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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View This Issue
TTIE SUNDAY OREGONIAN, PORTLAND, NOVE3I13EK 1U, 1UT.
Treasurer Steel Had No Right
to Put Money in Title '
SCHOOL FUNDS INCLUDED
All Kept tn One Deposit Xot the
.Right Sort of Depository If
Criminal Statute Is Violated,
Prosecution Will Follow.
SALEM, Or.. Nov. 9. (Special.) That
State Treasurer Steel had no authority of
law to deposit a dollar with the Title
Guarantee & Trust Company is the posi
tive opinion of District Attorney John H.
McNary, after a careful study of the law
governing deposits of state funds.
Whether the unlawful deposits const!-,
tute .a crime, he lias not fully determined.
Today Mr. McNary visited the Treas
urer's oftice and examined all the public
records there pertaining to the relations
of the state and the Title Guarantee &
Trust Company. Speaking of his conclu
sions, he said this evening:
"The act of the last Legislature
upon the subject of deposits of state
funds provides ior the establishment
of two kinds of depositories. The first
class, defined in section 2, is known
as state depositories, and in the banks
selected by the Treasurer for this pur
pose money from the general fund
may be deposited at a rate of interest
not less than U per cent. The second
cltst is known as an active depository,
and is provided for by sections 1 6, 7
and 8. The active depository is merely
an agent of the state for the collec
tion of drafts, checks, warrants, cou
pons, etc. The law provides for out
one active depository, but there may
bo as many state depositories as the
Treasurer may designate.
Treasurer Deposits Funds Wrongly.
"I found at the Treasury today that the
Title Guarantee & Trust Company ap
plied to be made an Active Depository,
not a State Depository. The application
was made upon a state depository blank,
but the words State Depository were'
scratched out and Active Depository
written in. The bond given by the Trust
Company is in the language of the sec
tion relating to an active depository, but
notwithstanding this, it appears that the
Treasurer was depositing funds in the ac
tive depository Just as he did in state
"It has already been pointed out that
the deposit law does not apply to school
funds, yet, so far as I could learn, the
Treasurer carried funds in the Title
Guarantee & TruBt Company Bank in one
account, regardless of whether they were
general funds or school funds. Mr. Steel
could deposit school funds in a bank for
safe keeping but these should be kept
separated from funds deposited under
the provisions of the deposit law, for
It is expressly provided that the act shall
not apply to school funds.
Surety Company Willing to Pay.
"Whether Mr. Steel's transactions are
in violation of any criminal statute, I
have not determined but shall study the
matter further and bring a prosecution
if the facts warrant such a course." '
Attorney-General Crawford returned
tonight from Portland, where he went
yesterday to investigate the state's se
curities. Ho says that the American
Security Company, which Is surety on
Mr. Steel's bonds, acknowledges Its
liability and the agent expresses will
ingness to pay to the state the amount
tied up In the defunct bank.
The Surety Company believes that
with proper management the bank can
be made to pay practically all claims
and that it will thus recover the
amount paid to the state. W. J. Clem
ens, agent of the Surety Company,
desires the state to hang to the timber
land mortgaged if possible and thereby
protect the Surety Company to that ex
tent. The Surety Company desires that
Mr. Steel retain his office.
Mr. Crawford says that from what
he could learn, there is a fair chance
of the bank's paying out in full.
RESTRICT THE AVITIIDRAAVALS
Ro9cburg Banks Issue Letter Ex
plaining Their Move.
ROSEBURG. Or., Nov. 9. (Special.)
The two Roseburg banks yesterday issued
the following letter to their patrons:
After consultation with our correspon
dents and owing to continuation of the holi
days, under oroi-lamatlon ot the Governor,
we have decided that it Is to the bet In
terests of the community to restrict wltn-
drawals from our hanks to the absolute n-"
cessltles of our customers. Such action has
been taken by the bunks both north ana
south of us. and has given general satis
faction, but appreciating the confidence and
stahllltj- of our own patrons, we have here
tofore disregarded the holidays and met our
patrons as usual, but since it has come to
be the concensus of opinion that all the
banks should act in harmony or unltedjy,
we have decided to follow the course here
I R. SHERIDAN,
President of the First National Built.
J. H. BOOTH.
Cashier of the Douglas County Bank.
The foregplng action taken by the
banks of this city is merely in accordance
with the position being taken by all
hanking institutions throughout the
state in ordor to tide over the present
stringency in the money market. It
does not mean that the banks will close,
but that withdrawals will be restricted to
actual necessities, owing to the fact that
the banks of this city are unable to get
money from the Portland banking-houses
which Is duo them, and in the meantime
protect those who have deposits in their
CALLING IX CITY WARRANTS
Grant's Pass Treasurer Will Put
$5000 In Circulation.
GRANTS PASS, Or., Noe. 9. (Special.)
Colonel "W. Johnson, City Treasurer,
will call in city warrants this week to
the amount of J5000. These warrants
are in the hands of business men around
town who will put the money into circu
lation. The banks are paying out cash
and business is good.
For several days each .bank has exposed
in a conspicuous place where the patrons
might see it thousands of dollars, which
has tended to allay any excitement. The
average citizen is drawing his money as
he needs it. A good tone of business is
notlceatlo in every line of the commercial
Good Conditions Continue at Kelso
KELSO, Wash., Nov. 9. (Special.) The
condition of the banking Institutions of
this plRcc remains unchanged. The Kelso
State Bank Is issuing the certificates of
tho Portland and Tacoma clearing-houses,
while the younger institution, the First
National, Is paying cash on its own
checks. Merchants are taking clearing
house certificates without question, near
ly $4J00 worth being already in circula
' A generally optimistic feeling exists
here, everyone believing that the flurry
will soon pass over.
CLEARING VP IX VANCOUVER
Shipments of Coin Arriving Daily
for the Banks.
VANCOUVER. Wash.. Nov. 9. (Spe
cial.) The financial situation in this
city is rapidly clearing up. Each of the
local banks has received larga ship
ments of coin in the paBt two days.
President Adams, of the Citizens'
Bank, states that he believes all the
local banks are in a normal condition
and only their inability to get coin
from their correspondents has caused
the stringency. In regard to his insti
tution he says:
"We have received several large
shipments of coin in the past few days,
the largest, one coming yesterday from
the Sub-Treasury at San Francisco. We
have a shipment on the way from New
York and another from St. Paul. In
ordinary times we could pay ever' de
positor inside of 30 days. Our securi
ties are in such a condition that we
can readily realize on them.-'
DEPOSITS . SHOW AX INCREASE
Hood River Conditions Are Excel
lent Business Not Delayed.
HOOD RIVER, Or., Nov. 9. (Spe
cial.) Bank deposits at Hood River
during the past week show a substan
tial increase over withdrawals. The
financial situation here is regarded as
excellent, taking into consideration
conditions existing elsewhere. Al
lowed money enough to take care of
necessities no large amounts have been
demanded and depositors have adjusted
themselves to the needs of the occasion.
Merchants report no falling off In busi
ness and no work of either public or
private nature has been delayed or In
First Certificates at Albany.
ALBANY, Or., Nov. 9. (Special.)
Portland clearing-house certificates
made their first appearance in Albany
today. A quantity of them were
brought to this city by some men who
had been paid with them in Portland.
A few business men refused to accept
them at face, but they wero afterward
cashed at a local bank.
STATE MDHEY IS SECURED
BONUS FOR f 650,000 GIVEN BY
AMERICAN Sl'RETY CO.
Will Indemnify State for Funds De
posited With Wrecked Title
Guarantee & Trust Co.
Bonds ' for $650,000 to secure state
money In the hands of State
Treasurer Steel have been given
by the American Surety Company, of
New York, of which W. J. Clemens is
resident vice-president. Two of, the
bonds are for $50,000 each, one dated
June 11, 1907, and the other June 20,
1907, securing the state and Treasurer
Steel for state money deposited with
the Title' Guarantee Company. The
two other bonds are for $250,000 and
$300,000, respectively, dated December
8, 1906. and September 21, 1907, secur
ing the state for Steel's managemerit
of the state funds, the obligation to be
void if Steel "shall well and truly per
form the duties of said office and shall
deliver over to his successor in office
or to any person authorized by law
to receive the same, all moneys, books,
papers, records and other articles and
effects belonging to his office, other
wise to be in full force and effect."
An additional bond of $50,000 was
given for Steel by six Portland men
J. Thorburn Ross, Wallace McCamant,
J. W. Cook, Louis G. Clarke, M. B.
Rankin and J. H. Peterson.
The $250,000 bond Is as follows, and
the $300,000 bond Is in the same form:
Know all men by these presents: That we.
George A. Steel, as principal, and American
fcurety Company of New York, as surety, are
firmly bound unto tho State of Oregon In
the penal sum of two hundred and fifty
thousand and no one hundredths dollars
$So0,0O0.00) for the payment of which
sum, well and truly to be made, we hprhv
bind ourselves, our heirs, executors and ad- (
nuniKiraiors nrmly by these presents.
Sealed with our seals and dated this 8th
day of December, laofi.
Now. the condition, of the foregoing obli
gation la such thnt.
Whereas. The said George A. Steel was on
the Oth day of June. 10OH. duly elected
Treasurer of the state of Oregon, and did
on the 12th day of July, llKlti. qualify as
such, and is still such treasurer; and
Whereis, His Excellency, the Governor,
has demanded an additional bond, as pro
vided in section 2222. Hill's Annotated Laws
Therefore, If the said George A. Steel
shall well and truly perform the duties of
said office, as prescribed by law, as also any
person or persons employed by him ' in said
office, and shall deliver over to his succes
sor in office, or to any person authorized by
law to receive the same, all moneys, books,
papers, records and other articles and effects
belonulng to his office, then this obligation
shall be void, otherwise to be in full force
GEORGE A. STEEL. (Seal.)
AMERICAN SURETY COMPANY OF NEW
TV. J. CLEMBXR. Resident Vice-President.
M. A. ZOLLINGER. Resident. Asst. Secre
tary. The two $50,000 bonds to secure
ntato money In the Title Guarantee &
Trust Company are as follows:
Know all men by these presents: That Tho
Title Guarantee & Trust Company, of Port
land, OreKOn, as principal, and the Ameri
can Surety Company, as surety, are held and
firmly bound unto George A. Steel. State
Treasurer, in the sum of fifty thousand
dollars (J.VI.OOO), for the payment o which
well and truly to be made, we hereby bind
ourselves, our successors and assigns, firmly
by these presents.
Dated the 20th day of June. A. D.. 1907.
Whereas, The said principal, The TUle
Guarantee & Trust Company.' of Portland,
Orefron, may from time to time be made the
custodian of funds by George A. Steel,
Treasurer of the State of Oregon. the
amount whereof shall be subject to with
drawal or diminution by said George A.
Steel. State Treasurer, as the requirements
of said state shall demand, and which
amount may be increased or diminished as
the said Treasurer may determine; such
funds not being current funds liable to fixed
Interest rate of 2 per cent per annum, but
surplus and other funds in the hands of
the State Treasurer.
Now. therefore, if said The Title Guaran
tee & Trust Company, of Portland, Oregon,
shall well and truly keep the said sums of
money so deposited or- to be deposited as,
aforesaid, subject at all times to the check
and order of George A. Steel. State Treas
urer, as aforesaid, and shall pay over the
same and any part thereof upon the check
or written demand of the said George A.
Steel, State. Treasurer, and to his succes
sor as shall by him be demanded, and shall
in all respects save and keep said George A.
Steel. State Treasurer, harmless and In
demnified for and bv reason of the making
of said deposit or deposits, then this obli
gation shall be void' and of no effect, other
wise to be and to remain In full force and
Witness our bands and seal the day and
year first above written.
TITLE GUARANTEE TRUST COMPANY,
By J. Thorburn Ross. President.
AMERICAN SURETY COMPANY OF NEW
Bv W. J. Clemens. Resident Vice-President.
John K. Kollock. Resident Asst. Secretary.
Colonel Joseph H. E.-tlll, Savannah.
SAVANNAH. Ga.. Nov. 9. Colonel
Joseph H Estill, proprietor of the Sa
vannah Morning News, died tonight.
(Continued Prom First ?ag-.)
was insolvent before Ladd ceased to
be a director last July..
Attorney-General Crawford, repre
senting the state, and W. J. Clemens,
representing the American Surety
Company, which bonded Treasurer
Steel, have agreed to ask the Federal
Court to supplant George H. Hill with
John F. O Shea as receiver.
Mr. Clemens announces that he
would have cancelled the $100,000
bond for security of state money in the
bank, had he known W. M. Ladd was
not a director.
Treasurer Steel says letters from
wrecked bank asking him for loan of
school money bore the printed name
of W. M. Ladd, director.
American Surety Company will prob
ably admit its liability for $95,000 of
the state money, under its $100,000
bond, but may fight liability for $30J,
000 school money, under $550,000 bond
for Steel's management of state funds.
State officials, though of opinion the
state should not be a preferred cred
itor, will cause Steel to hold the tim
ber land collateral, in order to pre
vent the surety company from charg
ing the state with failure to protect
District Attorney McNary, of Marion,
holds that Steel had no authority of
George H. Hill, Receiver of the
Title, Guarantee & Trust Com
law to deposit money in the bank,
since it was but a collection deposi
tory and not a designated state deposi
tory. Governor Chamberlain wishes no
prosecution of Steel at present and
will urge no. steps to oust him from
office, until financial and other mat
ters have cleared up.
District Attorney Manning says he
is waiting to see if reorganization of
the Oregon Trust & Savings Bank can
be accomplished before prosecuting
the officials of that defunct bank.
American Surety Company says Steel
need not resign to force it to make
good its bond, since it stands ready to
pay without protest any proper claim,
and will not fight payment on techni
calities. Governor Chamberlain will continue
the legal holidays this week.
President J. Thorburn Ross. Vice-President
George H. Hill and Treasurer T. T.
Burkhart, officers of the Title Guarantee
& Trust Company, were arrested yester
day morning on warrants from the Mu
nicipal Court, because that is the only
court open during the holidays. The
charge was accepting money for deposit,
knowing that the bank was at that time
The men will have their preliminary
hearing Tuesday and will probably be
bound over to the Circuit Court. "When
I get them before a Jury," said District
Attorney Manning, "I will be able to con
vict them in two hours." A law of the
last session of the Legislature makes it
a felony for bank officers to receive de
posits when they know their bank Insol
vent. Mr. Manning is confident that this
provision of the law is now in force. One
part of the act provides that banks shall
make reports to the Bank Examiner
within 12 months after the act went into
effect last May and another clause pro
vides that within IS months all banks
shall have complied with every feature
of the law. Mr. Manning contends that
the application of the law as to insol
vency is not deferred.
All of the prisoners were taken to po
lice headquarters. where they were
booked. They furnished bonds of $5000
each, after which they, were released.
Warrants are also out for Secretary
John L. Aitchlson and Director F M
Warren, neither has been arrested, as
Aitchlson Is in New York and Warren
is In Japan.
C. P. Ehman, a real estate dealer of Si
East Third street, charges In the com
plaint, to which he swore yesterday
morning, that the officers of the bank ac
cepted from him on October 28, the sum
of $550 on deposit, the allegation being
that they were aware at the time of the
insolvency of the institution. District At
torney Manning issued an information of
felony, through Bert E. Haney. his
deputy, and warrants were issued by
Clerk Hennessy of the Municipal Court,
by order of Judge Cameron. Captain of
Police Moore, commanding the day relief,
was then given the warrants for service
and the arrests were made at once.
Lawyers Joseph Simon and Wallace Mc
Camant accompanied the officials of the
bank to police headquarters and arranged
for bonds of $5000 for each of their clients.
J. C. Bayer and A. A. Lindsley went on
the bonds of George H. Hill and T. T.
Burkhart, and E. Quackenbush and Mr.
Llndsley for J. Thorburn Ross.
The complaint of Ehman, which led to
the arrest of Ross, Hill and Burkhart is
In the Municipal Court for the City of Port
land, County of Multnomah. State of Oregon.
The State of Oregon vs. J. Thorburn Row,
T. T. Burkhart, John B. Aitchlson. F. M.
Warren and George H. Hill, defendants
State of Oregon, County of Multnomah, ss.
Be it remembered that this day there per
sonally appeared before me. Municipal Judge
of the City of Portland, and a committing
magistrate, C. F. Ehman, who, being first
duly sworn as a witness concerning the fact,
upon hi oath deposed and said that the
crime of unlawfully receiving deposits In a
bank had been- coiymltted by J. Thorburn
Ross. T. T. Burkhart, John E. Aitchlson, F.
M. Warren and George H. Hill, as follows,
The said J. Thorburn Roes, T. T. Burkhart,
John E. Aitchlson. F. M. Warren and George
H. Hill, on the 28th day of October, A. D.
1907. in the City of Portland. County of Mult
nomah, State of Oregon, then and there be
ing the ownem and 'Officers of a certain bank,
to-wlt, the Title Guarantee & Trust Com
pany, a corporation, which bank was doing a
banking business In the said city, county and
ptate. did then and there, as such officers
and owners, wilfully, unlawfully and felon
iously accept and receive a certain sum of
money, to-wlt, $,".50, .lawful money of the
United States of America, and of the vaJue
of $.0, from and of one C. F. Ehman, and
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being the personal property of him, the said
C. F. Ehman. they, the said J. Thorburn Ross.
T. T. Burkhart. John E. .Aitchlson. F. M.
Warren and George H. Hill, all then and
there well knowing that said bank m then
and there insolvent, contrary to the statutes
in such casee made and provided, and against
the peace and dignity ot the State of Oregon.
Dated this 8th day of November, A. D. 1907.
C. F. EHMAN, Informant.
Subscribed and sworn to before me this
9th day of November. A. D. 1807.
GEORGE) J. CAMERON,
Municipal Judge of the City of Portland and
ex officio Justice of the Peace.
I move the Court on the within informa
tion that a warrant issue for the apprehen
sion of the said J. Thorburn Ross, T. T. Burk
hart, John E. Aitchlson. F. M. Warren and
George H. Hill. JOHN MANNING,
By B. B. HANEY, Deputy.
President Ross Welcomes News.
President ' Ross welcomed the an
nouncement of Mr. Ladd's action last
night as "pretty good news." He was
of the opinion that depositors would
receive no interest after the date of
"It seems to me," he remarked, "that
If this offer had come earlier, it would
have been like the action of the man
who gives twice who gives quickly.
But It is a considerable lift, even now,
and will assist greatly in the process
of liquidation. I think it will go very
far toward making the bank pay out
fully. It means, too, that Mr. Ladd will
get everything that shall be left over,
Including the stock.- But he is en
titled to it. I only wish his aid had
"With expenditure of about $80,000,
the Marquam block can be made to
pay a good net income on $1,200,00D,
without the theater. We carried it on
our books at $615,000, and as there is
a $215,000 mortgage on it, that means
we listed It among our assets at $400,
000. The property is assessed for
taxes this year at $8S4.000. The main
building can be made to pay 8 per cent
net on $800,000, by expenditure of
$80,000 for improvements. The adjoin
ing property on Sixth street Is worth
The statement of. liabilities and assets,
as made out by President Ross, after the
failure, was as follows:
Demand accounts $1,053,000
Savings accounts 405.000
Time certificates of deposit 175.000
Demand certificates of deposit.... ai5.K0
Due other banks 610,000
Stocks and bonds $ 863. Ono
Loans and discounts 1,447. ooo
Mortgage loans lKrt.OOO
Accounts receivable 2.TiO,000
Overdrafts ' 19.000
Real estate 13.000
Abstract plant 125.000
Safe deposit vaults 60.000
Miscellaneous assets 2S.00O
Cash (exclusive of trust funds).... 18,000
The item, demand accounts, includes the
$316,000 state money. The savings ac
counts, of $405,000, Is what Mr. Ladd has
guaranteed. The demand certificates,
$315,000. includes $IB0,000 loaned the bank
recently by Ladd & Tilton and the First
National Bank. The item, due other
banks, includes $607,000 owing Ladd & Til
ton. In the stocks and bonds assets, $S63,000,
are Included the following: Stock of Ore
gon Company (Marquam block), less $215,-
000 mortgage, $400,000; stock of Commer
cial Trust Company (Commercial build
ing), less $100,000 mortgage, $152,000; bonds
of Oregon Land & Water Company
(30.000 acres Umatilla irrigation lands),
$225,000; bonds of the Commercial Club,
$5000; bonds of Deschutes Irrigation &
Power Company, $25,000; total, $507,000.
The loans and discounts item contains
the following loans: M. B. Rankin, $500,
000; Oregon Land & Water Company,
$90,000; Portland Development Company
and Colonial Investment ' Company (at
Willamette Heights, including money
loaned to' Lafe Pence), $400,000.
It Is the universal opinion that the
timber collateral in Benton and Ma
rlon Counties, asslged- to State Treasu
rer Steel for security of state money,
will not hold. State officials do not
expect it to hold and say that the
state should not be preferred over
other creditors. But they will cause
the State Treasurer to keep It until
the court shall give an order of re
lease. Attorney-General Crawford says
that voluntary release by Mr. Steel
would expose the state to a charge by
the bonding company of falling to pro
tect the state funds, and might work
against recovering indemnity.
Surety Company Is Liable.
There seems a clear liability for the
American Surety Company to make
good as to $95,000 of the state funds.
Liability for the $300,000 school money
is involved with the question whether
the State Treasurer has authority of
law to deposit that money in the Ross
bank. Mr. Steel called on W. J. Clem
ens yesterday, resident vice-president
of the American Surety Company, and
informed him that he (Steel) had acted
wholly within the law. Steel has al
ready sent Mr. Clemens official notice
of the failure of the bank and of the
"When we get the notice." said Mr.
Clemens yesterday, "we shall investigate
the claim and if it is Just we shall pay
it at once by reimbursing the state and
taking over the state's claim on the bank.
My company never resists claims on tech
nicalities. It could have done so, after
failure of the Oregon Trust & Savings
Bank, in which the state had $35,000. but
did not, and promptly paid Mr. Steel the
money. Our company could pay the
whole of this claim and not be stag
gered. "We want some other man for receiver.
It does not seem right that Mr. Hill, who
as vice-president of the Title Guarantee
& Trust Company, helped wreck the bank
or stood by when It was wrecked, should
now pilot it in the midst of destruc
tion." Mr. Clemens conferred with Attorney
General Crawford yesterday and they
agreed to ask for a new receiver.
Mr. Clemens says he advised hlt com
pany to bond the bank, because he be
lieved Mr. Ladd was a director. Mr.
Steel says the printed name of W. M.
Iadd, as director, appears on the letter
from President Ross, asking for loan of
Oregon Trust Not Forgotten.
District Attorney Manning announces
he has not forgotten the officers of the
defunct Oregon Trust & Savings Bank,
who violated the law by receiving de
posits when they knew the bank in
solvent. "Many persons are censuring me," he
remarked yesterday, "for not prosecut
ing the efliclals of that bank. I want
the public to understand the situation,
Just as It Is. I would have arrested them,
if it had not been for Warren B. Thomas,
attorney for depositors: A. B. Reames, of
Jacksonville, who represents $S5.000 de
posited by a railroad in Southern Oregon;
Eeveral other attorneys and about 500 de
positors who besieged me at my home
and at my office, wrote me letters and
kept my telephone busy, begging me not
to arrest the officials of the bank, be
cause they were working on a proposition
to reorganize and reopen and pay the
depositors In full. I told the gentlemen I
would not do anything to hinder the de
positors getting their money. I agreed
with Reames and Thomas, that if Presi
dent Moore would turn in his personal
holdings for the benefit of the creditors,
1 would refrain from making arrests for
"Mr. Reames tells me Mr. Moore has
done this. If It has not been done I shall
certainly see that it shall be done and it
is not too late now to arrest the officials
of the defunct bank. I am simply waiting
to see whether the reorganization Is per
fected. The state loses nothing by the
delay and the creditors have everything
to gain." .......
lYv cawt Wet (A
REASON FOR NOT PROCEEDING
AGAINST OREGON BANK.
Waiting Cntil Promoters Have Time
to Place Reorganization
Scheme Into Effect.
Lest there be criticism of District
Attorney Manning for his action in
causing the arrest of the officials of the
Title Guarantee & Trust Company and
leaving the officers of the Oregon
Trust & Savings Bank at liberty, A.
E. Reames, attorney for President
Moore, of the latter institution, made
the following statement last night:
Many people are asking why John
Manning, as District Attorney, did riot
take action against the officers of the
Oregon Trust & Savings Bank, but is at
this time proceeding against those in
control of the Title Guarantee & Trust
I believe it Is due to Mr. Manning
that the public should know the facts.
1 came here representing a claim ag
gregating $.31,500. and for which I felt
more or less a moral, If not a legal re
sponsibility. Naturally the important
quebtion with me was how to get the
money. I at once saw that this could
not be accomplished unless the other
depositors were cared for in like man
ner. I found that Mr. Manning was
Intending to make an investigation to
determine whether there was any crim
inal liability on the part of the officials
of the bank.
Mr. Moore had from the first au
thorized me to draw the proper con
veyances of his personal holdings to
Mr. Devlin, and was continually re
minding mo that these conveyances
should be made. I did not know any
thing about the internal affairs of the
bank. I only knew that Mr. Moore
was insistent that the deeds of his
property should be made in order that
depositors might know that he had not
profited by the failure and was willing
to give his property to assist in pay
ing the bank's debts.
Without considering the question as
to whether there was criminal liabil
ity. I was anxious to promote a plan
that would give everyone the money
duo. I satisfied myself that our re
organization plan would do this if the
people would assist. I, therefore, went
to Mr. Manning and asked him to let
us try our plan without regard to
whether there was criminal responsi
bility or not. He insisted upon know
ing whether my plan protected the
small depositors and the great ma
jority of them. I told him that the
plan was equal to all. By these as
surances I succeeded in getting him to
defer action for a few days. When I
found that he was insistent upon pro
ceeding, I showed him the entire plan,
and pledged him my word of honor
that I would use every effort to make
It succeed, if he would give us time,
convircing him In the meantime that
his proceeding would result in sub
stantial loss to all.
In this manner I finally succeeded,
with the help of several influential
business men. in getting him to agree
to defer further investigation until the
reorganization plan might be tried out.
' It seemed clear that with a' million
of dollars invested in one class of good
securities, it would be easy to reduce
the bank's liability in a corresponding
amount. This done, there was suffi
cient new money, which, when added
to the collections to be made by the re
ceiver, would make it a banking
proposition for a new concern to take
hold ot the assets and assume the lia
bilities. I have made my word good to Mr.
Manning by putting in my time at my
own expense since the 2oth or 26th
of August. The Depositors' Associa
tion has been working both night and
day- along the same line and giving
most valuable assistance. Without this
organisation It would have been very
much mere difficult to have reached
the point that we have now attained.
Mr. Manning has been a frequent
visitor at the bank to inquire as to
progrers. If he had interfered by
means of criminal proceedings, whether
wise or unwise, our plans would have
been at an end. It has been his solici
tation for the depositors that has
caused him to defer investigation, and
I am sure that when the public under
stands the facts as they are, he will
be commended for his course. The at
titude be has assumed has not inter
fered In any way with his following
finally the same course which he
would have followed if we had not ap
00. 000 Pk
ZvJrrtoK out- B.TjA
pealed to him in behalf of the 17.000
depositors, whose interests are alike
Depositors Meet Tonight.
A meeting of the depositors of the Title
Guarantee & Trust Company has been
called at Drew Hall, southeast corner of
Second and Morrison streets, at 8 o'clock
tonight. Only depositors bringing their
passbooks will be admitted.
BRAZIL OUTLET FOR JAPAN
Negotiations Pending for Immigra
tion of B000 Annually.
OREGONIAN NEWS BUREAU, Wash
ington, Nov. 5. Barred from the United
States, Japanese coolies are turning to
Brazil, where, according to the Bra
zilian Review, they hope to gain ready
admission. This newspaper, published
In Rio de Janeiro, says:
It Is reported from Yokohama that
North America and Australia, being prac
tically closed to the Japanese Immigrants.
Japan will now turn its attention to Brazil
as a point toward which Its surplus popu
latlon shall be directed, and that negoti
ations will be opened with the Brazilian
government forthwith to arrange for the
landing of R000 Japanese in that republic
every year. From Milan also comes an an
nouncement to the effect that the Japanese
government has proposed to the Italian Am
bassador at Toklo that the Navlgazlone
Generals Itallana Bhall undertake the trans
port of these emigrants and for that pur
pose shall establish a new steamship serv
ice from Yokohama to Genoa. From Genoa
to Brazil, as is well known, the NaviKazlone
Generale already runs & direct line. There
Is said to be no doubt that the Italian com
pany will establish the new line, seeing
that a guarantee for the transport of t000
third-class passengers . from Yokohama to
Genoa every year will be equivalent to a
considerable state subsidy. Besides this. It
Is thought that the Navlgazlone Generale
may safely reckon on getting Its bands on
the entire traffic In passengers of the bet
ter class, as well as the goods traffic, be
tween Italy and Japan.
Spend Afternoon I'p In Air.
CONCORD. N. H., Nov. 9. The bal
loon Stevens 21 landed In London, N.
H.. at 5:15 o'clock this evening on its
trip from North Adams, Mass.. where
the ascension was made at 12:10. Leo
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Clearing-House Certificate Tak
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