The Oregon daily journal. (Portland, Or.) 1902-1972, September 03, 1911, Page 3, Image 3

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' the Oregon Sunday' journal,-Portland;. Sunday morning, .September s.
William Kettner in 'Report to
Sanbiego "Papdr; Defends
Former Portland Banker
Cameron Takes Issue.1
Louis .. Wilde, whn placed on trial
on ths charge .of Riding W, Cooper Mor
, rls in the embeEBUiment 6f IdO.OOO from
tha Oregon True '& Savings ank, will
seek to show that th transaction fupon
Which the Incident Is tossed was only
an ordinary busliiesa' transaction, In
which he earned commission on ths Sale
; of Omaha Home, telephone bonds, and
collected It. . '-. ;.., ,.
In outline of ill position taken;, by
Wilde Is afforded by a report published
m the Ban Wego union , the day fol
lowing bis return to San'DIego. ' It was
furnished iy WllUam Kettner vice pres-
ldent of the Chamber of Commerce of
San Diego, a friend of Mr.-Wilde, who
accompanied th accused promoter' to
Portland on his recent visit Kettner
states he made a eloBe Investigation of
tha dealings of Wilde with the Oregon
Trust & Savings bank. . J
' ' Tha report made by Kettner goes into
un pons inawniona in some aeiau
and reads as follows;
.v- Acted M Agent.
. "First Mr. Wilde was engaged as
agent for various talephons companies
In selling securities of those companies.
v "Second The bonds issued by the In
dependent Telephone company of Omaha,
and sold by Mr. Wilde, were first mort
gaga bonds upon a splendidly cons
tructed telephone plant In the city of
Omaha, and said lends .were of the full
" value of the purchase price for which
they were sold. These bonds were pur
chased by bankers, trust companies and
Investors on the Pacific coast from San
Diego to Tacoma, many .of whom' had
been Investors in telephone securities
of other plants. All of the bonds sold
at this, time .were sold upon tha same
basis. After" the failure of the bank a
committee of the depositors' association
made a careful Investigation into all the
assets of the Oregon Trust and Savings
bank, pronounced the telephone bonus
good and recomroonded the depositors
of the bank to accept these bonds at par
in satisfaction of their deposits.
"Third The newspapers Of the city
of Portland, as a matter of public in
terest, investigate'! the plants at Oma
ha and Tacoma and reported favorably
upon these Securities, and the articles
so published by the newspapers after
their investigation were largely used by
the Depositors' committee in inducing
the depositors to accept bonds in satis
faction of their deposits. Four months
after the failure of the bank, during
which time the value of these securities
.had been thoroughly investigated, the
court approved a plan of merger of the
" Oregon Trust ant Saving bank with ths
German American bank; such, approval
being conditioned upon the acceptance
Of telephone bond by depositors, who
had already subscribed for such bonds,
in satisfaction of their deposits. I have
assumed that the court, who was the
guardian of the interests of the depos
itors. Would not insist upon such a ciV
dltlon unless thoroughly satisfied as to
the value of the bonds. '
Cripples Company.
"Fourth I find. that the sale of the
bonds to the bank did not cause the
failure of the bank. The. bank had but
A small amount Invested in the bonds,
having issued its certificate of deposit
largely In payment for the same. These
certificates of deposit were never paid
by the bank. The Omaha Telephone
company suffered a very large loss due
to the failure of the bank. This fact
crippled the company so that it was
obliged to temporarily suspend con-
' struction of the plant and the large In
vestment was Idle and the plant was
seriously crippled thereby. These facts,
together with the fact that this oc-
'curred during a general panio when it
was impossible to place securities at
their value, caused the depreciation in
' value of the bonds of the Omaha com-
it V'iV""
VI m- i
?' , ' i , i ,
' .. ' 'k .
V 5 a - . V
j " f, m 'a:
Urye City to Make
Some of Property Owners Are in Favor of Municipality Going Ahead With Work; Estimates -.
" ' , V7 Called for 72,000 Cubit Yards of Earth to Mate 'FillM ' v-inMM W
lv;,::; - yf ;4
paw. m ' .,f;i ,. . !irijjawR!i S
Ifo T 'M ' ::i::.'v:W: l
f .r ,"n 4S' ilv -M, . , i
i - r s fv. -"t -wte- ? i
the scene of picking since Wednesday.
It was stated here today by -hop growers
that the rains were not heavy enough
to dp any damage to the crop. On the
other hand, conditions will be Improved
If no further precipitation occurs.''
.Requisition for Cuminings..
l.i.'r-jJBtlem JBsfMO. of Tb Jwrtil. V ;X
ttBalm, Or., . gfept. 2,--Qoverpor ; West
todayi Issued" a requisition on ths gov
ernor -of California for the arrest and
return to this-state of. Bert Cummlngs
of Med ford, who is wanted in that city
on; a. statutory charge. ' ..
V "' " ''
ftHewUI (a. Th Jonrnal.t '
The fats potato crop In this vlcinitv
is. looking well, , and as the acreage Is
large a. gooa crop is. expected, provid
ing enough rain falls during this month
to give the potato the desired growth.
The onion crop Is larger than last year
by several carloads snd is in excellent
;JTfie yield of spring oats Is proving
a 'sore disappointment to the growers,
for where they expected to. harvest
from 40 to 80 bushels to the acre, and
In some instances more. . the average
will not exceed 28 to 30 bushels. Some
news are not showing to exceed 16 J
Dusneis to the acre. Many small grow
ers will not have sufficient oats to
feed stock through the season. Winter
oats and wheat have done much better,
though the yle'ld is not heavy. - -.
-. The crop of hay is large and of good
quality. Buyers are scarce, and little,
if any, haB been moved since harvest.
Prices offered do not compare with the
market of the pan few years. f -
Water Election September 5.
::' (Special ffo lbs JoarnaLl i"1
Woodburn, Or;, Sept. 3. On Tuesday,
September. B. a special electron' will be
held for authorising an issue of munic
ipal water bonds to the.- amount of
$26,600. ' Of : this , amount,' it is 'pro
posed to spend a little less than $10,000
for tha purchase of the present system,
now owned by R. K.' Page of Salem,
the balance to be spent for extensions
and improvements. A tower 100 feet
high - and a tank of 60,000 gallons will
be erected and in addition about two
miles of six and eight inch mains will
be laid and 16 new fire hydrants In
stalled. Public sentiment seems to be
In favor of municipal ownership and It
is believed the bonds -will be voted by
a large majority.
Springfield Hotel Change.
iSolnl to Tb Jonrnal.
Springfield, Or., Sept. 2. Sherman
Spong, formerly . proprietor of the
American hotel in this city, has pur
chased the interest of D. J. Cummins in
the Springfield hotel.
Journal Want Ads bring results.
'(Special to Tha Journal!
Vancouver, Wan., Sept. J. Uoyd Du
Bols of : Vancouver, . was , yesterday
named for receiver for the firm of
Swank & Co.. bankrupts. The' appoint
ment was made ry Judge Hanford of
Seattle, and in direct apposition to' the
wishes of the Merchants' Proteotlve as
sociation, which advocated tha selec.
tion of' its secretary at Seattle, . ) -
Application for a petition in bank- '
ruptcy was filed in Tacoma yesterday s
asking that a receiver be appointed.-'
The , company, which Is Incorporated, ,
gives its liabilities at about $43,000, '
with sufficient asnets to cover all. '
Swank Co. owed the Commercial i
bank of Vancouver about $40,000 when
It closed Its doors on December IS, 1J10,
but of that amount about half has been
paid. The assets of the firm consists
chiefly of the stock and fixtures Of
a department store at Ninth and Main
"The Coffey Farm" to be sold,
classified farms for sale.. v
See -
View of Morrison street fill, looking west from Chapman street; most of work being done on west end of gap
At the present rate of ijirogress it Is
estimated that It will take three years
to complete the Morrison street fill.
The big gulch extending from Chapman
street oest for nearly 600 feet is be
ing used as a dump by a number of
excavation contractors operating on the
west side who are dumping from 100 to
IS wagon loads of earth a day on the
According to the estimates of the city
engineer Jt will require about 72,000
oubtc yards of earth to make the fill.
With the coming of the rainy season
there will be very little basement exca
vating going on and the result will be
that little progress will be made on the
fill throughout the winter.
There la a very general feeling among
Morrison street property owners and
others directly interested in the open
ing Of. the street, that the work of mak
ing the fill should be undertaken in a
systematic business-like way that is
that the city should ask for bids to do
the work and that a contract should be
let with a stringent provision requir
ing the work to be completed in a rea
sonable length of time. The first es
timate of the cost of the fill made by
the city engineer, and communicated to
the council about two months ago was
$34,000. Since then there has been
probably 4000 yards of earth dumped In
to the gulch.
Representative Norrls o? Nebraska, who
introduced into the house ths mo-
i tion for uniform laws of, marriage
! and divorce in the several states His
resolution asks. that; the president re
1 , quest each governor to sen. a ; rep
- resentatlve to a meeting, to ,be' held
Jn vthe' hall of tha house of repreeent
f atlves." The gathering will report Its
findings and recommendations to the
J president, who shall forward them
the governors, with -the request that
i they day the1 same .before tha state
. ... .., ' .,': i ':. V
pany, and my concfuslon is, that Instead
of the purchase -of the bonds causing
tha failure of the "bank, the failure of
bank to pay for the bonds caused the
embarrassment of the company and the
subsequent depreciation of its securities.
As a further evidenoe that the bank was
not embarrassed by the purchase of
theBe bonds, Is the fact that the bonds
were disposed of by the receiver for
the bank at par and thereby realized
therefrom some $325,000 more than the
bank paid for them. It is common know
ledge in Portland that Just prior to the
failure, over $400,000 In cash was paid
out by the Oregon Trust and Savings
bank in large overdrafts, bad loans and
promotions such as the Golden Eagle
department store and other ventures,
already known to the people of Port
larrd to have been the cause of the heavy
withdrawals of cash from the bank,
thereby causing its suspension.
Sank ra44; Xlsa-KotUagV -
."Fifth Mr. Wilde was paid nothing
by the bank. He wis the agent of the
Telephone Construction company that
negotiated the sales. The bonds were
the property of the Union Telephone
Construction . company. The company
sent its treasurer to Portland to close
the sale of the bands. He (the treas
urer) procured the bonds from the Title
Insurance and Trust company and took
them with him to Portland and made
delivery there and received therefor
certificates of deposit for ths full pur
chase price. These certificates were
drawn to the Telephone Construction
company and delivered to Its treasurer
direct. They were payable at various
times extending over a period of more
than a year. The treasurer of the
construction company, under instruc
tions from his company, paid Mr. Wilde
his commission. This payment was in
accordance with Mr. Wilde's contract
with the Telephone Construction com
pany and this commission Is the money
he is indicted for receiving. Mr. Wilde
was paid a commission in precisely the
same way aa the owner of a parcel of
land, which had been sold through an
agent, would pay the agent the com
mission which he had earned. Mr.
Wilde was selling the bonds for the con
struction company upon a commission
basis under a written contract and was
paid in this case the lame commission
he bad been paid in many .Instances. In
the selling of the bonds he represented
the Telephone Constructloncompany. In
closing the deal the treasurer of the
company delivered ths bonds and took
certificates of deposit, a very large part
of which were never paid.
So far as-1 am able to rind, the
dealings between Mr. Wilde and tho
bank were honest and above board and
nothing out of the ordinary from the
usual and every day business transac
tions." ,
JfO Plant, Bays Cameron.
Plstrlct Attorney Cameron, being
shown the Kettner statement, .made the
following comment:
As to the first paragraph, there will
be no dispute about It. Concerning the
splendidly constructed plant' at Omaha,
there was In fact no plant at the time
the sale of the bonds to the bank was
consummated on May 7, 1907. The
company had obtained its franchise to
do business In Omaha the previous De
cember, and winter work was not pos
sible In that climate. Work could not
have been commenced before April.
"It Is true a recommendation was
made to ; depositors of the bank to ac
cept 'telephone bonds in satisfaction of
their account!. . This was on the theory
that otherwise they would get nothing,
and the bonds were thought better than
nqthing. ' Mr. Wilde about that time
had paid ads in the newspapers advis
ing the depositors to accept telephone
bonds, I believe. I do not understand
ithat jhejiewspapers of thecjydvls.ed
tnat tne oonus were good. s
"The facts about the bond transac
tion are that the bank paid $100,000 in
cash for them on May 7, 1907, and is-"
sued certificates of deposit for $300,000.
Of the cash paid, $90,000 was .appro
priated by Morris and Wilde., Three
Of the certificates of deposit, for $25,
000 each, were paid before the banls
failed In August, making a total outlay
of I17S.O00 by the bank at a time when
its eash resources were much needed.
The Jpank took the bonds , at par and
they wero later accepted; by deposltara
at par. v.- . ' ". . '
v f Divided 90,000 Bays Cameron, "
'"As to Wilde being paid nothing by
the bank, 'theact Is that Wilde had
authority from the telephone construc
tion ' company, 'Which was : the selling
agent, to sell as low as 80 cents on the
dollar. , He reported to his associates.
Stow and Graves, that ha had sold tha
block to the bank at 82. He reported
he had received 1400,000 in certificates
of deposit ' and 110,000 la cash. ;Thla
$10,000, which his- associates : were led
to Relieve was all he received Over
$400,000, was divided in three, part as
commteaton svfc .w -.V.r
By an Arrangement with Morris the
Wilde and Morris spUt the extra $90,000
in cash between them. This money was
taken from the bank's funds and con
stitutes the embezzlement upon which
the indictment Is based."
New York, Sept. 2. Daniel B. Garri
son Jr., member of one of the oldest
and wealthiest families in St. Louis,
committed' suicide today in his room
at the Waldorf-A6torla hotel by shoot
ing. Ill health and a fear that an ap
proaching marriage, would, pro ve-unhap-
py caused the act, according to a letter
left by Mr. Garrison.
The woman to whom Mr.- Garrison
was engaged in Miss Mary -Williams f
this city. She is on her way o New
York from Europe. Her photograph
was found on a trunk near the bed in
which Mr. Garrison lay when he shot
himself. He had placed It so his last
glance on earth might be directed at
her likeness. Mr. Garrison's father,
Daniel E. Garrison Sr., and his son
Daniel B. Garrison III. were at the Wal
dorf and occupied adjoining rooms on
the- fourth floor.
Mr. Garrison was 42 years old and
a widower. His first wife died about
four years ago. He was the first vice
president of the Corrugated Gas com
pany, of which his father Is president.
The offices of the concern are In St.
(United Pnw Leased Wire.)
Los Angeles, Sept 2. District Attor
ney John D. Fredericks and three assist
ants are working day and night prepar
ing the evidence and searching the au
thorities in advance of the trial of the
McNamara brothers, scheduled to' begin
October 11 Fredericks has turned over
the active charge of his office to Dep
uty Distric't Attorney G. Ray Horton.
and is spending his entire time on the
case. - ,
The attorneys for the defense are also
"uu to their necks" in wont, ana as
there is but a little more than a month
until the case comes to trial they are
making every minute count. Neither
side has an inkling as to the nature of
the evidence , the other proposes to
spring, and consequently both the- de
fense and the prosecution are preparing
for any exigency.
(Saltm Burets of Tbe Jonrnal.)
Salem, Or., Sept. 2. The needs of the
different school districts of Marlon
county will be looked after more care
fully in future and teachers who have
had no former experience will be ma
terially helpedas the result of the ap
pointment today of three county .school
supervisors. This board of supervis
ors will hereafter be a fixture in all
counties which have more than 60 dis
tricts. The local board, composed of
County School Superintendent .W. M.
Smith - ef Salem, - Lissle Cornelius ofJ
Turner and W; L. Smith of Gervais, will
visit all the Bchool districts in this
county before the opening of the tail
term of school and every ix weeks
thereafter and observe conditions in or
de that they make ' proper . suggestions
to local school boards for the better
ment of the public school system. Most
of the schools of the county will open
the last week in September or the first
week in October.
Pan of Soap Scalds Collector,
Salem Bureau of The Journal. I'
Salem, Or., Sept. 2.- That the people
who are Interviewed by bill collectors
are sometimes upheld in taking drastic
measures was shown here today when
Judge Webster of the 'police court dls-i
missed Mrs. Frank Amlck. Mrs. Am
ick was arrested yesterday on complaint
of C. W. Calvin, an unlucky collector,
who, after entering Into an argument
with Mrs. Amlck, was greeted with a
pan of hot soup thrown through a
screen into his face. Mrs. Amlck pro
duced her children as witnesses to prove
that she had ordered the man to leave
the place, and that he had refused to
do so. . Calvin's face, neck and arras
were scalded.
A barrel-shaped packing case that has
been patented by an Illinois man can
be folded for transportation when empty
ana used many times.
Wet Underbrush Checks Fires.
(Salem Burets of Tb Journal.
Salem. Or.. Sept. 2. That the forest
fire-situation In the state was greatly
relieved by the rains of lost night and
this morning Is the statement given out
at the state capltol today. Reports are
that the precipitation has wetted the
underbrush and grass, which will keep
the fires from spreading, although It
was not heavy enough ' to quench any
large , blazes which were. In progress.
It Is probable now that nothing further
will be done in connection with the
petition to the governor, asking that
tne game season be temporarily closed
Rains Have Not Injured Hops.
ISalem Bureau of The Journal.
Salem, Or., Sept. 2. Monday will wit
ness the real opening of the hop-pick
ing season' in this locality, although
there are several yards which have been
All Pianos at Factory Cost
. v ... . n . y:;:"r ;.. . . .. :- . .
As we are retiring from' business, we are anxious to
dispose of Ihe balance of our stock in the quickest
possible time. Rather than! store the pianos, we
are willing to send out to any prospective buyer
any piano they may select on 30 days' free trial,
and, if satisfactory, you buy it at factory cost and
oil easy terms if desired, ' All that it required is a
deposit of $5 t6 cover cartage. Nothing fairer than
. this. If - you can use ; a piano, see us at once.
106 Fifth Street -j Next to Perldru Hotel
'A ,;: ,..
1 The Most in Value The Best in Quality
All Styles
-Y 111 I HIT" Ur"7
50c a Year
In Accordanoe With Our Usual
Custom This Store Will Remain
Closed All Day Monday
Seo Monday Evening Papers for Tuesday's Specials
lT il ITS) T UlTti
The Old ReKable
Painless Dentists
To keep our larre force of dentists busy durinir the varm weather, and. naturallv.
the dull season, we are doing the highest grade of dentistry at 15 to one half off.
Better come early, as this offer will positively end September 1.
Crown and Bridge Work Our Specialty
We replace teeth which cannot be told from your own, without plates. We give
you absolutely reliable and up-to-date dentistry, which will really please you, not
only in looks, but in active service. '
If you must hare false teeth, why not have teeth that look neat, attractive in3
natural. We guarantee our artificial teeth to 'fit. They stick to your mouth and
feeltomfortable. They do not rattle or drop when you laugh, and you can eat
anything with them.
Best Work Guaranteed for Fifteen Years
GOLD CROWNS ...i .$3.50 to $5.00
PORCELAIN CRdWNS , $3.50 to $5.00
SILVER FILLINGS 50c to $1.00
We also treat decaying, hollow, rotten, diseased teeth and save them for you, which
many other dentists would extract. Hundreds and hundreds of , satisfied patients
recommend our methods over all others. 1 KMi-x ?
. Don't neglect your teeth any longer; when they start to go, they go fast. Wo
have the largest and best-equipped dental parlors In Portland; and, remember, this
reduction in prices will last only until September 1. ' , . , s
. The UNION DENTAL COMPANY is incorporated under the laws of the State
of Oregon, and the company, not the operator, stands responsible for all work done.
This alone Is a guarantee of satisfaction against poor materials and poor work
manship. ' . ,'r'- : .y:-"' i,:;'
Hours 8 a. rri. Till 8 p. fh.; Sunday 9 Till lit or by Antfltait "
ttureaytr,W- I Unk recelvsd the bwid. and 1 . . .'; "m m ..:.!.' " ' ' ' in. i.IH' iin.llli..a,ljtui,1 mJji Wf h ...wim m.