vr ;, t. :;.
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PORTLAND, OREGON, FRIDAY, MARCH 18, 1921
TRICE FIVE CENTS
VOT,. TX fi 18 821 Enlfrwl tt-Portlind lOiwn)
2 CHILDREN KILLED,
8 INJURED IN CRASH
CASHIER BELIEVED
50-MILE WIND . HITS
COAST NEAR ASTORIA
DIRECTORS FROWN ON
HIGH SCHOOL FRATS
THREE MEMBERS OP BOARD
AVOL'LD FORBID SOCIETIES.
BELL PHONE LIMES
SHOW BIG PROFIT
STRIKE IS VOTED BY
ALL PACKING UNIONS
E BALLOT
E
DKIVER OP ARMY POST SCHOOL
SHIPPING IS DELAYED CXI11
BLOW MODERATES.
ALMOST LNAXIMOUS BALLOT
, CAST IX XATIOX.
TRICK ALSO LOSES LIFE.
f ' '.
TEAGHER
RfTllG
CLARA AC(
ON SiNGL
SYSTEM
SIIIII
0
RE
---J
; t i
;
r.j
, v
V
Jury in Hamon Murder
Trial Out 40 Minutes.
VERDICT KEPT FROM WIDOW
Defendant Says She Is Hap
piest Woman in World. '
CROWD DODGED SECRETLY
Jassascway Used to Escape Court
room Flans for Future Kc
portcd Incomplete.
ARDMORE. Okla., March 17. Clara
Kmith Hamon late today was acquit
ted on a charge of having murdered
Jake L. Hamon, republican national
committeeman from Oklahoma and
jnilllonaire railroad and oil promoter.
The case went to the jury at 4:30
T. M. and returned to the courtroom
0 minutes later. B. F. C. Laughridge,
.73 years old, foreman, said only one
allot was taken, a secret one, con
firmed by a rising vote.
Clara Hamon obtained the informa
tion fully seven minutes before the
verdict was given in open court and
eat, surrounded by her family, half
smiling, half afraid to believe the
nods of assurance that were bent
toward her. '
When Judge Champion mounted
the bench and received an affirmative
response to his question, "Gentlemen,
have you reached a verdict?" her
yes Intently followed the bailiff as
he received the verdict from Mr.
Laughridge and handed It to the
clerk, who read It In a nervous, fal
setto voice.
Clara Gasps Audibly.
Clara Hamon gasped audibly in the
tensely silent courtroom, drooped for
ward In her seat, only to be seized
from behind by her younger brother
"Jimmle," squeezed violently and
kissed. Tears came to her eyes and
other members of her family cried
with her as she crossed to the stand
ing Jurors and haltingly thanked
them. '
The 'defendant came to the press
room to thank newspaper workers,
holding: the arms of Sheriff Buck
Garrett and her brother and, with
tears streaming down her face, said:
"I am the happiest woman in the
world."
She used a secret passage from the
courtroom to escape the crowds which
threatened to overwhelm her and
went to a lower floor of thp build
ing, where she received congratula
tions. Tonight her plans for the future
were incomplete, she and members of
her counsel said. She is considering
a. number of business propositions,
according to Walter Scott of Fort
Worth, Tex., one of her counsel.
Mrs. Hamon la Tear.
Her father, J. L. Smith, is serious
ly ill at El Faso, Tex., and it was said
she might return there to be with
him.
None of the members of the family
of Jake L. Hamon was present when
the verdict was returned. Mrs. Ham
on, the widow, and her 19-year-old
eon, Jake L. Jr., left when the case
was placed In the Jury's hands. Mrs.
Hamon was In tears. i
Although Mrs. Hamon and Clara
Hamon sat opposite each other, only
30 Inches apart, not once during the
week's trial did they appear to be
come conscious of each other except
on the days they testified.
Tonight at the home of Mrs. Jake
Hamon it was said that she would
not be told of the verdict until to
morrow kecause of her condition.
Mr. Hamon was shot on the night
of November 21, through the upper
part of the body, with a' .25 caliber
bullet. He died five days later. "
Clara Hamon left Ardmore Novem
ber 22 on instructions of Mr. Himon
as he lay upon a hospital cot and
Frank L. Ketch, business manager
for Mr. Hamon, and upon $ 5000 fur
nished her by Mr. Hamon "through
Mr. Ketch. She went to Chihuahua
City. Mexico, traveling part way
across Oklahoma and Texas by auto
mobile. She surrendered at El Paso
fend returned here Christmas.
Self-Defense Pleaded.
In the trial the state's case was
based on alleged dying statements of
Mr. Hamon that he had been shot by
Clara Hamon as he lay on the bed in
his room of the hotel, suite they had
occupied here for a number of years.
Clara Hamon's defense was built
about a plea of self-defense and justi
fiable homicide. In her testimony she
did not dfeny that she pointed the
pistol at him, saying she feared for
Jier life, but asserted the weapon was
discharged when Hamon struck her
"with a chair. " . .,
In his closing argument for the
. state today, Attorney-General Free
ling attempted to break down her
plea for self-defense. He took the
pistol in his hand to show, he said,
that it could not be discharged by ,a
blow.
Arguments of three men of the de
fense counsel and the closing argu
ment of Mr. Kreeling occupied all of
today's sessions. The defense at
tacked the Hamon interests, alleging
a fight against Clara Hamon wai
made by the Hamon millions, in which'
the millions of associates were allied.
(Concluded on l'ay 2, Column S.j
Machine Overturns on Curve at En
trance to Military Tost; Car
Drops Over Bank.
FORT TOWNSEXD. Wash., March 17.
(Special.) Three persona were
killed and eight Injured today when
an automobile truck, used ' to trans
port children from Fort Wordcn to
schools In this city, went over an em
bankment with 15 small children on
their way to the military post.
The dead arc: Samuel Joblowsky,
driver of the car, aged 21, and a mem
ber of the motor transport corps;
Margaret Tripp, aged 10, daughter of
Sergeant and Mrs. Tripp, and Mary
Gillen, aged 10, daughter of Corporal
and Mrs. Gillen.
Those seriously injured are: Sarah
Green daughter of Major and Mrs.
Green; Tthel Marlin, Kelley Lammond.
William Mcrriam, son of Colonel and
Mrs. Mcrriam. The four others escaped
with only slight bruises.
The accident occurred while the
children were being taken from the
city schools to their home at Fort
Worden for their noon meal and while
rounding a curve near the entrance
to the fort grounds where there Is
a sharp curve at the foot of a hill.
Fast and reckless driving was said
to have been responsible for the ac
cident. The automobile went off an
eight-foot embankment, turning turtle
with all of the children pinioned
underneath, except . two youngsters
who leaped to safety.
Farents of the children and soldiers
soon reached the scene, righting the
truck and releasing the victims. The
injured and dead were taken to the
post hospital.
It was believed that the injured
would recover, though the extent of
injuries to some will not be known
for a day or two.
Among the first to reach the scene
was Mrs. Gillen, who was just re
covering from an attack of pneu
monia, and who a short time ago lost
a child by death.
It was feared that the shock and
exposure of the second death will
cause a relapse. The military authori
ties will make an investigation of
the accident.
Joblowsky enlisted in St. Louis.
Shortly after entering the service he
was assigned to the motor transport
corps and sent to Fort Worden for
duty. His reckless driving In this city
attracted attention, other drivers pre
dicting that he would meet with an
accident.
MAN BELIEVED DROWNED
Member of Steamer Crew Disap
pears In Early Morning.
Clyde Hatton. about 23 years of age.
a watchman on the river steamer
Diamond O, is believed to have been
lost overboard and drowned at 6:30
o'clock yesterday morning somewhere
between the Shell Oil company's dock
and theSpokane. Portland & Seattle
bridge. The watchman was seen to
come aboard the steamer from the
barge she was towing as they left the
Shell dock, and to go up into the bow
of the boat. He was missed as the
Diamond O was passing through the
bridge and a thorough search failed
to reveal his presence.
The harbor police were notified of
the suspected drowning yesterday
afternoon, and attempt will be made
today to find the body. Hatton had
been with the Diamond O Navigation
company since last October. His home
was in Elkhorn, Ind., where his moth
er lives. He has no known relatives
in this city.
3 WOMEN JNAUT0 HURT
Car Leaves Highway Xear Salem
and Overturns in Ditch.
SALEM, Or., March 17. (Special.)
Mrs. A. H. Litchfield, Mrs. John Plank
and Mrs. M. W. Hilborn were in a lo
cal hospital tonight suffering from
injuries received when an automobile
in' which they were riding left the
highway at a point a short distance
east of Salem and overturned in a
ditch.
Mrs. Litchfield and Mrs. Hilborn
were suffering from serious cuts on
the head and body, while Mrs. Plank
may have suffered a broken leg. The
seriousness of her injuries had not
been determined by attending physi
cians late tonight.
" Mr. Litchfield was at the wheel of
the car at the time of the accident,
but escaped wfthout injury.
THEATER PIONEER DEAD
George B. Howard Passes Away in
Vancouver, B. C.
VANCOUVER. B. C. March 17.
George B. Howard, pioneer theatrical
manager and player of the Pacific
coast, died suddenly here today. He
had been associated in a stock com
pany here for the last four years.
Howard for many years headed his
own stock companies 4n coast cities.
One company he took to Alaska in the
early days of the gold rush.
BALLOON WITH 3 LOST
Captive Craft Breaks Moorings at
Havana; Planes Give Chase,
HAVANA, March 17. A captive
ba'.loon with three men in the basket
broke from its moorings today at
the American naval station at Cuan
tansmo, and sailed away. Among
the men aboard was Captain Miller
of the medical corps.
Several airplanes went in pursuit
without results. It was believed the j
mt have been lost, . .
Kelso. Officer Vanishes
v After Bank Closes.
STEWART IS LOST OFF FERRY
Missing Man Last Seen Walk
ing Aft Nervously.
SUITCASE LEFT ABOARD
Friends Fail In Search After Land
ing Is Made and Conclude
Own Lite "Was Taken.
KALAMA, Wash., March 17. (Spe
cial.) Fred L. Stewart, cashier of
the Kelso State bank, disappeared
from the ferry boat Queen tonight
as the boat approached the Kalama
dock, and it was believed that he had
committed suicide, following despond
ency over the closing of the . bank
today by the Washington state bank
ing department.
Mr. Stewart was on his way home
from Portland, where he went early
today. The bank was closed while he
was away. It .was not known where
he heard the news.
' The boat was about 40 rods from
the dock when Mr. Stewart was last
seen. Captain William Pomeroy saw
him walking aft nervously. When
the passengers had landed, Mr. Stew
art's suitcase was noticed on the
deck.
Search failed to reveal him on the
boat, and in a few minutes his friends
grew worried. When he failed to ap
pear, and news of the bank's closing
spread, it was concluded that he had
killed himself.
The Queen went down the river to
search for his body,tonight. The boat
returned at a late hour without hav
ing discovered anything.
Mr. Stewart got on the boat at
Goble. It, was understood that he had
gone from Portland to St. Helens by
auto, and thence to Goble .on a car.
He was returning to Kelso, when ha
disappeared. Before leaving Goble
he telephoned to Kelso that he was
returning.
BANK AT KELSO IS CLOSED
Xon-Liquid Assets and Loans Are
Given as Cause.
KELSO, Wash., March 17. (Spe
cial.) The Washington state banking
department closed the Kelso State
bank, Kelso's pioneer financial insti
tution, at noon today. Claud Hay,
state bank commissioner, took charge.
The total deposits on February 2,
when the last statement was pub-
( Concluded on Page 3, Column 3.)
j 5)
Rainfall in Walla Walla Grows
Heavier sad Flood "Condi
tions Reported Greater.
ASTORIA, Or., March 17. (Special.)
The southerly gale, which has been
playing, along the coast during the
last two days, grew more violent this
morning and at noon the wind at the
North-Head wireless, station registered-
60 miles an hour.
The wind soon began to moderate
however, and the barometer which
had dropped to 29.45 started up again.
The rainfall during the storm was ex
cessively heavy. From 6 o'clock Tues
day until 6 o'clock tonight. It was
3.95 Inches.
So far as reported the only damage
done by. the oale was the delay to
shipping.
WALLA WALLA, Wash., March 17.
Rainfall heavier than at any time
since flood conditions started was re
ported from the mountains and fear
was expressed or further damage.
Yellow Hawk and Garrison creeks,
which flow out of Mill creek, were
carrying much of the water which
comes from the mountains and the
district south of the city was still
badly flooded.
Damage in the city and county
reached hundreds of thousands of dol
lars. The flood waters began to recede
slightly.
Every creek in tne county has add
ed to the damage. In Walla Walla
streets have been torn up, bridge ap
proaches and abutments have been
undermined, sidewalks undermined,
cellars flooded, backyards washed
away, lawns ruined, wooden bulk
heads torn out and In the country
bridges have been washed out or made
unsafe, barns, outbuildings and fences
torn out, livestock washed away, val
uable garden and vegetable lands
along the creek washed away, great
gullies cut into wheat fields, making
it necessary in many instances to re
plow and reseed the land.
Traffic by auto between Walla
Walla. and Dayton is impossible, as
the road between Waitsburg and
Dayton is under from a foot to 18
inches of water in many places. At
Waitsburg teams and wagons have to
be used to rescue people in homes
surrounded 'by water. Dixie also had
high water.
Trains were running late because
of the dangerous condition of the
roadway.
HOOD RIVER, Or, March 17. (Spe
cial.) Rainfall here In the 42 hours,
ending at 7 A. M. today, was 2.15
Inches. The fall since then has been
nearly a half inch. The'local observer
said it was a record for this season of
the year.
Crews have cleared the slides on
the Columbia highway sufficiently to
relieve the traffic blockade. The most
damaging slide occurred west of
Wyeth, undermining a section of the
roadbed and precipitating parts of a
concrete culvert on the O.-W. R. & N.
track.
The rain continued tonight, but the
(Concluded.on Page 2. Column 1.)
GIVE HER MORE ROPE AND SHE WILL GIVE
' .. -
---- mnt.
Suspension of Offending Students
Favored Formal Vote Waits
, ' Vpon Full Meeting.
Any high school student who does
not renounce his membership In any
high', school fraternity or secret
society will be subject to expulsion
from school, if the school board fol
lows the course proposed at Its meet
ing yesterday. ' No formal vote was
taken, since only, three members of
the board were present.
Directors A. C. Newill, who P'e
sided, and W. F. Woodward expressed
their approval of a resolution sub
mitted by Frank L. Shuil. director,
which would prohibit fraternities,
sororities or other secret organiza
tions In high schools. The resolu
tion will be submitted again for
action at the first meeting at which
all five members of 4he board are
present.
The resolution proyides that "pupils
of the Portland public schools are
prohibited from belonging to, being
pledged to. or being In any way iden
tified with fraternities or sororities
(including university fraternities and
sororities) and other organizations or
groups of a secret, exclusive or other
wise objectionable character whose
effect reaches into the school, wheth
er such organizations be wholly or
In part outside of the school. It shall
be the duty of the principal upon
evidence submitted to him to suspend
any pupil violating this rule'."
The school board is backed by the
law in taking such action, it was
pointed out by an opinion from Sam
uel Pierce, deputy district attorney.
Mr. Pierce said he Interpreted the
state law on this matter to mean that
thj board has the power to exclude
from school members of secret organ
izations. Several other states, among
them California, Ohio, Indiana, Maine
and Vermont, have taken similar ac
tion. "The fact that these societies do
not meet in the schools Is immate
rial." said Mr. Pierce. The claim has
been made by fraternity members
that no meetings ' are held In the
schools and that others, in addition
to high school boys, ar members.
The school system of Portland will
need for new buildings and mvn
tenance of old buildings practically
$2,000,000 each year for the next five
years in order to catch up with its
Building programme, according to
Mr. Newill, who brought up the
question of the proper way In watcb
to raise money this year.
.'We will need a six-mill , levy.
Instead of a five-mill levy, as sug
gested before," ' said Mr. Newill.
"This will be only three mills
greater than our present levy of tnree
milts. We are five years behind in
our building programme now."
The three members present yester
day favored a tax levy rather than "a
bond issue. A questionnaire Is being
prepared to be sent to representative
men of the city, asking their opinion
on which method would be the better
one to submit to the people at the
June election.
The board decided to pay half the
expenses for purchasing a moving
picture outfit for the supils of the
Jefferson high school.
MORE MILK.
$4,087,601 Dividends in
1900; $35,376,793 Now.
$444,039,203 IN RESERVE
LaRoche Attacks Local Sub
sidiary's Loss Charge.
HUGE WAR GAIN CITED
System's Own Records Used to
Show Earnings Increased Mil
lions During: Conflict.
At the crest of the public clamor
against recently Increased telephone
rates in Oregon under the award of
the public service commission to the
Pacific Telephone & Telegraph com
pr.ny, the arrival of the annual report
of the American Telephone & Tele
graph company, its parent corpora
tion, does not spread oil upon the
troubled waters. g
The 1920 report of the titanic pub
lic service corporation, aside from its
discussion of relationship with the
Western Electric company, is not con
ducive to popular sympathy, declared
W. P. LaRoche, ex-city attorney, evi
dencing as it does a remarkable rec
ord of steadily advancing prosperity.
The strong financial showing of th,e
Bell system, he pointed out is in
striking contrast to the claims of the
local company, a subsidiary corpora
tion, and as such an Integral part of
the American Telephone & Telegraph
company.
Grow(h Held Marvelous.
"If ever a public service corpora
tion was able to absorb the shock of
changing conditions," observed Mr.
LaRoche, as h-i regarded the state
ment of earnings and expenses, "it is
this one. The record here set forth
shows a marvelous growth a pro
gressive prosperity that triumphed
over the difficulties of the war era
ard actually Increased by millions its
earnings during that period and the
period of readjustment"
. The remarkable prosperity of the
i -rent company, Mr. LaRoche indi
cated, is portrayed by the annual
statement for 1920, which shows that
the net revenues increased from $5,
486,058 in 1900 to $51,821,216 in 1920,
while its dividends during the same
score of years leaped, without an in
stance of downward fluctuation, from
$.,087,601 to $35,376,793 in 1920. Ad
ditions to the company's surplus have
increased from $470,199 in 1900 to
$8,444,423 In 1920, while the annual
appropriation for contingencies has
risen from $937,258 to $8,000,000. For
the Bell system current surplus and
re erves total $444,039,203.
Loas Alleged at Bearing.
It was the claim of the Pacific
Telephone & Telegraph company, in
its application for a large' rate in
crease, that disturbing conditions and
advancing costs of the war. period
materially reduced Its earnings. The
parent company, or the entire Bell
system, rode serenely through the
storm, Mr. LaRoche points out, for
its financial report shows largely In
creased dividends and surplus from
1915 to 1920 the five years of eco
nomic disruption. '
The net revenues of the' company
for 1915 were $34,618,638. For 1920
tbey were $51,821,216. For 1915 It
paid dividends of $29,100,591. and In
1920 had Increased Its dividends to
$3. ,376, 793. During the same five
years its surplus and contingency ap
propriations were almost quadrupled.
039,S68,24 Are Assets.
The assets of the parent company,
by the balance sheet for December,
1920, were $939,868,246.15, while its
contingency reserve and surplus were
respectively $57,915,152.06 and $96,
649,961.44, or in the aggregate more
than one-sixth as large as the entire
assets.
Beyond directing attention to the
prosperous condition of the parent
corporation, as shown by its financial
statement, Mr. LaRoche declined to
comment cfn the relation of its con
dition to that of the subsidiary com
pany, the Pacific Telephone & Tele
graph company, saying that he pre
ferred to analyze the annual report
at length before expressing his views.
"With reference to the association
of the Western Electric company, a
fellow-subsidiary and source of all
supplies to the local unit of the Bell
system," said Mr, LaRoche, "the re
port gves field only for renewed con
jecture. The section of the report de
voted to the Western Electric de
clares its average earnings for a five
year period to have been .approxi
mately 5 per cent. I have not taken
time to check on this statement, but
I do know that Poor's Manual of In
dustrials gives Its earnings for a
single year, 1919, a far higher rating.
In that year the supply company paid
a 14 per cent dividend on preferred
stock, ana a iv per cent dividend on
common stock.
Probe Still Demanded.
"I still maintain that the business
relationship of the Pacific Telephone
& Telegraph company and the West
ern Electric company should be scru
tinized by a complete inquiry into
the books of the latter' concern. It
would be entirely possible for a large
proportion of earnings to be absorbed
through this monopoly of pur
chases." The annual report of the Bell sys-
(Cuntluded on l'utf 6, Column X.).
Some Shirts Keporlcd 'Still to Be
Counting Result's Industry
Leaders Again Accused.
CHICAGO, March 17. An almost
unanimous vote in favor of a national
etrike in tho packing industry was
cast throughout the country, accord
ing to union officials who began to
count the ballots tonight. Definite
returns were not expected before to
morrow. "Chcago, Kansas City and Omaha
night shifts and others were stilt
voting today." said Dennis Lane of
the Amalgamated Meat Cutters and
Butcher Workers' union, "but I have
information that the sentiment seems
unanimous in favor of a etrike in the
event that the government fails '.o
have the packers return to the war
time arbitration agreement."
Mr. Lane sent a message to Sec
retary Davis repeating charges that
the packers were trying to precipi
tate a premature Btrike and that they
had threatened to discharge employes
who failed to support the "industrial
democracy" plan recently put into ef
fect by Armour and company.
Mr. Lane appealed to Secretary
Davis to use his influence to prevent
an open break before the conference
at Washington Monday.
The packers denied both of Mr.
Lane's charges.
Union leaders declared that the
only issue they would present would
be a demand for the restoration of
the war-time arbitration agreements
canceled by the packers February 26.
3 HURT IN BORDER BATTLE
American Soldiers and Immigra
tion Official Wounded.
EL PASO. Texas, March 17. United
S'.ates 'Immigration officers and sol
d.ers of the border patrol engaged
in a long battle tonight with Mex
icans at a point, on the Rio Grande
near here. Two soldiers have been
wounded and a bullet grazed the head
of one of the immigration officers
The battle was still going on at 12:45
A. M.
The wounded: '
Private M. J. Koller, Company 1.
48th infantry,, shot in the left arm.
and scalp wound.
Private Petrcski. shot through
hip,' believed serious.
Joseph F. Thomas, immigration in
spector, scalp wound'.
EARNINGS UPJ2 MILLION
Chicago City Railways Gains Two
Million on 2-Cent Fure Lift.
CHICAGO, March 17. Earnings of
$12,000,000 under an K-cent fare were
shown by the annual report today of
the. Chicago city railways for the
year ending January 31, compared
with earnings of approximately $10,
000,000 in the preceding year.
Six-cent fares were increased to 8
cents July 1 last.
INDEX OF TODAY'S NEWS
The Weather,
YESTERDAY'S Highest lemperature, 67
degree; lowest, 63.
TODAY'S Occasional rains; southwesterly
winds.
Foreign.
French chamber of deputies Indorses de
cisions of London reparations confer
ence. Page 3.
Kronstadt captured by soviet forces.
Page 2. '
National.
Cabinet expected to pass on farm embargo
today. Page 6.
Tariff legislation first is demanded. Page 3.
Republicans split on tariff and taxes.
Page 2.
President approves orders against regular
forces marching in Boston evacuation
day parade. Page 14.
Domestic.
Golden hairpins enter Stokes-Wallace epi
sode. Page 2.
Clara mlth Hamon acquitted on single
ballot. Page 1.
Strike Is voted by all packing unions.
Page 1.
Pacific Northwest.
Two children killed, eight hurt In crash.
Page 1-
Wallace Reld. movie idol, arrested with
whisky. Page 4.
Oregon Daughters of American Revolu
tion gather In Salem for annual slate
convention. Page 4.
Fifty-mile wind hits coast near Astoria.
.Page 1.
Cashier thought suicide following closing
of Kelso bank. Page 1.
Youth, 17, shoots mother three times,
probably fatally. Page 7.
Gustav Lindberg, Tacoma, Wash., millions
aire, Indicted and arrested In connection
' with Scandinavian-American bank fail
ure. Page S.
Sports.
Beavers and oolored Giants stage real bat
tle. Page li.
Island trip hinges upon boat service. Page
12.
State drops cases of seven indicted base
ball players. Page 13.
Wilson defeats O'Dowd and keeps title.
Page 12.
Dave Shade outfights Frankle Murphy.
Page 13.
Commercial and Marine.
Embargo on Imports of wool favored by
dealers here. Page 21.
Chicago wheat prices decline when sup
port Is withdrawn. Page 21.
Liberty bonds firm In New York market.
Page 21.
Two schooners complete lumber cargoes
(or Hawaii and Callao. Page 20.
Portland and Vicinity.
Bell telephone system makes big profits.
Page 1.
Police dig up evidence in "the shadow"
case. Page 10.
Return of Senator Stanfleld to Oregon
next week expected to attract many
Job hunters. Page U.
Presiding Judge Kavanaugh of circuit
court appoints Frank A. Spencer re
ceiver of A. Rupert company. Inc.
Page 7.
Teachers' Retirement Fund association on
rocks. Page 1.
Three school directors present at meeting
of board favor expulsion of students
clinging to high school frats. Page 1.
Oregon fruit growers invited to conference.
Page .
Reporter blamed by Mrs. Etheridge. Page
10.
Business men meet to encourage home
building campaign. Page 14.
Chicago aldermen reach Portland on tour
to study traction systems. Page 6.
Association Can Pay Only
$32 on Each $100.
EARLY READJUSTMENT IS AIM
Expert Actuary's Report Is
Made at Special Session.
RELIABLE BASIS WANTED
Fears Uxprcbscd at Annual Gath
ering in October, l'ound to
Have Been Justified.
Partial failure of the Teachers' Re
tirement Fund association, and need
for an immediate readjustment of Us
financial support, if it Is to achieve
solvency and attain its purpose, was
clearly shown yesterday afternoon at
a special meeting of the organiza
tion, held in central library hall,
when the report of an experienced
consulting actuary was submitted.
"Jt appears that the association Is
about 32 per cent solvent; in other
words, is only prepared to pay" $32
tor each $100 promised members," is
the finding of Professor James W.
Glover, of Ann Arbor, Mich., who
served the association as actuary in
the investigation of its soundness.
Liabilities Kxreed Assets.
Founded in March, 1912, by Port
land school teachers, and sustained
by appropriation from the school
fund and by individual assessment of
members, the association's prospec
tive liabilities have grown until they
now exceed the assets by $2,698,222.72,
according to 'the findings of the act
uary, who suggests that both dues
and subvention be largely increased
to restore the solvency of the asso
ciation, and permit the retirement of
its members on the contemplated an
nuities. "At the annual meeting In Octo
ber," said Leona L. Larrabee, presi
dent of the association, "after dis
cussion of the soundness of our fi
nancing arrangements we voted to
obtain the services of an actuary to
investigate and report. This report
we have received. It bears out our
fear that the association was not
properly financed. No careful or con
structive study of pension systems
had been made at that time, and the
nound and scientific basis necessary
to security for the future bad not
been evolved. .
nrndjiintment la Faced.
"Reliable estimates of the real
cost of retirement benefits have been
made since 1915, to assist both states
and cities in the reorganization of
their retirement fund associations.
The Portland association now is fac
ing such readjustment.
"The association soon will hold a
meeting to consider the problem of
reorganization and to employ an
actuary to guide its members in the
formation of a soundly financed pen
sion system. There is no need for
alarm. Instead, we should be grate
ful that the error has been laid bare
thus early, for each succeeding year
would have more seriously involved
cur affairs."
Under the present plan of financing
the fund has been sustained by an
appropriation of 3 per cent of the an
nual school fund, $20,000 and $18,000
annually from the dues of members.
Retirement la Purpose.
Its purpose was to permit the re
tirement of members after. 30 years,
with annuities approximating $500.
The report of the actuary finds the
resources of the association, present
and prospective, to fall far short of
the present and prospective liabilities.
The total assets, based on the pres
ent value of future dues from teach
ers now on the active roll, the re
sources now on hand, approximating
$225,000, the maximum value of back
dues and the value of the $20,000 an
nual subvention was found to be
$1,261,915.87. Liabilities of the asso
ciation, based on the present value
of service benefits, of disability ben
efits, of refunds and future payments,
was found to be $3,960,138.59.
Solvency Held Decreasing.
"Inasmuch as the solvency of the
association is steadily decreasing,"
said the actuary's report, "steps
should be taken at an early date to
place the affairs of the association
on a firmer basis. There are three
possibilities in this connection of
which, perhaps, the first two only de
serve consideration. They are:
"An Increase of the monthly dues
along lines which would be equitable
with respect to both the age and'
length of service of each teacher. An
adequate Increase in the annual sub
vention. Reduction of benefits to
one-third the present scale, retain
ing the present scale of dues and
subvention."
Members of the association pointed
out that the Portland organization Is
not alone in Its pension dilemma, and
cited the report on "Teachers' Pen
sion Systems in the United States,"
compiled by Paul Studensky for the
institute of government research,
wherein the following statement was
made: "Of the nearly 100 teachers'
retirement systems now In operation
in the United States, only a few can
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