. KtlDB. at A- W- Cbartton. Z5S Marrinoo t.s sC M. Xsylor. C M. A bJU 1' R,.; Donrr U. Sitiilb, L16 3 (J SU; A, C Kbeldon. 100 Sd st.l Ii. Ulckson, Waste inzton St.: North Bank Boaxl. 6tb and Stark tta.1 F. S. Metal-Land, 2d and WafbJngtoa sts. i E. B. Dulfy. li 3d ft- Fortland. SanFrancisco SANTA. BARBARA. I.OS ANGELES AND SAN DIEGO. S. S. ROANOKE SAULS WED, JUXE 16, 6 1. M. COOS BAY A?D EUREKA S. S. KILBURN SAILS MONDAY, JVSR 14, 6 F. 31. NORTH PACIFIC 6TEAM6HIP CO. Tlekat Ofiica 1S2A Id St. Main 1114. A 131 Frclrht Offlca Foot Xorthrup St. B'dwr 6203. A 6422 c American-Hawaiian Steamship Co. Express Frellht Service. C. D. Kennedy Aft.. i'.O Stark St., Portland. AUSTRALIA NEW ZEALAND AND SOUTH SEAS. Regular, through sailing for Sydney via Tahiti aod Wellington from San Francisco, Juno 23. July 21. August 18 and every days Send lor pamphlet. Colon Steamsbip Co, of New Zealand, Ltd. Office SIS Market tfrt. Huh xTanelaco, or local S. b. and IU ii. taenia. Between ElSaWI Portland wL V Nw Vork y ,rJ Boston. district No. 1. Bid waa par for 8 par I cent bonds. National Bank MORRSON TRATEtEBS' CgltlE. San Francisco Los Angeles (Without Chance En Rente) The Big. Clean, Com t ortable, bllcnscly Appointed, beaKolna: Steamahlp S. S. BEAR Ealln Frsm Alnavrorth Dock A. M JU.E 16. IOO Golden Miles on Columbia River. All Rate Include Berth and Meal a. Table and Service Unexcelled. ''be San Fraaetace Portland S. B. Co, Third and WuUacws St. with U.-W. II. A . Co.1 Tel. Broadrrar 4500, A 121. NortH Bank: Rail 26 Hours Ocean Sail tileck. Triple bcrtw. 24-k.not Palatial S. S. -NOIMlii.lt.. PACIFIC." SAN FRANCISCO LOS ANiELKH AND SAM DIEGO June 18. 20, 24, 28. Eteamer train leaves North Bank station 9:39 A.M.; lunch aboard ship- b&t. arrives San Francisco 3:30 P.M. next day. EXPRESS SERVICE AT FREIGHT RAT3. NORTH BANK TICKET OFFICE, Phonos i Mar. 820. A 6671 Stb and Stark COOS BAY LINE Steamer Breakwater Sails Front Alnaworth Duck. Portland, every Thursday at A. M. Freight and Ticket Office, Ainaworth Dock. Paonea Main SttUO, A 2332. City Ticket Office. SO th St. Pbonea Marshall 4500, A 0131. PORTLAND fc COOS BAY S. S. LIXE. DALLES-COLUMBIA LINE. Steamer State ot Washington LtAvw TayHir-&t- dock a ally except Biau.j, 11 P. M. for Tn Dalle and way UJadlng. rarry.ti j. freight and pttwtagera, Rvtarnin. leaves The uall dally, iit ooa. exoepc Mouu. Tal. xaia 613. Far 41, berth 1