Morning Oregonian., July 06, 1916, Page 13, Image 13

THE HORNING OREGOXIAIf, ; TnURSDAT, JJTJTr 5, 1916.
13
INTENT TO WRECK
COMPANY IS PLAINT
Stockholders of Almeda Mines
Charge Sinister Purpose to
t Thomas S. Burley.
iMJUNCTION ORDER SOUGHT
Ttccelvcr Is Alleged to Have Had
Designs on Assets and to Have '
Mismanaged Company's Prop
erty Since Appointment. .
Charges of "an apparent attempt on
the part of the receiver and his co
workers to discredit and finally wreck
the said mining company so aa to
freese out all small stockholders," are
made against Thomas S. Burley, re
ceiver of the Almeda Consolidated
Itlnes Company, In a petition for an
Injunction filed in the Federal Court
yesterday.
The . complainants,. Unui M. Clark
and Louise Estrella Clark, of Seattle,
owners of 16,000 shares of stock, pray
for an order enjoining the company or
the receiver from selling: any of the
properties or assets of the company,
and ask that the receiver be required
to make a full and complete account
ing: of all moneys and disbursements
since ' his appointment in 1813.
Judga Bean Issued an order citing:
the defendants to appear at 10 o'clock
July 10, to show cause why an injunc
tion should not be granted.
The Almeda Mining; Company Is the
ownej of sold mining: property In Jo
sephine County, about SO miles from
Grants Pass, the estimated value of
which, according: to the. complaint, is
about $6,000,000.
This property, it is declared, the re
ceiver in furtherance of an alleged
ocheme to gain control is about to sell
at receiver's sale to satisfy purported
indebtedness of the corporation, which
with interest and the expenses of the
receivership aggregates approximately
$269,000.
Act. for All Stockholders.
The complainants aesert that they
are bringing the action in behalf of
themselves and. all other stockholders
of the company, many of whom are
residents of Ohio and Indiana.
In July, 1913, the complant sets
forth, through L. B. M. Simons as trus
tee, Mr. Burley ana Robert McCul
lough, his partner, acquired 500,000
shares from J. F. Wickham, manager
and director, and R. C. Kinney, director
of the company, for $25,000 cash, under
an agreement that they would advance
funds to equip the mines with needed
machinery and generally put the com
pany on a working basis.
' Mr. Burley ws elected president and
Mr. McCollough a trustee of the com
pany. Almost immediately thereafter,
the complaint alleges, Mr. Burley, on
the ground that no funds were avail
able to pay certain pressing debts of
the company, urged that a friendly re
ceivership suit be instituted to prevent
claimants from suing to enforce collec
tion of their claims. -. ' ---v: - - j
On the understanding, it is aijeged,
that the receivership would be inex
pensive and for a short time only snd
if or no other purpose, such a-suit was
filed and Mr. Burley appointed receiver
by the Circuit Court in Josephine
County.
Became Permanent Receiver.
"Instead of holding said receivership
only temporarily and for the purposes
above mentioned," recites the com
plaint, "he has since held and contin
ued in said receivership.. ... If
said Thomas S. Burley and hie partner
liad put Into the treasury of said de
fendant company the amount of money
they promised and agreed to, said de
fendant company would have been- on
a sound financial condition and basis,
p.nd sufficient funds would have been
available to pay all pressing indebted
ness and to continue the active opera
tion of said minea."
Instead, according to the complaint,
the receiver, after operating the mines
for a short time, declared they were
not paying and caused reports to be
made out and circulated amon the
stockholders discouraging the opera
tion of the mines and discrediting their
value. Further, the complaint alleges,
he "surrounded himself with a board of
trustees of his own choice, and certain
stockholders who are in harmony with
his schemes and plana to obtain control
of affairs, and finally the mining prop
erty of said defendant corporation."
Lease Given on Property.
In alleged furtherance of this plan,
the property was leased in September.
1914, to J. F. Wickham, stockholder
and director, and P. B. Wickham, a.
stockholder, who are declared to have
been, in harmony with his plans, for 50
per cent of the net profits. The lessors
are declared to have operated the mines
only to a small extent, no benefit ac
cruing to the stockholders.
The complaint goes on to charge
that in February, 1916, the receiver
and his coworkers formulated a plan
for the reorganization of the company
with a capital stock of $4,500,000, di
vided into 3,500,000 shares of $1 each,
500,000 to be preferred stock and 3.000,
000 common stock.
The preferred stock was to be guar
anteed dividends of 8 per cent per
.annum cumulative, and to be retired
on-or. before five years at J1.25 ner
share, the issue of preferred stock to
be limited to the total of the amount
necessary for Davment of pllm with
interest, plug the amount necessary to
vover iransrer rees paid in cash.
Stock Was Traded.'
Under this plan. it la ant forth
creditors who were also stockholders
wera to accept in lieu of their credits
preferred stock at par value. Failure
by stockholders to accept stock in the
new company in writing prior to March
15, 1916, would prevent them from ac
quiring stocK in the new company.
AH stockholders under this reorirant
zation plan were further required, the
complaint alleges, if they desired stock
in the new company, to pay 10 cents
per snare, or in lieu thereof to sur
render 40 per cent of their stock.
"Said proposed plan of rpnrnnb.
tlon." declare the complainants, "was
not made n good faith and is in fact
merely another transparent scheme to
freeze out the small stockholders and
those who have no funds wherewith to
pay said transfer fee; that there is an
apparent attempt on the part of the
. receiver ana nis co-workers to rif-
', credit and finally wreck fh c.ih
l' mining company so as to freeze out
n umaii stockholders and such stock
t holders as do not possess the ready
t funds where with to meet the payment
of the so-called transfer fee. which is in
reality an assessment onlv n nH
I Increases the indebtedness of the de-
lenaant company."
Receiver' Bills Heavy.
The complainants also assert that
"notwithstanding the promise and
agreement of the receiver prior to his
appointment that said receivership
would be a friendly and inexpensive
one. the receiver has filed a claim for
fees. $2?,00 for his services; $5000 for
expenses; $20,000 for fees for his at
torneys and over $1000 for their ex
penses. Said receiver pretends that the
approximate indebtedness of said de
fendant company is $259,000, but the
complainants have no knowledge or in
formation as to what constitutes this
large amount of indebtedness.".
Ii addition to an accounting of all
receipts and disbursements since Mr.
Burley became receiverthe complaints
ask a permanent injunction against
the sale of the property to satisfy Its
alleged indebtedness, as authorized by
the Josephine County Circuit Court for
May 2, but later continued to July 3,
''The property and assets of said
defendant company are tangled In liti
gation to such an extent." the com
plainants assert, ''that no . one would
make a bid at the receiver's sale, and
it is the scheme and plan of said re
ceiver and his co-workers tJ permit
said property to be sold for praetieally
a nominal amount and thereby freeze
out the minority stockholders:'1
Bchmltt & Bchmitt are attorneys for
the complainants;
METHODISTS IN SESSION
COJfFERETTCB AT OREGON CI XT" IS
TO OPES TODAY.
Various - Phases . of Chnrcb Problems,
Including Overstocked Towns,
. .. An to Be DIsciiaaeaV
OREGON CITT Or., uly 0. (Special.)
A' two-day meeting of ministers and
laymen of the East Side section of the
Salem Methodist District will open
here tomorrow In the First Methodist
Church. Dr. T. B. Ford, formerly
pastor of the local church, Is district
superintendent. -
The Oregon City Methodist Church 1s
known as "the mother church," owing
to Its historical prominence. Leaders
In church and Sunday school work from
all parts of the Northwest are on the
programme for the two-day session.
D. Lester -Fields is secretary and Rob
ert Brymer is chorus leader of the dis
trict. The programme follows:
"Kestorlatlon of tha Old-fashioned Re
vival," Rev. J. K. Hawkins; "The Com
munity Survey," Zj. W. chandlar; "Ths Rural
Church," J. F. Coleman; "Ths Rural
Church Minister," Q. J. Taylor; "Sunday
School Extension," M. B. Paranouclan; "Ths
Lay preacher and His Opportunities," R. X.
Cady; "Our Debt to the Pioneers," A. J.
Joselyn, . Z.
Thursday, T:80 P. M. "Our Old People's
Home." Mrs. E. J. Swalford: "Our Kimball
College of Theolog-y." President Talbott;
"Our University, Willamette," President
Doney.
Friday 8 A. M. Address, "Three Types of
Churches a) the Federated (b) tro Com
munity, (c) the Denominational," Henry
Spies; "When Are We Justified In Enter
ing, and When in Withdrawing from a
Field?" C E. Curtis; "Denominational Co
operation In Relieving the Over-churched
Community," EF. M. Jasper; "The New Fi
nancial Flan," L. C. Poor; "The Pastor and
the Statistical Reports." D. Lester Fields.
Frldad, 2 P. M. "The Methodist Episcopal
Church and Juvenile Delinquency," E. B.
Lockbart: "The Bible In the Public School,"
J. H. Irvine; "Religious Education of Chil
dren." A. C. Bracken-berry ; "Equipment . of
the Modern Church," W. B. Moore; "Our
Responsibility in Relation to World Evange
lization." W. R. F. Browne; "The Young
People of Today and the Churah of Tomor
row." William Nlrhol; "The Epworth
League," B. C. Brewster; 'The Efficient
Minister," J. M. Brown.
Friday, 7:30 P. M. "The World Situa
tion." Frank L. Loveland, D. T. ; "America's
Opportunity and Responsibility." R. N. Avl
son, D. D. ; closing exercises. Dr. T. B.
Ford.
$75,000 GIVEN WOUNDED
Philadelphia Man Provides for
Maimed Frenchmen.
PHILADELPHIA, July 1. With his
usual generosity, Edward T. Stotes
bury has contributed the munificent
sum of $75,000 to the Union for Train
ing in Suitable Trades the Maimed Sol
diers of France, of which Mrs. Edmund
L. Baylies, of New York, Is the chair
man for the United States. This prince
ly gift has been made through the
Pennsylvania branch of the union, of
which Mrs. Stotesbury is the chairman,
and which is affiliated with the French
"War Relief of the Emergency Aid of
Philadelphia.
Several days ago the news was cabled
over to the New York office that the
French government had offered the
Maison Blanc in Paris to the union,
with certain provisions for the men,
provided that the union would equip
and pay the Tunning expenses of the
institution. The financial obligation
thus incurred, was estimated as $75,000.
The chairman for the United States at
once communicated with the chairman
for Pennsylvania, who was known at
the time to be maturing a plan for
soma effective means of approaching
and handling the problem presented
by the number of mutilated soldiers
and officers, victims of the war. Mrs.
Stotesbury felt strongly that the oner
of the French government should be
met. The question, however, was how
the funds had best be raised and this,
of course, was a serious one. . While
she and those interested in the plan
were revolving in their minds various
aspects of the possibilities of the case,
Mr. - Stotesbury, the deus ex machina
of most benevolent' undertakings in
this city, 'quietly stepped in and vol
unteered to assume the financial bur
den' of starting the undertaking with
the personal gift ' above mentioned.
which will equip and Tun for the first
year the Institution about to be founded.
The economic problem of disposing
of the thousands of men who through
mutilation in battle have been inca
pacitated from returning to tlieir old
vocations is one of the most serious
confronting the French authorities.
That these men can be turned to use
and become once more self-supporting
has been demonstrated by the Mayor of
Lyons, M. Herrlot. Early in the war
he assigned a city building in Lyons
to the use of a trade school where
crippled men could be trained to make
the best of the altered conditions of
their existence. According to the na
ture of their respective mutilations,
certain trades were selected for them
and they were put to work. The ex
periment was found to answer the dou
ble purpose of building up the men's
moral fiber through the hope of re
newed usefulness and to open up the
way to their self-support.
PERS0NALMENT10N.
H. H. Belt, of Dallas. Is at tha Im
perial. G. A. Ross, of Wallace, is at the
Eaton.
M. E. . Mailing, of Wanna, is at the
Eaton.
L. O. Miller, of Falls City, is at the
Eaton.
C. T. Dlchter, of Seaside, is at the
Oregon.
E. W. Crowley, of Sallx, is at the
Oregon.
H. W. Morrison, of Boise, is at the
Oregon.
D. C. Burton, of Salem, Is at the
Seward.
W. C. Knighton, of Salem, is at the
Seward. i'
J. Mathy, of McMinnville, is at the
Perkins. '
W. J. Burns, of Mohler, is at the
Perkins.
A. H. Morgan, of Wieser, Is at the
Portland.
N. B. Jamison, of Everett, is at the
Portland. ,
J. A. Seaton, of Seattle. Is at the
Cornelius.
Mr. and Mrs. G. Bill Thome, of Se-
KODAKS,
HAMMOCKS,
TENTS, CAMP
COTS, CAMP
STOVES, FISH
ING TACKLE,
TENNIS AND
GOLF GOODS;
4TH FLOOR,
Meet Your
Friends in Our
Tea Room
and Enjoy the
Best Lunch in .
Portland.
Prompt, Courte
ous Service, Rea
sonable Prices.
Olds, Wortman Sc Kh&g
The Pioneer Store Established in 1851
Reliable Merchandise ' Reliable Methods
Exclusive Port
land Agents for
Gossard
Front-Lacing
Corsets.
Model for Every
Flgnre.
Corset Salons,
Second Floor.
MODEL
GROCERY,
BAKERY
AND
DELICATESSEN
4TH FLOOR.
SODA FOUN
TAIN IN THE
BASEMENT.
Turn Your Stamp IBooks Into -Dollars !
The Sperry & Hutchins on Co. ARE NO W
1 Redeeming All Z&C Stamp Books in Cash
Em the GIFT ROOM
' (Formerly aC Premium Parlors), 4th Floor
STAMP SAVERS will reap many benefits from this new plan. In the first place, there
Is an infinitely greater variety of articles to select from in the Gift Room. Second, Trad
ing Stamps will be given with purchases made in the Gift Room. Third, articles selected
in the Gift Room will be delivered free of charge and customers will be rendered the same
courteous service that prevails throughout all other departments of the store. And
then, "too, every article on display in the Gift Room represents supreme value better
values by far than you would ordinarily get if redemption were made in books.
VISIT THE GIFT ROOM, FOURTH FLOOR, AT YOUR EARLIEST OPPORTUNITY.
Bring in Your Stamp Books
Get the Money and Select Your Gift From
Over 3000 Articles in the Gift Room
Thursday Special Offerings in
Women's Mouse
Egresses
Choice of Several Styles at Only 1.19
Breakfast Sets at 98c, $1.29 and $1.49
Second Floor These attractive new House
Dresses are made from excellent quality ging
hams and percales in light and dark colors. Some
in large or small checks, others in stripes and
plain colors. .. Styled with low necks and short
sleeves, collars trimmed with piping: or embroid
ery bands. Complete range of CJ7 TO
sizes. Priced very special at only P J-
Second Floor Women's Breakfast Sets the
ideal dress for morning wear about the house.
Several pretty styles in ginghams, chambrays
and percales. New full skirts, blouse in belted
effect with roll or sailor collar. Shown in fancy
stripes, figures and plaids in various colorings.
Ask to see these new Sets. Priced special for
today's selling 3 lots OS?, $1.29 and $1.49
Apron Sale!
Bargain Circle
On Main Floor
' Two very special offerings in Women's
Aprons today. LOOK TO YOUR NEEDS.
Coverall Aprons
Special 59c
of good quality percale in light and dark
colors. Styled with belt all round and open
in front. Sizes 38, 40 and 42. " Q
Priced very special today at only "J
COVERALL APRONS of gingham, with
elastic waistline, open side-front, trimmed
with contrasting colors of plain OQ.
materials, 56-inch lengths. SpecialO'4'
Sale of Sheets
Dept. 1st b'loor
DEPENDABLE SHEETS, of ex
tra good wearing quality. Note the
price. Size 2x2 yds., each S3f
Size 2x2 yards at.each 880
OUR FAMOUS "Hotel Special"
Sheets, size 81x90, special for 73
42x36 Heavy Pillow Cases 110
HUCK TOWELS of splendid ab
sorbent quality. Dozen for $1.00
Coffee Day
4th Floor 40c IMPERIAL ROAST
Coffee, priced special forOQ
Thursday at, the pound
50c OWK TEA English Break
fast, Ceylon or Uncolored O Q f
Japan Thursday, pound f 4
75c Baker's Groundrjr CZs
Chocolate, 3-lb. can for Ot
Try a cup at the Demonstration
Booth, Grocery Dept., 4th Floor.
Today's Specials at Basement Pit
3000 Yards White Plisse 7 (Th
Crepe 17c Grade Yard JSL
Basement At this special price for one day only. Soft white plisse
crepe, the ideal fabric for Summer underwear, night gowns, combinations,
chemise, etc. Makes up beautifully and requires no ironing. 9 ff
FullvJO inches wide. Mill ends, 1 to 10 yards, 17c grade, yard at--
July
Clearance Men's Clothing
Practically Our Entire Stock of Men's Spring
and Summer Fancy Suits at Special Low Prices
$15.00 Fancy Suits for $11.85
$20.00 Fancy Suits for $14.85
$22.50 Fancy Suits for $16.85
$25.00 Fancy Suits for $18.75
All Men's $30.00 Fancy Suits Now $22.50
Practically all our Fancy Suits are included in this sale (blue and black serges excepted). Weather conditions have deterred many
men from investing in Summer clothes and they will now profitby choosing a new suit at substantial reduction. Every suit in our stock is new
1916 merchandise, thoroughly desirable in every respect. Several of-the best makes on the market are here for your selection strictly first
class workmanship, choice patterns and finest of fabrics. There are cheviots, cassimeres, tweeds and novelty weaves in grays, tans, checks,
stripes, mixtures, etc. We have sizes to fit all men to begin with, but make it a point to come early. Very newest models in ultra-stylish and
conservative cuts. Particularly attractive line of fancy suits especiallydesigned for young fellows of high school age. EVERY MAN WKO HAS
NEED FOR A SUIT WILL SAVE MONEY BY COMING TO THIS STORE.
Sale Starts Thursday Morning at 9 oy Clock
attle. publisher of the Seattle Hotel
News, are registered at Hotel Nor
tonia. W. F. Marsters. of Hoseburgy is at
the Eaton.
E. L. Meyers, of Eagle Creek, is at
the Eaton.
George H. Graves, of Salem, is at
the Imperial.
. Miss Sara Barker, of Palo Alto, Is at
tha Nortonla.
J. H. TunIop, of Cascade Lochs. Is
at the Portland.
Clifford E. Slfton, of Hood River, Is
at the Cornelius,
C. E. Hocker, of Fort Worden, Wash.,
Is at the Portland.
Mr, and Mrs, H. A. Bell, of ffehalem,
are at the Perkins,
! Dr, George C, Knott, of Glendale,
Or., is at the Eaton.
Dr. R. G. McCall, of Chicago, Is reg
istered at the Eaton,
J. A. Merriman, of Eugene, is regis
tered at the Imperial.
Jj. F. Jones and family are regis
tered at the Nortonla,
R. H. Butler, of The Dalles, is reg
istered at the Imperial.
Mr. and Mrs. E. Irwin, of New Or
leans, are at the Nortonia.
I B. Collins is registered at the
baton from Yacolt, Wash.
- A. Cohn, president of the Northern
Grain & Warehouse Company, returned
yesterday from a two months' .visit to
the Eastern states.
Mr. and Mrs. B. R. Lindley, of As
toria, are at the Cornelius.
Mr. and Mrs. H. I. Williams, of
Ilwaco, are at the Ssxvard.
Miss F. Ely is at the Norfonia, regis
tering from Santa Ana, Cal.
W. C. Harper is registered at the
Nortonia from Victoria, B. C.
R. E. Shanks and family, of Epokana.
are registered at the Oregon.
Mr. and Mrs. George S. Beatty, of
Bar View, ara at the Cornelius.
A. Parker and Carl Crooks, of Cas
cade Locks, are at the Perkins.
Dr. and Mrs. W. A. Shepard, of Den
ver, are registered at the Nortonia.
XI. M. Davidson, manager of the
Oregon Chair Company, who has been
critically ill at his home, 643 East
Thirteenth street North, was reported
much improved yesterday.
Mr, and Mrs. Paul J. Jensen, of Se
attle, who are on their way home from
Salt Lake City where they attended
the Greeters Convention, ara at Hotel
Nortonia. Mr. Jensen is the president
of the Seattle Greeters and chief clerk
of the Hotel Frye.
Summer Fish Tale.
Indianapolis News.
Trusting persons in Jameaburg, N. J.
listened in awe as Norman Jobes told
this story. He was standing beside
Manalapan Lako, when he saw a fish
hawk dive and come up wita a two
pound pike. In its struggles the fish
broke loose and dropped at Jobes feet.
He had to fight the hawk for it. but
he won and took the fish home.
Lydla C. Barnes, of Hockport. ni., are 102,
Is still actlv In household affairs.
ASK FOR and GET
THE ORIGINAL
MALTED tillLK
Chsap substitutes cost YO XT Dame price.
JlJjTir COPPER AND ALUMINUM
r; KDll a,'rtJ"'ul nawnaaawhsn
h 9
111,"
. ..
a hbtoii tubt worr ,na.
" ' .imn, ni mil poiiRBN.
and Jjxua iitaraa. isfcfaraarka.aaa.
Mada every day for
the people of Port
land and vicinity by
the UNITED STATES
BAKERY in their
large modern plant,
corner &. 11th and
Flanders, where vis
itors are ALWAYS
welcome. Over a
million loaves have
been sold in Portland.
Get The Genuine
.UTTTEIS-MUT
C3T1 106.2