The Oregon daily journal. (Portland, Or.) 1902-1972, July 18, 1912, Page 13, Image 13

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KBers. is
Twp Men Named to Settle Af
fairs of Defunct Steel Cor
poration aTlSrearepn
While Creditors Wait.'!
(Unite! Ftm Laml Wirt.l
Seattle, July 18. Further testimony
wag taken today on Congressman Mc
Coy's charges that one J. S. Goldsmith
blocked the plans of the Seattle Mer
chants' and Credit Men's association to
: present . evidence against Judge C H.
Hanford in the matter of excessive re
ceiverships. H. L. Klock, wholesale produce man,
testifying to what occurred at the tnerr
chants' meeting at .which Goldsmith put
In his alleged obstructive work said
that Goldsmith made the statement:
"While I admit that the old .man (Judge
Hanford) may have outlived his days
of usefulness on the bench, he Is not
much worse than other federal iudges."
Goldsmith also said that "while the
old man drank, he possibly ' needed
stimulants to keep up with his large
amount of work."
Klock testified that Goldsmith then
argued that the Socialists were behind
the Hanford prosecution and that there
fore the merchants should keep out of
it. Goldsmith made the offer, said
Klock, that If the association dropped
the matter, he (Goldsmith) felt confi
dent he could go to Judge Hanford him
self and could Induce him to appoint re
ceivers in the future who would meet
with the approval of the local mer
chants. The Hanford Irrigation Seal.
Klock also testified that the debate
between himself and GoldKmith devel
oped to such a general discussion of
Judge Hanford's fitness on the bench
outside of the receivership matters, that
Klock finally told the merchants that
he considered as unfit a Judge who
would get mixed" up In a deal tending
to deprive or defraud the school chil
dren and posterity of some 65,000 acres
of school lands." ,
Klock explained that he refered to
the Hanford Irrigation company, which
obtained school lands on a sale by the
state land commissioner which was ad
vertised In some obscure way, but which
attracted the Hanford buyers.
Goldsmith, who gave some prelimi
nary testimony yesterday, was recalled
by the defense. He explained that
Klock was not repeating hi language
as he gave it. Goldsmith said that he
referred to Hanford as "comparing fa
vorably with other federal Judges," and
that he did not eay that he wa, "not
much worse." 1
Hrf denied he had admitted Hanford
probably had outlived his usefulness and
explained that he said some people eald
so. He denied also that 'he said he
could go before Judge Hanford and
make arrangements satisfactory to the
merchants who were' complaining about
the. receivership matter. Goldsmith ex
plained that he said that he was satis
fied a committee appointed by the asso
ciation could make such arrangements.
Two.meoelTs JfMntaLQne Waai
That Judge C. H. 'Hanford of his own
accord named Sutcllffe Baxter as one of
the receivers for the Western Steel Cor
poration and thus put two receivers in
charge of 'the, bankrupt estate, although
there was need of only one, was the
admission made by Frederick Bausman,
attorney for the petitioning creditor In
that case, the Metropolitan Trust com
pany of New York, who subsequently
also became attorney for the receivers.
Representative McCoy Questioned
Bausmair-tJir-what need there was for I '
the appointment of two receivers, each
of whom obtained 15000 'for two months'
work, although the business of the cor
poration bad been abandoned and their
duties merely consisted In taking an in
ventory of the assets. Bausman denied
that he had anything to do with Bax
ter's appointment, charging that it was
up to .Judge Hanford himself.
"There never occurred to me," said
Bausman,' "that there should be two re
ceivers. .Their duty was practleally as
custodians of the property."
According to the testimony ot both
Baxter and Bausman, the receivers re
mained as such for two months, Baus
man acting as their attorney, and also
as attorney for the Metropolitan com
pany, which held a JTBOO.OOO preferred
claim on the $877,000 assets of the cor
poration. The liabilities totalled $1,
400,000, they testified.
940,000 Xxpense Files TTp.
With the discharge of the receivers,
Sutcllffe Baxter and Lester Turner
were then appointed as trustees in bank
ruptcy and Edgar Amos was made a
third trustee. For this service the trus
tees have already received an additional
$5000 each. In all, It was shown that
receivers, trustees and attorneys re
ceived $40,000.
"Were all the labor claims paid?"
asked Representative McCoy of Baxter.
"Not quite all yet," Baxter replied.
"We paid $33,622 and rejected $2848,
and there Is still about $463 to be paid.''
Irrigating at West Stayton.
, Scc'lll to Tht Journal.)
West Stayton, Or., July 18. On ac
count of the unusual amount of rain
last month, irrigation has not been
necessary, but the sudden hot spell has
dried the soil up rapidly and irrlgajtlpn
was commenced here today.
Schemers in Northern Califor
v nia Force Comoanies to
" Unite" With Large Capital- fg
ization With Increased Rate.
San Francisco, July 1$. The Cali
fornia Public Utility commission, has
Just handed down a decision granting
the application of the Northern Cali
fornia Power company for an increase
of rates, which affects a goodly por-
of southern Oregnn. The Northern
California Power - company - is large
producer of electrical energy covering
the territory of Siskiyou county, a por
tion of the Sacramento valley and
southern Oregon. It recently purchased
the Sacramento Valley Power company,
chief competitor in its own field.
As a result of the, consolidation, the
company finds its capitalisation In
creased $1,(70,000. Of this amount
$867,000 according to the testimony be
fore the commission, was paid to the
Flelshhacker interests, which owned
.and controlled the Sacramento Valley
"company. It was generally "-conceded
that the bond issue of $900,000 covered
the physical value of the propertyVanJ
that the $867,000 was velvet for the
"Flelshhacker Interests In the form of
debenture notes which will be paid
from the earnings of the old company.
Bates Blast Be Bailed.
The California commission, in Its de
cision, gqes exhaustively Into the ques
tion of organization of companies for
the purpose of "competition," but in
reality to sell out to an existing con
cern. It holds that the rates must be
raised In accord with the application
of the Northern California Power com
pany for the reason that the Sacra
mento Valley Power company had been
legally authorized to go tnto business
In the territory In question and there
fore the people of that section must
bear the burden of their folly in sup
porting a larger plant or plants, than
is necessary to meet the existing de
mands for electrical energy.
The story of the "sell out" of the
Sacramento Valley Power company to
the Northern California Power company
is interesting from the fact that It
was a struggle between financial in
The Sacramento company had two
small plants, with a capacity of 10,
000 or 15,000 horsepower. For a year
or more the - earnings of - tha company
were not sufficient to meet expenses.
When the financial condition of the
company was at its lowest ebb, bonds
were sold to promoters, and with it,
as a bonus, were large blocks of stock.
The promoters sold the bonds and kept
the stock. This accomplished, the next
method of procedure was to force the
existing company to buy them out
This was accomplished through put
ting a large force of solicitors In the
field, and rates were slashed to such
an extent that in several cases energy
was furnished practically for nothing.
The result of this action on the part of
the Sacramento Valley company was
o-force the older-company to either
go out of business or settle with the
Sacramento Valley promoters. Thla it
did, with considerable profit to the
schemers. The commission of California,
in the decision pointed out that it
is belnless in the matter and must
raise the rate sufficiently high to meet
the Interest charges upon the capitali
zation of the united companies.
, i
The Portland Park band, W. E. McEl
roy, director, will play at City Park, at
the head of Washington street, this
evening, the concert beginning at 8
o'clock. A very interesting program has
been prepared, including a cornet solo
by Ben FJ Drlscoll and a baritone eolo
by Eugene Cioffi. Following wlH be
the 'program in full:
March, "Brooke's Triumphal" Slets
Overture, "Stradella" Flotow
Walts, "Dreams of Childhood"
Cornet solo, "Asthore". Trotere
B. F. Drlscoll.
Selection, "Macbeth" ...Verdi
Incidental solos by Messrs. Drlscoll.
Blancone and Clof fl.
Selection from "The Fortune Teller"
Baritone solo, "L'Ebreo" Opollortl
Eugene Ctoffl.
Morceau Characteristic "Vision"
Von Blon
Ballet, "The Flight of the Birds". . .Rice
March, "Kaiser Friederich" . .Frtedmann
Tomorrow evening the band will play
at Holladay park and Sunday afternoon
at Mount Tabor park. The concept at
Holladay park last evening drew an at
tendance of several thousand.
(United Prew Led ?!'.
Pendleton, Or., July 18. Fire last
night totally destroyed the Turner liv
ery barn and the Methodist parsonage
at TJklah, this county. Two horses per
ished In the flames. The origin of the
fire is unknown. No Insurance was carried.
nrA mmvtt
.i ran
- The growing of sweet peas will be
given nearly "as great prominence as
rose culture in Portland if plans made
yesterday by the Oregon Sweet Pea so
ciety at its annual meeting in the Mult
nomah hotel, are carried out.
It was a discovery of trie sweet pea
exhibit in the county court house that
Portland and the Willamette valley jsan
produce as distinctively rich sweet pea
blossoms as roses. '
All who are interested in promoting
the culture of the fragrant blossoms
are to be enlisted In a membership
campaign and the dues of 60 cents a
year are so adjusted that anyone may
O. M. Plummer was elected president
to succeed Captain George Pope and he
appointed Mrs. Harriet Hendee, record
ing secretary, and Ralph R. Routledge,
executive secretary. A part of the cam
said yesterday that he felt it was time
to give the work over to a younger
muk- la his address he extended the
thanks of the organization to those who
donated prizes, to the press for pub
licity and ' to the county court for tWe
use of the county court room tar tha
exhibit :
Steals r&liceman's Bail:".
Los Angeles; July IS. An nmilsi-r!
tnating thief entered the home of x.
Stebblns . Wells, pioneer police woman,
and stole her handbag, containing her
police badge, powder rag, revolver, gum
and $1.60 in change, Detective friend
have begun the search.
rr- nn
paign for new members and greater in
terest in the growing of sweet peas will
be educational bulletins frequently Is
sued by the executive secretary.
Yesterday was made the time for dis
tributing the prizes won by contestants
at the sweet pea exhibit. Awards were
made by Captain Pope, who had much
the appearance of a mid-summer
Santa as he delivered the cups and
medals that had been won because of
excelling work.
Captain Pope organized the Sweet Pea
society four years ago. He was active
In securing members and prizes. He
How to Absorb an
Unlovely Complexion
(Phyllis Mooret In Town Talk.)
The face which Is admired for Its
beauty most have a satin smooth skin,
pink and white "and youthful looking.
The only thing I know of that can make
such a complexion out of an aged, faded
or discolored one I mean a natural, not
a painted, complexion la ordinary mer
colized wax. This remarkable substance
literally absorbs the unBluhtly cuticle, a
little each day, the clear, healthy, girlish
skin beneath gradually peeping out until
within a week or so it is wholly In evi
dence. Of course such blemishes as
freckles, moth patches, liver spots,
blotches and pimples are discarded with
the old slcin. If you will procure an
ounce of mercollzed wax at the drug
store, use like cold cream every night,
washing this off mornings, you'll find It
a veritable wonder worker.
Another valuable natural treatment Is
a wash lotion to remove wrinkles which
can be easily prepared. Dissolve 1 oz.
powdered saxolite in Mi Pt. witch hazel.
Bathe the face In this and you'll find it
"works like magic."
U lj IMI
ii r xyrsx i w i i ;
AM- :.
1 .1 Y1 1 AiK l. NIJ I L ,
On Every Outing;
Weekend trips to the country, visits to lake or sea
shore, all invite your Kodak. You have the fun of tak
ing pictures and the pleasure of possessing a picture
story all your own. It is easy to Kodak. v
Come in and let us show you. Expert developing"
and printing on the premises.
Floyd F. Brower, Manager.
5553 VI O TP$?V m n f
S3 crz st4
litigation over the Gevurtz stores has been settled out of court. I. Gevurtz & Sons will surrender all the corner of Second and Yamhill streets two thirds of their present floor space.
forces them to discontinue the. Ladies' Suit and Men's Clothing Departments. To convert the stock into cash, to close out all ladies' apparel, we simply have to forget original, cost We
invite ladies to call and inspect the values. NO SALE IN PORTLAND CAN COMPARE WITH WHAT WE OFFER THIS WEEK.
Any Lady's Suit in the House
Which Includes
Values Up to $40 g
Going at v
A grand clearance of entire Ladies' Suit stock at the uniform price of
$9.95 per suit. This embraces the very finest Tailored Suits Suits
that have sold heretofore for as much as $40. You may have the unre
stricted choice of these fine Suits. . In the lot you will find beautiful light
gray, blue, black and white serge and pin stripe serge. None of these
are reserved no matter what the original cost, come (DQ CE
and take your pick for the next few days at only Pc7CJ
Every Silk Waist in the
house is embraced in
two lots. The first lot
embraces Waists to the
value of $4.00 and are
priced to sell J J
The second lot consists
of $15 val- CJ7 QC
ues for )&sO
Blue Serge
Any Skirt $
in Stock . .
Skirts consisting of panamas,
mixtureSv, and a few black
voiles, will be
closed out at, each,
Everything is now priced re
gardless of cost, as we have but
a few days more to remain in
this corner. Ladies' goods
must be closed out. The fur
niture stock will be confined to
1-3 of present floor space.
Closing Out Muslin Underwear
Petticoats, values up to
$1, to close out at
Corset Covers, values up to
$1, to close out at
Gowns, values up to $2,
closing out at
Gowns, values up to $1.25,
closing out at
Drawers, values up to $1.00,
closing out at
TMiMffrTOP Paraso,s
Bit?? P AWft ruT 96 Values
First and Yamhill Second and Yamhill ip JL
Your choice of any
Blue Serge Dress in
the house at this price.
Some of them are
quite plain, others
daintily lace and but
ton trimmed; made of
fine quality of blue
serge. 0 u r forced
$40 Black
Long Coats
$11 TD9K
LL 3
Elegant chiffon and
black broadcloth
Coats, long in the
semi-fitting style,
lined with the best
Skinner satin, and
having the very best
throughout ; values up
to $40; greatest values
in Long Coats ever of
fered in Portland.
Your choice of the lot
ill i 11-.
' J, I kmnmS '
Will 5?T :
siiiii:ni;?in;:TTTTT : i