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THE OREGON' STATESMAN, SALEM, OREGON
WEDNESDAY MORNING; AUGUST 20, 1924
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THE STATESMAN'S GREAT SEASHORE
l TRIP CONTEST
rJT' StenHing of Candidate.
These standings represent the Totes polled In the ballot box f of
'the candidates up to noon, Tuesday, August 19: .
Allen, Bernice, 290 South Twenty-first street. . . . .;. ......
Alky. Mrs. T. M., 198 North Twenty-first . , . ... . '. 7.
Amort. Rose, State Hospital. . . .'. AJ.. .
Amsler, Elva, 1043 South High street
Anderson, Hazel, route 8
A.ufranc, Yvonne, 1086 Center
Barlow, Miss Vernice, 1730 Falrmount .
Barnard, OliTe. 1875 Lee
- Barnes, Ruth, 325 North Capitol ......
Bocks, Mrs.; 298 North Twenty-third . .
Backe, Mrs. Velma, route 1 ..........
Beck, Lucy, 422 South High . . . ..
Beckett, Geniere, 2525 Hazel
Beckett, Gaynell, route 2, Salem ......
Benner, Florence, 525 North Capitol ...
Bertelson, Esther, 600 Mission . .....
Best, Mrs. G. L... 1864 North Liberty . .
Brock, Dorothy, 854 North Commercial
, Bromway, Myrtle, 555 Marion
Bocke, Mrs., 298 North Twenty-third . .
Brown, Katherine, Oregon State library
Brown, Bernice, Cottage street
Brown, Mrs. C. L., 1717 North Liberty. .
ouuweu, kus iu., xtuji ua tomuvrcuu ........
, . Brassfield, Helen, Fairgrounds road-.......... i-.
Breithaupt. Miss Irene, 733 Ferry
Buckets, Miss, 298 North Twenty-third
' Buss, Miss JfS92 South Twelfth . I..:,
Canby, Dorothy, 2780 Brooks avenue1.
Cannoy, Fetha, route 2 ...... ... . .
Casperson, Miss. Salem hospital . . . .
I Cleary, Mrs. James, North Seventeenth .......
: Connar, Anna, State hospital ................
Crowder, Dakota, 116 Marion street
Currie, Mabel. South Commercial; corner Leslie
Dancer, Dorothy, route 7 :.
Darling, Grace, route 8, Salem
i Davies, Miss Mary, Turner, Ore. . ; . . . . ... . . . .
h Drager, Ruby, 1138 North Fifth Salem ....
Edwards, Mrs. C. A., 298 North Fifteenth ...
- rrfeldty Miss - Verna, 799 North Front ...............
Erion, Bernice, Oregon theater .................... .
jFanghl, Jessie., 151,0 Bellevua . ....... . . .. . . . . .
Farmer, Alma, 835 "North Commercial ........ .... .
Fiadier. Edith, 225 North Twentieth
f Findfey, Pauline.. 225 North Twentieth. .'.
'. Flint Blanche, 178 West Wilson .
Freeman, Mrs." Grace, Feeble Minded Institution .....
X Galloway, Blanche. Salem Auto Co.
i Gat-dner, Mrs. Hannah; Hotel Argo
f Geer, Leona, 475 North Commercial
t. Gerlinger, Madeline, Dallas, Ore. . .
,; George. Hazel, 360 State street ...
. Good, Mrs. Daisy, 1135 Waller . . . .
: Griffith, Ruth, State hospital ....
.: Hackett, Blanche, route 1 ..... . . . .
t.-i Hall. Ruth, 565 North Cottage '. , . . ... ................
' Halvorsen, Ruth, corner. South Church and Cross
-1'. Hansen, Roberta, 180 East Miller .
y,m m
Harlan: Zelda, 225 Superior . . .
Hewitt, Theima, 2230 North Fourth
Hirons. Mrs. CL W.. 2417 Trade......
Horner. Lucille. 245 Division ...... -
Hickman. Fleda, 1 block South Hoyt, ml. S. Commercial
Hockett, Lois, 1603 North Commercial
Hummell, Mrs., 1818 North Capitol . . . . r. ; . .'
Huntington, La Velle, Toncalla, Oregon
Jaqnet, Alice, Silverton , .1 ........ .
Jasper, Clara, North Sixteenth . . . .
Johnston Mrs. G. F.. 695 South Twentieth
i' Johnson,' Theima, 144 West Miller ...................
.' Kate. Mrs. Andy, Bligh Theatre . , . .
? Keebler. Laura, 653 Shipping . , ; . .
Kirk. Uinta. Chemawa, Ore. .......
.' Kunkle, Anna. Bligh theater
X Lainson, Mrs. Stanley, 1460 State street ........
u- uiibvu, iicue, -niuui vj;-, .......... ........
"? Leavenworth. Martha. South Thirteenth ................
Looney, Marjorie, 1795 South. Commercial ..............
Lucas, Winnifred, 1042 Saginaw. ................... . .
Macy, Miss Mabel, 810 South Fourteenth
Maden, Miss Grace ..................................
Marnach, Pauline, South High w
Mathews, Jennie, 1930 West Nob.Hill ..... i. ......
McCallum, Mrs. Hazel i ,
t McClary, Jane, 1325 South Commercial ...... . . ........
z: McElroy, Marn, Certified market, Church street
"McKelroy, Mary, Valley Motor company
, Miller, Miss Hazel, Turner, Ore. i
Miller, Mrs. H Detroit, Ore,
t Nash, . Retha, State Tax commission
Needham, Mrs. C. N., 558. State . . . . ... . . ...............
Newcombe, Beatrice Crawford, route 2, box 179 ..........
f - Newgent, Mrs. J. R., 265 South Eighteenth .............
Page, Virginia route ,1 . -
Papenfus, Alice, 768 South Thirteenth .......... . .
" Patterson, Pauline, 495 South .Winter,
1 Paumalo, Nellie, 818 North Commercial
Peetz, Hazel, Turner, Ore. ......... J . . . . . ........
PhUlips, Dorothy. 482 Jerris
Plank. Heloise, 2365 South Commercial
- Pro, Margaret, 2240 North Liberty..; .
g Reid, Rita, 722 State V. ........ A ... j .
Riches, Miss Lucille, Turner, Ore, p ..... .
.Rieley, May, SUte hospital ; . . ... . . . . ..... ...
t Ritchie, Alene, 2595 North Fourth . . I . .
Ritchie.-AVinnif red, 2595 , North Fourth
f:Roberte-Benlah, 1055 South Thirteenth ........
i ' Rhodes, CKsttierine, State Deaf school
'Rogersdale, Mrs., Salem hospital ..
r-f Ro8sicte-,ilxs.fc 1944 North CapitoJ .
Sande. Helen, 1965 Trade
" Savage, Katherine. 6? 4 Ferry ....... .
i - Schlagel; May, 2289 North Liberty . . . . -
J Schwab. Miss Nellie, 633 North Sixteenth
i Selig. Miss Helen, 595 North Fourteenth
f Seymour, Josephine, 1425 North Winter
5 Shannon, Virginia, 1186 South Sixteenth
Shaw, Marion, 1565 South Commercial .
; Shipp. Jean, 406 Hoyt street . . .
1 Snyder, Violet, 675 South Twelfth
' Spusser, Miss Emily, 116 Marlon .
Starr. Ruby, route 9
SUrr, Routh, route 9 ....... ............ ? ......
i Summerville, Mrs, Bob, Bligh theater ..............
" Taylor, Mrs. AiDerc,, ias wauuou
Thompson, Mrs. W. G.. 2640 Lee .
; Turner, Mrs., SUte nospitai .............
Vincent, Juanlta. 960 Broadway ......... 1 .
Waldespel, Leulia, 1176 Norm Tweinn
i Ward, Mrs. M. L.. 1487 Broadway; ..... -V ... v ......
Weiser, Frances, 322 State . ... ........ i
r Williams, Miss-Dolores, 253 North Thirteenth
1 Williams, Gertrude, 01 North Twenty-fifth ............
Winkeiman Helen, Salem .... I . .V. .' ....... .
Woods, Mrs. Rose, Royal Cafeteria ...... . . . i ....... .
Zamker, Lena, State-hospital .............. . ". ........
Zen die, Cornelia, Water street . i .
Zlnzer, Marion, route 5 .v. . ...... .
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150
100
490
100
, 760
230
125
100
100
890
f100
100
100
' 100
255
100
860
100
100
890
400
100
630
460
1.035
1.020
100
100
160
100
2,380
100
280
805
100
240
310
130
110
410
100
590
110
180
100
1510
100
.100
450
210
140
100
610
100
140
r- 10W
100
1.380
100
100
240
935
"100
100
101
1,430
400
321
635
625
10l
215
uoo
10Q
240
40
100
100
100
101
4,085
100
100
100
106
110
180
370
1,970
100
2,070
.100
100
390
120
620
1120
100
1,420
100
100
890
105
110
100
215
140
4,920
100
100
.440
7 480
100
- 140
100
100
100
- 100
100
130
5,040
120
140
100
260
670
89(
100
100
2,035
995
100
100
100
135
100
100
ioo
285
PORTLAND BANK IS
HELD RESPONSIBLE TO
KING INVESTIGATORS
(Continued from page 1) 4
how thousands of Innocent people
had savings. of a lifetime taken
from them and were left without
hope of recovery.
King's Food Products. Company
(Oregon Corporation)
This company was incorporated
as the - Farm Producta company
on March 10, 1915, with a capital
stock of 320,000., On October 5,
1915. its name was changed to the
Drl-Fresh Co., and on April . 17,
1916, its capital stock was in
creased to $100,000. On October
-I6rt01. its Mmeirai changed to
the Wittenberg-King Co., and on
fsrt. 26. 1917, Its capital stock
June 7, 1919, Its name was again
changed to the King's Food Pro
ducts company, and Its capital
stock was increased to 3500,000,
of .which $200,000 was common
and $300,000 preferred stock.-
The company up to thia time
appears to have been controlled
by Mrs. Mary Alice Wittenberg
the active management being in
the hands of her sons. . The prop
erties of the company consisted of
plants at The Dalles and Salem.
which were . controlled ; and oper-
ated through subsidiary corpora
tions known, as The Dalles King's
Products company and the Salem
King's Products company. The
company had become deeply in-
I yolved andj funds ..for P??.t,ion
were, secured only through- per
sonal guarantee of Mrs.. Witten-
worse until it became necessary
for the Ladd & Tilton bank of
Portland,1 the principal creditor
and holder of stock of the com
pany as collateral, to take over
the direction of the company's af
fairs with a view . of liquidation
or reorganization. In May, 1920,
a syndicate agreement was entered
into by the principal creditors in
an attempt , to secure additional
capital through the sale of stock
to those interested In seeing the
plants maintained and operated
at Salem and The Dalles. This
Undertaking, however, did. not
prove successful.
' At a stockholders' meeting, held
on July 16, 1920, S. L. Eddy, Cam
eron Squires. E. A. Clark, G. F,
Judd and Mason Wittenberg were
chosen directors of the new com
pany. E, A. Clark was elected
president of the board of direc
tors and thereby became the ac
tive manager of the company's
affairs. At this meeting steps
were taken towards wiping out
the two subsidiary corporations, !
through which The Dalles and Sa
lem plants were controlled and
operated, and have this -company
take over their assets and assume
their liabilities. A statement of
the assets and liabilities of The
Dalles and Salem companies was
submitted and showed the follow
ing:
Assets
The Dalles King's
Products Co 3 619,418.86;
Salem King's
Products Co. . . . . 668,125.25
$1,287,537.64
Liabilities
The Dalles King's
Products Co.. . . . . .$336,812.36
Salem King's
Products Co....... '412,025.25
$748,837.G1
An analysis of the items com
posing these assets disclose that
a large part were I paper assets
only, and that the total value
claimed was far in excess of actual
value. . ' - ! H'
It appears that , the Pacific
Evaporator company, a small cor
poration, was the owner of patents
covering certain processes used by
the King company.
These rights were held through
an agreement entered into by. and
between the King company and
the Evaporator, company. This
agreement was cancelled by mu
tual consent on July 16, 1920, but
no sooner had it been . cancelled
than the King company was noti
fied by F. N. Clark, brother of &
A. Clark, that he waa the exclu
sive licensee of the Pacific Evap
orator company's patents and, as
these rights were needed by J the
King company, offered to assign
them to said company for $750,000
taking common stock of the com
pany in payment. This appears
to have been accepted. T :
On1 July 28, 1920, the capital
stock of the company was increas
ed to $3,000,000, of which $1,-
500,000 was preferred and $1,-
500,000 was common, $750,000 ;ot
this common stock appears to have
been issued to F. N. Clark for the
above patent; rights. On August
6. 1920, a permit was secured
from the corporation commission
er to sell the $1,500,000 preferred
and remaining $750,000 common
stock. The stock held by Clark
was later . surrendered and can
celled. ( j ;
On August 12, 1920, certain of
the creditors made a proposal to
accept preferred stock in payment
of obligations held by them ; and;
an underwriter's agreement was
entered into with this end in view.
On August 14. 1920. preferred
stock was issued to the follow
ing parties: . , j
, f .i. Shares
F. N. Clark - .v. . . . .2357
E. A. Clark 2357
Mary A. Wittenberg ...... 550
Mason Wittenberg .V.Vi . . ! 7S0
Ralph S. Wittenberg ...... 750
Stettler Mfg. Co. ; 430
F. A. Douty j 260
American Lifeograph Co. . . 1 72
It has developed that the great
er part of the 'indebtedness cover
ed by the above subscriptions was
held by the Ladd & Tilton bank:
At a stockholders' meeting
held August 16, 1920, Cameron
Squires, S. L. Eddy, P. W. Cook-
ingham, E. A. Clark, F. N. Clark,
P. A. Douty, Geo. F. Judd, C. C.
Cook and Ralph Wittenberg were
elected directors of the company
In the meantime (August 11,
1920) steps were taken to organ
ize the King's Food Products Com
pany of; Delaware a $10,000,000
corporation and its organization
was completed and the first meet
ing of stockholders! held on Sep
tember 7, 1920, when the follow
ing directors were elected: E.' A.
Clark, S, L. Eddy, G. F. Judd. F.
N. Clark, F. A. Douty, G. F. Mar
tin, A. L. Dundas and C. C. Cook,
Th board of directors elected E
A. Clark president and general
manager.
V The stock of the Delaware com
pany was divided into preferred
with a par value of $100 and Class
A and Class B common with- no
par value.
)- At meetings held, September 7th
and 14th, 1920. propositions to
sell all of the assets' of the Ore
gon company were Considered and
accepted. An agreement was also
entered into with the Dundas-Mar
tin company for the sale of the
preferred and Class A common
stock of the company. Under this
agreement the preferred stock was
to be sold for $100 per share and
fne uass. a stock for 50 per
share, or a total of $150 per set
The stock was to fee sold in sets
and out of the selling price of
$150 per set $30 was to be re
tained by the Dundas-Martin com
panyas commission the remaind
er, $120 per set, to be paid to the
Delaware company. The Class B
stock it appears was to be given
to the Dundas-Martin company as
a bonus.
In the proposal,, f referred to
above, whereby -the assets of the
Oregon company were to be sold
to the Delaware company, it was
claimed that the assets of the Ore
gon company were $1,361,985.34
and thit the debts were only
$491,38j7.34, Itjjms developed
that the assets werereatly over
valued and that subterfuges were
resorted1 to cover up the actual in
debtedness of the company, which
on August 14, 1920, amounted to
approximately $1;367.000. Had
it been stated that the assets were
$491,000 and the liabilities $1,-
20
SALEM
Wednesday, August
Grand Stand Chair, Seats on Sale
at Patton's Book Store.
Important Notice
7526
TH SHOW THAT? DtFTEBENT
i i
GREAT RING
nrRnnr7
WILD ANIMAL
OvtlN& TO THE .
unCs kjk i vrvourrr
ncccssaf9!! ron.
THE fra.CSE.NTVXTlON
, j or THE
MASSIVE
5PE1CTAC
pi
THE PTRTOJiMANCE.
POOM PT lV
NO
STREET PARADE
WILL B CJWEW
THIS" YEAR;.
COMEDY
NEWS
mmm
Here's a "different" love
story laid in the pleasure
ground of the rich! -
OREGON PfeB
I! - fl
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Oregon
Music
361,000 It would have been more
in accord with the facts. -
The above proposal of sale pro
vided that' Mrs. Wittenberg
should be paid $330,000 for her
interest, which . consisted of 2050
shares-of preferred and 3674
shares of common stock of - the
Oregon company,. 200 shares, of
the Pacific Evaporator company
and a $40,000 note of the latter
company, and that she should be
paid; by delivery to her of 2750
sets of shares ( preferred and Class
A ) ' of the stock of the Delaware
company, figured at $120 per set,
which allowed for the selling com
mission ; of Dundas-Martin com
pany, which had contracted to sell
the stock so conveyed to her.
It appears that the only thing
taken over from Mrs. Wittenberg
which had value was the 2050
shares of preferred stock in the
Oregon company. This stock had
value by reason of the arrange
ment,,, between the Oregon com
pany and the Delaware company
which provided for the exchange
of stock and the. sale of the Dela
ware company's stock at a price
which would Insure par for the
preferred, stock of the Oregon
company,. The $330,000, which
appeared to go to Mrs. Wittenberg,
applied to the payment of obliga
tions of the Oregon company,
most of . which had been assumed
by her.
The remaining Interests in the
Oregon company were taken over
through the exchange of stock in
the Delaware company at $120
per set for the preferred stock of
the Oregon company at par.
T To acquire the Oregon com
pany's properties, stock of the
Delaware company was issued as
follows: --(j". ' : -! u-
Preferred. .7,313 $ 731,333.00
Class A - . t : :
Common. ..7,313 ! 365,667.00
! $1,097,000.00
Less selling cost . . . .$877,600.00
This stock when received by the
stockholders of the Oregon com
pany, who were practically all
creditors' or representatives of
creditors of said -company, was
turned over to the Dundas-Martin
company and sold to the public for
$1,097,000. The selling agents
retained $219,400 as commissions
and turned over the balance,
$877,600, to the creditors of the
Oregon company.. I- j
; In addition to the above amount
paid to the creditors of the Ore
gon company, the Delaware com
pany assumed $491400, or the re
maining debts of the Oregon com
pany. To realize cash sufficient
to meet, this assumed indebted
ness it was necessary: to sell 4095
sets of share of stock of the Del
aware company to the public. The
amount the agents retained $122,
850 and turned over the balance
$491,400 to the Delaware
company.
In order, therefore, to secure
the cash to liquidate the total'in
debtedness of the Oregon com
pany - there was taken from the
public $1,711,250 to be distribut
ed as follow: '
Sales commissions .. $ 342,250.00
Old debts of Oregon
4 company paid .... . 877,600.00
Assumed debts of Ore
gon company to be
paid .... .. . ...
491,400.00
$1,711,250.00
When on .September' 14, 1920,
the proposal to sell Its business
was made by the Oregon company
to the Delaware company, its -as
sets were given as $1,362,000 and
its debts,, which were to be assum
ed, as $491,400. An examination
of the schedule of items making
up the amount claimed as the
value of : its assets; will convince
any fair-minded person that mary
of the items were mere moonshine
and had no place In a list of as
sets. We are convinced that this
petup of assets was made to pro
vide an offset for the debU of the
Oregon company, which: appear to
have been slightly in excess of this
figure, and to justify ithe issuance
of preferred stock in the Oregon
j (Continued on page 8.)
A New
Telephone Directory
For Salem
WiirGo to Press September 1
Please arrange for- any. change you may de
sire in present listings or advertising as soon as ,
, possible and not later than September 1st
I M
The Pacific Telephone & Telegraph
Company
LAST TIMES TODAY
"The Dangerous Coward"
Starring
FRED THOMSON
Starting Tomorrow
(Thursday)
0
iregoini oir
THE MIGHTY tale of how
the pioneers came to Ore
gon will thrill you as no other
picture has ever done
Its history your history our
history the picture that every
man. woman and child should
see who honors the fighting
pioneers that founded this great
state. Oregons own picture!
Tlhv
James Cruze's Immortal Picturization of Emerson Hough's
i i. Historical Romance '
'V,
THEATRE
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