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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Nov. 10, 1907)
ftfl If 60 Pages Pages 1 to 12 WY .9 VOL- XXVI. NO. 45. PORTLAND, OREGON, SUNDAY MORNING, NOVEMBER 10, 1907. PRICE FIVE CENTS. W. IL LADD AIDS SHALL Pledges Fiill Pay ment of the Sav ings Accounts. fO AMOUNT OF $405,000 Marquam Building Is Released for the Benefit of All the Creditors. IMPROVES BANK'S PROSPECTS Title Guarantee & Trust Co. May Now Pay Out in Full. LOCAL SITUATION STEADIED Guarantee of Savings Accounts Is a Personal Matter With W. M. Ladd Heirs of Estate Join In Releasing Marquam Block. By plegtfe from W. M. Ladd last bight, saving depositors in the failed bank of the Title Guarantee & Trust Company are guaranteed full payment pf their claims, amounting; to $405,000, and the Marquam block is to be turned over to the bank as an asset for payment of all creditors aljke The Uarquam block, owned by the Ore Bon Company, has been held as secur Ity for a debt to Ladd & Tllton of 1607,000, by assignment to Ladd & Tll ton, of the stock of that company, as Collateral. Ladd & Tilton, therefore, are not to be preferred creditors. By the" terms of the pledge, the re ceiver is to administer the affairs of the bank, and pay off depositors to the full measure of the assets, and if. In two years, savings depositors shall not have received all their money, Mr Ladd will make good the deficiency. The wording of Mr Ladd's offer makes bo mention of Interest on the deposits luring the two years Savings Accounts Protected. Other depositors are not included in the benefits of this part of the pledge. They are holders of demand accounts, to the total of $1,065,000, Including $395,00i of the state's money; time certificates of deposit, amounting to $176,000, and demand certificates of deposits, amounting to-$315,000, Includ ed In which is $100,000 owing the First National Bank and $50,000 owing Ladd & Tilton money ' advanced the fallen bank in the last 90 days. In hope of tiding It over Its difficulties Mr 1-add'B pledge is as follows: Text of Mr. Ladd's Pledge. ' "PORTLAND, Nov. 9, 1907. While I have not participated in the manage ment of the Title Guarantee & Trust Company, I am desirous and willing to protect the savings bank depositors of that, institution, numbering, as I am advised through the press, several thousand people, and representing a total deposit of some $405,000. To such M. D.'s (Start cWinnde Against the Rat on Account of Bubonic Plague. DEPOSITORS depositors I hereby guarantee the pay ment of their claims on or before two years from the date of the ap proval of their respective claims as they now stand, and as shown by their pass books, as just and legal claims against that company. Such claims must, of course, be reg ularly presented to the receiver of the Title Guarantee & Trust Company for allowance and adjustment, and all sums which may be paid or payable on such claims, either by way of dividends' or otherwise, from the assets of the Title Guarantee & Trust Company prior to the expiration of said two years, shall be credited on the respective claims, and I will then, at the expiration of eaid period, pay in cash whatever bal ance may remain due or payable on said accounts at that time. Upon pay ment by me of any claim, I am to suc ceed to any further rights which such depositor may have against the Title Guarantee. & Trust Company as Its creditor to the extent of the pay ment which I shall have made. "While this guarantee is purely a personal matter and has nothing what ever to do with Ladd & Tilton, it seems proper for me to state here that the bank of Ladd & Tilton is not an incor porated institution, but the estate of W. S. Ladd Is back of It, and before I could make known to the public my own Intentions I desired to consult all the heirs of the Ladd estate (one of whom Uvea at a distance) as to any action by Ladd & Tilton; and, wishing to make a complete statement, I de layed so that I could Incorporate both matters in one proposition. I am now able to add that Ladd & Tilton will re linquish to the general Creditors of the Title Guarantee & Trust Company the securities which it holds for the debt of $607,000 due to Ladd & Tilton. This security to be released for the pro rata benefit of all the depositors and creditors of the Title Guarantee & Trust Company, including Ladd- & Tilton. "W. M. LADD." Recognizes Public Demand. By this offer Mr. Ladd alms to satisfy the demand that he save from heavy loss depositors who placed money in the bank, believing him a director of the Institu tion. Though he ceased to be a director last July, no public announcement of the fact was made and the advertising mat ter of the bank bore his name as director up to the day of the failure. The effect of adding the Marquam block to the assets of all the creditors will be to increase the pro rata payments to de positors, yet to what extent could not be ascertained last night, and may not be known for some days. Receiver Hill says that In his opinion it will enable the bank to pay out In full. President Ross says that the pledge greatly improves the out look. "As lie has averred that under normal conditions the bank would pay out in full, he is evidently of the opinion that depositors 'Will get back nearly, if not all, their money.' Another effect will probably be that of steadying the financial situation for all the banks. The uncertainties attending the failure have caused solvent banks considerable concern. Mr. Ladd's action Is expected to help restore confidence and relieve the tenseness of the financial sit uation. Mr. Ladd's pledge does not release from liability Treasurer Steel's bondsmen nor his surety company, though the addition of the Marquam block to t(je assets of the bank may lessen the money they may have to pay the state. Governor Cham berlain thinks the state amply protected, however, by. the bond, and such is the general opinion. OFFICERS OF BASK ARRESTED Attorney-General and Bonding Com pany Ask for New Receiver. Other developments yesterday In the bank failure were as follows: President Ross. Vice-President George H. Hill (now receiver) and Treasurer Burkhart were arrested on a charge of having received deposits when they knew. the bank insolvent. They were released in the Police Court on $5003 ball each. District Attorney Manning declares he will prosecute and that the Ladd offer will not stay him. Warrants are out also for Secretary John E. Altchison and Director F. M., Warren. Manning declares Mr. Ladd should guarantee the money of other deposit ors, besides that of savings depositors, and that he has Information the bank (Concluded 'on Page 8.) HARRY MURPHY PICTORIALLY REVIEWS . That Thanksgiving Turker Gets Bigger and Better Every Year. MORE L Though Bank Reserves Still Impaired. GOLD PURCHASES CONTINUE Total Secured From Abroad Exceeds $51,000,000. SHIPPING MONEY WEST New Tork Banks Will HaveMade l"p Deficit In Reserve In Another Week Stocks Are Strong and Leaders Advance. ' NEW TORK, Nov. 9. The financial situation made further progress today toward the resumption of normal con ditlo'ns. Gold was engaged to bring the total for this movement up to more than $50,000,000, an unprecedent ed acquisition of the yellow metal In the history of New Tork finances; the bank statement was more favorable than had been expected, showing a loss of but $4,373,000 in the bank cash holdings, and the stock market was firm, most of the active shares showing advances on the day's trad ing. The bank statement does not show the full benefits of the gold received from London, as the statement Is cal culated on a basis of averages for each day of the week, and the greater lot of the gold was received late in the week. Thus a statement of the condi tion of the banks at the close of the day showed their cash supplies to be much larger than under the average system of computations. More Gold This Week. Next week there will be more ar rivals of gold and all of that received this week will figure for the full week, so that next week's statement is ex pected to show large gains in reserve. While the deficit in the reserve is $51, 000,000, It should be noted that the cash on band is still 20 per cent of all deposits, including those made by the Government, which are secured by collateral. This is 5 per cent less than Is required by the 25 per cent rule, but it is 3 per cent more than the local Institutions are called upon to main tain under the state banking laws. . Notable Advance In Stocks. Notable advances were made by the active shares on the stock market dur ing the week, today's final sales show ing higher prices, as follows: Union Pacific 2H. United States Steel 1, the preferred 2; Reading 4. Pennsylvania 4, Northern Pa cific 1. New York Central 2, Mis souri Pacific 1, Great Northern 2, St. Paul 2 and American Sugar 3. More Gold Imports. The total known gold engagements passed the $50,000,000 mark today, when Lazard Freres announced hav ing. secured an additional $1,000,000 in gold in Europe and the National Bank of Commerce $375,000 more. The National Bank of the Republic of Chicago has engaged $500,0)0 gold for import. This makes the total en gagement to date $51,130,000. The subtreasury today transferred for banks $615,000. Two hundred and thirty-five thousand dollars went to Sa Francisco, $200,000 to Chicago, and $180,300 in small lots to other points. On the arrival of gold which has been engaged abroad by banks in other cities It will be transferred through the subtreasury to Its destination. BANK RESERVE SHRINKS AGAIN But Gold Receipts From Abroad Are Not Included. NEW YORK, Nov. 9. The' state- Breaking; of Rone Sho 11 ment 6f clearing-house banks for the week. shows that the banks hold $51, 943.625 less than the requirements of the 25 per cent reserve rule. This Is a decrease In the proportionate cash reserve, of $13,085,800, as compared with last week. The statement fol lows: - Increase. t.oan Deposits ...11.1 1IS.400 $:tn.&3,soo . . . 1,08.91. 1UU 52.SMi.1on 4O.0K2.1M1O 170.T12.tMlO aii.oni.zwi Circulation j Legal tenders. . . . Specie Reaerve . . Reserve required. Deficit Bi-U. 8. deposits. 1.113.JOO HRS.tfOO 5. 201. WW 4.R15.0O0 R.772,fOO 12.083.SO0 21H.Tns.wo 271, 7 19.52!i S1.!VJ4.'JS 83,5 1.076 Decrease. The .Financier will say tomorrow: "The official statement of the' New York associated . banks last week showed highly important changes, as was expected would be the case, in the operation of bank clearings during the week. The cash loss Indicated a very decided change of more than $26,000,000, then a loss of $30,601,800 was reported, whereas last week the decrease was only $4,451,003. Deposits increased about $7,000,000 by compari son with the previous week. Then this Item was increased $28,024,400 and last week it disclosed a gain of $35,091,200. Loans showed the smaller augmenta tion of $22,000,000' in the week of No vember. The increase was $60,741,600, while last week it was $38,863,800. The decrease in reserve was less by $24, 666,666. In the previous week such decrease was $37,605,525, while last week !t was $13,085,800 The deficiency reserve, which last week was $51,924, 625, was In the previous week $38,838, 825; this was due to the changes in the above items and also to the In crease in public deposits. "It may be observed that the with holding from the statement of Novem ber 2 of -the separately reported amount of public deposits held by the banks was regarded as desirable, be cause thereby such statement would agree in form with that in 1893, when clearing-house loan 'certificates were last issued and when Government de posits were Included in general de posits and be comparable with the exhibit of that year as regards he items nf loans, specie, legal 'tenders and general deposits. Hereafter, it should be stated, it Is purposed to re port the holdings of public funds separately, as has been the practice in recent years. The Increase in such deposits, compared with those report ed October 25, has been $25,028,600. 'The amount of reserve held below the legal requiremonts of 25 per cent of cash to general deposits last week was, as above shown, $51,924,635. But deducting from such general deposits those of $73,09i,203 public funds, the deficiency is $33,351,575. With the in crease in cash, which should be shown in the current week's bank statement as tho result of importations of" gold from Europe, the exhibit of Saturday, the 16th, will doubtless Indicate a de cided improvement in bank conditions; Indeed, the foreign gold that Was- last week placed in the banks contributed to make the statement one of rising averages, especially for cash. The percentage of reserve to general de posits shown by the statement of last week was 20.2; such percentage to de posits, less those of public funds, was 21.8. "Tho bank statement of June 26, 1893, second week in which the clearing-house loan certificates were is sued, showed a Joss of $5,425,803 in cash, of $8,472,300 in deposits, and a surplus reserve of $5,481,975. Loans decreased $4,714,300." BUYING BACK AT REDUCTION Foreign Investors After Stocks Will Stimulate Gold Imports. NEW YORK, Nov. 9. A financial force that will furnish a mighty uplift of no mean measure to the monetary situation throughout the United States may be reckoned on to make itself felt' within the near future, when European investors, according to views ex pressed today by international banking-houses, are expected to come to the New York market and purchase standard stocks whose prices have been forced to low levels by urgent liquidation. Purchase of American stocks on a large scale by foreign in vestors spells gold Imports of large proportions, and the opinion is freely expressed today that millions will soon be poured Into New York in payment for securities purchased at the present levels. Arbitrage houses already re port purchases of an Investment char acter by England and, as the situation clears, these purchases will increase. England and the continent bought largely of American securities last March, when the local market was suf fering from a severe decline, and arbi- (Concluded on Page 7-) SOME EVENTS OF THE iffr. Greethraln "I'm Going; to B fnxy This Year and Get My Christmas Gifts Early." E SALMON'S GLORY DEPARTS Dusky Royalty Eats Peer and Cheese. HIS CHECK PROVES WORTHLESS Cold - hearted ' Restaurateur May Prosecute. FUNDS FROM HOME FAIL Suitor for Queen Ltl's Hand No Longer Feasts on Canvasback, and May Sink to Hash at the Sheriff's Hotel. SAN FRANCISCO, Cal.. Nov. 9. (Spe cial.) Aril Pota Salmon, a prince of the blood royal of Tahiti, suitor for the hand of Lilioukalnt, ex-Queen of Hawaii, and royal spender, no longer dines at the Cafe Francisco; the Tenderloin knows him only as a fleeting vision of the past, a very substantial vision of a few hilarious weeks of automobiles and dinners. Aril Pota Salmon Is now dining at the Heidelberg, on Eddy street, and his meals are frugal. He prefers the less ex pensive menu to the best that the Fran cisco has to offer, and Bays that it is as wholesome as the poi, breadfruit or pine apple of the' island home. Prince's Check "No Account." But, though the Prince is trying hard to forget the dazzling days of the auto mobile and the canvasback, not ail those who knew him in those days are trying to forget him now. The Cafe Francisco, for instance, holds his check for $50, drawn on the Western National Bank, and the proprietor of that establishment speaks even now of the wondrous duck dinners which the Prince and his finan cial agent. Captain A. O. Girard, spe cially detailed by President Roosevelt to accompany the blue-blooded islander on his American tour, enjoyed at the Fran cisco. The check, which was presented by Captain Girard and Indorsed by him, was returned to the restaurant only a few days ago with "No account" written across Its face.. When the proprietor ot the Francisco called upon Prince Salmon for an explanation, the latter stated that he was temporarily embarrassed, an 3 that he would make good the bit of paper just as soon as funds arrived from his home. Now Dines on Beer and Cheese. But the funds have failed thus far to arrive and the dusky Islander Is threa tened with criminal prosecution for pass ing a worthless check. And. though Prince Salmon Is still at the Heidelberg in this city, it Is said that he has parted company with the jovial captain Girard. who indorsed his paper. The Prince is waiting, waiting patiently, for the money which will settle his debts here and carry him back to the island of breadfruit and poi. In the meantime he is dining on ,beer and cheese at the Heidelberg. "This check was presented to me by Captain Girard, who, the Prince said, always acted for him in financial mat ters," said the proprietor of the Fran cisco this morning. "The captain had also told me that he had been detailed by President Roosevelt to accompany Prince Salmon. The check was signed by the Prince and the captain filled in the amount and then personally Indorsed it across the back. I, thought It was all right and accepted it without question. Prosecute Prince Criminally. "When it was returned to me with 'no account' written across the face, you may imagine my surprise. I sought an ex planation from the Prince and he told me he was temporarily embarrassed, but would pay me when his funds arrived from home. "I had intended to allow the matter to pass, but now I will prosecute the Prince WEEK AND MAKES A Bryan "Aw, Say, Are You . canaiaater PRINC Really a criminally unless he makes good his check. He is responsible, even though Captain Girard did give me the check." m HALF CANAL FUND SPENT Over $48,000,000 of Appropria tions Used to July 1. WASHINGTON, Nov. 9. Advance sheets from the annual treport of the Isthmian Canal Commission have been received In Washington, giving statis tical Information referring to the con struction of the canal up to July 1 ot this year. It is shown that $79,608,568 has been ap propriated for canal construction, and of this amount $48,285,110) was expended up to the close ot the last fiscal year. The figures, however, do not include the $40,000,000 paid to the French Canal Com pany in relinquishing its rights in the canal and the property there, and the $10,000,000 paid to Panama for right oi way. The expenditures to date include $39. 452,499 for construction and engineering work, $2,318,277 on account of expenses or civil government, $5,550,208 on account of the sanitation, and $954,126 for miscella neous purposes. The balance available July 1 was $31,323,458. Fruit Inspector for Clark County. VANCOUVER, Wash., Nov. 9 (Special.) State Fruit Inspector Ridses Is In this city on official business, in the course of which he will name a deputy for Clark County. A. T. Weston, of Fruit Valley, the present Inspector, Is the probable can didate. CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature, 60 decrees; minimum, 44 deKrees. TODAY'S Fair; easterly winds. Financial Situation. New York bank statement shows depleted reserve, but gold will replenish it. Sec tion 1, page 1. Foreigrn investors buying cheap storks. Sec tion 1, page 1. Money moves West under Cortelyou's threat. Section 1, page 1. Extra session certain In California to re lieve San Francisco. Section 1. page 2. Foreign. Plot to murder Czar thwarted. Section 1, pace 4. King Edward's birthday celebrated through out empire. Section 1, page 4.. Baby Prince Alfonno lionised in England. Section 4, page 10. National. Secretary Taffs carriage hauled through Manila by enthusiastic Filipinos. Section 3. page 4. Interstate Commission will hasten hearing on lumber rate. Section lf page 2. Domestic. J. P. Morgan buys Morse's Atlantic steamer lines. Section 1, page 1. Oklahoma bank cashier missing, also fSO.OOO. Section 1, page 2. George F. Nevlns. Oregon railroad man, sued tor divorce under peculiar circum- stances. Section 1, .page 2. Helnse forced out of bank in Butte. Section 1. pa 4. Champion balloon makes another flight. Section 2. page 5- Big egg commission hnupe fails under fraudulent circumstances. Section 2. page 3. Farmers In Kentucky almost have battle over union. Section 1. page 7 , 8port. Carlisle defeats Harvard by surprising tac tics. Section 2, page 4. Stanford defeats California. Section 2, page 4. Pacific Coast. Prince Salmon accused of passing worthless chcrk and may be prosecuted. Section 1, page 1. Senator Fulton outlines legislation to be . worked for at coming session. Section l, page 6. Treasurer Steel bad no authority to deposit any funds in Title Bank. Section 1. page 8. Skull of murdered man Introduced as evi dence In Steve Adams trial. Section 1, page 6. Commercial end Marine. "Wheat merchants expect to resume buying this week. Section 4. page 0. Chicago wheat market higher on strong de mand. Section 4. page 0. Stock trading dull because of delay In is suing bank statement. Section 4, page 9. Nicomedla clears with flour and the Lyra with a full cargo of barley. Section 4, page 8. Portland and Vicinity. W. M. Ladd guarantees savings deposits of Title Guarantee Iosrt & Trust Co. to ex tent of 403.000; Marquam building is released for benefit of all bank's credi tors. Section 1. page 1. Gossip of the gridiron by referee. Section 4. page Why Los Angeles won the pennant. Section 4. page 6. Where Joe Gans excels at a boxer. Section 4, page 8. Change In baseball rules planned by big leagues. Section 4. page 6. Former college stars defeat 'Multnomah Club team at football. Section 4, page 7. First Horse Show of Portland Hunt Club closes. Section 2. page 2. Bank holidays work hardship on prisoners In jail awaiting trial. Section 4. page S. Merchants have no fault to find with volume of retail business. Section 2, page 12. Lents Grange passes resolutions advocating postal savings banks. Section 3, page 10. Bank holidays handicap real estate dealers. Section 3. page 8. FEW SUGGESTIONS Hero of the Hour. MORGAN BUYS IN . STEAMER LINES Now Controls Atlantic Coast Traffic. HARD BARGAIN WITH MORSE Big Trust Magnate Profits by Money Squeeze. SECURITIES QUITE DRY For $300,000 Cash Man Wh Checked Panic Captures Corpora tion Capitalized at $60,000, 000 Morse Sacrifices Pet. NEW YORK, Nov. 9. (Special.! The Consolidated Steamship Company, the pet concern of Charles W. Morse, who was ousted from the Bank of North America and other big financial corporations, has passed to J. P. Morgan. The directors' will meet Monday to prepare a statement announcing- the change of control. This big steamship concern, controlling all the coastwise Atlantic steamships, ex cept the few that are owned by the New York, New Haven & Hartford Railroad Company, is another one of the immense corporations that have been acquired by Mr. Morgan in his handling of the finan cial disturbance. Another was the Ten nessee Coal & Iron Company. The con trol passed to him two weeks ago, but the fact has been kept a secret in Wall street except for the rumors that have spread among the men on the inside. In fact, the bankers got the company from Mr. Morse before he had forced control of the Tennessee Coal & Iron Company into the hands of the United States Steel Corporation. The price paid to Mr. Morse by the great banker Is shrouded in mystery. It is said, however, that the bonds were se cured for less than 10, and the stock, which had been selling between Vri and 2, was passed at a price between 1 and 1U. At this remarkably low rate the control of a corporation that started business with stock of a par value of $SO.000,O"C passed to Mr. Morgan for an actual cash expenditure of a little more than 100,000. MORGAN'S MEX IX CONTROL New Director of Tennessee 'com pany Bulk of Stock Bought. NEW YIRK, Nov. 9. The board of directors of the Tennessee Coal, Iron & Railway' Company, which was pur chased by the United' States Steel Cor poration, was reorganized today. All the old directors tendered their resig nations and all were accepted except those of Chairman John A. Topplna and Vice-President and General Man ager Frank A. Crockard. These two men, together with several represen tatives of the Uni'd States Steel Corporation, were elected on the new board. The new members are: E. H. Gary, chairman of the Steel Corporation; W. E. Corey, its president; W. B. Dickinson, its vice-president, and Richard Trimble, Thomas Mauray and W. J. Filbert, all officers of the Steel Corporation. The three vacan cies on the board are yet to be filled. An official of the United States Steel Corporation Bald that of tho J32.000.000 capital stock of tho Tennessee Coal, Iron & Railway Company. between $26,000,000 and $27,000,000 had been de posited with J. Pierpont Morgan & Co., In exchange for tho United States Steel 5 per cent bonds. CLUBBED BY TWO THUGS Ben Willioitc, Laundry-owner, Is Robbed at Sacramento. SACRAMENT I. Cal.. Nov. 9. Ben Wilholte, who says he is interested in laundries in Stockton and Portland, was beaten unconscious by two thugs in a sandlot near the railroad depot in this city early this morning and robbed of $23, a gold watch and a suit and hat case. Lioosen Up, Gents.