Image provided by: University of Oregon Libraries; Eugene, OR
About The Oregon daily journal. (Portland, Or.) 1902-1972 | View This Issue
"Tolo BANK WILL, -PRODABLY. I? AY OUT ALL RIGHT. . DOITT IINOCir'-Staten Receiver
-.- - - -
F YOU Want to SELL REAL
ESTATE Advertise fa THE
JOUKNAL Journal Ads Pay Best
The Weather Fair- tonight 4
tomorrow; northwert wind. .
Yesterday, )ff U.
VOL. VL NO. 145.
y PORTLAND, OREGON,' THURSDAY EVENING, AUGUST 22, 1807. EIGHTEEN PAGES.
PRICE TWO CENTS. ' SyjSigcCT
'. Barings Bankerr Accused of
: Receiving-Deposits "When
They Knew Bank Was In
. solrent-rMoney Taken in
Up to Tuesday Night. ' '
, ' "The owner or MMn nf any
. beak who (ball receive, any de- 4
posit knowing that Buck bank la -
" insolvent ahall b. deemed guilty
felony, and punished, upon
e eonrlotlon therefor, by a tin
aet xoedlng 11,000. or Imprta-
onment la the state penitentiary .
4 not exceeding two year, or by
both aueb fine and Imprison-
41 meat, at the dleoretlon of the
'' oourt . - I - '
Aettea; apon advice from District At
torney John Manning who la at New
Mineral Springe, Washington, Assistant
DletrtotTattwrneyK. B. adama la draw
leg; ap oomphUnts today for the arreet
of the official! acquainted . with the
eondttloa of the defunct Oregon Trust
efc Savings bank on the charg. of re
eelvlng deposit while knowing the bank
waa Insolvent Warrants will be Issued
a soon aa the complaints are signed
and arrests will be made this afternoon.
' The district attorney's office la pro
ceeding cautiously in the affair and will
make complaints only at the Instiga
tion of reputable cltlsens who mad de
posit In the last few days. There have
been a number of these men at ths dis
trict attorney's office today and stated
a willingness . to sign the complaints.
They are expected to aim them early
this afternoon when all of the defend
ants will b taken Into custody.
: The bank official claim a conviction
Is Impossible a they did not know the
bank wa insolvent ontU . th clearlns
bouse refused assistance.
' Depositor Complainant. ' .
- Th action of the district attorney
waa commenced by several nromlnent
buslnees men calling up Mr. Manning
at th springs lest
action could not I
bank official. Mr. Manning took th
ght asklnsf whether
not be taken agslnst the
matter under consideration over nlsht
and telephoned Mr. Adams this morning
that If any reputable person cared to
file complaints against the official he
would prosecute vhem according;- -the
When th man called upon Mr. Adam
thl morning th legal phase of th
(Continue' on Face Two.)
B. E. LTTLB, VICE-PRESIDENT OF THE OREGON TRUST ft SAV-
BANK BAROMETER SH0WS:
. More Money Being. Deposited Than Withdrawn at Other
" Institutions Failure Will Not, Affect Business of
City to Any Appreciable Extent, Says Mr. Mills. I
A. I MOla. president of. the .First
National bank, th largest financial In
stitution la th city, does not look for
any business Interference as the result
of th f allur of tha Oregon Trust A
Barings company. Neither does h con
sider that the people of the city will
cause th other Institutions troubl by
becoming frightened at the failure.
"Our bank barometer, the certificate
of deposit department, shows that the
people are putting mora money In th
bank than they are taking out." said Mr.
Mills this morning. "Yesterday when
Councilman Vaughn's Resolution ProTides f o Municipal
Conduit to Carry All Gae and Water Pipes and .
All Electrical Lines Now Strung Oyerhead.
' ' Councilman W. T. Vaughn thla after
noon Introduced- In th city ' council
a resolution . which will. If favored,
provide Portland with a municipal
street conduit and remove every elect
trio light, telephone or trolley wire
from overhead. . ; ., . "r, '
Couneilman Vaughn's plana so far as
outlined In hla resolution la for Imme
diate appointment by the mayor of a
jeotnmltte to consist of two members of
th city council and two- members of
th xecutive board whose duty will -be
to negotiate with an expert nonsuiting
engineer a to th beat waya and mean
of providing th ayatera and th esti
mated ot to th city for Its eonatrue
tlon. Vj 1 "witTVadergronnd.
' It ls th" Intention of Mr. "Vaughn to
make the eondult not ' only self-sustaining
but one that -will eventually
pay -for itself. Every enterprise that Is
required to go below th street su rface
will be compelled to us th municipal
eondult at a reasonable rental.
Th outline Include, the construction
of publlo conduits to extend along all
of that portion of th) city traversed
by streetcars, water mains, gaa mains
and electric wire. The greatest need
for th system. Councilman Vaughn
thinks, la In the business area, although
he has extended tn provision 10 in
nlnd th entire cltv. -
Wsshlngton, Morrison, Third. Second
and Fifth streets are particularly pro
vided for In th outline. On - these
streets there la a mass of trolley, elec.
trio light, telephone - and other high'
voltage wire. Thee high-power wire
are exceedingly dangerous to life, par
ticularly the trolley wires, which are
liable to snap at any moment. . ; .
Tim Wow to ,Ao.' ""
For months Councilman Vanrhn has
been thinking of Introducing the ordi
nance cut was not quit ready , to. pre
sent It to th council. However, the
recent recommendation of the fectrtlv
board to forfeit th heating.' franchise
(Continued on Pags Two.)
TO BUILD STOCKADE
AND FIQHT MINERS
emrsl ftpeeU! gervks.)
if 114. Nev- Aug, . Qeorg
ingfleld, on of th big owners of th
Vlevada Consolidated mines, declares
"that unless members of th Western
Federation of Miner keep th agree
ment and permit th Installation of the
"chang room" on th Consolidated and
Jted. lop properties, h will build,
atookad and Import ' nonunion minora
to work the claims and fight the Moysr
Hsywood organisation to a finish.
Th present strike only Involves about
100 men, but It promleea to spread, and
th situation is regarded ae critical.
The Combination men joined the Mo
hawk miners on strike yenlerday, and
ths Red Top workmen era likely to go
out aooa, . , v .
th crash occurred at th other Institu
tion I naturally expected that th hold
era of deposit certificates would begin
tot ask for their money to a greater or
leas extent. W call th department
the bank barometer, because It deals
with that elaa of our patrons who have
small amounts of money ranging from
f 10 t S00, who wish a safe place to
leave their money. The bank take
these sum, giving in return a certificate
of . deposit' rather than to open an ac
count with the bank for such small
amounts, . , .
"W naturally , expected therefora,
that these people would ask for their
money, frightened by th failure of the
other bank. On the contrary, however,
there waa a long lln at th window for
a groat part of the day making de
posit Instead of withdrawing them.
- "Beyond the Inconvenient mnA n.
slble loss to th depositors of the 6re-
f on Trust fc Saving, company I do not
hlnk that th failure will affect busi
ness In any degree," continued Mr.
Mills. "Conditions her are sound, othsr
banks sre stable and the loss will sim
ply affect those who had money on de
posit in the closed institution. Bsyond
any Indirect Influence on local condi
tion which may arts through th In
dividual financial embarrassment of th
depositors whose money Is tied up in th
defunct Institution, I do not beltev
that th failure will affect Portland busi
ness in any manner."
Th same report are made by officer
of other banks.
LEO FRIEDE, DIRECTOR OF THE
DEFUNCT BANK. ;.
MASS MEETiriG IS
CALLED ON PLAZA
Depositors in Defunct Ore
gon Trust & Savings Pro
pose an Organization.
Depositors of the defunct Oregon
Trust Savings bank will meet at th
Plasa at S o'clock tonight to arrange for
a permanent organisation of the deposit
or which will protect their Interests
In th litigation that Is believed will
Inevitably follow the investigations now
being made-of the bank's eondltion.
Th meeting baa been called by a special
temporary commtltee of 40 of th de
positor. It Is proposed to sleet permanent of
ficers at tonight's meeting and to secure
lawyers to safeguard ths lptereets ot
th depositors. A oomplnte register of
th depositors will be made tn th next
lew aays.witn ins nope 01 inaucing an
to loin the snoT-emSTft Xo-rmutual prutso
arsk. mwiMuvuu, wuvmviiwwi. siuva v i
of th large depositor In the ttuik,
will preslds as temporary obalrmani un
til th -permanent officer are chosen.
It is proposed, to-hav th meeting ask
Lets Pence to allow th depositor to
us on of th building - at th fair
grounds aa a meeting place In the fu
ture. It Is believed. that th formation of
thin depositors' committee Is prelim
inary to th filing of suit, against th
Dana on tn
Oregon Trust Having
part of many of th depositors.
WIRELESS SERVICE TO
SIBERIA IS PLANNED
1 Usenet gveeul Que.)
Berlin, Aug. 11. -Japan and Russia
are planning the establishment of wire
less connection with Siberia. Japan Is
connecting the shores of Vladivostok
and Tsuruga on ths western slds ot the
77 rr rr 77 yj szz rr 77 sz- 77 n
- ; ' , - r. ,. ....... , .... -,
, '' , . - . ... " ' . " . ' .-. . w , ; . . :
THOMAS. C. DEVLIN, RECEIVER OF THE OREGON TRUST ft SAV-
, JNOS RANK-. - -K, :'NV .' '
BANK: BONDS IARE BEING
RETURNED BY EXPRESS
Unable to Raise Money on Institution's Securities Cashier
: Morris Is Sending Paper Back to Portland Direc- ;
tor Friede Satisfied and Has Clear Conscience. '
Cashier W. Cooper Morris of the Ore
gon Trust at Savings bank, wired Pres-
Island or Hondo. It is proposed to lay I . . . . . . . .
th plan before th various chambers ,a"n or laat mgni tna n nan ior-
of commerce Interested and also before I warded by express the 1110,000 worth
the international telegraph conference
next April for indorsement. Th new
line I expected to cut in two th p rec
ent rate between Europe and Japan.
FOR COALING WHARF
v" ', CJeersal Indtl Btrrlee.)
Washington, Aug. 11. Bids for - th
construction -of a coaling wharf at
San Xlsgo California, were opened her
today. The lowest " bidder was ths
Pennsylvania Bridge company, which
bid 1211,400, and will likely be accepted.
Cotton Bros, of Oakland big 11(4.000
and th San Francisco Bridge oompany
1281.1. - y .
NEW COMMISSIONERS V
FOR POLICE BOARD
' (Jonrul Special Service.)
San Francisco, Aug. 11. Three new
Kilo commissioners. Hugo NelL J. D.
ggett and Charles A. Sweigert, war
worn In yesterday. 'The Sen m Its com
missioners assert they will fight through
all ths courts to rstaln office.
of his bank's securities which he took
with him t. New Tork. According to
officials of th defunct bank thess se
curities, consisting for th most part
of Horn Telephone company bond,
wer ahlpped to Portland last night via
the WaUa-Fargo express. The bank's
officials would not sy whether or not
then bond were Included In th list
of assets heretofore published.
. i Wo Sale of Bofada. '
v These securities wer tsken to New
Tork bv Cashier Morris with th Inten
tion of disposing of them for enough to
purchase the bond required to turn
the Orea-on Trust se Savings Into a na
tlonal bank. It Is said that Morris
honed to dlsnos of the bonds which rep
rnsented a fao Value of 1110.000 "for
1(0,000 cash with which he intended
purchasing th government bond
requisite it th founding of a national
bank. Owing to th tightness of the
money market In tha east he oould find
no purchaser for them.
T.lovd R- Smith, assistant cashier and
teller of the Oregon Trust a Barings
institution, said thla morning: "I re
ceived a telegram from Cashier Morris
last night saying that he had shipped
all of tha bonds tnat n naa wim mm
back to us by express. - I do not know
th. amount of the bonds nor whether
or not they ar Included In th. list of
assets mads publlo yesterday." '.
SCorrta eo keturn. , v
Receiver Thomas C Devlin said that
he understood In a roundabout way that
Morris was going to return to Portland
Immediately. . , . . , , .
V"I have .received no official . informa
tion as to Mr. Morris' whereabouts or
as to the probability of his return to
Portland, but I understand Indirectly
that he will return at once and fao.
mattera here," h. said.
Director , Leo Fried, of 'the Oregon
Trust A Savings bank stated today to
(Continued en Pag Two.)
Savings Bank Forced Under
Through Having Under
taken Too Large a Con
tract in Floating Phono
If th attltud of th Invest
ing publlo toward : Bom Tele
phone bonds continues to be th
sum that it has bean in the
past, thla bank will pay out all
right," said Receiver Thomas G.
Devlin of. th Oregon Trust A
Savings bank today. "The bank
ha other good securities, t
think it is only fair to ask that
there should be no knocking."
If th attitude of the Invest- . a
' past, thla bank will pay out all
right," said Receiver Thomas G.
"With a fore of four man who are fa
miliar with the buslnees of tha. bank.
nsceiver ijevun is maaing a carvxiu u-
amlnatlon of the entlr records, notes,
stocks, bonds and accounts in tha bank.
He took a hopeful view thl morning of
the situation. There la no further ex
citement apparent about the bank's
doors. Small groups of people continue
to gather in a normal way asking at
tendant policemen concerning the rea
sons for suspension, or to visit their
safety deposit boxes. It will be three
or four days before Receiver Devlin la
ready to make any publlo statement
concerning th. -actual condition of th.
bank. At the end of that time he will
probably hav a complete list of th.
notes and securities. As aoon as th.
character of the borrowers can be seen
it will be comparatively easy to deter
mine the probable value of th asset
listed at a value of I14C.181.C6, under,
the head of "loans and discounts."
Today the receiver sent out colleo
tors and will push collection of all ac
commodation paper that la "colleotlbl.
at thla time. It I predicted by thoe.
who hav. had experience In settlement
of ths affairs Of a suspended bank that
within 10 days the receiver will b.
ready to announce payment of a pre-,
llmlnary dividend to depositor.
Toe Xdjrg. a Contract.
The Investigation, so, far aa It ha)
gone, seem, to show conclusively that
th. Oregon Trust A Saving bank wa
forced to suspend mainly by reason of
Its directors having undertaken too
largo a contract to eell iiome telephon.
bonds, which securities, together with,
all other stock and bond securities, hav.
been difficult to market within th. last
month owing to th. general disturbance
(Continued on Page Nina)
t' ; (Jesrasl BpseM terries.)
- Chicago, Aug. 11. "Any - fair pro
posals of arbitration will be aocepted,"
said President Samuel Small of the
Commercial, Telegraphers' union In dis
cussing tha strike situation. 'Small will
leave for New Tork next Saturday.
' All of the' brokerage' offices In Chi
cago with two exceptions have signed
the . union agreement., and union .eeale
and' the men have returned to their
Non-union men who are employed as
strike-breakers In th Western Union
office are dissatisfied with - conditions
which ther ar forced to work tinder
and officials of th union declare that
many of them, -are planning to strike
and Join th. union, weetern Union of
ficials deny th. truth of this assertion
and sav that none of the etrike-break-
era have deserted yet. . Mors ar being
imported aauy. v
, Servto. Prostrated.
Almost complete prostration of th.
telegraph service In th. northwest la
shown, th. government 1 being able to
reaoh only two points on the weather
list that It posts on tbe board of trade.
The points reached wero Moorhead,
Minnesota, and St. Paul. Ths facilities
of lb government were Inadequate to
COMPANIES REFUSE -
TO SEE OPERATORS
Employer Make Men Sign ; Agree
. merit Not to Affiliate) With "
' i '
... . . Union. ': . ,. . :
ret anything from the Canadian north
west. . , . ,
New Tork. Aug. 11.- The lsst hop
of settlement of th telegraphers'
strike if there waa hope at all vanished
yesterday when both th. Poetal and
Western Union companies announced
that all operators desiring reinstate
ment must make individual application
for positions. Ths companies not only
will, not reoomlie the union but will
also refuse to refuse any committees.
' The Postal will compel Ita men to
Sign a practical nledge not to make an
alliance with the union.
president Hmall of tha union will
come to New York at th end of th
ween, put neitner the Postal nor West
ern, Union otQoial wlil see hiot under
any circumstances. Thsy will not ne
gotiate to meet him .It her; directly 'or
Union officers declare that they will
furnish proof that the Postal and West
ern Union are allied In violation of the
anti-trust law and a campaign la to be
waged along -that line. The company
offlcera do not tak this . threat seri
ously. Business men are clamoring for
a settlement of th strike and urging
intervention of the president, but so
rar tneae appeaia are in vain. Botn
companies report that business Is Im
proving rapidly In the east and middle
west, nut transcontinental wires are
wording Dnaiy. . -
an. Stoke Would Aid.
' Boa Pastor Stokes addressed th
striking telegraphers yesterday after-"!
noon. n. proposes tnat tne Sinn on
arbitrated and th telegraph!, hav
faith in her good Intentions. Accord
ing to the plans she outlined to ths
strikers she hopes to interest the di
rectors or th western Union snd Postal
In her effort to arbitrate the present
difficulty. . .
National arbitration ex porta. Includ
ing President Oompers of the American
Federation of Laboi and Commissioner
of Labor Nelll will likely be In New
XConUaued o,faa Mail 1
IS SUED BY STATE
Former SecretaryAsked to Account for Siity Thousand
f Dollars Collected as Fees Under Permission of
: Legislature While Holding Office. ; C
, (Special Dlspetch t Tae JoersaL)
Salem, Or., Aug. II. A complaint waa
filed today In th circuit court of Lane
county against H. R. Klncald for th
accounting of certain sum which he re
ceived daring hi term aa secretary of
state from January 1. HIS, to January
14, lt, and, aa 1 alleged, did not turn
over to tbe state treasury during his
term as secretary of state. :' The com
plaint la made; by th. stats of Oregon
on relation- of j. K. Sears aa a taxpayer
In , th ' state. It I 'stated that- the
amount of which' ths stats recsived no
aocount waa.' approximately $10,000,
though there J no means of knowing
sxactly. It Is claimed that th. money
waa received In incorporation fees, fses
on trade-marks, notary publics fees and
from other sources from which he re
ceived money ss secretary of state. The
plaintiff asks that tha defendant be re
quired to pay th. costs of th suit, be
sides rendering an aocount of the money
i which it la alleged that he received. It
I stated that W. & MoFadden Waa re
quested to bring suit against the de
fendant In his capacity aa prosecuting
attorney, but that he refused.
1 C IS. Idleman, formerly attorn er
general, to whom this report was re
"This Is th same matter which waa
brought up by a suit filed sgalnst Sec.
rstary of Stats Dunbar for 1100,000 for
retaining such fees, and which was
thrown out of court.' The constitution
of the stat fixe th amount of salary
whlcn the secretary of state should re
ceive, but the legislature passed a bill
allowing ths retaining of certain f.t.
In the former suit it was claimed that
the legislature has no-authnrlty to grant
such privileges. This J. K. gears la. I
believe, the same man In whose nam..
the former suit was Died.
Anything tending to oast ssnr'n,
anon Secretary Klncald la msnl:-- r
unfair to hlmr as he was acting ..,..
the authority of legislative action 1 i re
taining such fees.
TRUST MAGNATES TO
BE SENT TO PRIC
tfosrsal gpeelal Service.)
Washington, Aug.-11. -Sine the pre.
Ideata recent speech the oonvtotloa
has grown that, the administration will
aoon begin a campaign against ths
wealthy violators of ths law that will
snd tn prison sentences. Just where the
Ars,t plow -jriil fail it U Impossible to
predict. It I said t y
Uon to know that t
commerce has b. i
Information to be
froife:iit Ion of i
iav4 arrtvi.il t s i
mnt of tt Si,. - ,
atej n mu. t I s I-
wu t .- i ,
' :!s In a t
: .'-fly git
i ti the