VOL. VI. NO. 1.
A :
PORTLAND, OREGON, THURSDAY EVENING, AUGUST 22, 1907. EIGHTEEN PAGES.
PRICE TWO CENTS. ii2JtnrritJ0eS? !
STRICT ATTORNEY
MREST OF BANK WF1CIMLS IS SOUGHT.
DRAWING COMPLAINTS
STATE LAW
I Barings Bankers Accused of
Receiving-Deposits When
They Knew Bank Was In
solvent Money Taken in
Up to Tuesday Night
"The owner or jfleers of any
bank who shall receive any de-
posit knowing that aucta bank la
insolvent ahall b deemed guilty
4 of t felony, and punished, upon
eonrletlon therefor, by a fine
not exceeding $1,000, or lmpris-
onment in the state penitentiary
4 not exceeding two yeara, or by
4 both auch fine and lmprlion-
4 ment, at the discretion of the 4
court- " J f
Acting upon advlcea from Dlstriot At
torney John Manning who la at New
Mineral Springs, Washington, Aaalatant
tHatrrotTltWmey H. B. Adams la draw
ing up complaints today for the arrest
t the offlclala aoqualnted with the
condition of the defunct Oregon Truat
ft Savings bank on the charge of re
ceiving depoalta while knowing the bank
was insolvent. Warrants will be issued
as soon aa the complaints are signed
and arrests will be made this arternoon.
The district attorney's office la pro
ceeding cautiously In the affair and will
make complaints only at the Instiga
tion of reputable oltisens who made de
posits In the last few days. There have
been a number of these men at the dis
trict attorney' office today and stated
a willingness to aign the complaints.
They are expected to sign them early
this afternoon when all of the defend
ants will be taken Into custody.
The bank officials claim a conviction
la Impossible as they did not know the
bank was Insolvent until the clearing
house refused assistance.
Depositors Complainants.
The action of the district attorney
was commenced by several prominent
business men calling up Mr. Manning
at the springs last night asking whether
action could not be taken against the
bank officials. Mr. Manning took the
matter under consideration over night
and telephoned Mr. Adams this morning
that If any reputable persona cared to
file complaints against the officials he
would proseoute Uhem according to -the
law.
. When the men called upon Mr. Adams
this morning the legal phase of the
(Continue' on Page Two.)
LEO FRIEDE, DIRECTOR OP THE
DEFUNCT BANK.
Minn Rnrrnun
If Add I
B. B. LTTLB. VICE-PRESIDENT OF THE OREGON TRUST ft SAV
, , ... INOS BANK.
BANK BAROMETER SHOWS
PEOPLE ARE JOT SCARED
Hore Honey Being Deposited Than Withdrawn at Other
Institutions Failure Will Not Affect Business of
City to Any Appreciable Extent, Says Mr. Mills.
A. L. Mills, president of the First
Ijs'atlonal bank, the largest financial In
stitution la the city, does not look for
any business Interference as the result
of the failure of the Oregon Trust &
Savings company. Neither does he con
sider that the people of the city will
cause the other Institutions trouble by
becoming frightened at the failure.
"Our bank barometer, the certificate
of deposit department, shows that the
eople are putting more money in the
nk than they are taking out. said Mr.
Mills this morning. "Yesterday when
I
T
LI
Councilman Vaughn's Besolution Provides for Municipal
Conduit to Carry All Gae and Water Pipes and
All Electrical Lines Now Strung Overhead.
Councilman W. T. Vaughn this after
noon Introduced- In the city council
a resolution .which will, if favored,
provide Portland with a municipal
street conduit and remove every elecr
trie light, telephone or trolley wire
from overhead.
Councilman Vaughn's plana so far as
outlined in hie resolution la for Imme
diate appointment by the mayor of a
..committee to constat of two members of
the city council and two members of
the executive board whose duty will -be
to negotiate with an expert consulting
engineer as to the best ways and means
of providing the system and the esti
mated cost to the city for its construc
tion. ! .
AUl wures . waaarrrouno.
""it is the Intention of . Mr. Vaughn to
make the conduit not '' only aelf -sustaining
but one that will eventually
pay -for Itself. Every enterprise that is
required to go below the street surface
will be compelled to use the municipal
conduit at a reaaonable rental.
The outline Includes the construction
of publlo conduits to extend along all
of that portion of the city traversed
by streetcars, water mains, gaa mains
ana electric wires. Tne greatest neea
for the system. Councilman Vaughn
thinks. Is In the business area, although
ne nas extended tne provisions 10 in
elude the entire eitv.
Washington. Morrison. Third. Second
and Fifth streets are particularly pro
vided for in the outline. on tnese
streets there is a maze of trolley, elec
tric light, telephone and other htgh-
vpltage wires. These high-power wires
are exceedingly dangerous to lire, par
ticularly the trolley wires, which are
liable to snap at any moment.
Tim Vow to Aot,
For months Councilman Vaughn has
been thinking of Introducing the ordi
nance but was not quite ready to pre
sent It to the council. However, the
recent recommendation of the executive
ooard to forfeit the heating, franchise
the crash occurred at the other Institu
tion I naturally expected fnat the hold
ers of deposit certificates would bearln
to ask for their money to a greater or
less extent, we call tne department
the bank barometer, because It deals
with that class of our patrons who have
small amounts of money ranging from
$30 to $500, who wish a safe place to
leave their money. The bank takes
these sums, giving In return a certificate
of deposit rather than to open an ac
count with the bank for such small
amounts.
"We naturally expected, therefore,
that these people would ask for their
money, frightened by the failure of the
other bank. On the contrary, however,
there was a long line at the window for
a great part of the day making de
I posits Instead of withdrawing them.
ueyona me inconvenience and pos-
siuio toss io Tne depositors or the Ore
gon Trust fc Savings company I do not
think that the failure will affect busi
ness In any degree," continued Mr.
Mills. "Conditions here are sound, other
banks are stable and the loss will sim
ply affect those who had money on de
posit in the closed Institution. Beyond
any Indirect Influence on local condi
tions which may arise through the in
dividual financial embarrassment of the
depositors whose money la tied up In the
defunct institution, I do not believe
that the failure will affect Portland busi
ness In any manner."
The same reports are made by officers
of other banks.
in
IlimiHb 10
GALLEDOfPLAZA
Depositors in Defunct Ore
gon Trust & Savings Pro
pose an Organization.
Depositors of the defunct Oregon
Trust & Savings bank will meet at the
Plaza at 8 o'clock tonight to arrange for
a permanent organization of the deposit
ors which will protect their Interests
In the litigation that Is believed will
nevltably follow the Investigations now
being made of the bank's condition.
The meeting has been called by a special
temporary committee oi iu or me ae-
posltors.
It lo proposed to elect permanent of
ficers at tonight's meeting and to secure
lawyers to safeguard the interests of
the deoosltors. A complete register of
the depositors will be made In the next
few days, with the hope of Inducing all
to join the movement formntua) -protection:
A. Richmond, an auctioneer, and) one
of the large depositors in tne ramie
will premae as temporary cnairmai un
til the permanent officers are chosen
It is proposed to have the meeting ask
Lafe Pence to allow the depositors to
use one of the buildings at the fair
grounds as a meeting place in the fu
turn.
It Is believed that the formation of
this depositors committee Is prelim
inary to the filing of suits against the
Oregon Trust & Savings bank on the
part of many of the depositors.
WIRELESS SERVICE TO
SIBERIA IS PLANNED
(Jsarmal Special Btrrlee.)
Berlin, Aug. 22. Japan and Russia
are planning the establishment of wire
less connection with Siberia. Jacan is
connecting the shores of Vladivostok
and Tsuruga on the western side of the
Island of Hondo. It is proposed to lay
the plans before the various chambers
or commerce interested ana also Derore
the international telegraph conference
next April for Indorsement. The new
line Is expected to cut in two the pres
ent rates between Europe and Japan.
CONSTRUCTION BIDS
" FOR COALING WHARF
UttlLVILU VOl. VII U UIVUUUU UV
OVER RANK DEPOSITS
I ' y ' W.'V
- V
PAY DEBTS
Savings Bank Forced Under
Through Having Under
taken Too Large a Con
tract in Floating Phono
Securities.
THOMAS. a DEVLIN. RECEIVER OP, THE OREGON TRUST tc SAV
INGS BANK.
BANK BONDS ARE BEING
RETURNED BY EXPRESS
Unable to Raise Honey on Institution's Securities Cashier
Morris Is Sending Paper Back to Portland Direc
tor Friede Satisfied and Has Clear Conscience.
"If the attitude of the Invest
ing public toward Horn Tele
phone bonds continues to be the
am that It has been In the
past, this bank will pay out all
right," aald Receiver Thomas C
Devlin of the Oregon Trust A
Savings bank today. "The bank
has other good securities, t
think it is only fair to ask that
there should be no knocking."
:
.
(Journal Bseclal SerTice.)
Washington, Aug. 22. Bids for the
construction of a coaling wharf at
San Diego California, were opened here
today. The lowest bidder was the
Pennsylvania Bridge company, which
bid 1239,400, and will likely be accepted.
Cotton Bros, of Oakland big 9264,000
and the San Francisco Bridge company
1281,843.
NEW COMMISSIONERS
FOR POLICE BOARD
(Journal Special Service.)
San Francisco, Augr. 22. Three new
Eolice commissioners, Hugo Nell, J. D.
.ears-ett ajid Charles A. Swela-ert were
sworn in yesterday. The Sokjnits com- all of the bonds that he had with him
mlssloners assert they will fltt through back to us by express. I do not know
all the courts to retain office. I the amount of the bonds nor whether
Cashier W. Cooper Morris of the Ore
gon Trust A Savings bank, wired Pres
ident Moore last night that he had for
warded by express the $180,000 worth
of his bank's securities which he tpok
with him to New York. According to
officials of the defunct bank these se
curities, consisting for the most part
of Home Telephone company bondB,
were shipped to Portland last night via
the Wells-Fargo express. The bank's
officials would not say whether or not
these bonds were Included in the list
of assets heretofore published.
Ho Sal of Bonds.
These securities were taken to New
York by Cashier Morris with the inten
tion of disposing of them for enough to
purchase the bonds required to turn
the Oregon Trust & Savings Into a na
tional bank. It Is said that Morris
honed to dlsnose of the bonds which rep
resented a faoe value of 1180,000 for
$160,000 cash with which he Intended
nurchaslng the government bonds
requisite to the founding of a national
bank. Owing to the tightness of the
money market in the east he could find
no purchaser ror tnem.
Llovd R. Smith, assistant cashier and
teller of the Oregon Trust & Savings
Institution, said this morning: "I re
ceived a telegram from Cashier Morris
last night saying that he had shipped
or not they are included In the Hat of
assets made publlo yesterday."
Morris to Keturn.
Receiver Thomas C. Devlin said that
he understood In a roundabout way that
Morris was going to return to Portland
Immediately.
"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 one and face
matters here," he said.
Director Leo Friede of tha Oregon
Trust & Savings bank stated today to
(Continued on Page Two.)
With a force of four man who are fan
miliar with tha business of the. bank,-
aminatloir of the entire records, notea,
stocks, bonds and accounts In tha bank.
He took a hopeful view this morning of
the situation. There la no further ax-'
cltement apparent about the bank's
doors. Small groups of people continue
to gather In a normal way asking at
tendant policemen concerning tha rea
sons for suspension, or to visit their
safety deposit boxes. It will be three :
or four days before Receiver Devlin in
ready to make any public statement
concerning the actual condition of tha
bank. At the end of that time he will
probably have a complete list of tha
notes and securities. As soon aa tha
character of the borrowers can be seen
it will be comparatively easy to deter
mine the probable value of the assets)
listed at a value of $848,183.66, undec
the head of "loans and discounts."
Today the receiver aent out collec
tors and will push collection of all a
cotnmodation paper that la collectible)
at this time. It is predicted by thosa .
who have had experience in settlement
of the affairs of a suspended bank that -within
SO days the receiver will ba
ready to announce payment of a pre
liminary dividend to depositors.
Too Xarg a Contract. -
The Investigation, so, far as tt has
gone, seems to show conclusively that
the Oregon Trust & Savings bank waa
forced to suspend mainly by reason of -Its
directors having undertaken too
large a contract to sellHome telephone
bonds, which securities, together with, '
all other stock and bond securities, havo
been difficult to market within the last
month owing to the general disturbance
(Continued on Page Mine.)
(Continued on Page Two.)
TO BUILD SJOCKADE
AND RQHT MINERS
'journal Special Serrlee.)
?Ufleld, Nev, Aug, 23. George
ffngfield, one of the big owners of the
Nevada Consolidated mines, declares
"that unless members of the Western
Federation of Miners keep the agree
ment and permit the Installation of the
"change room" on the Consolidated and
fted lop properties, he jrill build
stockade and Import nonunion miners
to work the claims and fight the Moyer
Haywood organisation to a finish.
The present strike only Involves about
200 men, but It promisee to spread, and
the situation Is regarded as critical
The Combination men Joined the Mo
hawk miners on strike yesterday, and
the Red Top workmen are likely to go
out coon. w. - , : - ,
STRIKERS
ACCEPT
ARE
FAIR
WILLING TO
ARBITRATION
(Journal Special Service.)
Chicago, Aug. 22. "Any fair pro
posals of arbitration will be accepted.
said President Samuel Small of the
Commercial. Telegraphers' union In dis
cussing the strike situation. Small will
leave for New York next Saturday.
AH of the brokerage offices in .Chi
cago with two exceptiona have signed
the' union agreement and union -acale
and the men have returned to their
kevs.
Non-union men who are employed as
strike-breakers in the Western Union
office are dissatisfied with conditions
which they are forced to work under
and officials of the union declare that
many of them are planning to strike
ana join the union, western union of
ficials deny the truth of this assertion
and say that none of the strike-breakers
have deserted yet More are being
imported aany.
Service Prostrated.
Almost comolete croetration of the
telearanh service In the northwest ie
shown, the government r being able to
reach only two points on the weather
list that it posts oa the board of trade.
The nointa reached ware Moorhand.
Minnesota, and St. Paul. The facilities
of the govenuoeat war Inadequate to
COMPANIES REFUSE
TO SEE OPERATORS
Employers Make Men Sign Agree-
. ment Not to Affiliate With
Union.
get anything from the Canadian morth-
west.
New York. Aur. 22. The last hona
or settlement or tne teiegrapners
strike If there was hope at all vanished
yesterday when both the Postal and
Western Union companies announced
that all operators desiring reinstate
ment must make Individual application
for positions. The companies not only
win not recognise the union but will
alao refuse to refuse any committees.
The Postal will compel lta men. to
sign a practical pledge not to make an
alliance with the union.
President Small of the union will
come to New York at tha end of tha
week, but neither the Postal nor West-
era union, ouciaug wut set mat naaexj
any circumstances. They will not ne
gotiate to meet him either directly or
indirectly.
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 is to be
waged along that line. The company
off icera do not take thla threat seri
ously. Business men are clamoring for
a settlement of the strike and urging
intervention of the president, but so
far these appeals are In vain. Both
companiea report that business is im
proving rapidly in the east and middle
west, but transcontinental wires are
working badly.
3CM. Stokes Would Aid,
Rose Pastor Stokes addressed the
striking telegraphers yesterday after-M
noon, ene proposes tnat tne striae De
arbitrated and the telegraphers have
faith In her good Intentions. Accord
ing to the plana ahe ; outlined to the
strikers she hopes to interest the di
rectors of the Western. Union and Postal
in her effort to arbitrate tha present
difficulty.
National arbitration experts, Includ
ing President Oompers of the American
Federation of Labor and Commissioner
of Labor Neill will likely be In New
KINCAID IS BY STATE
Former SecretaryAsked to Account for Sixty Thousand
Dollars Collected as Fees Under Permission of ,
Legislature While Holding Office. y C
XConUaued oa..fa Mae.it J
(Special Dispatch to The Journal.)
Salem, Or., Aug. 22. A complaint was
filed today In the circuit court of Lane
county against H. R. Kincald for the
accounting of certain sums which he re
ceived during his term as secretary of
state from January 14, 1895, to January
14, 1899, and, as Is alleged, did not turn
over to the state treasury during his
term aa secretary of state. The com
plaint Is made by the state of Oregon
on relation of J. K. Sears as a taxpayer
In the -state. It Is stated that the
amount of which- the state received no
account was approximately $60,000,
though there .Is no means of knowing
exactly. It Is claimed that the money
was received in incorporation fees, fees
on trade-marks, notary publics' fees and
from other sources from which he re
ceived money as secretary of state. The
plaintiff asks that the defendant be re
quired to pay the coats of the suit, be
sides rendering an account of the money
which It Is alleged that he received. It ,
Is stated that W. 8. MoFadden waa re -quested
to bring suit against the de
fendant in his capacity as prosecuting
attorney, but that he refused. - - ,
C. M. Idleman, formerly attorney
general, to whom this report was re
ferred, said:
"This is the same matter which was
brought up by a suit filed against Sec
retary of State Dunbar for $100,000 for
retaining such fees, and which s waa
thrown-out of-court,: The constitution
of the state fixes the amount f aalarr
which the secretary of state should re
ceive, but the legislature passed a bill
allowing the retaining of certain fees.
In the former suit it waa claimed that
the legislature has no authority to grant
such privileges. This J. K. Sears la, 1
believe, the same man in whose name
the former suit was filed. ' . .
"Anything tending to oast aspersions
upon Secretary Kincald la manifestly
unfair to him,- as he was acting under
the authority of legislative action In re
taining such feea,
TRUST MAGNATES TO
BE SENT TO PR SON
(looraal Special Serrlea.)
Washington, Aug., 13. Since the' pres
ident's recent speech the oonrlotlon
has grown that, the administration will
soon begin a campaign against - the
wealthy violators of the law that will
end in prison sentencee. s Just where the
first blow, will -fell it Is Impossible tel
predict It la aald by ofndala in s poi
tlon to know that tte department i t
commerce has been quietly gather! . ?
Information to be ti-t in the crir
prosecution - of In.uvUluaU. 'f I
ment of thejSborm.m wbn r
eU fee allowed. t !...- ....... ,
I-
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