TIIE 3IORXIXG OREGOXIAX.
V
v
HDMEPHONEPASSES
MEREST PAYMENT
Bondholders to Take Steps to
Avert Financial Crisis -of
Company.
MR. HILL ISSUES LETTER
President of Concern Explains Situ
ation and Appeals for Co-operation
Interruption of
Service Xot Likely.
The Home , Telephone & Telegraph
Company has defaulted in the payment
of interest on 13,000.000 of 6 per cent
first lien bonds, due October 15.
The bondholders -will hold a meeting
within a few weeks to take steps for
the conservation of their interests. They
ere confident that they will be able to
avert a crisis in the financial affairs
of the company.
Meanwhile, however, the entire phys
ical organization of the company will
continue Intact. There will be no in
terruption of the present standard of
ervice, either in quantity or in quality.
Company's Predicament Explained.
Samuel Hill, president of the com
pany, has issued a letter to the bond
holders and the stockholders, explain
ing the situation fully.
He attributes the present predicament
to two causes: The general business
depression and the "persistent efforts
of the Bell monopoly to prevent com
petition in Portland."
He calls attention to the fact that
(even years ago, when he assumed
charge of the company's affairs, the
bonds were selling below B0, and that
lnce then they have been earning their
6 per cent interest regularly.
His letter in full follows:
On the fifth day of June, 1905, the city
e-f Portland, owing" to the then bad tele
phone nervlce given by the Bell Telephone
Co.npany. chartered the Home Telephone
A Telegraph Company, of Portland, Or.,
ty & voto of 90 per cent.
On the 18th day of March. 1909. I Identi
fied my.elf with the Home Telephone &
Telegraph, Company, of Portland, Or. At
that time the market price of the bonds of
this company was about 50 cents on the
dollar or less. Since that time the com
pany has paid the holders of the bonds In
terest thereon at the rate of 5 per cent on
the face value of the bonds, which for the
even years amounts to 35 per cent, or a.
total of 70 per cent on the then market
value.
Overhead Charges Are Small.
There are at present outstanding sub
stantially OdO.OOO of stock and -".3.000,000
of bonds. The company's business last
month showed an increase in revenue. Ow
ing to the fact that the company is hon
setly and intelligently operated, it is now
earning a net revenue of about $100,000 a
year above operating expenses and taxes.
The property consists of the plants at
Portland. Oregon City. Albany and Corval
lis. and has been maintained in a high state
of efficiency. The overhead charges of this
company are exceedingly small, being less
than $10,000 per annum.
When the company had 13.60O telephones
Installed, the system was so perfect that
an average of only 8 1-3 persona per day
had one moment's delay. It is confidently
asserted that no public service corporation
of this size has been more economically
operated. Its taxes, amounting now to 22
cents per month per telephone, and all ob
ligations of every kind, except the obliga
tion to pay the bond interest, due October
15, 1916. have been met. The failure to pay
this bond Interest In no sense will dimish
the quality or amount of service rendered
end patrons will be Just as well treated as
before.
The failure of the company to meet Its
bond Interest Is due to two causes; first,
the general business depression, and sec
ondly, the continued and persistent efforts
f the Bell monoply to prevent competition
In Portland. During the seven years the
directors of this company haxe served it
well and faithfully, and the only apology
which 1 have to make is to them, believing
that they took positions on the board out
of friendship for me. During this time I
have received no salary and no expense
money, and I am In no way Indebted to
the company. The object I had in taking
hold of this company was to reach out and
put the city of Portland In closer contact
with the farmers in the surrounding ter
ritory. Appeal to Portland Made. '
I am unwilling to proceed farther In the
matter unless I find the people of Portland
more responisve and more appreciative of
the service given. The telephone equipment
Is here and It is In the power of the people,
end It is in their power alone, to give them
selves good service and to make this com
pany pay. This company offers every fau
lty, both local and long distance, that the
Bell has to offer, and in addition thereto
gives the secret, automatic service.
The majority of the securities were and
re held in the city of Portland: the ma
jority of the Bell securities are not.
Continued lack of support to the company
can have no result but a return to the de-ploraM-
telephone conditions which pre-
PUT STOMACH IN
ORDER AND STOP
Tape's Diapepsin" Regulates
Disordered Stomachs in
Five Minutes.
No More Dyspepsia, Sourness,
Heartburn, Pain, Belching:,
or Acidity.
Nothing will remain undigested or
our on your stomach if you will take
a little Diapepsin occasionally. This
powerful digestive and antacid, though
as Harmless and pleasant as candy.
win aisesi ana prepare for assimila
tion into the blood all the food you
can eat.
Eat what your stomach craves with
out the slightest fear of indigestion or
that you will be bothered with acidity
or sour risings, Deicning, gas on stom
ach, heartburn, headaches from stom.
ach. nausea, bad breath, water brash
or a feeling like you had swallowed a
lump of lead, or other disagreeable
miseries. Should you be suffering
now from any stomach disorder you
can get relief within five minutes.
If you will get from your pharmacist
a 50-cent case of Pape's Diapepsin
you could always go to the table with
a nearty appetite, and your meals
would taste good, because you would
know there would be no indigestion
r niccpiess nignis or neaaacne or
stomach misery all next day: and. be
sides, you would not need laxatives or
liver pills to keep your stomach and
bowels clean and fresh.
Pape's Diapepsin can be obtained
from your druggist, and contains more
than sufficent to thoroughly overcome
the worst case of indigestion or dys
pepsia. There is nothing better for
gas on the stomach or sour odors
from the stomach or to cure a stomach
headache.
Tou couldn't keep a handier or more
useful article in the house. Adv.
GAS
11
GtSTIO
..cw company was cnarterea,
and which every resident of Portland who
experienced the same baa never forgotten.
This Is the last stand of independent tele
phony on the Pacific Coast, and It Is for the
people of Portland to decide whether they
wish It continued or not.
SPOKANE CANCELS FRANCHISE
Court Action to Be Taken to Enforce
Cancellation.
SPOKANE, Wash., Oct. 16. (Special.)
The Home telephone franchise, under
which the telephone company in this
city is operating, was ordered canceled
by the City Council late this afternoon.
The resolution was passed unanimously.
Another resolution, ordering Corpora
tion Counsel Gerag'hty to start suit
immediately In the Superior Court to
enforce the cancellation, also was passed
unanimously.
Allegations by Attorney Frank T.
Post for the Home Telephone Company
that the company doesn't know the
charges under which the city is seek
ing to cancel the telephone franchise,
and the entering of an objection to the
heading, were the initial moves of the
company this afternoon when the bat
tle of the city against the company
started.
The telephone company alfeges that
it has "one of the best telephone sys
tems in the United States;" that it
has always treated the public fairly,
and that there is no reason for can
cellation of its franchise.
After one passage between Geraghty
and Post the former declared that "this
franchise was drawn in the back room
by a bunch of corporation lawyers of
the telephone company for the benefit
of the telephone company. Every ob-i
EASTERN OREGON NORMAL SCHOOL BACKERS, MEETING AT IMPERIAL HOTEL YESTERDAY.
. . . :yv.:.sv. .... . .. 'v rr- v.- .: . . .w.'.v; ,v is.- v .'. v. . .a av . A sc. . t o I
Reading From Left to Right (Front
Snyder and W. E. Brock. Baelc
rlon Jacks, Fred Lockley and W.
stacle possible was put in the way of
its cancellation.".
CONTRACT IS CANCELED
BRICK OFFERED FOR AUDITORIUM
USE REJECTED.
Completion of Building May Be De
layed Six Weeks and S200O
Added to Cost as Result.
Inability of the Pacific Face Brick
Company to supply brick of the proper
tint for use in the public Auditorium
caused the City Council yesterday to
cancel the company's contract. An
award will be made to a brick- factory
n Dakota, which Is the only factory in
the West which is said, to be able to
furnish the kind or bricK specified Dy
the Auditorium architects.
The canceling of the contract will
cause a delay of possibly six weeks in
the completion of the Auditorium and
will entail the addition of about $2600
to the cost, owing to the fact that the
Dakota manufacturers will not furnish
the brick at the same price as the orig
inal contract,
The contract called for brick at $30
a thousand, while the Dakota company
demands $41 a thousand. An effort
was made to get brick from Tacoma.
but the manufacturers there refused to
take .the contract- The Council went
over to the Auditorium and looked at
the brick which have been set and those
which the Pacific company has present
ed for the remainder of the order and
found the two to be very different in
shade.
WATER SURVEY STARTS
STATE ENGINEERS TACKLE
TASK AT HOOD RIVER.
BIG
Work Necessitated by Remanding of
Suit Regarding Rights of Board
as Official Referee.
HOOD RIVER, Or.. Oct." 16. (Spe
cial.) Rhea Luper, engineer for the
State Water Board, assisted by Fred
Coshow and Malcolm Button, has be
gun the four months' task of making a
survey of the entire area of the Hood
River Valley under the ditches of ir
rigation systems or that may be irri
gated. During the next week H. K.
Donnelly, another engineer of the
Water Board, accompanied by R. C. In
garham, will arrive here to assist in
the task. George T. Cochran, of La
Grande, Eastern Oregon water super
intendent,, was here Saturday to In
spect the Initial work of the engineer.
The work of the Water Board has
been undertaken here for the purpose
or abjudicating the water rights of the
entire Hood River watershed. The task
was initiated recently, when the Su
preme Court, remanding a decision of
Circuit Judge Bradshaw In the case of
the Oregon Lumber Company vs. the
East Fork Irrigation District, referred
the case to the Water Board.
Asotin Docket Heavy.
ASOTIN. Wash.. Oct. 16. (SptJcial.)
With one of the Jurrrpnt rrimi..i i.
ets ever on record here, the Superior
w"' i jvsotm (jounty. with Judge
Chester F. Miller presiding, will con
vene at Asotin early In November.
There also will be a number of Im
portant civil cases to come before the
court. The names of the jurors were
drawn October 14.
Argentina and Paraguay have concluded
SSM?,mmf rclal "ef'y which provides for
countries. re" trBd betwa th. two
PENDLETON OPENS
FIGHT FOB
Backers Declare Voters Are
Realizing Force of Data
Showing Real Need.
MERCHANTS ARE VISITED
State Standards Are Suffering: Be-
cause of Shortage of Nearly
1000 Trained Teachers for
Schools, Say Promoters.
The waging of an active educational
campaign for an Eastern Oregon nor
mal school was begun in Portland yes
terday by the delegation of 17 boosters
arriving from the other side of the Cat.
cad es..
The significance of the facts and fig-
Row) A. J. McAllister. H. D. Gray. J. II. Gwn. Joe Tallman. J. K.
How Eugene Brookings, W. L,. Thompson, A. II. Cox, Roy Ul.hon. Ma-
J. Furnlih.
ures presented in favor of a new nor
mal school is striking, and the mission
ary work done in this city yesterday
has apparently not failed to convince
all of the business men approached.
According to the normal school backers,
no voter, once possessed of these (acts,
can lack conviction as to the need of
such an institution at Pendleton.
The result of investigations on ths
subject is being presented by J. H.
Gwinn. secretary of the normal school
committee.
Data Carefully Collected.
'"We are thoroughly supplied with
data," said Mr. Gwinn. "and no point of
our argument is without overwhelming
support in the facts that we have col
lected. There will be no difficulty in
influencing the voter for our cause.
"The inadequacy of Oregon's present
normal-school equipment Is a fact well
known to all of the state's educational
authorities. Oregon in 1914 spent $43.
254 for the maintenance of her normal
schools, while Washington spent $265,
700 and California $536,400. The build
ing appropriation for Oregon's normal
school equipment during the last six
years was $1500. California spent in
this time $1,553,221 and Washington
$482,290 for buildings and improve
ments. These figures ought to carry
weight with the voter and taxpayer.
School Standards Hart, He Says.
"While we are trying to avoid pro
digious expenditures of money, we can
see no economy in our lack of normal
school appropriations. Oregon Is so
poorly supplied with normal school
graduates for her rural schools that the
schools are decidedly below par. While
we are spending money for the erection
of schoolhouses we have spared a more
important item we have neglected to
supply our children with the well
trained teachers. For. after all, the
school is really the teacher.
"The results of the present normal
school cannot be criticised. But it can
not supply the needs of the entire state.
President Ackerman reports that eight
of the 35 counties in the state are
getting half of thg teachers produced
by this school.
"On graduating, most of the normal
. MADE to ORDER
Tweed the Peerless Fabric
THE new grays, blues, browns
A show tweed, at its best.
Have yours Cut Fitted Fin
ished as Business Leaders like.
SUITS AND OVERCOATS
$25, $30, $35 and upwards
"W? OTBKEEMS SONS
' Osear M. Smith, Haaair, ,
108 Third St, Near Washington m
. '" i. .... . ,, ., . , - . .
school pupils find positions in the more
populous portions of the state. The
rural schools of the eastern sections
cannot obtain teachers with a normal
school .training. Their capacity at
Monmouth is only 165 graduates a year.
The state could provide places for at
least 1000 new teachers.
"We have strong evidence that a normal-school
training is necessary for
teachers who are going to benefit their
pupils. The United States Commission
er of Education, P. P. Claxton. has
spoken favorably of normal schools in
his report, saying: The success of a
school depends wholly upon the skill,
training, interest and enthusiasm of
the teacher. Where nothing has been
learned, nothing is taught,'
Teacbers and Official Favor.
"The location of the normal school
at Pendleton is the only logical an
swer for the requirement. It was the
decision of all prominent educators
that the school should be there, and
the Pendleton boosters are only fol
lowing the suggestion made by the
teachers" associations of Wheeler, Mor
row, Gilliam and Umatilla counties that
the school should be located there.
"Eastern Oregon Is solid behind the
measure. The State Teachers' Associa
tion has supplemented the movement
with a petition for the location of a
normal school at Pendleton. President
Ackerman", of Monmouth: Governor
Wlthycombe. State Superintendent of
Public Instruction Churchill. President
Campbell, of tbjO State University, and
President Kerr, of the Oregon Agri
cultural College are all backers of the
movement for a normal school at
Pendleton.
"The reasons for locating the school
at Pendleton are unimpeachable. The
eastern part of the state Is most in
need of the school. Commissioner Clax
ton asserts that a normal school Is only
efficient when located in a town con
taining at least 1000 grade pupils. This
requires a town of Pendleton's size. The
surrounding territory and the means of
access to Pendleton also make it the
preferable location for the normal
school.
"The only objection that can be
voiced comes from Weston, where the
old school was located. This was not
a desirable spot, in the first place, but
the school had the support of Pendle
ton people as long as it was kept in
operation. The old buildings at Weston
were not up to the modern standard 15
years ago. Xew buildings will be
needed, and they should be located in
the only logical center for a normal
school."
Sixteen other Pendleton boosters are
with Mr. Gwinn at the Imperial. They
are: R. Alexander, Senator J. X. Bur
gess. Ieon Cohen. George Baer. IL D.
Gray. A. J. McAllister, W. E. Brock. W.
.T. Clarke Ed Murphy,' Marlon Jack. W.
L. Thompson. J. E. Snyder Ben Bur
roughs. Roy Rishop. J. v. Tallman and
A. II. Cox.
SHERR1FH0DGEACCUSED
RAILWAY CHARGES SALE OF SEIZED
LIQUOR TO DRUGSTORE.
Seattle Officer Saya It Was Destroyed.
Request for Payment to Cause
Investigation.
SEATTLE. Wash.. Oct. 16. The Chi
cago. Milwaukee & St. Paul Railroad,
through its attorney, today accused
Sheriff Robert T. Hodge of permitting
liquor seizea in a treight car to be
sola to a feeattle drugstore. Hodae al
leges that the liquor 'was destroyed by
his dfpiitl". The railroad company
' V . '.. V Li V-VSI'.'U T
" ' MX.:. 1 I
THIS LASKL MARKS TMI SMARTEST
REAOr-TOWtAR CLOTHES
BEN
sent a letter asking the County Com
missioners to pay $170, the value of
liquor consigned by a Louisville distil
lery to a drugstore at Renton. W'asn..
and seized by Hodge. The letter says:
A a matter of fact, a portion, if not
all. of this shipment was located In
one of the downtown Second-avenue
drugstores In Seattle, having been sold
to the proprietor of the drugstore bv
a plain-clothes man."
The letter was turned over to Prose
cuting Attorney Lundln. who promised
a thorough investigation.
TODAY IS "LAVENDER" DAY
Elderly Women to Sell Flowers for
Old People's Home.
The old theory that tag and special-
day souvenir sellers must be young and
beautiful girls in their teens or early
twenties will be smashed entirely today
when the members of the Lavender
Club will prove that they are even
more popular than the young girls.
All day "lavender ladies" will be no
tlced In the downtown district selling
tii)iiillliP
; -;?4
Once Too Often
Two pairs of Tire Chains were in the car, but
he did not stop to put them on. .
An evil impulse tempted him to continue over the wet pave
ments with bare tires. He ventured on for a few blocks, and
then, in a flash, came the frightful skid leaving death in its wake.
How strange it is that some motorists are sometimes tempted to take a chance. They
cany Tire Chains, but they do not put them on at the first indication of slippery
going. They wait too long once too often and disastrous skidding accidents result.
"Put on Tire. Chains at the First Indication of Wet
and Slippery Streets"
is a Safety First Commandment of vital importance. It should always
be obeyed by all motorists ' for the protection of all road users.
ff wr".iii a i,i iuispsssm II l lT . j I I II I. iii i
: gj
Smart Clothes
are as good as Sixty
Two Years of Knowing
How can make them.
The "SaXOn" shows the su
periority that has been attained
in designing and tailoring a
smart, serviceable suit for the
man of affairs.
THE STEIN -BLOCH COMPANY
Wholesale Tailors Rochester, N. Y.
Sold Exclusively by
SELLING
their lavender flowers and novelties for
the benefit of a worthy charity, the
Old People's Home at Woodmere.
The Lavender Club is made up of
women all over the age of 50 and many
of them nearly 90 years old. Klowers
may be left at the Chamber of Com
merce this morning and all who are
willing to assist will be gratefully wel
comed into the circle of the club.
Oregon owns a
$75,000 Normal
School plant at
Weston.
Why vote tax $125,000
for another at Pendle
ton, only 21 miles dis
tant? Why not reopen
the Weston plant?
Paid Ad. Wm. MacKenzle. Westoo. Or
MORRISON
AT FOURTH
Nervous Period
ical Headaches'
This trouble commonly called "sick bead
ache. Is said to be due to the retention of
urea In tae system. Often It is stated that
a poor condition of the blood 1 a cause of
these headaches, or that It Is a nervous
conditions and In certain cases, no doubt
this. Is true.
V here treatment Is demanded. It Is mora
for the pain than anything else, una l)r.
A. F. SchellKcbml.lt, of Louisville, has
Bound antl-kamnla tablets to give prompt
and satisfactory relief. Hest should be
Insisted upon." he says, "and the patient
should bo to bed. darken the room, and all
the attendants and faintly should be as
quiet as possible. An emetlo will some
times shorten tbe attack. The bowels should
be keptopen with "Actoids": a hot bath and
a thorough rub-down with a coarse towel,
ofteu give Erateful rojlef. Two antl-kamnla
tablets when the first slsns appear, will
usually prevent tne attack. During an at-'
tAc it. one tablet every bonr or (xo will
shorten the attack and relieve the usual
nausea and vomltlna." These tablets msy
be obtained at all druggists. Ask lor A-1C
Tablets. They are also unexcelled for ner
vous hsadacb.es, neuralgia and all pains.
Read The Oregonian classified ads.
1