The Oregon daily journal., December 28, 1920, Page 2, Image 2

THE OREGON DAILY JOURNAL, PORTLAND, OREGON
TUESDAY. DECEMBER 28 1920.
ETKERIDGE'S WJFE
may be Involved
in bond failure
(iGontimied Vrom Tin One) r
' as It was yesterday. The Accountants
are working diligently to untangle tb
Jumbled mass left by Etheridge. but It
will be days and possibly weeks before
anything like a balanced statement can
be made to the receiver, and through
him to the court "
- It Is shown however, that the bust
nees. including the San Francisco and
Tacoma branches, ran up to approxl
1 mately $2,000,000 a month. It was also
a one-man business, Etheridge holding
detailed control of the transactions at
all times.
SHORTAGE rSKJTOWS
Roughly speaking, the assets now un
covered amount to approximately I97J,
000, while there are Interim certificates
amounting to $2,000,000, face value, out
standing. The purchase price of these
was probably around $1,733,000, so far as
can be discovered from the records so
far examined. The present estimated
deficit Is approximately $760,000.
It Is explained by A. B. Winfree of
Teal, Minor Winfree, that it is im
possible now to tell what the actual
shortage will be. The company, appar
ently owes local banks $300,000 In round
numbers, while outside banks are cred
itors in the approximate total of $175,-
- 000; These accounts are all secured by
ample collaterals however, generally in
the form of Liberty or other bonds of
recognized value. .
RECEIVED OTHER BONDS
Hew much the outstanding collateral,
put up as security on Interim certificates
and loans, will finally reduce the appar
ent assets of the company Is another
problem that the auditors are not now
able to answer.
It Is known, however, that fn very '
many cases the purchasers "Of bondr to
whom Interim certificates were given,
demanded and received other bonds-as
collateral security for the delivery of the
bttnds purchased.
It is presumed that this collateral will
pans to the interim holders in the final
settlement and. If so,"will be lost to "Mor
ris Brothers as assets.. What the total
. will finally be in this phase of the tan
gle fan not now be told.
Still another slant at, the problem Is
" presented by the position Of the City of
Kdmontonr owners of the bonds which
form the basis for the major portion of
the trouble into whlchMorrls Brothers
has fallen.
PORTLAND BANK DEPOSITORY
The United, States' National bank was
made the depository of the entire $2,245,
000 face value of Edmonton bonds which
Morris Brothers had contracted to sell
by December 31.
Approximately $500,000 of this total
..had be"en taken -up by the United States
National, the bonds distributed to the
purchasers and -the money transferred
to the New York bank acting for the
Kdmonton holders at the time the local
. bond house was closed.,
The remainder of the total is still In
the possession of the United States Na
tional, and the bank had wired the treas
urer of the city of Edmonton to come
to Portland and take charge of the fu
ture movements of these securities.
Edmonton Is In the clear as to Its
bonds, for, under the contract made with
Kther.idge, and by-rwhich the United
States National is governed, the bonds
were not to be released by the bank un
' less and until it had received the full
', purchase price from Morris Brothers,
and then only in blocks of $100,000, or
multiples -thereof.
MUST GET COURT ORDER
The bank Is now In the position where
frlt can not receive money from Morris
Brothers, except -on order of the court,
while,. - under the contract., the entire
transaction is to be closed as between
Morris Brothers -and the city of Edmon-
- ton by Peccmber 31.
It would seem that the Edmonton au--.,
thoritles could, should they so desire,
make some arrangement with the court
: and receiver by which all those bonds
covered by collateral security could be
cleared through the receiver and the
Morris Bros.' profit On the transaction
. be thus saved to the creditors of the
. company. Or the , ' Edmonton authori
ties can take back ,their bonds from
the United States National and sell
them elsewhere. In which case the
interim holders would take the collat
eral and the creditors will lose the profit.
:ALl MASS MEETING ' - -
"What arrangement may . finally be
maae win aeoena upon me .camonion
authorities after they have come to
Portland and looked Into the case.
. Attorney Winfree estimated the deficit
would be from $750,000 to $1,000,000, but
said' this only as a guess. "It probably
w)1l be two weeks before we can give the
public anything like an exact estimate,"
tie said. .
"The books are In bad shape," said
Whitcomb." Just guessing off hand. It
looks to me like ' the deficit will be
about $760,000, but" I cannot vouch" as
to the exactness of these figures, as
more liabilities may appear..
AMONG THE LOSERS
The firm was doing about $3,000,000
.. worth of business each month, Whitcomb
said.. They have done about $2,000,000
i worth of business in Edmonton bonds.
' The total liabilities of the bonding house
are estimated at $2,000,000, with enough
visible Assets to take care of approxi
mately half or a little better than half
of that amount. .
The list of unsecured creditors con
; tains 1010 names, in addition to the
' names of victims not disclosed who made
- deposits oh contracts for the purchase of
; bonds and gave $68,000 In partial pay
ment. In addition to the amount de
posited by the 1010 persons or firms and
the $68,000. there are other unsecured
" claims totaling $1,000,000, the petition
sets forth, making a total of $2,066,000
in unsecured claims. Practically all
, these :- obligations - are for Edmonton
bonds. Listed .among the heavy unse
cured losers are the "Union Trust com
pany of Walla Walla, Central National
bank of Oakland ; Bank of Yolo at Wood
land, Cal., and W. H. Richardson,
address unknown, whoee claims are list
ed as $18,000. :
1 PAGES Or CREDITORS
In addition to the unsecured claims,
the secured, creditors have claims total
ing $188,700. These creditors are all"
banking or .bopding houses.
The li! of unsecured creditors is 19
- pages long and contains the names of
. many small bond buyers. Only a few
banking and bonding houses have lost
by not properly securing their claims.
Salaries totaling; $7740 are also due
employes, the petition states, and- also
.the following securities, totaling $668.
000, are held: United States National
! bank of Portland $250,000, Ladd ft Tilton
: bank, $50,000, Merchants' National bank
NewPERKINS HOTEL
FIFTH AND WASHINGTON tT
PORTLAND, OR.
Rates $1 and Up
AUTO-BUS. BCPOT OARS PASS HOTEL
JOHN L. ETHERIDGE'S IRVINGTON HOME
uf - Til' -Vs:
. ..... fr A m
U v
:v. -.
1 - J. , v -A-
lit ? - ' -
L . ; s , j tt g 1
Handsome residence at 400 East Twenty-fourtli street north which John Iu Etheridge turned over to Fred
Morris prior to leaving Portland. Morris originally built the house and sold it to Ktherldge when he
turned his other interests over to the new bond house head.
of San Francisco $175,000, McMinnviUe
college $3000. V
WHO HOLDS BONDS
A total of $960,749.96 worth of bonds
is held by purchasers -throughout the
coast as collateral for interim certifi
cates. This sum is divided as follows
In the petition: t
Held by. residents of Portland $13,000.
held by residents of Oregon outside
Portland $23,000, residents of California
$148,000, United States National bank
of Portland $300,189.85. Ladd & Tilton
bank $170,000.
Among the assets of the bankrupt cor
poration the following are listed : Liber
ty bonds $1097.50, stock in trade $12,140 ;
store fixtures in Portland office $7436.47,
Seattle office $833.42, San Francisco
office $4111.97 ; bonds on hand at par
value. Portland $278,137.5!. Seattle $20,-
000, San Francisco $40,000; stock on hand
in Portland office $22,400; warrants on
hand in Portland office $48,022.60 ; money
deposited in banks throughout the North
west $301,808.08 ; bonds sold . to Seattle
banks with contract for resale $277,900;
bonds delivered to Fred S. Morris and
held In safety deposit box of J. L. Ether-
idge $25,000; bonds expressed from Ta
coma $75,000.
MONEY UNACCOUNTED FOR
The incomplete petition In bankruptcy
which was filed Monday is 45 pages long.
It was signed by F. B. Pratt, vice presi
dent of the firm, who declares in his
petition that the. bonding house owes
debts which it Is unable to pay in full
and that it is willing to surrender -ail its
property for the benefit of its creditors,
except such as is exempt by law. "We
are unable to furnish a full and true
statement of all its Just debts and com
plete schedule of its assets, as expert
accountants are how on its books," the
petitioner further recites.
The petition was filed pursuant Co a
resolution of the board of directors. A.
M. Cannon, referee in bankruptcy, to
whom the case will be referred by Fed
eral Judge Wolverton, is oat of the city.
He left word that he would be away
for two weeks. . His absence from the
city Is not expected to complicate mat
ters, as the accountants do not expect
to be able to make a complete report
to the court as to the assets and liabili
ties before that period has expired.
Reporters asked Receiver Whitcomb
where he thought the missing money
had gone. 'Til confess I don't know at
the present time." he said. "Whether
the heoney was taken, or whether it was
used oi in too heavy an overhead ex
pense. XI am unable to state at the pres
ent t)me."
BONE HOUSK FAIIiTJKE HITS
MANY VANCOUVER INVESTORS
Vancouver, Wash., Dec. 28. Many
Clarke county investors will be affected
by the closing of Morris Bros, bond
house in Portland, the total loss in the
county reaching about $75,000, it is said.
Although large Individual holdings are
not found, many people in the county
had invested a short time before the I
closing of the house, and hold only in
terim certificates.
Banking institutions of the city were
little affected, a $500 investment being
reported by the Vancouver National
bank. The First National bank of Camas
Is .the holder of $1000 of the certificates.
Individual investors who will lose in
clude E. M. Blurock, Vancouver stock
man, who holds $2000 of certificates ;
Judge R. H. Back, $600 ; Oridley-Sears
Loan company, $2000. One Vancouver
man bought $5000 of the bonds over" the
counter at Morris Brothers a few days
ago, and one man, 78 years old, had In
vested his $1000 savings.
The city of Vancouver itself will not
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ROSCOE(FATTY)
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THE
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The liberty Presents Its
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l J
suffer any losses, according to City At
torney William - C Bates. Several
months ago $40,000 was owed Morris
Brothers by the county, but this
has been settled and the county will be
entirely free from loss. County Treas
urer Henflchsen said Monday after
noon. Only three Improvement districts of
Vancouver are affected either directly
or indirectly, it is said by city officials.
The contract for the paving of Co
lumbia street amounted to $38,000, and
$30,000 of the bonds have been sold by
Morris Bros. It is believed that these
warrants have not been cashed, in which
case holders of certificates will lose.
On East Seventh street where the
contract amounted to $56,000 for the city,
the bonds are to be . Issued in a short
time. Morris Brothers had paid the
contractor for this diAtrict, It Is said,
and persons holding the certificates will
probably be able to secure their bonds
when they are turned Vyer to the con
tractor by the city. Ifihe issue has
not been oversold by Morris Bros. - the
bonds will be sufficient to go around to
people holding the certificates.
BANKS WILL BE ASKED TO
GIVE UP EDMONTON BONDS
Banks holding bonds of the City of
Edmonton, Alberta, as security for loans
to Morris Brothers,, Inc., will be called
on to surrender them to holders of in
terim certificates, according to F. K.
Korell. One Portland bank is Said to
have over $200,000 in Edmonton bonds,
placed with it as security for loans by
John -L. Etheridge, president of Morris
Brothers.
Korell is attorney for P. E. Hale,
holder of an interim certificate for Ed
monton bonds, who filed a replevin suit
In the circuit court Monday afternoon
for the recovery of $5500, naming Mor
ris Brothers, Inc., Fred Morris and John
Doe as defendants. Hale demands the
delivery of the bonds, alleging that the
Morris corporation is wrongfully and
unlawfully detaining his personal prop
erty. The bonds in question were re
ceived by Morris Brothers, according to
Korell, and by virtue of the terms of
the interim certificate became at once
the property of Hale.
-The case came up in Judge Taswell's
court at 9 :30 a. m. toay. Fred 3. Mor
ris was represented by his' attorney,
Wirt Minor, who told the court that
Morris had no books or papers of the
company and knew , nothing about the
transaction in question. Minor agreed
to meet Hale's attorney later in the day
and give him whatever Information he
might be able, to secure, whereupon the
case was adjourned.
Korell stated afterward that an effort
would be made by him to join holders
of. interim certificates issued by Morris
Brothers in an effort to secure bonds
held by the banks. The bonds were the
property of certificate holders. Korell
maintains, and may be recovered by the
same means. employed in the recovery of
other stolen property.
SEATTLE BRANCH OF MORRIS
BROTHERS ORDERED CLOSED
Seattle, Dec 27. (U. P.) Orders to
close until the completion of the audit
of the books of the headquarters firm at
Portland were received at Morris Broth
ers' Seattle branch at 9:30 a. m. today.
T. D. Henderson, vice president of
Morris Bros.. Ine., and head of the local
offices of the concern, stated that the
closing of the firm's business would only
last until the auditor finished.
"We expect the order is only tempor-
ary," he said. "There is every Indica
tion that the audit will be completed in
two or three days."
5000 SHARES OF MORRIS
BROS. COMPANY MISSING
Examination of the books of Morris
Brothers, Inc., shows that the company
was organized on September 6. 1919, by
John L. Etheridge. S. M. Etheridge, his
wife, and Forbes B. Pratt, with a cap
ital stock of $1,000,000.
John I Etheridge held onflshare Of
the stock of the concern, valued at $100 ;
Pratt held one share and Mrs. S. M. Eth
eridge held 4998 shares, according to the
firm's books. Theremaqping 6000 shares
of stock are as yet unaccounted for, ac
cording to. F. K. Korell, who gave out
this information.
ETHERIDGE ELECTED PRESIDENT
At a meeting of stockholders on Sep
tember 6 Etheridge, Pratt and Mrs. Ethe
ridge were appointed directors of the cor
poration. At this meeting by-laws were
adopted and article 7 of the by-laws cre
ated the ofifce of president, stating that
his duties consisted only In presiding at
metings of the board of directors.
Management of the business of the
bond house, according to article 8 of the
by-laws, devolved upon the vice presi
dent of "the concern. At the same meet
ing at which these by-laws were adopted
John L. Etheridge was elected president
and Forbes B. Pratt, secretary of the
company. The office of vice president
was left vacant, according to the rec
ords of the corporation.
ACCEPT OFFER
At the meeting of the board of di
rectors on September 6, 1919, the old
corporation of Morris Bros, offered to
the new firm of Morris Bros.) Inc., all
the assets of the old corporation and
all - the assets of "The Land Company
of Oregon" for a consideration of
$1,000,000. The directors of the newly
organized Morris Bros., Inc. accepted
this offer, according to the records of
the meeting.
On October 3, 1919, the stockholders
of Morris Bros., Inc.. held a meeting
at the offices of the company and
elected Fred S. Morris chairman of the
board of directors of the corporation.
At this meeting it was also voted to
amend; the by-laws of the company by
transferring the management of the
business from the vice president, to the
president.
HONOR MORRIS
The appointment of Fred S. Morris as
chairman of the board of directors is
recorded on the books of the corporation
as follows :, "In recognition of the splen
did and meritorious service rendered to
the old corporation of Morris Brothers,
snd of'the service performed by him, in
building up the business of the company
as it now exists, there is hereby created
the office of chairman emeritus of the
board of directors, to continue during
' Yamhill Public Market Look for Our Number
In our introductory sale we invite you to come and inspect the neatest, most up-to-date
grocery stock, where you will find that you will have experienced, atten
tive salesmen to serve your every need. The stock is complete and priced at prices
that will cause you to look for the place at 168 2d ST., on WEDNESDAY AND
THURSDAY.
Watch for our advertisements for our specials each week
Fine Granulated Sugar. 5 Ibs.44c
to lbs. 87c sack. .. .$8.60
Mazola, qt. 53: J-gal. $1.00
Gallon .. v.........$1.95
Shredded Wheat, 3,pkS...39c
Grape Nuts, 3 pkjes. . . . . .49c
Kellogg's Corn Flakes, 2 pks.25c
Cream of Wheat, t pkg. ...25c
Folger's Golden Gate Coffee
i lb. 43c -2 lbs. $1.05
S lbs. . ; $2.07
, : 1 1 '
Tree Tea. 8 o. 26c 1 lb. 48c
Golden Marsh mallow Syrup v
io-lb. tin $1.18 S-lb... 63c
Cottolene, 4 lbs..
.89c
No. Pineapple, 3 for $1.QQ
Ghirardelli's Chocolat:
l lb. 33c 3 lbs. ..... 97c
S lbs. for $1.59
Fresh Bread, 2 for.
...15c
Fresh churned Butter
l lb. 49c Roll ......97c
FORD CUTIS
E
BY GIANT
Detroit. Dee. (L N. &) Residents
of Ford City were thrown Into a panic
today when a shrapnel bomb loaded with
great quantities of giant powder and
bolts, nut and scale weights, placed in
the doorway of a store at Second and
Davis streets, exploded. The force of
the explosion shook houses for two
miles around. Damage to the building
is estimated at $2000.
the pleasure of the said board and not
longer than the time , Fred S. Morris
shall be connected with this concern.
"The rights and privileges appertain
ing to this office shall be no greater or
less than the rights and privileges apper
taining to the office of any other mem
ber of the board of directors. This offi
cer shall be designated as chairman of
the board of directors."
According to Korell the record of
meetings of the board of directors of
Morris Brothers, Inc., following the
meeting of October 3, 1919, do not state
who were present or who presided, nor
is any reference made to the officers of
the corporation by name.
DIRECT INVESTMENT OF
OREGOJf MONIES FAVORED
Salem, Or Dec.. 28. State Treasurer
Hoff today declared himself in favor
of the direct investment of state funds
in securities offered by Oregon munici
palities, school districts, etc., whenever
that is feasible. He points out that
$230,000 has been so Invested in re
cent months. He asserts again that he
will urge upon the legislature the crea
tion of the state bond commission, con
sisting of the governor, state treasurer
and state superintendent of banks, to
assume charge of the investment of
state funds.
WALLA WAIiliA INVESTORS
ARE TO BE PROTECTED
Walla Walla, Wash.. Dec 28. When
it became known here today that the
name of the Union Trust company of
Walla Walla appears on the books of
Morris Bros., Inc. of Portland a a
subscriber to the Edmonton bonds, of
ficials of the company announced that,
so far as the local situation is. con
cerned, it will be cleared up soon and
that the local Investors will be protect
ed. The Union Trust company is capi
talized at $100,000. with a $20,000 sur
plus. ,
Eugene Affected by Failure
Eugene, Dec 28. E. E. Rorapaugh.
local agent for the Morris bond house
of Portland, left for that city Monday
to confer with the officers and auditors
following the wrecking of the company
and the flight of its president. He had
no statement to make as to the amount
of the Morris paper held in Eugene, but
it is known that heavy investments in
the bonds have beeti made in past years.
Etboridge's Outuffeur Fined
Roy Fike. an employe of Morris Bros.,
Inc.. who was arrested on the Llnnton
road by Motorcycle Officer Shaylor
Saturday as he was returning from
Tacoma after taking John Ls Etheridge
there to catch an Eastern train, was
fined $25 by Municipal Judge Rossman
this morning on a charge, of speeding.
The fine . was ; later remitted by the
court. Shaylor testified Fike was going
50 miles an hour.
TNEEDUS,
SAYSSOVIET CHIEF
(Contiaoed From Pat On)
reversal of the United States decision
makes business possible.
"If she must get along without Amer
ica's cooperation In her economic re
construction, which needs immense
amounts of materials, Russia shall do
so, and it is only fair to say that with
peace and the concentration of our
forces on economic efforts together with
the readiness of Europe to utilize the
Russian market, we shall be less hurt by
this incomprehensible attitude of Amer
ica than America will hurt herself.
NEARLY WR
ra
IB
DON
168 SECOND STREET STALL
Snow Drift, 2 lbs 45c
4 lbs. 88c 8 lbs. ...$1.73
READ THIS
8 tins No, 2 Corn. . . . . . .$1.00
8 tins No. 2 Peas ...... $1.00
8 tins No. 24 Tomatoes.. $1.00
Vim Flour, 49 lbs.
Barrel ........
52.49
(9.76
Get Acquainted Sale for
WEDNESDAY ONLY
5 cans tall Borden's ....... 50c
Limit. S to a customer
4 Palmolrve Soap ........ .25c-
Limit 8 Bars to a customer
Kinjiford's Gloss Starch,.. 10c
iLImit 5 to t customer
Jello, 3 pkg;$. for. . . . . ...25c
Limit 6 to a customer
Lemoa's, large size, dozen . . 1 5c
5 Goblin Soap 7 . . . ..... 25c
Limit 10 to a customer
A Good Broom, Portland
made 50c
"We shall not impose ourselves where
we are not wanted.
Ws have Instructed our representa
tive to return Immediately with his
staff
RUSSIAN TRADE LOSS IS
BILLIONS, SAYS MARTENS
New York. Dec 28. Ludwlg C A. K.
Martens, Russian soviet "ambassador"
to the United States, has put it squarely
up to the forthcoming Republican admin
istration to salvage billions of dollars'
worth ' of ' contracts, completed or in
prospect, between, Russia and American
business interests.
In departing from American shores at
the behest and by the orders in deporta
tion Of Secretary of Labor Wilson, the
soviet "ambassador," on .command from
his .Moscow chieftains, takes with him
all contracts pending, cancels those
made and liquidates those begun. ' The
tangible contracts amount ' to around
$150,000,000, according to Martens, and
the less tangible, including the $3,000,
000,000 worth reported to have been en.
tered into between Washington Vander
llp and the soviet government, as well as
the Kamchatka concessions secured by
Vanderlip, also are contingent upon fu
ture recognition of the soviet govern
ment by the United Statea
DEPENDS OK G. O. T.
There is no doubt that Martens is
counting heavily upon American busi
ness in general and the Republican ad
ministration in particular to "save" the
contracts by extending such recognition.
His process of reasoning along 'these
lines is that commerce with Russia
means business; that the history of the
Republican party shows its sympathy
for business and hence that the fertile
Russian field will not be shut out long
as the G. O. P. returns to power.
And It has been the belief of Ameri
can business leaders here, as well, inci
dentally, as of the state department at
Washington, that recognition would be
granted to-Russia next year.
More "than $100,000,000 will be lost to
American business men anyway, because
of Wilson's deportation order. Martens
went on to say. .
Of the Vanderlip concessions and con
tracts the "ex-ambassador" said :
"His contracts were made directly with
the soviet government and I knew noth
ing of their status personally. Tet "he
was quoted in your press as saying they
were worthless until your government
resumes commercial intercourse with us.
The present situation would Indicate that
that will not come about-until your Eur
opean iv,als get all the cream of our
business. If you close your doors to us
we will be forced to turn to Great Bri
tain, and other European "nations and
vet Russia would rather trade with the
United Statea than any other country."
"EMBASST. TO CLOSE
The- cancelled contracts, according to
Martens, were for shoes, machinery,
meats, food products and cotton. Those
are yet made and whose signing is sus
pended by his deportation, were for rails
and locomotive parts,- machinery and
tools of all sorts, sheet iron and oil
piping.
There will be no effort on the part
of the ijviet regime to replace him here,
says Martens. His "embassy" will be
closed soon after his departure.
Martens has been here since early in
1916, and upon the overthrow of the
Czarist regime and later that of Ker
ensky he was appointed special repre
sentative of the soviet government, with
title of ambassador."
His activities have been probed by the
Lusk committee in New York and by a
committee of the United Statea senate in
Washington. Secretary Wilson, in hand
ing down his order, found no overt act
against him, but banned him for affili
ation with the Soviets.
Amendment Taxing
AH Incomes Bobs
Up in Lower House
Washington. Dec 28. (L N. S.) An
amendment to the constitution abolish
ing exemption from , federal taxes for
aTl! stats and municipal bonds and all
salaries of state and municipal offi
cials, and providing that the federal
government shall have power to tax
all incomes, no matter from what
sources derived, ls proposed .in a reso
lution Introduced In the house today
by Representative McFadden, chairman
of the house banking and currency com
mittee.
Cardinal Sleeps Well
Baltimore, Md.. Dec. 28. U. P.) Car
dinal Gibbons, who is ill at the home of
Robert T. Shriver at Union Mills, slept
better last night than at any time since
Tie became Indisposed about three weeks
ago. . .
NUMBER 3
Royal Club Coffee t lb... 43c
3 lbs. $1.275 lbs... $1.95
4 BULK COFFEE
We wish to impress upon the
coffee drinkrrs, the ones wh
really care, that through the ef
forts of our buyer, we caa offer
Coffee that will surely satisfy
and .will solve your problem
where to BUY YOUR COFFEE.
Each blend will be uniform and
you may rest assured that the
foUowinr blends will be reliable,
and always the same : V;
Blend A.-.,.,.,.,... 43c
Blend B . . .... .38c
Blend C. v. 33c
Blend D. v28c
STEPS ARE TAKEN TO
CANCEL CITIZENSHIP
OF J. L ETHERIDGE
A complete investigation into the
activities surrounding the granting:
of citizenship to John Ladbrooke
Etheridge on July 18, 1918, has been
started by United States District At
torney Lester W. Humphreys. He
was closeted this morning with V.
W. Tomlinson. naturalization exam
iner, and after the conference both
men said they had no public an
nouncement to make at the present
time. 'C
"An investigation nas been started."
Humphreys said, "but 1 cannot state
at the present time just where it will
lead."
mat Ask nruicTMENT
If facts sufficient are obtained
Humphreys Intimated that the federal
grand jury, which Is to convene in Janu
ary, win near about the case. Not
only the statements made by Etheridge
during his naturalisation hearing, but
also those made by Fred S. Morris and
Mrs. Emily F. Morris, his wife, will
also be considered by the federal at
torney.
As the statement which Etheridge
made concerning his Jail record was not
mads under oath. It is probable that
he cannot be charged with perjury, but
Humphreys said the apparent fraudu
lent method in concealing from the
court his two prison sentences would
doubtless result in cancellation of his
papers. Humphreys hai Jiothlng to do
with the cancellation proceedings, this
matter being entirely up to Washington.
FEEJCHY COMMITTED
Tomlinson has furnished Washington
with information given him by the local
press and requested that Etherldge's
papers be canceled.
In response to the question. "Have
you ever been arrested or charged with
me violation of any law of the United
States or state, or any city ordinance?
Etheridge answers "Tee." "If so, how
many times?" reads the next question.
Answer, "Once." He then tells about
being arrested in Langhorne. Pa., in
June, 1915, for speeding. He said he
was not convicted, and after' paying the
costs in the case was discharged.
no reference is made to his two
prison terms, which were served before
he filled out the above-mentioned state-
ment.
When the Morrises appeared as wit-j
nesses tney were asked, .Has petitioner
ever been arrested or charged with the
violation of any law or ordinance?" Mor
ris answers, "Not Since I have known
him,'' and Mrs. Morris . says, "Not to
my knowledge."
SEEK WITNESSES
According to Tomlinson, the usual
Custom of refusing admission to a per
son who has not lived in one state for
at least two years previous to the final
hearing, and generally five years, was
violated in Etherldge's case, owing to
the representations made by the wit
nesses, v
The government attorney was also
Si-. t-
M r: .-.iff
Arthur
Middleton
The Masterful
One of thc world's most extra
ordinary voices. Both a bass
rich and full, and a baritone,
brilliant, scintillating. j
-. " !
Hear Middleton, the masterful
basso of the Metropolitan Opera
Company, New
Wednesday Night
. Heilig
' I ! : ' j .
When you hear Arthur Middleton Wedneg.
-'day' night, shut your eyes. Imagine your
self jn your own home with that same
glorious voice pouring . upon I your ear.
That is exactly what the New Edison gives
you, '!.'
Edison telechi only those artists whose voice
. Pass the Edison method of voice-anal yii. The)
New Edison Ri-Ckiatu these wonder voices
eh fidelity that
m
jftween Ri-CtiATED
2&NEW
'The Phonograph with a Soul"
Hear Wednesday why Ed f son found Middle
ton's voice worthy of perpetuation. Then
come to our store, and hear how the New
Edison gives you everything the living Mid
dleton gives, excepting his physical presence.
Reed French
Piano Mfg. Go.
12th and Washington Sts.
questioned as to whether! the mlln hoA ;
own usea to aerraua, but declined to
aiscuss tnis point. t . i
Newspapermen, court rferVa ami nth.r.
who were in the federal court room
when Etheridge was , naturalised are
being sought today by the government
to obtain all possible evidence in tha
Case. Statements made by Etheridge
ana jr. ana Mrs, Morris at the hearing
were made under oath, and ih.,.
fore of vital importance in this inves
tigation. . ,
E3I
NIGHT JIN: IAII bit
(Continual From I'm On)
turn to Portland with her husband, she
replied that she had not decided yet. :
While her husband ate jail fare at
the city jail last night and slept on the
usual jail accommodations, Mrs. Eth
eridge paced the heavily carpeted floor
of a luxurious room in: the Hotel Kad
isson. She seemed very nervous and
there was evidence on . small writing
desk that she had written several tele-'
grams and later tore them, up. , j j
No one was allowed to see Etheridge
last night. It will be the policy of . the
Minneapolis police department to Tteep
him. In seclusion until Portland officials
arrive to take him back.
Four Prominent Men
Taken for Hunting
x Ducks in Powerboat
' : -' ! -. !
When W. E. Emery, deputy game war.
den at Toledo, Or., sighted a motor boaO
on Yaqulna bay Sunday he suspected
the occupants were hunting for ducks
and,-4t is illegal to bunt ducks from a
power boat in Oregon. i
Emery; confirmed his suspicions apd '
arrested, four prominent Toledo men, ,8.
E. Newkirk, proprietor of "The Bootery,"
men's furnishing store: Joel Booth,
enshier of the Lincoln county bank ; Gate
Klmes, railway ticket; agent, and Bert
Howe, former deputy game warden, -f
Three Killed When j
Laundry Blows Up
Ottawa, Kan., Dec. 28. (I. N. S.)
Authorities today launched a rigid in-:
vest I Ration of a boiler explosion at a
laundry here which killed three per
sons and seriously injured eight others,
including seven girla 1 Ten of the vic
tims were burled under tons of debris
when the laundry collapsed following, i
the blast. (Two of the injured girls
.may die. j ; j ' M'
i ; i i -1 I
Japan May Increase
Its Force t in Korea
Trfkio. tec, 28. (U. P.) Reports
reaching Tokio today gave no prospects
of immediate peace in Korea. It was in
dicated that Japan probably will send
an additional army division to Korea
soon. ; ';f.: -" !
York,
Theatre
t'
the ear cannot distinrulsi
voice and living voice.
EDISON
Hyatt Talking
Ma chine Go.
350 Alder St
ETHERIDG
IDS
4