Image provided by: University of Oregon Libraries; Eugene, OR
About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Oct. 6, 1901)
w !P THE SUNDAY OPEGONIAN, PORTLAND, OCTOBER 6, 1901. tf pwyfpgifPiyffifip . - V - , 4 j, I r- REATfDASTIRATSALEM BANKER BUSH'S ALLEGATIONS AGAINST METSCHAN. Ex-State Treasurer Has Nothing to Say Until the Case Comes Up In the Courts. SAXiEM, Oct. 5. Banker Bush's oppo sition to the payment of Interest on the claims of ex-State Treasurer Metschan and E. C. Glltner, from the assets of the defunct Williams & England Bank, has created a small stir in this vicinity. Of course, it is not to he taken for granted that the deposits upon which Mr. Bush objects to the payment of interest were public funds. Mr. Bush has alleged that they -were public funds, but the proof is yet to be given. It Is reliably reported here that 3Ir. Metschan has said he -will contend in the courts for the Interest to which objection Is made and will insist upon having the remainder of the princi pal. In fact, Mr. Metschan has once ap peared by his attorney, I. R. "Webster, to defend against the objections which were to have been filed on September 30 by Mr. Bush. The controversy over this matter has been "brewing for some time, as is learned from outsiders. Mr. Bush was long of the opinion that if state funds were lent they could not be recovered by the official who lent them, if such recovery should be at the expense of legitimate depositors in a defunct bank. He made po objection, however, to the payment of the principal of the amount alleged to have been de posited by Mr. Metschan, for it appeared that the assets of the bank would be suf ficient to pay the depositors in full. A few weeks ago, W. T. Slater, receiver of the bank, had in hands a sufficient sum to pay the remainder of the deposits, and to pay a small amount on the interest. Mr. Bush announced his Intention to file objections to the payment of any more money on funds which he alleged be longed to the state, either principal or Interest, and September 30 was set for hearing of the objections. At that time, Mr. Metschan's attorney was present, and the matter was taken up, but no ob jections w,ere filed. Consent was given by attorneys that an order should be made directing the receiver to pay the remain der of 5 per cent on the principal. The receiver began paying the dividend as ordered, whereupon Mr. Bush protested, and filed the objections mentioned In yesterday's dispatches. At the time of the hearing on September SO, Mr. Bush ap peared hy George G. Bingham, but has now filed objections by W. H. and Web ster Holmes. Mr. Bingham is a warm friend of Mr. Metschan, and it is sur mised that this is the reason he with drew from the case. The Reason for the Opposition. The reason for the opposition to the payment of interest or the remainder of the principal on the Metschan claims is thus stated: "The said Ladd & Bush allege in sup port of their said ohjections that there is a large balance due to the creditors and also to the said objectors, over and above the amounts received by them from the receiver aforesaid, and that this said corporation defendant herein, Williams & England, are insolvent, and that there tvIII not he sufficient funds to pay all of the depositors and creditors in full. 'That In order that the objectors herein and other persons who were lawfully entitled to receive the full amount due' them, according to the nature of their respective contracts with the Williams & England bank, it will be necessary to refuse payment of the Interest on the claims of the parties presenting them as hereinbefore stated." The claims in brief are: Edmund C. Glltner, "agent," a 5 per cent dividend on ?25,000, and Interest on the same amount Phil Metschan, $7S9 73, which amount Is alleged to be itself interest on state funds upon which Interest is now asked. Phil Metschan, Treasurer, $S613 69, upon which a 5 per cent dividend Is due, and upon which Interest Is asked. W. H. Odell, $5047 27, Interest upon which is objected to. E. J. Swafford, $7319 S3, interest upon "which Is objected to. In regard to the latter claim against the defunct hank, Mr. Bush alleges that "said funds were funds belonging to the City of Salem, and the same were wrongfully and unlawfully allowed to accumulate in the hands of the City Treasurer, and he was not authorized to loan the same, and that no interest what ever should be allowed." The receiver has paid 95 per cent of all -these claims, and has paid 100 per cent of the Swafford claim, but has paid no interest. Mr. Bush wants to prevent further payment of principal and any payment of interest He also asks that "the receiver be directed from time to time to take such further- steps as the creditors and depositors may ask for, con sistent with law and justlcfe, looking to the recovery of any and all' funds which may have been heretofore dlshursed con trary to law and justice." This last clause has Teference to the claim for $789 73, which stood on deposit in Mr. Metschan's name, without the qualifying term "Treasurer." It is al leged that this sum is Interest which had been computed upon state funds, and then placed to Metschan's credit. The Glltner claim is alleged to be for state money deposited by Glltner as agent for Metschan. Some Depositors Must Lose. Since It appears that there will not be sufficient funds to pay all depositors it follows that some, or all, must lose a part of the Interest on their deposits. In this condition of affairs Mr. Bush hopes to limit the payment of interest to only those who deposited their own money, for if interest should be paid to others who deposited public money. It would be at the expense of those who helped pay the taxes to form the public funds, and who also lost their savings when the bank closed. The strenuous protest framed by Mr. Bush calls attention to the fact that there is a criminal statute against lending public funds, whether with or without In terest. This Is section 1771 of Hill's annotated laws, which reads as follows: "If any person shall receive any money whatever for this state, or for any county, town or other municipal or public corpo ration therein, or shall have In his pos session any money whatever belonging to such state, county, town or corpora tion, or In which such state, county, town or corporation has an interest, and shall in any way convert to his own use any portion thereof, or shall loan, with or without Interest, any portion thereof, or shall neglect or refuse to pay over any portion thereof, as by law directed and required, or when lawfully demanded so to do, such person shall be deemed guilty of larceny, and upon conviction thereof shall he punished by Imprison ment in the penitentiary not less than one nor more than 15 years, and by fine equal to twice the amount so converted, loaned or neglected, or refused to be paid, as the case may be." SWAFFORD AND ODELL TALK. They Got No Interest on Public Money Glltner "Will Say Nothing. SALEM, Oct 5. General W. H. Odell, -ex-clerk of the School Land Board, when asked this evening to make a statement regarding the allegations of Mr. Bush, said: "It was his custom, as it had been the custom of other clerks, to make de posits in- local banks until the end of the month, -when the month's collections were turned into the State Treasury. These de posits drew no interest, but were made as a matter of convenience, because pay ments came principally in bank paper, and. it would be very Inconvenient to carry cash to the Statehouse every even ing at the close of banking hours. "When the bank failed in. November, 1S95. I had some money on deposit, but on the first day of December I paid Into the State Treasury every cent I had col lected during November. The state did not lose the use of the money a single day. I was out $5047 37 by the failure of the bank, and I am unable to follow the line of reasoning which makes my claim one for state money." Statement of Mr. Svrafford. E. J. Swafford, ex-City Treasurer, said: "The City of Salem paid its Treasurer $100 per year salary, with the understand ing that the Treasurer would get the banks to do the most of the work. The Democratic bankers had been handling the city money, and I was elected with the understanding that I would do busi ness with the Republican bankers, which I did. The city certainly did not expect me to maintain a safety deposit vault on a salary of $100 a year. Everybody knew the money was kept in. the Williams & England Bank, and this was- approved by my re-election. Claud Gatch, cashier In Bush's bank, was Mayor, and knew how the money was kept Bush himself con sidered the hank good, for he made it a $10,000 loan shortly before the failure. Sa lem has large Interest payments to meet every Fall, as everybody knows, and at the time the bank failed I was accumu lating money to pay the city's interest debt When, the bank closed I was- un able to make the City Treasury whole, BLOW AT BEET SUGAR OXNARD DISCUSSES THE CUT IN PRICES BY THE TRUST. Movement Is Characterized as an At ' tempt to Deceive the People The Situation In General. SAN FRANCISCO, Oct. 5 Commenting today on the reduction of the price of sugar in the Missouri River market by the sugar trust, Henry T. Oxnard, president of the American Beet Sugar Association, defied it as another move to crush out beet sugar production In order that the trust might have no opposition.. "If It can succeed In the Missouri River Valley," said he, "It will then turn its attention to the beet factories In Mich igan and other sections, and by the power of concentrated capital crush out successively and Individually the beet sugar producers. The trust tries to de ceive the public by alleging that the beet producers can still make money at the low MMHMMMMHiHMHMMHMHIMM - ACCUSER AND ACCUSED. T ;sotctSj6sssseB5sWHRSk??sw , v,tv j- v v,vw t V StfSh ' JJ I A. Bush. SALEM, Oct 5. A Bush, the v t'on by his allegations, filed In th $25,000, credited to Edmond Gilner, insolvent, of Salem, was money be amount It is proposed to collect int and alleges that Mr. Glltner, agen urer. Mr. Metschan also has a cr Mr. Bush is making an effort to st leging that It was also money bel promises many interesting develop Edmond C. Glltner. eteran banker of Salem, has created a sensa- e Circuit Court of Marion County, that about .-.gent. In the Williams & England Bank, longing to the State of Oregon. On this erest Mr. Bush protests against Its payment, t represented Phil Metschan, ex-State Treas edlt at the Williams & England Bank, and op the payment of any interest thereon, al onging to the State of Oregon. The case ments. -- -- - ----e hut one of mj' bondsmen, J. A. Baker, settled with the city for some $500 less than the amount due. I paid him what money I could at the time, and assigned the claim to him, which he has now col lected in full, without interest. It seems to me he is entitled to interest from the bank assets. I never received a cent from the bank for the use of city money." Glltner Will Not TaUc. Edmund C. Glltner, In. whose name the $25,000 deposits stood, was asked this evening to make a statement of the facts regarding the allegation that this sum was state money. He declined to be In terviewed, saying that he did not think it proper at this time to discuss a mat ter, which bids fair to come to trial in the courts later on. METSCHAN WON'T TALK. Refuses to Discuss Action Com menced hy Banker, Bush. Phil Metschan, ex-State Treasurer, was seen by an Oregonian reporter yesterday and asked to give his side of the case wherein A. Bush, the well-known Salem banker, is seeking to restrain the pay ment of certain interest by the receiver of the Williams & England Bank of Salem to Mr. Metschan and E. C. Glltner. Mr. Bush charges that the money which they had on deposit there was state funds, upon which Interest cannot lawfully bo paid. Mr. Metschan refused to talk. "The case is in court," said Mr. Mets chan, "and will be tried out there on Its merits. I don't want to try my case in the newspapers. I have nothing to say." Mr. Glltner was In town day before yes terday, but left yesterday morning for Sa lem. The filing of Mr. Bush's suit has created considerable comment among local politicians, who are wondering what ef fect it will have upon Mr. Metschan's Gubernatorial chances. GYPSIES MUST MOVE ON. Baker City People Say They Are a Set of Thieves. BAKER CITY, Oct. 5. A band of gyp sies made its appearance in Baker City last night, and the police have been busy all day trying to get them out of town. There are about 30 in the gang, and they say -they are members of one family. Last night they raided all the chicken coops and gardens In the northern part of the city, and carried off everything In sight, and what was not in sight they dug up, as was the case when, they struck the potato patches. The women are per sistent fortune-tellers, and while the men were rustling plunder today the women went out on a fortune-telling' raid. The police say this crowd is the worst lot of petty thieves that has struck this city in many years. There are too many of them to be accommodated in the city jail, and then they are not desirable boarders any way. The Chief of Police, without regard to the trouble that wlli be thrust upon other cities in this part of the state, proposes to chase them be yond the corporate limits of Baker City. Other communities will have to be on the lookout for them. They say that they came here from Portland. GREAT DEMAND FOR LUMBER. Mills in Lane County Are Unahle to Fill Their Orders. EUGENE, Oct. 5. The demand for lum ber has become so great that it Is impbs slble for the mills In this vicinity to sup ply the market The Booth-Kelly Lum ber Company, which has four large mills In Lane County, has orders on file for as much lumber as the mills can cut In the next six months, and orders have been given to accept no new orders for the present The lumber output this season is about twice as great as ever before. Bound Over to the Circuit Court. Sidney Fleener was given, a preliminary examination yesterday before the Justice of Peace on three different charges of larceny and disposing of stolen property, iand was bound over to the Circuit Court in $500 bonds. He was charged with stealing cattle from several farmers near Springfield, which he sold to Frank Good pasture. He was apprehended at Blckle ton. Wash., and was brought back by Sheriff Withers. Oregon Men Favored. WASHINGTON, Oct 5. Senator Mitch ell today secured the appointment of Mr. Williams as temporary clerk in the La Grande office, the place to be finally filled by civil service. Senator Mitchell has se cured a pension for Colonel George B. Currey, of La Grande, Or., who at one time during the Civil War was in com mand of thB Department of the Columbia. price it Is trying to establish. This Is false, and if it had been true, then the trust would have tried to establish a still lower price. It is not sacrificing 1 cents per pound In the Missouri River markets to make a price that will still be profitable to the beet sugar men. But this particular move on the part of the sugar trust will fall fiat. The beet sugar factories will not sell their sugar in the Missouri River Valley at 1 cents under the market when a fraction of that 1 cents will move their sugar to every other market In the United States. What the next move of the trust will be remains to be seen. "The trust also attempts to justify its action by insinuating that the beet fac tories have gone out of their rightful sphere in making refined sugar instead of raw sugar to be refined by the trust. Independent beet sugar producers have always made and sold refined beet sugar. It would be putting one's head In the lion's jaws with a vengeance for the beet factories to equip themselves only for the making of raw sugars at prices to be fixed by the trust. Besides, It is an eco nomical blunder to perform In two opera tions what can be done as well in one. "The movement on the part of the sugar trust in selling Its refined sugar far below the cost to It of raw material, and in the special market which is now reached to some extent by the beet sugar producers, cannot but call down on the head of the trust the condemnation not only of the beet sugar producers, but also of all fair-minded people in the country, and having done this it has placed itself in an exceedingly poor position to go be fore Congress and ask for the perpetuation of Its power as refiners; although it has recently arranged to Increase Its capital stock to the extent of $15,0C0,0tf0 to rivet Its control of the raw cane product In view of this act on the part of the sugar trust the United States Congress can Illy afford to Inaugurate the policy of re ducing the present rate of duty by re ciprocity or In any other way which would have the certain effect of enriching the trust on one hand, and on the other the killing of the most promising industry In the agricultural business of America." STREET FAIR CLOSES. Hillsboro Event the Best Ever Known in Washington County. HILLSBORO, Or., Oct. 5. Great crowds thronged the city 'from early in the morn ing until a late" hour this evening, enjoy ing the closing day of the Native Sons' Street Fair and Carnival, the most suc cessful occasion of the kind ever held in Washington County. The parade this morning was one of the best of the Car nival. After the opening exercises there was a hose contest for first water upon a set fire on Second street, between Nos. 1 and 2, resulting In a victory for the first named team, which got water after a 600-foot run In. four minutes. The sec ond hose company had water 20 seconds later. This was one of the closest con tests ever held in the city. C. Jack, Jr., captained the winning company, ' and John Simpson the other. Following this was a hose contest wet between C. Lar- &$BpBp$s BREAKS UP WRETCHED It Is not for usj to alarm you about your cold; you are wretched enough as it Is. Our province is to supply the cure, and we do so with confidence. Dr. Humphreys' "Seventy-seven" breaks up a cold by act ing directly on the affected parts; restores the checked circulation, starts the blood coursing through the veins, awakens the numbed organs of respiration and diges tion, cleanses the system, soothes the mucous membrane, and the cold passes off without a struggle. "77" is a small vial of pleasant pellets that just fits the vest pocket At all Druggists 25 cents, or mailed on re ceipt of price. Doctor's Book mailed free. Humphreys' Homeopathic Medicine Co., Cor ner William and John Streets, New Ydrk. etc(tt9eateatitttttttitMtte9o(oeiteoe Overcoat Is now at hand, and we are pleased to be able to truthfully say that we are showing the largest stock and greatest variety in the city. In making up our stock it has not been our aim to see how cheap, but how GOOD an article we could produce. Our only competitor, therefore, is the merchant tailor, and we charge only about o 9 o o o o e e e e 9 One-Half Hi s Price Yoke coats have the call for young men; we have them in every desirable fabric. CRAVANETTES are much in favor, and the various Oxford mixtures in LLAMA CLOTH and CHEVIOTS are much in vogue. Our prices range from $10 to $50. Come in and look us over. It will afford our salesmen great pleasure to show you through. You will not be urged to buy, and the picking is best just now. Boys' Overcoats Made just like the men's Prices $3.95 to $10.00 Sail I 1 ' " I or suits Largest stock in the city. Price $3.50 to $10.00 The Leader of Them AH... The Best $3.00 Hat in the World The Brewer Oat rr&gS&SIzr fBRFWETO Sold Exclusively by Us You will never know how much HAT value and comfort you can secure until you have worn a BREWER. The largest hat de partment in the city. V. J LEADING CLOTHIER fwimMMM rs 5. E. cor. Fourth A A TmH Mnrricnn tc v jzzn i99esdeeeee9$9eee0eo(iee9eecse9ect99eteaecti(eoe9oeoeoeoeoQoeooeaae9osceeocs o e e o a a a e a o o o o 9 e a o 9 a o e e o o o a o 0 9 a o e o O o 9 9 O 0 9 9 9 9 9 9 9 O 0 o (S o 9 9 9 9 a a o o o (a j sen and George Cummlngs, lasting for Ave minutes. Each was thoroughly drenched and badly strangled. State Sen ator Wehrung and W. D. Bradford, ex Sherlff, awarded "Larsen. the first prize of $5, and Cummlngs second, $2. The Carnival closed tonight with a grand mask ball, under the auspices of the Native Sons. Old settlers here aver that the fair was the greatest ever held, and better than any of the great county fttlrs given here years ago, which are famous in the history of the West Side. Cit- Tax Late at Centralln. CENTRALIA, Oct. 5. The City Council has made a levy of 22 mills for city ex penses for the ensuing year. Council man Barner has tendered his resigna tion as Councilman from the First Ward, which has been accepted. His successor has not yet been, appointed. The No. 2 "New Manifolding" Hammond Typewriter Are you methodizing your office? If y ou are, you need a Hammond. Cards ann envelopes, any size, at any angle, held and printed upon without bending. Writes on paper of any size or width. One hundred styles instantly interchangeable type, writing 26 languages. Instantly interchangeable ribbons, any color ink. Vis ible writing. Perfect, permanent alignment. Unsurpassed manifolding. Ninety characters with thirty keys. Perfect mimeographing. Back-spacer. Shortest, easl. est touch. Uniform and automatic impression throughout No carriage-lifting. Least noisy. Durability? In sixteen years no Hammond has been worn out. Per fect paper-feed. THE BEST TYPEWRITER 'because it Is typebarless. The Ham mond works for the typewrltist It Is not a gravity typewriter. Another new lot of Hammonds just received. Write, or see O. J. Mitchell, manager, Oregon and Idaho, 413 Chamber of Commerce, Portland, Or. Hazclwood Eggs arFrcSshri!t,y As they are gathered every morning and placed In cartons furnished by us for that purpose. They are then delivered with the milk to our nearest creamery, hence we have no hesitancy In recommending them to those desiring a superior article. Ask yeur grocer for them. Hazel wood Cream Co. BOTH PHONES 154 382 WASHINGTON STREET WE ARE MAKING A LINE OF UMBRELLHS - So conceived as to suit any person, and give the user on individuality and service a thousand fold greater than that of the "old style lines" handled by other houses. Come in and look and you will remain, and purchase. SlSftliB115 ' JOHN 7SLA.ESIN7S anti-rust 309 MORRISON STREET UMBRELLA FRAME Opposite PostoffiCC .(jMmMJs THOROUGH WORK, SUPERIOR METHODS, are characteristic of our school. Individual or class instruction. Our teaching de velops self-reliant thinkers, who succeed In life-as business men and women. Stead ily gaining in public esteem for 35 years, cur graduates And ready employments as bookkeepers and stenographers, throughout th Pacific Northwest. Student3 ad mitted at any time. Send for catalogue, or call at the college. Park and Washington. A. P. ARMSTRONG, LL. B PRINCIPAL Board of Directors D. SOLIS COHEN' - - D. P. THOMPSON, PRESIDENT - - DAVID M. DUNNfc jfflr The Packard Piano jk Is one of the best made, bast known and unlver- vw fljll sally popular pianos produced In the West. In fact N0ft II Packard 1 HI HI Has durability, elegance and supreme excellence. We 1 llillll have just received a car of these beautiful pianos, I jljl llu and during the Carnival these pianos will be sold III ml e retail trade at wholesale prices. ALLEN I GILBERT CO. Iff wa i Successors to Nv THE WI3LEY B. ALLEIf CO. fflJ k209-211 FIRST ST., PORTLAND, OR. MM a fcAM II. ri ' WESTERN ELECTRIC WORKS S05& WASHINGTON STREET, PORTLAND, OR. Wiring Houses for Electric Lights, Bells And telephones keeps U3 pretty busy, but we will attend to all orders to wire fac tories, houses, stores, etc.. or fit them, up with arc or Incandescent lighting promptly and with scientific skill. All wiring is guaranteed, and work of this character cannot be excelled by anyone, or compete in price with the Western, Electric Works.