The Sunday Oregonian., January 28, 1912, Page 11, Image 11

11
-tte SUNDAY OREGONIAN. rORTLAM), J ACTUARY 28, 1912
$8000 BONDS SOLD
BY MORRIS AT LOSS
State Bares Transfers in At
tempt to Prove Misuse
of Bank's Money.
FIGHT CENTERS ON LETTER
Witness for Proaecotlon Will Not
Identify Signature to Letter In
Which Claim to Comml.wlon Is
Denied - Lie I Cast.
Callnuod from TMrt T r-
George XL Frost for a bona and tha
fractional parta of lota 1( and 1. block
X, Madalana Addition to Portland. On
suggestion of Morris, tha deed waa
mada out to a A. Read, grantee, and
waa ao recorded. SubeequenUy tha
property waa tranafarrad by Raad to
Florence, M. Adama, atanoirraphar for
Morrla In tha Oregon Truat. and now
living at Taeotna. Miaa Adama after
warda tranafarrad tha proparty to OHto
Gonld for 1100 caah, Thla transaction,
aatd Currla, waa cloaed by blm and tha
money waa paid to Morrla.
Currla teeUfied furthar that ba ex
changed tha other four bond, repre
senting a par value of $4000. to W. C
Howard and wife for a houae and two
lota at 1J0 East Main atreet. In thla
Instance, ba Bald, the property waa
deeded to Miss Adama. who subse
quently tranaferred It to Michel Arndt
for I1S0O. Deducting a small mortgage
and a street asaeaament agalnat the
property. Currla aald there remained
f 1400 caah which he paid to Morrla per
bo nail y.
Boa 4 Traasfers Crrbratvd.
Mr. Frost followed Currla on the
wltnesa stand and corroborated the
statements of tha real estate dealer re
garding the transactions. He also "pro
duced and Identified the four telephone
bonda he had received from Curiie In
exchange for hla property. The num
bera of tha four bonda and their de
scription correapondad with four of tha
40 bonda alleged by the atata to have
been acquired fraudulently from the
bank by Morrla.
The direct and cross-examination of
Frank H. Stow, who waa vlce-prealdent
and manager of the Union Telephone
& Construction Company, proved both
lively and heated, and waa not con
cluded until yesterday afternoon. Mr.
Malarkey and the witness had a num
ber of Ulte, resulting from tha efforts
or counsel for tha defense to have Stow
Identify tha signature of F. F. Graves,
prealdent of tha construction company,
to a letter written by him to Wilde last
October. This letter waa mora or leaa
laudatory of Wilde, and declared ape
ciflcally that under the agreement
Wilde bad with tha construction com
pany for tha sale of tha (300.000 block
of Omaha telephone bonda. ha was en
titled to whatever he obtained for them
In exceaa of SO cents on the dollar, net.
to tha company.
ft a Clalaa to Share Mad.
In hla letter Mr. Gravea want further
and aald that he waa entirely convinced
that neither be nor Stow bad any claim
to any part of the money received by
Wilde for tha aala of tha bonds to tha
Oregon Truat In addition to tha price
of 10 centa for which Wilde was au
thorised to dispose of theaa aecurltiea.
Although the algnatura of Graves to
the letter to Wilde waa almllar to tha
admitted algnatura of Gravea on an
other letter already In evidence) and
identified aa auch by Etow, the witness
would not Identify tha signature on the
Wilde letter aa genuine. Ha declared
D( waa not only auspicious as to tha
genuineness of Gravea signature, but
when ha learned of the contenta of tha
letter he waa firmly convinced that tha
communication waa not one of Gravea
compositions. The defenaa promlaea
to prove aatlatactorlly the authorship
and signature of the Graves letter later
In the trial.
Letter Oaly Frteadly, He Sara.
Etow admitted that ba received a
letter from Gravea about the same time
Gravea wrote the Wilde letter, but de
clared poaltlrely that it did not re
late In any Way to tha bond deal or
a division of the commission received
by Wilde. He eaKi It waa only a friend
ly letter In which Gravea expreaaed
satisfaction upon bearing from Stow
and aaked to be remembered to tha
membera of Stow's family.
Throughout the greater part of the
morning session, Mr. Malarkey labored
to impeach and dlacredtt the teatlmony
of Stow, who la one of the principal
wltneaaea for tha atata. and aucceeded
frequently la getting tha witness con
fused. Counsel for tha defenaa Inti
mated by bis questions of the wltneaa
and in frequent elaahea with oppoalng
counael that ha accuaed Stow of having
undertaken to blackmail Wilde, and,
having failed. Joined forcea with tha
District Attorney'a office and brought
about tha Indictment of the defendant
on a criminal charge.
Desaaad far Cola Read.
In developing thla contention, Mr.
Malarkey Introduced a letter from Stow
to Wilde, dated May 13. las I. In which
Stow made a formal demand that WUde
Immediately remit alleged to
be due 8tow aa hla ahara of tha com
mission received by Wilde from tha
bond sale to the Oregon Trust. In
thla letter Stow wrote that ba had
made arrangementa to take "legal
steps' to recover the amount of money
demanded if ha did not hear from
Wilde in a reasonable time. Respond
ing to this demsnd from Stow, Wilde
telegraphed and wrote Stow empha
tically declaring that he would not
comply. In his letter. WUde charged
Stow with being responsible In a
measure for the dissipation of tha con
struction company'a funds during Its
operations In Denver.
Evidently for the purpose of contro
verting thia charge, Mr. Clark for tha
prosecution later obtained Introduc
tion of the report of the auditing com
mittee that Investigated and paased on
the company's expenditure which ag
gregated about 1130,000 and then failed
tc acquire the franchise that waa
sought.
On, re-direct examination by Mr.
Clark. Stow amplified his testimony
. w. i w . L , .4 taliaM nr.
VI ml uisjuw U LUI a otuw .- -
definitely as to the number of times
and the circumstances under which ba
met Mr. Clark prior to the beginning
of tha trial. He told of having seen Mr.
Clark only twice before tha Indictment
waa returned by tha grand Jury against
Wilde and Morris laat Summer. On
both occasions be had called on Mr.
Clark for tha purpoae of looking over
the baak books.
"The next time I saw Mr. Clark,
aald Stow, "waa In the lobby of the
Yecn bui'dtng. Addressing him I re
marked that I had seen In the news
papers wnere he probably would ba
identified with the proaecution In tha
trial of Wilde. He told me that he
had participated in the proaecution of
Moore and Morris and might be aaked
to aaalat In the approaching trial of
WUde although he hoped that be would
not be obliged to. 1 then told him
that ha had better take part In th
case or It would be said of him that
he had been bought off. That was all
the conversation I have ever bad with
Mr. Clark with whom I never discussed
any phase of the WUde case."
Stockholders Take Oae-Talrd.
In an endeavor to ahow that the
Omaha telephone bonda ware not a de
irable tnv.atment, Mr. Clark fought
out through Stow that although ma
Jorlty of the Block in the Lmon Tele
phone Construction Company waa eub
scrlbed by per.on. residing Ui Bo uthern
California, these same stockholders
subscribed for less than one-third of
the total bond l.aue of U.iOO 00. that
waa floated by the Omaha telephone
Cow 'admitted that ba did o pay
for bonda to tha amount of 110.000 for
which ha had subscribed but he was
unable to testify as to whether WUde,
8. A. Reed and Gravea. tha other offl
cers of the Construction Company, had
paid for their subscriptions and re
ceived the bonda for which they bad
signed. The Inference thrown out by
Mr. Clark waa that none of the otri
cers of the Construction Company
actually paid for the telephone bonds
for which he subscribed. . .
From the witness. Mr. Clark "rained
the information that the estimated coat
of Installing the Omaha plant with lta
(000 phonesT waa between 1800.000 and
1900 000. Counsel then made the PO""
that" when tha plant was completed,
there would be outstanding agalnat the
properly, representing an lnveetment
of leal than $1,000,000. a total of $
KOO 000 In stock and bonds, distributed
as follows: Bonds. $1,600,000; 4 per
cent preferred stock. $1.6000.000 and
common stock. $1,600,000.
Book Different, Sara Staw.
Stow furnished another rPr'"o.M
to duplication of records In the case
when he declared that the bond sub
scription book, introduced by the de
fense and In which are P'Prt,a " '
the names of all subscribers to bonds
In the Omaha plant, waa
subacrlptlon book '1 da exhibited Jo
nlm when Stow waa In San Diego In
107 He explained that the. book
abown him by Wilde contained only one
entry, that of the syndicate of banks,
represented by Morris and whose sub
scription waa $600,000. The bond sub
scription book that haa been admitted
in evidence contalna the names of
probably 60 aubscrlbers with tha
amount of each individual subscript-Turned
over to Mr. Malarkey for
further cross-examination. Stw
mltted that be called on WUde in San
Diego aubaoquent to the consummation
of the sale of the Omaha bonds to the
Oregon Trust by WUde. but he denied
that he had asked WUde for $10,000
with which "to fix It up with the attorneys-
in Wild's behalf. Stow did
ssy tnat on this visit he applied to
Wilde for a loan of $30,000. being
destrous Of going Into business for
himself.
Desaaada far Maaey Shawn.
Mr. Malarkey followed op thla In
quiry by ahowlng In the Introduction
if a lelter dated July 1.4, It 11. that
Stow, after the Indictment of WUde
and after Stow had mada an affidavit
reciting the facta on which the al
leged embesilement was based, wrote
Wilde another letter and demanded
$15,000 In settlement of his claim to
the' commission money received by
Wilde from tha bond sale. In con
ducting this part of the examination of
the wltneaa. Mr. Malarkey pointed out
that Stow, after he knew WUde had
been Indicted criminally for the em
bexslement of the commlaelon money.
Stow having appeared aa a wltneaa be
fore the grand Jury returning the In
dictment, had again demanded tha pay
ment of a part of the money which
formed the baele for tha criminal
charge agalnat Wilde.
Another letter from 8tow to WUde.
bearing the aame date, waa alao In
troduced by :he defenaa Juat before
Stow waa excuaed from tha witness
stand. In thla letter Stow as an officer
and stockholder In the Union Tele
phono Conatructlon Company, demanded
from WUde an accounting for all of
the money he had expended In con
nection with the company'a operations
in San Diego. PorUand and Denver.
Bisk's Bookkeeper Called.
Adolph Schuls. who was bead book
keeper of the Oregon Trust Savings
Bank. Identified the account of the
Union Telephone Conatructlon Company
and tha Puget Sound and Omaha tele
phone bond accounts, as tbey appeared
In the records of the bank.
W. D. Fenton. another witness for
the state, testified concerning the pos
session by him temporarily of a num
ber of Puget Sound Telephone bonda
while they were Involved In litigation
In tha United States Court In the State
of Washington, at a time a receiver
wms appointed to take charge of the
property, and their aubaequent return
to tha Merchanta National Bank In thla
city.
Not tha slightest Intimation has been
given by the state as to the disposition
that Is to ba made of the Indictment
agalnat Morrla Counael for Morris,
who la co-defendant with WUde. now
on trial, aald yeaterday that tha ex
caahler had not reached a aatlafactory
underatandlng with the prosecution as
to the terms under which he will agree
to teetlfy In tha WUde trial.
In the laat two daya. two thlnga have
happened which confirm a general sus
plcion that the proaecution Is undertak
ing to Impress upon Morris tha fact
that his services as a witness can be
dispensed with and not weaken Its case
against WUde. The clrcumatanceB re
ferred to are the Introduction Friday
of lettere from WUde to Morrla which
were admitted aa evidence, although
preaented through Frank H. Stow, a
third peraon. This was followed yea
terday when the prosecution proved
transactions by which Morris exchanged
Puget Sound Telephone bonds, alleged
to ba a part of his share of tha prop
erty embexxled from the bank, for real
eetate which netted him In cash less
than 60 per cent of the par value of tha
securities disposed of.
Morris Firm la Stand.
Regardless of the front that la being
put up by the prosecution, counsel far
Morris realises that bis client Is not
only a material witness but Is badly
wanted by the state If It makes out Its
case against Wilde. Morris" Attorney
said yesterday that bo far aa his client
and his relations to the state were con
cerned, the situation had not changed
since the trial opened, Morrla la firmly
resolved not to plead guilty to the In
dictment on which Wllda la being tried
and will Inalst that the state dismiss
all other pending Indictments against
him before ha will qualify as a witness
agalnat WUde.
Although opposing counsel haa had a
number of heated arguments since tha
, well below what you had expe
O UR Annual January Clearance Sale
of Furniture, Floor Coverings and Decor
ative materials closes Wednesday after
noon at six o'clock. The extraordinary values
offered during January will not be duplicated for
another year, q If you are familiar with the ex
tent and character of our stock,-we need only
remind you that every piece of furniture is now
sharply reduced in price. J If you are not ac
quainted .with our stock, we urge you to see it
during the .
next three
days. You
will find, for
any room,
comfortable
furniture of
exel usive
and beauti
ful design
at prices
cted to pay.
Fifth and Stark J. G. MaCk. & CO. Fifth and Stark
trial began, the first genuine clash took
place yesterday. In cross-examination
of 8tow, touching on his appearance
before the grand Jury, Mr. Malarkey
charged that there existed a frame-up
between Mr. Clark, the special prose
cutor, and the District Attorney s of
fice. The fact Is." declared Mr. Malarkey,
emphatically, "that Mr. Clark, the spe
cial prosecutor here. Is running the Dis
trict Attorney's office."
"That Is a damnable He," shouted
Deputy District Attorney Fitzgerald,
Jumping to his feet and shaking his
fist threateningly in the direction of
Mr. Malarkey.
"It is not," yelled back counsel for
defense. "Mr. Clark has been writing
all kinds of letters telling what he waa
going to do In the proaecution of this
caae."
"Anybody who says that Is a liar,
came back Mr. Fitzgerald. "You have
run he District Attorney's office more
than Mr. Clark or anybody else ever
did. and you were not criticised for It,
either." .
Judge Kavanaugh called a halt to the
war of wordi and warned counsel that
If the performance waa repeated, he
would impose a fine for contempt of
court against the participants.
Judge Kavanaugh aald yesterday, fol.
lowing adjournment of court until :30
o'clock tomorrow morning, that he
would not hold night sessions of his
court this week if counsel on both
sides show an Inclination to expedite
tl.3 trial of the case and make rea,
sonable progress during the day. He did
say that night sessions would be held
If any disposition was, shown to pro
long tha trial of the ' case unneces
sarily. . ,
Vhe membere of the Jury are making
tha beat of their lot, although evidences
of reatleaaneas creep out dally since It
has developed that the trial probably
will not ba concluded In another fort
night. In the custody of BaUlff Scott
the 11 men last night attended Fan
tages Theater. No apeclal programme
has been mapped out for today, when
the Jurors will be visited by members
of their families and friends. .These
visits, however, will take place In the
Immediate presence of the bailiff.
Washington Taxes Due Monday.
HILLSBORO, Or, Jan. 17. (Special.)
Taxes will he collectible In . Wash
ington County the first Monday In
February, and the roll will cover the
largest tax ever paid In the history of
the commonwealth. Nearly half of the
tax will go Into the road and bridge
fund, representing a total for that pur
pose of $200,000.
Harvard Hockey Team Wins.
BOSTON. Jan. 17. Harvard defeated
Cornell at hockey tonight. 1 to 1.
QUARRY
NEXT STEP
Governor Lays Plans for Road
Construction Work.
CONVENIENT POINT SOUGHT
Location Spoken of Now Between
Oregon City and New Era, Which
Would Make Labor Easier on
State lllg-hivaj- Making.
OREGON CITT. Or Jan. 17. (Spe
cial.) The establishment of a state
rock quarry at some convenient point
between Oregon City and New Era Is
contemplated, and that within the near
future, according; to Governor West,
who was In the city Saturday, accom
panied by George F. Rodgers, chairman
of the State Highway Commission. Gov
ernor West and Mr. Rodgers were met
at New Era by a committee from the
Oregon City Commercial Club, and with
L. R. Fields, auperlntendent of the
Southern Pacific Company, drove down
the river road paat the Wittenberg
estate quarry, a ahort distance north
of New Era and the Willamette Pulp
A Paper Company quarry Just south of
Pulp Station.
Either of' these quarries would be
adaptable to the uae of the state for
obtaining suitable rock for road con
struction. The rock from the Wltten
burgTetate quarry has been examined
by the State Engineer and State Geol
ogist, and has been pronounced first
class for road building.
Parchase Is Urged.
The rock on the paper company's land
Is of a similar formation and character.
In both places there 1b sufficient land
fronting the rocky bluff to Install the
necessary switches or sidetracks to
connect with the main line of the
Southern Pacific Company, only a few
hundred feet distant from the quarries.
"I believe the state should own the
quarry and that the land ahould be pur-
chased outright" said the Governor.
"Permanent ownership would Justify
the state in going to the expense of
constructing buildings, and we would
have a supply of good rock that would
last beyond this generation. We ex
pect to be able to procure a rock
crusher at a small coat In California
from a railroad company, and by the
use of convict labor, which costs about
25 cents a day, crushed rock could be
sold to any county In the state reached
by rail lines at a very small cost. Not
more than 15 men could be used profit
ably In a quarry."
Early Work Expected.
It Is the purpose of the state to es
tablish a convict road camp In Clacka
mas County, and it Is expected that
within a few months, or even less time,
the Improvement of the Capital High
way will be In full swing. The plan
to have a good road on the east side of
the Willamette extending from Port
i -i ciaot i nnm af Governor West's
wuu i.w .J" -
pet projects, and he Is being backed
up by Mr. Koagers, as wen u
mercial Cluba and other Improvement
organizations In townS along the route.
The party arrived In Oregon City at
noon and Mr. Fields hurried on to Port
land, and Governor West and Mr.
Rodgers were entertained at luncheon
and afterwards departed for the me
tropolis. Members of the Commercial
Club present at the luncheon were:
M. D. Latourette, B. T. McBain. Charles
W. Rlsley, Judge B, B. Beatle, Mayor
Grant B. Dimlck, Harry E. Draper.
M. J. Brown, E. E. Brodle and William
Fine.
TIMBER GRAB IS CHARGE
Lumberman Tells Congressional
Committee of White Earth Deals.
MINNEAPOLIS. Jan. 27. David N.
Winton. a lumberman of Minneapolis,
on the stand the eecond Ume in the
Congressional Investigation of fraud
charges on the White Earth Reserva
tion, testified today that the failure of
the Government to make awards fol
lowing tne submission of bids on tim
ber of the reservation In 1905 had been
an Injustice to the highest bidder and
had deprived the Indians of a large sum
of money.
The Investigating committee an
nounced Its Intention o showing that
after bids had been submitted In 1905,
agents of the Nlchols-Chishom Com
pany had secured the rejection of all
blda In the submission of which the
company had lost and that, following
this rejection, legislation Introduced by
Senator Clapp had placed the timber
within the grasp of the company.
BOTS WILL DO THEIR SHARE 10 l&S$&,'IE",a """ ASS00IAI101'
L .X.. S2lt it,...,., ',l..-i,.iIM..iiTl-ll.,1 r ill i , .l.aS.,a.i
MORE THA.X TWO HCXDKED MEMBERS OK BOYS' MEMBERSHIP TEAMS AT DINNER WHERE CAM-
pXlGN WAS LAUNCHED.
WmmmsmmsMms
HUMPHREY TO GET SEAT
DOXWORTH EXPECTED TO RE
SIGN IMMEDIATELY.
every week in Eastern Klickitat Coun
ty, the affair winding up with an oys
ter supper given by the women of that
section.
In spite of its treat oil fields, the United
States imports refined petroleum, though in
Ilmltod Quantities'.
President Would Then Appoint Seat
tle Man to Federal Bench in
Hope of Clearing Situation.
OREGONIAN NEWS BUREAU, Wash
ington, Jan. 27. Information obtained
from official sources today indicates
that Judge Donworth. of Seattle, will
soon send his resignation to President
Taft, and that Representative Humph
rey will Immediately be appointed to
succeed him. This change may, take
place next week.
Representative Humphrey today re
ceived a letter from Attorney-General
Wlckersham, declaring emphatically
that he had never advised the Presi
dent against appointing him (Humph
rey) to the Federal bench. This letter
Is taken as a further indication of the
purpose to place Humphrey on the
bench, for Wlckersham did favor the
appointment of a Southwestern Wash
ington man to t cceed Donworth.
Senator Jones had another confer
ence with the President this morning,
but left immediately thereafter for
Philadelphia, and the nature of his call
is not known. It Is a fact, however,
that Senator Jones never had with
drawn his support of Humphrey and
has been confident from the first that
Humphrey would be nominaiea ana ;
confirmed. If Donworth again resigns j
and Humphrey Is appointed it will be
because the President has been ad
vised to make this appointment and I
have it over with, for It has been j
pointed out to him that If the matter ;
is allowed to drag until after the ;
Washington primaries, it will only ,
serve to stir up strife among Washing
ton State Republicans and will hurt ,
the Administration more than the ap- j
polntment of Humphrey at this time.
Door Smashed for $4. j
Taking a special squad from the '
second night relief. Captain of Police
Keller last night, under the supervision
ot Chief Slover, raided an alleged Chi- ,
nese gambling-house, at 95 Fourth t
street. Fourteen Chinese and $4 were
taken after a heavy- door had been
broken down, the raid being on the :
time of the first relief, of which Cap
tain Moore is acting head in the i
absence of Captain Bailey, whose re- ,
moval from the department was made
partly upon charges derived from Chi
nese raids on his relief.
i
Over 300 Jackrabbtts Killed In Drive
HUSUM, Wash., Jan. 27. (Special.)
9AA 4.lriah.ltlt WrA killed Sat-
vw J"-
urday In a drive neia in tne oix-rroiis
i.irit thl rnuntv. During the Win
ter Jac'kranblt drives are held nearly
A store where ladies can trade.
NATIONAL
WINE COMPANY
FAMILY LIQUOR STORE
Peculiar After Effects
of Grip This Year.
leaves Kidneys In Weakened Condi ion.
Doctors in all parts of the country
have been kept busy with the epidemic
of grip which has visited so many
homes. The symptoms of grip this year
are very distressing and leave the sys
tem In a run-down condition, particu
larly tho kidneys, which seem to suffer
most, as every victim complains of lame
back and urinary troubles which should
not be neglected, as these danger sig
nals often lead to more serious sick
ness, such as dreaded Brighfs Disease.
Local druggists report a large sale on
Dr. Kilmer's Swamp-Root which so
many people say soon heals and
strengthens the kidneys after an at
tack of grip. Swamp-Root Is a great
kidney, liver and bladder remedy, and,
being an herbal compound, has a gen
tle healing effect on the kidneys, which
is almost immediately noticed by those
who try It. Dr. Kilmer & Co., Bing
hamton, N. Y., offer to send a sample
bottle of Swamp-Root, free by mail, to
every sufferer ' ho requests it. A
trial will convince any one who may be
In need of It. Regular size bottles 00
cts. and $1.00. For sale at all drug
gists. Be sure to mention this paper.
Miy a good stiff rum punch
for yourself from a bottle of our
goods, and you'll want to pay
yourself money after tasting it.
These are the kind of liquors
that brace you up and satisfy
the inner man, making the outer
man feel jealous. We guaran
tee the absolute purity of all our
Wines and Liquors and know
that you will enjoy them.
Guaranteed five-year-old very
choice Port, Sherry, Angelica,
Muscatel, Tokay, Madeira and
Malaga Wine, absolutely pure.
Price, per gallon $1.00
20-year-old Imported Port and
Sherry, per gallon, $4: quart
bottle $1.00
Very choice Jamaica Rum, gal
lon, $4.00; quart $1.00
8-year-old New England Rum,
gallon, $4.00; quart. .$1.00
Bottled-in-Bond Jas. E. Pepper
Bourbon Whisky, full quart
for $1.25
Mt. Vernon Rye, 10-year-old,
full quart $1.50
Old Smuggler Scotch Whisky,
10-year-old, per quart $1.75
Our auto delivery carries no
signs, insuring no publicity on
delivery.
Express prepaid on out-of-town
orders of $4.00 or over.
NATIONAL
WINE COMPANY
Fifth and Stark Streets,
Portland, Oregon.
Phones : Main 6499, A 4499.