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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Aug. 23, 1907)
i BELIEVE:. THAT EVER YDEEOSITOR, will, be PAID IN . FULL" RECEIVER. D 4-I YOU Wjint to SELL REAL ESTATE Advertise In THE JOUBNAL Journal Ads Pay Best .y : Ths ' Weather Fair tonight and c tomorrow; ; northeast winds,. " VOL.' VI. v NO.; 148. PORTLAND,' OREGON, 'FRIDAY , EVENING, . AUGUST : 23, "1907. EIGHTEEN PAGES. PRICE TWO ' CENTS. ; i EJ&m mwr- T':1' K, ....... fe' I l FEIESSEDIEOT If MOQffi OFFERS PRIVATE ' I--;' -'IflEWUSES'f ESTATE; 0. GIVE A CEN' PURCHASE OF BONDS President of Defunct Bank Ready to Give Ail He Has, If Necessary Director Friede Will Leave Nothing Undone to Satisfy Creditors Hopeful View Is Taken by Receiver and Bank Officials w Receiver Thomas C Devlin of the Ore gon Trut it Savings bank believes today ' mors than sver before that the depos . Itora will receive dollar for dollar. He aid there could not ' possibly be shrinkage of so much as a quarter of million dollar In the bank's Hated s- . President Walter H. Moore todar an thorlied The Journal to say that, with - proper administering ' tf the - receiver ship, he will devote his private rorcuns. or so much of It as Js necessary, to re payment of every dollar due the de positors. . , ... . Aiwiva ihm umima of rumor and street .gossip two Important statements today by president waiter rx. 'Y nron Trust and Savings bank, stand out significant, and afford mingled ad miration and encouragement among de positors. President Moore exonerates .hir W n. Morris from the chargea by Directors Lytle and Friede that Mor ris purcnasea numi imiiiwin iwuu" without the knowledge and assent of the directors. Mr. Moore also pledges very dollar of his private fortune to the cause of the crippled bank. Director Leo Friede will also come to the assist ' . nt tvi .rf.noaltora If necessary. Vice-President Lytle refuses to assist with q slns-le dollar. "It has been incorrectly stated that Cashier Morris or anyone purcnasea Hnmn Teleohone bond securities for the Oregon TruBt and Savings bank without the Knowmage ana assent 01 in uw tors." said Mr. Moore. "The board re srarded them as good securities, and nurchaaed them knowingly. While Mr, Morris Influenced the directors very strongly In these purchases, tney were made knowingly. We had bought Home bonds before and bad made a lot of . money out of them." Moore Is Cheerful. President Moors when seen today at his residence on Everett street,' was calm, and hopeful, even cheerful. He has regained his old-time composure JUTE HAKES OD PETTO Defunct Bank Prohibited by Law From Being De clared Bankrupt. Considerable doubt has arisen whether the petition , In involuntary bankruptcy filed by creditors in tbe United States district court yesterday; against the ' Oregon Trust & ' Savings bank oan be . effected because of the wording of the United States bankruptcy law of July 1, 1898, which says that a bank Incor porated under state laws cannot be ad judged an Involuntary bankrupt. Lawyer William ft. McOerry,- who represents the petitioners, stated this morning that despite the wording of the law the bank can be adjudicated , a bankrupt. h. Mcuarry said. "Notwithstanding this clause In 'the bankruptcy act it , may be held that If : there are unaietriDuiea assets ana un paid debts the corporation may be ad judicated a bankrupt. 1 . .. "An authority says, The law intended ' to exempt only those entitles which, are Strictly subject to the official espolnage of a state bank examiner, where the pre ' sumption Is in favor of the regularity of their official supervision and against the possibility ot preferences. .... Officers Hot Staleaaed. Chapter I, section 4, article 18 of the United States bankruptcy law of July 1, 1S98. says: . - ..-.--w-"Any natural person, except a wage earner, or a person engaged chiefly In farming or toe Ullage oi me sou. an nn incorraited oompany, and any corpora tlonWCgaged principally in manufacture J.2 ftradlng, printing, publishing, min- v..g or nerwRiuv ui suit a, uwiug acui, the amount of $1,000 or ever, may be I l&iti&fBS CH Involuntary bankrupt upon default or impartial' trial, and snail De subject to the provisions and entitled to ; the benefits of this aot Private bank ers, out not : national Danes or nanus - Incorporated - under. Mate or territorial and nerve, and faces the future with grim determination to make the best of the situation, and to see tbe bank through Us troubles even at the cost of his private fortune, which was accumu lated in eastern Oregon by years or hard work on the range, the farm and In country banking business. Asked If be had given authority for the statement that lie would stand behind - the bank witn bis private property be said: "It can be correctly stated that I am reaay an wining to co. mat much, whatever it may b.--If a man gives all that he has, be It tie or (10.000, he has done all he can. Everything that I can do will be done to repay tnese depos itors the money they have placed in the uregon Trust at savings Dan it j shall also expect that the best possible ad ministration be given ths bank's affairs ana mat in winding up its business every dollar that la possible shall be realised from its assets. I think the bank is solvent, and that It will pay out If given a fair chance. I do not feel worried about the talk of criminal pros ecutions, excepting tnat sucn proceed ings will distract and hamper, us In the work that Is necessarr to do in making settlement to the best Interests of all concerned. I am hers and pre- Fared to face whatever may arise. And am ready to give nlentv of bonds that I will stay here and see the trouble tnrougn to the end." noma Zs exonerated. He said he did not expect to think of re-entering the banking business, and that ths project Of start In the National Bank of Commerce Is airdropped for ever, so far as he is concerned. He de sired now only to see that the bank's affairs are .wound up to the best ad vantage, and that If possible it be roved that the bank was in good condl lon and could with tlmelv assistance have been saved. His attitude was one of nrofound rerret. but determination to make good to the full limit of hlsPh capacity to do so. He added: ''Different statements have been printed concerning the business mission Of Cashier Morris to New York at this time. I will say regarding his trip that he did not go there to arrange for money to establish the proposed Na- (Conttnued on Page Seven.) f v'1 v.. a,'..'-t r , . f . ' ' t : : ft 'if :: " i i, - V ; i f " ' I ; ; ; p ii .nun ' W. H. MOORE, PRESIDBTlT OF THE DEFUNCT OREGON TRUST AND SAVINGS BANK. WIUOUS TH Secretary of State Living Fast Simple Life With Billy Muldoon. (Joomal Special Ssrriee.) White Plains, N. Tw Aug. i J. Hun dreds of people gathered about "Billy" Muldoon's famous health resort this morning In the hope of seeing Secre tary or State Elihu Root In a gymna sium suit doing a cross country trot under the watchful eye of the old trainer. Muldoon refuses to say whether Sec retary Root Is passing the medicine ball or working on the horizontal bars. When the great trainer - was asked whether the cabinet officer .was easily subdued withdrew within his srreat cloak of reserve and refused to discuss the sub ject. From Inside "Olympla," as Muldoon's resort is called, it is learned, however. that Root must have learned his lesson from the experience of Senator Depew, who was so thoroughly subdued upon MMMMMMMMt MIKE BANK PAY EVERY DOLLAR , x ' isssiisii m i i "The bank's affairs today look more encouraeinc:. Its assets will realize welL The best X thing that could have happened for it has happened in the prevention of the starting of htm- X t dreds of endless suits and litigation that would have cost the depositors thousands and crip- r e . .... i t a . t t j n t .1 !" piea ine Darnc nopeicssiy. ivioncy is coming in wen anu wc arc uusning me worK oi lisung l and realization as fast as possible. The watchword here is to make the bank pay every dol- JJ lar.w Thomas C. Devlin, receiver Oregon Trust & Savings bank. " ' J' SUCCOR FROIfl LYTLE Vice-President of Defunct Bank Says Institution Used Him But He Didn't Use It Had Small Ac count Only. CASHIER W. COOPER MORRIS. ROTHSCHILDS (Continued on Page Three.) WY UNLOADJTOCK Market Is Hit Hard as Besult of Action of Big Bank ing Firm. Uoarna! Special Service.) New Tork. Aug. 28 What is an- Associated Press Service Completely Demoralized Today lng Arm of Rothschild cost the stock Til m l. TJ itt-i J -r , marxet a pretty penny toany. uuiy r ew ituiik umes vv onting uperaiors JLena Financial Aid to Messenger Boys. Crippled service on the part of the telegraph companies and the Associated Press and a determination to fight It out to the bitter end on the part of the union operators mark ths local situa tion in the telegraph strike today. No desertions occurred from the ranks of the strikers, but several messenger boys returned to work under parental persuasion. According toManager Dumars of the Western Union company the trouble experienced with tamperings with the wires had practically ceased. Messages, he asserts, are sent without trouble be. tween the larger cities on . trunk lines, although local service Is still prac tically non-existent. Manager Dumars (ConUnusd .oa tags .Three.) ' (Joaraat Special Berries.) San Francisco, Aug. , 28. While the Telegraphers' union Is seeking to extend lis strike or foroe brokers to sign con tracts (oa closed shop : the oompanies show that they are not weakening and will fight to the finish. Superintendent Miller of this division yesterday served notice on - all operators within reach that they . must not expect to secure their old positions even If they decide to return to work. The -company does not Intend . to blaokllat the surikars wbo have not been Reading stock is said to have com posed most of the block thrown over board by the bankers today and its ef fect upon the value, of that security was. startling. The x losses were not noticeable at first but as the offerings ciaims n n an ine men ne needs the close the price of Reading was al for Portland although he Is looking for most 4 a share under that of yester telegraphers for outside stations. day and few traders cared to take on -we turned away business tod be. i tbe issue at tnat low marie cause we could not handle It," he said Southern Railway preferred was an thls morning, "which shows that busl- other issue that some of the big ones ness is steadily improving. Of course were unloading today. While the dl its volume Is nothing like that before rectors announced the regular quarterly ine airiKe, out it is gaining every day. I dividend u ltt per cent tne traae nas One of the striking oDeratora cnlliul been ereatlv dlsaPDOlnted with the ao- pp Dumars from Astoria yesterday and tlon of this security of late. Today a asked him for work, in order to Jearn loss of about 14 a share resulted. the real situation In Portland. H I The dumolns; of Reading caused In' claims -that Dumars told him he needed i tense selling by scared holders all men badly In Astoria, but If he wouldn't I through the market. It forced Amalga- stay there to come on to Portland, where mated Copper- down $2.60 a share and ne couia a-ive him a mace. i American timelier common aooui ine The force of men whom the Western I same sum.'. There ' was also a loss of Union is paying S3 a day for the de-1 82-75 in Union Paoiflo shares and over i.oo in eoutnern t-acinc. ureat flonn ern preferred lost $2.60 and Northern Pacino almost 1 more. SEVEN MEN KILLED BY B0HEB EXPLOSION i J (Joarasl Special Barries.) New Tork. Aug. JS.--Seven men were guilty of disturbances, but Miller de-1 killed today. Engineer Hopkins' body ciares that tbe men wUl not be employed oemg oiown to pieces py i opiosiuo in the cities in which they were work- ?f the boiler of a coal barge In lng ing wnen the strike began. Tne pur I "wa uryaocaa. pose oi mis move is to tnrow tne men among new associations as far as pos sible and also to prevent friction be tween men who went out and those who remainea at worg. ., Union Officers in this city received re ports from Chicago that the fight was In such condition that one more week would surely bring victory. They admit tnai mere nave oeen T do not see why, under the circum stances, I should be expected to back the Oregon Trust A Savings bank with my own private property. Do youT" This Is the way E. E. Lytle, vice- president and member of the board of directors ot the defunot financial in stitution Which went under on Wednes day morning puts the question of his responsibility for the liabilities of ths bank to the depositors whose money Is tied up under the receivership. Knowing that Walter H. Moore, presi dent of the institution, had decided to offer his private fortune to help dam up the deficiency, if necessary, Mr. Lytle was asked this morning what his own attitude was or would be and the above quotation la the gist of his state- Mr. Lytle was found In his private oirice at tne Worcester ouuaing, wnere ne nas xne neaoquarters or tne racinc Railway dc Navigation company and where ne wis busy this morning at tending to his duties as an officer of tnat road. Befnsed to Sign Vote. "Mr. Lytle." the bank director and vice-president was asked. "It Is re. ported that on the night of Tuesday last when the directors and officers of the Oregon Trust & Savings bank were In conference with the committee from the Clearing House association, you and President Moore offered to jointly sign nots for sioo.ooo or libu.ooo. giving your own personal property as security In order to raise funds sufficient to tide the bank over Its difficulty. Is that the easer" Mr. Moore made the offer, said Mr. Lytle. "He stated to the clearing house commltte that he would sign such a note with me and asked me If I would do so. I said to hint "Walter. do not think vou should ask me to do tnat. I think the ban it nas used me to the limit as It Is and do not think I should be asked to pledge myself to more than I already am In for.' "Mr. Moore admitted tms, continued Mr. Lytle, "but he said 'All I have In the world is in the bank and I Intend to stand by it and thought you would too.' And I said to him TI do not see why you should expect me to sign the note under the circumstances.' " Bays Bank tTsed His Kama. Then Mr. Lytle put the question to the questioner: "Don't you think you would have done the same thing under the same circumstances?" "I do not know the circumstances,'' was the answer to the question and Mr. Lytle went on to explain. 10 BE Informations Will Issue Against-Bank Officials If Inyestigation Proves De posits Were Taken After Institution Was Insolvent (Continued on Page Three.) Whether or not the officials of the Oregon Trust c Savings bank are crlml naUy liable for the loss of depositors of the bank under tbe provisions of the Oregon law la a question whloh, Dis trict Attorney John Manning and his force of deputies are bard at 'work solving today. If It la found that the bank received deposits after the officials knew that the institution was unsafe then Infor mations will be Issued by the dlstrlot attorney charging them with a felony and indications about Mr. Manning's of floe tend to the belief that such a show ing will be made. The object of the investigation now being made by the dlstrlot attorney and which probing has kept the office chairs filled during the morning and early afternoon with men subpoenaed to tell whst they know of the situation. Is to determine whether or not deposits were taken by tne Dang on Tuesday last after the unsoundness snd peril of the bank was known to the officials and board ox directors. Took Deposits Xte Tuesday. Men have come 'Into the office today and testified that they made deposits late in the afternoon of Tuesday and have brought their bank books and cor roborated svldence to show that tbeir statements are true. Charles Doty, nronrletor of the Cham ber of Commerce bar in the chamber of commerce building, testified that hs made a deposit of $200 at 2:20 o'clock on Tuesday afternoon. Marks Rybke, a tailor, testiriea tnat ne naa maae a de posit of $60 at t o'clock on the same afternoon, while O. A. Metsger, of Metcger & Co., stated that be had ssnt a deposit of $100 to the bank on Tues day afternoon at 8:20 o'clock. These men all came In early In the forenoon In response to subpoenas Is sued by the district attorney, but they were not the end of the procession. The ofnee has been busy tnrougnout me day listening to similar tales and others havinar to do with ths management of the bank. The depositors, many of them, are clamoring that Immediate ac tion be taken by tne district attorney, Manning Will Hot Knrry. Mr. Manning, however, states that be intends to Droceed carefuUv in the case and to Know wnere ne stands nerore ne makes any move. At the present time he is sitting as a grand jury under the authority granted him by the law and is making an Investigation to determine whether or not Informations should -Issue. According to the opinion of District Attorney Manning, if the evidence shows WfllSlF Angry Depositor Demands Check From Mrs. Morris Under Penalty of Blowing Up Cashier's House - 'Police Protection Ordered (Continued on Page Two.) REALTY SALES BOOM AGAIN Transfers in Portland. Yesterday Involved Over Quarter of Million Dollars-Early Activity Criterion of Heavy and Prosperous Beal Estate Market This Fall. (Continued On Page Three.) OPERATORS WILL NOT GET OLD POSITONS Yesterday was one of the busiest days in the local real estate market for sev eral months past Over $250,000 worth of city property changed hands. Includ ing a centrally located quarter block at $60,000, and two $26,000 deals. The long predicted revival In the realty world, with the approach of fall seems to be at hand. One of the most Important sales closed yesterday was that of the quar ter block at the southeast corner of Ollsan and Twelfth streets. . This prop erty' was purchased by Albert snd As mus Brlx from W. A. MacRae for 826, 000. The Messrs.. Brlx . have let the contract for the erection of a four-story brick building, with concrete basement which has been leased for a term of years to a local manufacturing concern. xne ouuaing win cover tne entire qua ter block, and will cost about $35,000. Wrlsao fls,nltsJlst Inn. Another large transaction Drought to a close yesterday was tne sale by a. M. Lombard and the H. W. Goods estate of the local holdings of the Sunset Real Estate company to Elliot McAllister, a San Francisco capitalist The property transferred consists of a quarter block at the southeast corner of Third and Jefferson streets, a lot on Taylor street between Fourth and Fifth, and some acreage and lots northeast of Irvlngton. The total consideration for the above holdings was $104,000. The Third and Jefferson street quarter block was purchased by B. M. Lombard An unknown man claiming to be a do . posltor In the Oregon Trust Savings) . bank last night called upon Mrs. Mor . ' ris, wife of Cashier Morris of the de- funct Institution, anu threatened to blow; up the Morris homeAat $94 Twelfth;' street unless she Immediately wrote out a cheek covering his losses. Ths ' man said hs had read an account of how , Mrs. Morris bad liven Patrolman ' James F. Anderson a check for $7,00(8 to cover the money the officer lost la the bank and demanded that she also reimburse blm. .. - Mrs. Morris sxnlalned to the man thai there was no foundation to the- reports that she had given Anderson any sum of money and further that she herself had no money. The Morris famUy state that they .paid little attention to the threats belfavinar tham tn ha. nm an V Irresponsible person. . , Mrs. lldrrii rpmlnA -m. manas-a. a.m her husband this morning stating that he Waa lust leavlne- f?hlra.av fn. Knm. and would reach Portland, If con nee-. Uona were all made, on Sunday night. Moore's Xoms) Threatened. , ,! ' Yesterday afternoon some one tele., phoned the residence of President W. H. Moore of the bank and threatened to bring a mob up to take Moore from his house and wreak vengeance on him. Mrs. Moore and her son were alone la the house at the time and, owing to ths presence of sngry depositors about the place the events before, was very ner vous. She telephoned to the police for help and two officers were sent up. They found no suspicious characters in the' vicinity of the Moore home, however, and. after reassuring Mrs. Moore, left. . Relative to the statement made by Policeman Anderson that Mrs. Morris had paid in full the account his wife -had In the bank. Mrs. Morris this morn, lng said: ... T'I have been so greatly Inconvenienced about the published statement that X -paid a policeman $7,000 that Z am go-, lng to ask you space for denial "Every cent of mnnn I ha4 la t Oregon Trust ft Savings bank. I never had an account at any other bank la Portland, therefore X could not pay any ' one a cent When our bank closed II tied up all our funds, and had not m friend of my husband come to my res-" . cue I would not have one sent at our house. A wire from Mr. Morris state . he is on his way home -and ha win verify my statement when he arrives. : MtU. W, C MORRIS. Policeman Anderson corroborates Mrs. (Continued on Page .Three.) DEPOSITORS LAV PLAN OF ACTION ' I ; ... ..... . '-v; .. ..... "i;v'??ft."j:i...iV''; Committee to Be ElectedJPo- night to Act With Man- v ) ning and Receiver. : (Continued on Page Three.) ARMORED CRUSERS START FOR COAST BIG FIRE IS RAGING m CINCINNATI PLANT ; ; (Joorsal Special Servies.) " ':''):- Cincinnati, - Aug. - 2 S. Fire whloh few desertions I started laat nlaht In the Eaa-la White from the -ranks here. but , do not-seem I Lead samiuuir'i tan bark -Dlant is still diacourafed , .--. - V: : - , ; 'bwnJag. Xh loss la 8gQ.0O (Journal Special Berries.) Washington, Aug. 22. With the de parture of four big armored cruisers the Colorado, West Virginia, Maryland and Pennsylvania from Japan for San Francisco yesterday, the movement to collect a strong fleet in Paclflo coast waters is well under way. It is an nounced at the navy department that necessary repairs on the armored cruis ers Tennessee and Washington, now at Hampton Roads and Newport, - respeo UysIx. arill tf conslated tx BepUmbai 28, and immediately after that date they will proceed to the Paclflo. The pro tected cruiser St Louis, en rout from nampton amqi - to. nan jrrancisoo, steamed. On August 15. ; from Can or. Peru, for Acapuloo, Mexico, while the protected cruisers Cincinnati and Ral- eiga evrw weu on me way irons Yoko hama to Honolulu, en route to the Pa- cina h. -m oetaus are the most recent developments of the change of th paval policy, the most significant feature of-which has been the presi dent's decision to send the ArianMa Aut A second meeting of depositors ' ot the Oregon Trust Savings bank will be held In the Empire theatre at-7 this evening. The officers chosen at the first meeting held in the plaaa last night will preside until the permanent organisation is elected. ' A committee will also be chosen to -set In conjunction with Dlstrlot Attor ney John Manning In going over every detail of the bank's eondltion and in en. deavoring to outline the best policy for the settlement of its affairs. t Conservatism waa tha kevnota of the . meeting last night, and the same sntl radlcal policy will doubtless be followed this evening. Speakers laat night de clared that It Waa to tha lntareaf of tha depositors to work la conjunction with, the district attorney and with the re ceiver In - straightening up tbe bank's aiiairs, ana so r or tne present tne iin Of retaining attorneys will be dropi.e t. As temporary chairman of last night meeting F. J. McHenry will preside this evening, : and A. Richmond will act as secretary. A committee consisting of McHenry. Richmond and J. Day to se cure a hall for later meetings saw Man ager George I Baker of the 'Empire theatre and secured his permission to hold meetings ef depositors in the I rn pire theatre tonight and. tomorrow nim. It Is proposed toJ open the doom ml o'clock, saaa to. give ail depositor tin to register. Admission to tde u,m will be only by pass-book on the .:ui. It is proposed at the m-tin.r i ' evening to formulate plans for t. I terest and, protection of all the le tter, and to-further -this a com-. of three will be sleeted to act v i , . , district sttorney and with J . Devlin. This committee wni i rate th securities now on li . - 1 . ank and report b.- k to t'- . through ths newejiiiiers t s i whloii Co Had,