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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View This Issue
Pages 1 to 12
VOL- XXVI. NO. 45.
PORTLAND, OREGON, SUNDAY MORNING, NOVEMBER 10, 1907.
PRICE FIVE CENTS.
W. IL LADD
Pledges Fiill Pay
ment of the Sav
fO AMOUNT OF $405,000
Marquam Building Is Released
for the Benefit of All
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
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- &
"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,
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
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.,
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.
Though Bank Reserves
GOLD PURCHASES CONTINUE
Total Secured From Abroad
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
NEW YORK, Nov. 9. The' state-
Breaking; of Rone Sho
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
. . . 1,08.91. 1UU
Legal tenders. . . .
Reaerve . .
Bi-U. 8. deposits.
5. 201. WW
271, 7 19.52!i
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
"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
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."
Dusky Royalty Eats
Peer and Cheese.
HIS CHECK PROVES WORTHLESS
Cold - hearted ' Restaurateur
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
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
"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
criminally unless he makes good his
check. He is responsible, even though
Captain Girard did give me the check."
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
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
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
YESTERDAY'S Maximum temperature, 60
decrees; minimum, 44 deKrees.
TODAY'S Fair; easterly winds.
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.
Plot to murder Czar thwarted. Section 1,
King Edward's birthday celebrated through
out empire. Section 1, page 4..
Baby Prince Alfonno lionised in England.
Section 4, page 10.
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.
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.
Farmers In Kentucky almost have battle
over union. Section 1. page 7
Carlisle defeats Harvard by surprising tac
tics. Section 2, page 4.
Stanford defeats California. Section 2,
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,
Treasurer Steel bad no authority to deposit
any funds in Title Bank. Section 1.
Skull of murdered man Introduced as evi
dence In Steve Adams trial. Section 1,
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,
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
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.
Hero of the Hour.
MORGAN BUYS IN .
Now Controls Atlantic
HARD BARGAIN WITH MORSE
Big Trust Magnate Profits by
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.