TITE JHOKMXG OKEGOMAM. TUESDAY, AUGUST 10, 1915. g -
CANAL ZONE GOVERNOR WHO RESIGNS BECAUSE HE CONSIDERS
OREGON WEEK AT
EXPOSITION OPENS
AGGOUtlTAIil FACES
CASHIER CROSS-FIRE
WORK DONE.
1 n Rinrc ATio
aaas Ji
Questions Plied by Defense to
Show 'Stock Liability' Need
Not Be Listed.
BOOKKEEPING HELD GOOD
fommlwIoiM Tald by Company Are
Investigated and Interpretation
Is Questioned Testimony la
Qualified Several Time.
Frank MfarfM. president of tn
United States Cashier Company, put In
another hour and a half on the witness
stand, testifying In his own behalf,
before Federal Judge Bean In the
Cashier Company trial yesterday.
The most Interesting feature of the
day. however, was the testimony of
K. H- Col Us. an expert accountant for
the defease, aad the lively cros-ea
amlnalton he underwent from United
tales Attorney Keames.
Mr. Collis was railed by William M.
Cake, of counsel for the defense. Just
after the trial waa resumed at 1 o'clock
from Saturday's adjournment.
lie waa questioned in detail aa an
Xpert aa to whether stock sold by the
company should have been listed aa a
liability In statements Issued by the
company, aa the Government contends.
Mr. Meaefe had testified Saturday
that there ta no such thins as stock
liability. Inasmuch aa no stockholder
ran demand the return of money he
in vests In the stock of a corporation.
Liability Vlewa Are Oaeetloaed.
Mr. Collis also waa questioned at
length la regard to the total commis
sions paid by the company for stock
sales, aad their percentage of the en
tire amount of stock disposed of. aa
ahown by his examination of the
books, and the amounts expended on
manufacturing, including factory pay
rolls. On cross-examination, the United
fitatcs Attorney took especial excep
tion to Mr. Collis vlewa on stock lia
bility, and to bla Interpretation of the
percentage paid out la commissions.
The witness qualified his testmony on
several point.
"From your examination of the books
f the company, what have you to say
as to how they were kept? asked Mr.
Cake, after the wltnesa had been sworn
-They were well kept."
"There has been a good deal of testi
mony about the failure of the company
to list stock as a liability In statementa
of Its liabilities and assets. What have
you to say about that?"
tea pear's Uint la I'pheM.
"In my opinion." replied the wltnesa.
In a case of this kind, where the com
pany Is engaged In manufacturing,
stock liability should not ba taken Into
consideration. Creditors do not ask for
statements aa to' the amount of stock
that haa been sold."
"What do you say about the evidence
that unmatured rommlMlonj were not
Included In the liabilities T"
"I think that was an item that was
omitted, but certain asset items were
also omitted." He went on to testify
that approximately $7.00. represent
ing blueprints and models of machines,
had not been listed among the assets
In one of the company's statements.
"What amount of cash was actually
expended by the company In manufac
turing?" "About IIJO.OOO." said the wltnesa.
"That might not be quite all cash, but
approximately ail waa cask.
Patent Ceata Pat at SI4UO0.
For patents, he testified, about $11),
tOO waa expended. Including $23,000 In
notes, making a total for the two Items
f Slat.OO.
"How much waa put Into patenta In
stock, real eatate and other Items?
-All told. HO.410.5" said the
witness, giving among the Items In
cluded In this total 1 142.(7. In cash.
11.S7.S0 In treasury stock, I41.9&0
la real estate, and i::.5t.2S in note.
"What waa the payroll of the
factory?"
Mr. Collis testified that from Decem
ber. 191 1. to and including December.
!!. the total waa S123.C4.. an aver
age for i months of t3?4!I.J4 a month.
Including bookkeeping expenses and
other Itema at the factory but not In
cluding any of the company's office
expenses, he said the monthly average
amount expended on the factory In
this period was I494S.I7. and that the
averse number of men employed
waa
ParraU Eatlsaat la S 1X3, SOS.
Including these same bookkeeping
charges, ha said, the total factory pay
roll was U3.0S.J.
He testified further that Thomas
Bilyeu, Inventor of the Bilyeu coin
Handling machines, director of th com'
pany. and one of the defendanta in the
present trial, received a total from the
company of about fit.000. Included
in this, be said, waa I41.TIS.1I cash.
: 1-i real estate and S514 In notes.
lie explained however, that part of
ta rash waa from the amount owing
by the Cashier Company to the Ameri
can Cash Kecord Company, which sold
the Bilyeu patenta to the Cashier Com
pany, aad la which Mr. Bilyeu owned a
quarter interest.
Mr. Bilyeu, taking th stand later,
verified these fir urea.
-Have you figured out the percentage
of commission paid by the company for
stock sales?" questioned Attorney Cake
of Mr. Colli.
'e.aaasUaloe) Stateaaeat Attacked.
"The stock realised tl.4S0.000 and
commissions were approximately II SO.
00. or approximately 10 per cent." said
the witness.
This statement waa boldly attacked
by the United State Attorney on cross
examination. -In those total stock sales you men
tion, are you taking Into consideration
th li.000 shares issued to Mr. Menefee
by th company T" h asked.
-Yes."
"Did you' expect anyone to pay com
mission on that?"
Th wltnesa said he did not.
-Then why did you include It?"
"Because th question waa asked
ma"
"And so you put that In ther to de
er th percent; of the commis
sions?" demanded Mr. Keemea.
"No. sir. I didn't try to decrease the
percentage. I wa asked the question."
Redaetssa Atteaapt Denied.
"Now ther waa SKO.00O In stock Is
sued for patents?" pursued Mr. ileamea
-lid you Include that?"
-yea. sir. I Included everything."
"Well, you wouldn't expect any con
mixtion to be paid on that, would you?"
-No. eir-
"And all this was Included for th
same reason to reduc th commis
sion, wasn't itr
"No. air. Just because I waa asked
the question." The wltnesa added that'
be knew only that total stock sale
were about J1.4S9.000. and commissions
S4S0.000. "I waa called la hurriedly,"
fee went on to explain.
-But you wouldn't expect commis
sions to b paid on all that, would
your" persisted Mr. Ream.
"So. air."
" V v vi
.w' -... K?"rv ' ' y
: J .... fh$
COLO.XEL GEORGE
-Then why did you Inciud them?"
"I waa asked th question."
"Now. I want you to eliminate from
consideration all Iteme you know
shouldn't be Included and then tell
what the percentage of commission
was," said Mr. Keames.
"I haven't that figured." said the
wltnesa.
The United Elates Attorney ssld he
would expect the witness to furnish
such a statement, agreeing to Attorney
II pes' stipulation that the 10 per
cent each paid Mr. Menefee and Mr.
LrMonn b excluded.
Mr. Keames then took up th wit
ness figures on factory monthly pay
rolls from December, 1911, to Decem
ber. 1313.
-Now. what were the commissions
paid for each month?" be demanded.
The witness gave the following ap
proximate figures on each month:
l'a y- c'ommls-
lau . roil. sln.
December 33.3UH.2S I44.U00
ISIS
January J. 714 OS
ll.WM
t.UOU
W.U4KI
1-0. UOo
T.&W
S.ouu
10.UUV
February
March .
April
May s.uwvi
!H 3.W'.i4
July 3.K45.7S
August ........ n-n"
September ............... 4.tM bl
October 4.7SB.4S
S'o'nntw e.iii.jj
Ueevmbar a.3ai.3
1K1J .
January I 71?
3.7o
3. -OO
t.jtw
1.330
l.i'w
!.)
3(11
1.M
IIO
JO0
Kcoruary ................
March I-?,V?
April
June
July ................. ..-
X u mat .................. . ''.
sVp'ember !. 1
October S'JiVo?
November os2-i;i
December
Almost aothma. ..... ..
"How about this atoca iiaDinty sju
Mr. Keames. "You mean to say that
stock la not a liability?"
Mr. Collis declared that until such
tlm aa a company liquidates aad pays
lta debt, stock should not be considered
a liability.
Liability Admitted la On Seaae.
"How about It if you were going to
buy stock from th company?"
-I wouldn't tak stock liability into
consideration."
-In sending out statementa to the
stockholders, should not stock issued
be included?"
"Well. It should be, yes."
-Isn't It considered by accountant
aa one of the liabilities that should be
considered?"
"Only in this sens as on of lim
itation." , - .
"Now In making up a statement to
th public not to eatablish credit but
to Indue th publio to buy stock, it
should be shown.- shouldn't itr
"Yes."
"And if It is not shown it la not a
correct statement. Is It?"
"Well, they might hav knowledge
of It from other statement." said the
witness.
"That Is all," aald Mr. Reamea.
Advertising Tessaay Gives).
Mr. Menefee again took th stand
late in the afternoon. "
"Ther wer some advertlseraenta in
the papers In October and November.
1911. which referred to patents." said
Mr Cake.
-The company advertising at that
time." explained Mr. Menefee, "waa In
th bands of th Chapman Advertising
mnan ' It wii In th handa of a
Mr. gchelL Mr. LesMonn had been In
chance of the advertising before this
company took It over. Aa to these ad
vertisements In question, I don't know
that 1 ever saw copy on any of them.
I did not see them until atier mcj
were published."
-Who wrote th "ad" of October JJ.
llltr
-Mr. fichelL"
Contract latrodaeed la Evidence
-DLd Mr. Schell get hfa Information
of the affaire of the company from th
nfflear
"I reallv don't know about it. I was
looking after the factory work, which
took uo a great deal of my time, i
think Mr. Schell waa given literature
of th company and copy of former
ada in which ther wer no patent
claims."
The elrsff Is said to be the only snlmai
tn nature that Is entirely dumb, not "
able to express iisi vj
Chamberlain's Colic, Cholera
and Diarrhoea Remedy.
This is a medicine that ev
ery family should be provided
with. Colic and diarrhoea
often come on suddenly and
it is of the greatest import-
. . .1 t . . 3
ance tnai iney oe treated
promptly. Consider the suf
fering that must be endured
until a physician arrives or
medicine ' can be obtained.
Chamberlain's Colic, Cholera
and Diarrhoea Remedy has a
reputation second to none
for the quick relief which it
affords.
by Cnderwood.
GQETHALS TO QUIT
Canal Builder's Resignation to
Be Effective November 1.
PLACE IN ARMY RETAINED
Governorship of Zone Given I'p.
Work Is I&egarded aa llnislied.
General Expected to Aid In
IVamlng Defence Plans.
NEW TORK. Aug. 9. The date of
General Georg W. Goethal' resigna
tion aa Governor of the Panama Canal
Zone baa been designated aa Novem
ber 1 in his formal resignation, sent
to Washington, according to an an
nouncement made by him upon his
arrival bera today, from Cristobal.
General Goethals Is surrendering
his office because he believes bis work
at Panama Is done and the canal Is
operating satisfactorily. He has apent
seven years In Panama. Although be
will no longer be connected with th
canal sone'a affairs aa Governor,
should his resignation be accepted, he
aald tonight that he would retain his
commission In th Army.
Announcement of the date of his
resignation was made at the conclusion
of the last trip, which General Goeth
als expects to make as Governor from
Cristobal to New York. General
Goethals had expected, until a few
hours before sailing, to leave Panama
on a two months' vacation.
In obedience to these Instructions,
General Goethals is expected to leave
New York, after a few hours' stay here,
for Washington.
His wife and son accompanied him
on his trip from Cristobal to this city.
It Is understood that General
Goethals' presence In Washington is
desired so that he may confer with
the authorities regarding the plans
for the National defense, especially
with reference to the strength, disposi.
tlon and housing of forces in the canal
xone.
rem 1 man la Park Mskra Gardens
A city park and well worth a trip.
Take St. Johns or Kenton car.
The Hazel wood
Confectionery
and Restaurant
Hsaklsgtas V, at Tsmtkv
Best Food Served at
Lowest Possible Cost
Amid Homelike Surronndins
KATUIO CAPACITY SO.
r
tUUaAIvlx
MT. HOOD AUTO STAGES
Pally to Mount Hood resorts S A. X.
Kound trip fS; Gov. Camp ST.de.
Special rates for week-end and climb.
Ins pan lea Information, reservations
and tickets at
KOfTI.tIM;K SFKTt Jt FLORA!. Ct,
td St. Mala A Mil.
. Or lrvlDgton Uarage. Sast 133,
Photo Copyright
W. OOKTHALS.
Glories of State Are Told Of
by Speakers at Public
Function.
10,000 ARE IN ATTENDANCE
TTwxi Ttlvor Peaches to Attract
Throngs Today and Films Will
Depict Bcantles and Won
Ucrs of Roru River Section.
BT NNE" SHANNON 'MONROE.
EXPOSITION GROUNDS. San Fran
cisco. Aug. 9. (Special.) With 10,000
In attendance during the day. Oregon
week at the Oregon building was offi
cially ushered In at 2:30 this after
noon with ceremonies that included ad
dresses by Commissioner John F. Logan
and State Senator Langguth, of Port
land; Dr. W. J. Kerr, of the Oregon
Agricultural College, and Secretary
George M. Hyland, all of whom en
larged on the glories and wonderful
possibilities of Oregon.
G. F. Rogers, of the Oregon Society
of California, complimented Oregon and
the officials on the favor which the
Oregon building and the Oregon ex
hibits in the main palaces have met
The exposition band furnished music.
Tuesday is Rogue River Valley day.
A shipment of beautiful Rogue River
neaches will attract attention. The six-
reel film. "Grace's Visit to the Rogue
River Valley." will be run all day, and
at 2:30 there will be a programme in
which Southern Oregon boosters will
engage in oratorical flights. A special
feature will be an address by Judge
Morrow, of Portland.
- Wednesday Is Coast Counties day.
with the programme and distribution
of 10.000 cheese sandwiches. Thursday
will be given over to Oregon schools,
Friday to the Willamette Valley
boosters, and on Saturday Eastern Ore
gon will distribute 10,000 eacka of pop
corn.
G. W. Phelps, of Pendleton: J. u.
Camp, of Klamath, and Henry E. Reed,
of Portland, are among those scheduled
for addresses on Saturday.
COMMERCIAL CLUB ELECTS
Khimath Falls Banker Is Clioeen as
President.
KLAMATH FALL. Or.A Aug. .
(Special.) When the postal card bal
lots for the new president, vice-president
and treasurer of the Klamath
Commercial Club were counted Friday
evening. It was learned that the respec
tive officers chosen were Captain J.
W. Siemens, president of the First
State and Savings Bank of this city,
manager of the Klamath Development
Company of this city, and Klamath
pioneer; Leslie Rogers, cashier of the
First National Bank here, and R. H.
Dunbar, principal of the city schools.
Business men from this city visited
the business men of Merrill Friday and
discussed the Commercial Club. A cam-
naisrn will be made for memberships.
Thus far 172 names have been enrolled
in this city. Fort Klamath, Merrill
and Bonanza are yet to be visited.
LANE BEACHES OPENED
First All-Steel Train Makes Fast
Time. With Excursionist.
EUGENE. Or.. Aug. 8. (Special.)
Ideal weather and a large crowd made
successful yesterday the first excursion
from Eugene direct to the Lane County
beach resorts, marking the formal
opening of the Sluslaw beaches.
The first all-steel- train was run io
Cushman, the most western point on
the new Coos Bay-Willamette Pacific
line, and a new tljne record was es
tablished, two hours and 45 minutes.
Boats met the train. The new beach
is much closer to Eugene than is New
port.
The Florence ana oiusiaw people
entertained lavishly.
INFORMATION FOR
Where to Take a Short Trip Out of Portland
Herewith is a list of short trips in and about Portland. If you are in doubt about any point, or the trip
you have heard about is not mentioned here, call at the Information Bureau of the Chamber of Commerce
or phone them Bell Phone, Broadway 440 or Automatic, A 6091. Information will gladly be given.
Literature of interesting points furnished Time Cards, Beach and Mountain Kesort literature, ifte
Oregonian asks the names and addresses of tourists for publication. Enclose your business card witn
name of your party to Summer Resort Dept, The Oregonian, Portland.
MOUNT HOOD RESORTS.
Clam Cast lasj la a delightful re
treat. COOO feat aboTe sea level, on a
sheltered spur of the very mountain
itself, and la located Just at th
upper ed-e of the timber Una.
The trip to the Inn usually la mad
by rail to Hood Rlrer and thence by
staaje. Th round-trip rate. Includ
ing; all traveling; expenses, la ll.it.
Service befins July I and continues
to September 15.
Electric carllne to Borlnc
miles; automobile to Welch's. Rho
dodendron and Tawney'.-, round trip
from Portland. I7.7S. Sam as above
witn horse stasje all th way, a,7i.
Th Oaks (th Caey I slat ad f th
Wcat Every form of entertain
ment and accommodation for tour
ists. Orchestral and band concert,
prima donna and musical comedy
company every afternoon and nlaTht
tn th open-air theater. Perform
ance fre. Admission to park 1
cents. Reached by express special
Oaks train (far i cents), from
First and Aider; or by launch (1
cants), from Morrison-street Brlds
SAFETY FIRST.
TeUowatoa Park Tear S2S-30
Complete satisfaction guaranteed
or money refunded. Ton can pay
more but cannot get better serv
ice. Buy tickets at Salt LAke.
Ogden. Pocatello or Yellowstone
OLD rAlTHPI'L PGRSUKBST
CAMPS.
Ml
young men's suits; just the fabrics and
the weight for Summer and early Fall wearing.
See them today, fellows some mighty good
picking at a mighty low price. ,
v Second Floor.
BEN SELLING
Morrison at Fourth
FATALITY MARS PARTY
LA CENTER MAN DROWNS SAVING
YOUNG WOMAN.
Moterboat Containing Several Persons
Capslxes in Lewis River.
Others Rescued.
VANCOUVER, Wash., Aug. 9. (Spe
cial.) In saving the life of a young
woman, a member of a motorboat party,
Michael Rlordan. 22 years old, of La
Center, sacrificed his own life late yes
terday in the Lewis River near Dowell's
Point.
With six or eight others in the motor
boat. Riordan was taking a Sunday ex
cursion on- the river. In some man
ner the boat capsized, throwing all
into the river, which is cold and rather
swift Rlordan swam to a young
woman who was unable to swim and
succeeded in getting her on his back
and made for shore. When about ten
feet from land others who had scram
bled nut Dushed out a tvole to the girl
and she was hauled in and resuscitated.
Others were rescued, and then it was
discovered that Riordan was missing.
After having been in the water more
than an hour his body was found 50
feet upstream, where he had swum
under the surface, apparently not re
alizing where he was going. It is
thought he became confused or excited.
A doctor from Vancouver took a
pulmotor to the scene and worked over
the young man In vain.
Mr. Rlordan is survived by his par
nta Mr. and Mrs. Michael Riordan,
living near La Center; a brother. Jerry
Rlordan; a Deputy County Auauor m
Seattle, and two sisters. Miss Mary
Rlordan and Miss Jane Riordan.
Funeral arrangements have not yet
been made.
G0UERN0RT0 GO ON TRIP
EXECUTIVE TO JOIN BENSON DAY
EXCURSION TO EXPOSITION.
Mr. Wlthyeosabe Will Take rsrt
Private Citizen in San Francisco
Honor to Oregon Man.
SALEM. Or.. Aug. 9. (Special.)
Governor Withycombe today accepted
an Invitation to accompany the party
of Oregonians who will attend the
"Benson day" exercises at the Panama-
Pacific Exposition, August 17. wow
ever, he will go as a private citizen
and not in his official capacity.
I shall accompany the Benson
party," said Governor .Withycombe.
simnly as a private individual, ine
exercises are being arranged in honor
of Mr. Benson, who has been selected
as a representative of Oregon citizen
ship, and It Is my desire simply to
assume my share or tne event as
Mountain. River and Beach
Welch's, Rhododendron) and Taw.
eya are located on th south aid
of th mountain. Automobile from
Portland to either resort round trip,
each 15. Oresonlan on sal at these
resorts. ,
Stackyards aad Packing; Plant
Largest plant west of th Missis
sippi River. Located on Columbia
Slough within 40 minute rid of
Broadway and Washington street.
Take Kenton cars on Washington
treet at Fifth, Sixth and Broadway
streets to Kenton. Fare 6 cent.
Take Kenton Traction Company cars
at Kenton to Packing Plant and
Stockyards. Fare 5 cent. Visitor
admitted dally except Sundays.
very ax au iwmi
Ml Hood Auto Line
calls and delivers to any part of
city, day or night, to Mount Hood
resorts. Kound trip, to; Govern
ment Camp, 17.50.
aca, Mala SSI, or A 2331.
aSTdsrson BRoa
Windemuth
ON TUB WUXAMETTE.
Open Klrer and Tank Bathing. Taka
fast launch foot of Sal mon street
very half-Uonr, commencing- 1:30 P.
M.. fare 9 ceata, or Brooklyn car to
Woodward are.; free la one bee connecting.
of these spe
cially priced
i
FREE LECTURE
TONIGHT
"How We Got Our
AT THE
TENT TABERNACLE
Thirteenth and Morrison
Song Service 7:45 Lecture 8
YOU ARE WELCOME
any other state-loving Oregon citizen
might. On this occasion, I desire abso
lutely to bo free from any official en
tertainment and special recognition
which might come to me in my capacity
as Governor."
Governor Withycombe said that later,
probably in October, he would make an
official visit to the exposition.
George Palmer Putnam, secretary to
the Governor, who returned from San
Francisco today, said that elaborate ar
rangements were being made for the
celebration of "Oregon week," which is
next week, the crowning event to be
the honoring of Mr. Benson. Governor
Johnson, of California, and Mayor
Rolph, of San Francisco, will partici
pate in the events honoring Oregon
and Mr. Benson.
SAN FRANCISCO MAN HELD
Salem Police Arrest Alleged Bad
Check Passer.
SALEM, Or., Aug. 9. (Special.) D.
H. Daley is held here on a charge of
giving a bogus check for $450 for an
automobile In San Francisco. He was
arrested by Policeman Varney as he
got out of the machine in which he
had ridden from San Francisco here
Chief of Police Welsh received a tele
gram from the chief of San Francisco
police asking him to hold Daley until
a detective from that city came for
him. According to information received
by Chief Welsh the check was returned
marked "tfo funds."
The local authorities also are hold
ing the automobile for, instructions
from the San Francisco authorities.
Daley, who Is 23 years old, has not ad
mitted his guilt.
TOURISTS
Resorts
COLUMBIA RIVER HIGHWAY
A scenlo drive of rare beauty,
built along- the south shore of th
Columbia River, a distance of mor
than 40 miles from Portland. A
series of remarkable waterfalla.
rugged peaks and deep canyons ar
among the attractions.
Estacada, Casadero, Ball Raa ears
leave First and Alder every four
hours, dally and Sunday, every hour
aa far as Qresham. Good points for
basket plcnlo.
Why Not Visit
Above the Clouds on Mount Hood.
Commanding the Most Glorious
Scenery of Any Mountain Re
sort in the Pacific Northwest.
For tickets and reservations address
DORSEY B. SMITH, Manager
Travel Bareau,
116 Third Street, Portland. Oregon.
slarshaU 17.
TWCitlA 7? 1
J An Ideal Place for Tour M
Summer's Rest. fi
I nXrSTKATED BOOKLET FREE. S
C. V. J. Beckers, White Salmon Wn. B
Hot weather
skin-troubles
Resinol Ointment usually
relieves sunburn, heat rash,
chafings and summer eczema
instantly. Aided by Resinol
Soap, it takes out smarting'
and itching and soon restores
the skin tohealth and comfort.
Resinol Soap keeps com
plexions clear in spite of
summer sun, wind and heat.
Resinol has been prescribed
by doctors for 20 years to heal
skin-trcr los. Resinol Oint
ment and Kesinol Soap are
sold by ail drug-ffists.
ill
4 v. VJ
mm
FURNISHED HOUSEKEEP
ING TENTS ONLY
$1 PER DAY
Electric lights and water In nearly every
tent; go surf bathing or hunt for erabs
and clams; tent city Is tinder direction
of Bar View Hotel; man; entertaining
features; no liquors allowed sold; rates
by week 5 and up; sleeping tents and
board at hotel 12 per day up. Write W.
A. Wise. Bar View. Tillamook Co.. Or.
or 210 Falling bids., Portland. Or.
SOL DUC HOT SPRINGS
AND SANATORIUM
the greatest health and pleasure
resort on the Paciflo Coast, in the
heart of the Olympics' Mountains,
open for the season. For full
information address
Tke Manager. Sol Duo. Wash.
W
Y-jta ment and Kesinol Soap are 1
f4 sold by all drun-uts. II
ll
1 Ml I. II listed- s
I- Wl ax,