The OREGON STATESMAN, Salem, Oregon, Wednesday Mornfasr, November 1SV 1$2T
PAGE TEN
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PROSPECTUS IS
SALES FETOR
Assures Empire Company's
Big Sales; , Magazine
T - Helps Promotion -
(Continued from pegs 1) '
and expensive book stock. , Full-
page cixta ot the "modestly paid
officers and directors- adorned, the
openisr pages. , The screen of the
engravings vat fine ana the print
' in 'above, reproach. . J -
" Opening the : prospectus "Let
ters'! was a full-page picture of
Oliver P. Coshow, former .chief
. Justice" of tho Oregon supreme
court. The jurist's glowing let-
ter of approval' followed. Then
, came a series of letters from re-
. sponsible : eastern lumber com
panies praising I. H. Fetty for
.his -work as lumberman but
. saying little of bis experience in
the Insurance business.
X W. R. Adams. M.D., F.A.C.&4
- in a letter written November 12,
llSO,' "accepts with pleasure the
position of vice-president and
director. "Tour company should
be congratulated upon being able
to secure the serrlces of such
man as Judge Oliver P. Coshow,
" Chief . JuBtice of the Supreme
. Court ,ar your president," writes
Adams, and the letter goes well
' forward In the prospectus.
JajH. Stockman's picture ap
. pears next, followed by his letter
written November 12, 130, to
Judge 9 Coshow. "Tour being at
the bead of this Institution Is an
- absolute assurance to the stock-
- -holders that it will be run in
successful . business-like manner.
testifies Stockman. He adds: "It
. really gives me pleasure to hand
- you my subscription for stock in
, the amount of 120,000
Next in the gallery of 'ace
looms that of the sales counsellor,
Frank' J. Keller, Jr., himself,
- Keller's physiognomy was well
bulwarked by no less than ten
letters "from Utah friends who
. praised highly Keller's character
and his business ability. Harvey
H. Cluff, attorney-general for
Utah, wrote August 28, 1930, "as
an organizer and promoter of real
substantial concerns, Frank Kell
er, Jr., .has. In my Judgment, no
superiors and few equals."
M. H. Welling, secretary of
state of Utah, writes a general
letter September IS, 1930. prais
ing Keller's work in Utah and
saying companies he organized
are "each one demonstrating the
wisdom of Mr. Keller and his as
sociates." H. C. Hicks of the New
Tork Mining Exchange Issues a
letter which finds its way into the
prospectus saying he has found
LULLABIES BY EXPERTS
3
i
It isnt often that youngsters of such tender days as the four shows
'above are lulled to sleep by such world-famous voices as belong to
Beniamina Gigli, famous operatic tenor, and Rosa Ponselle, noted
soprano of the grand opera world. The two stars of the Metropolitan
ywi rnmnanv isitd Calumbna HosoitaL New York, to see for them
selves what kiddies they will aid with the benefit Metropolitan per- ,
formance in December. -The lullaby experts have their hands full
in their new role. .. -
PKSKHCI .
CASE II a
George-!.!ay'ActIon Vi!I go
TplJury;oday;i.lt.::-
Arguments are j Ifi '
Sbambrook .then comcludes
his letter: "It is with pleasure ,
that I am handing yon mjr
check for $30,000 to pay for
that amount of stock in the Em
pire Holding company. X con
sider myself very fortnnato in
having the opportunity to be
come stockholder and direc
tor in your organization and I
shall be pleased to interest my
friends in this ce-ganlxntiott."
The audit of the company's
books July SI, 1931, shows the
total cash receipt during Jan
nary, 1931, were $3659. What
became of Sham brook's check
for $20,000 is a mystery. He
does not appear in list of -notgivtag
shareholders nor
does he show as a director oty
the Empire Holding company.
Next comes a full-page picture
of one Stephen A. Hull. He has a
handsome face, heavy hair, shiny
eyes, and wears' a turndown col
lar such as effected by Judge
Coshow in his later years on the
bench.
Writing February 7, 1931, Hull
says: "I agree, Mr. retty, to sub
scribe for 120,000 worth of the
common capital stock of the Em
pire Holding company." Hull
then writes a three-page descrip
tion of his own financial and in
surance experience, revealing a
Inn m Hnn nf nrnmntlniml ft fMvltlPH
Mvn,.Keller l'a man of f CH At the time the letter was written
abilities and a man of honesty I tth ,a nmnort
and Integrity." "Cheerfully I be
speak for Mr. Keller your confi
dence and respect," writes Carl
R. Marcussen, president of the
Pacific National Life Assurance
company of Salt Lake City.
"I have found Mr. Keller to be
man of his word. He has kept
faith with me in all respects,"
says Alex E. Carr of the Inter
management business in the Ter
minal Sales building in Portland.
On the books ot the company his
subscription appears totally un
paid; save for a $5000 one-year
note and a $15,000 note due over
a five-year period.
Evidently the promoters of the
Empire Holding company were
.Ann.tH mill. v-. I UUiyilQ AAVIU.UK tuuiyuiil
m.,nJf T2Pn"niycom?an anxious to secufe anyone as dl
Hn7:w it , iT wrmen rector who directly or indirectly
September 17, 1930. Keller even i-Wo-- k.i..
.LVL81 JSK J' Thus tney approached W. C. Hag-
606
Salt . Lake, is Incorporated Into
his record. E. W. Kelly, president
of The Westerner, writes "I have
always found Mr. Keller to be a
man of his word and worthy of
trust m every respect..
Thus the first five officers and
erty of McMinnville. Hagerty for
many years was secretary-manager
of the Oregon Mutual Fire
Insurance company and for at
least five years has served as its
president.
His picture, full-page size, next
appears in the prospectus accom-
receive a $5000 salary for the
first year ef his serrlces from
February 5, 1931 to February 5,
1932. This salary was to be im
mediately credited to his stock
subscription, reducing the total
amount due to $14,000.
Hagerty'a contract provfded
that after the first year he waa to
receive $S000 annually for his
serricee as president of the Em
pire Casualty company and that at
least ' half of this sum could be
credited to his stock subscription.
In five years he could thus ac
cumulate a credit of $16,000
wfcjch would have fully paid for
his stock.
The fact that the Empire Cas
ualty company was never organ
ized, the fact that no money was
ever set aside by the Empire Hold
ing company for the use of this
ghost concern, the fact that a pol
icy waa never written, seems to
have been no deterrent to the Em
pire Holding company in its em
ploying of Hagerty as president
at a "modest and prudent salary."
He beca-se, upon the company's
books, a $5000 a year officer,
without an office, without a com
pany and without a Job!
Tomorrow The Statesman
will complete its description of
the prospectus issned by the
Empire Holding company,
showing how other prominent
men like I. H. Tan Winkle, at
torney genera, became stock
subscribers ; how President J.
8. Landers of Monmouth Nor
mal school added his name to
the list; how Sam A. Kozer,
former secretary of state and
Oregon budget director, "with
out hesitation,' on May 26,
1931, submitted an application.
"for sufficient stock to entitle
m$ to a directorate in the or
ganization. Later The States
man will probe the financial
workings of the Empire Hold
ing company, showing - the
amount of cash, bonds, mort
gages and notes received, bow
the moneys were expended and
the methods of high-pressnre
and unscrupulous sales promo
tion the organization employed.
" The ease of PoUnskl vs. Hum
mel, which, occupied a good deal
of attention -when It eame up for
trial a few months ago, will bo re
tried before Judge L.' H. McMa-
han, beginning today.
Polanskl is seeking around
$50,000 damages, fbr alleged mal
practice of HumeL ft Salem phy
slclaL. Polanskl alleged also that
he was operated upon without his
eonsent. When the ease was tried
before, the. jury returned a ver
dict tor plaintiff. . ;rw-r;
Final arguments in the damage
case of Carrie George vs. Edmund
May were heard by McMahan yes
terday afternoon r and 'the ease
will go to the jury this morning.
This. case started. yesterday morn
ing after the case of Johanna
Fliflet vs. Oregon Industrial Loan
company went to the Jury. -
The Jury found for tbo plaintiff
in sum of $1500 and interest, the
full sum she sought. The action
was to 'recover money paid for
stock in the loan company."
.Inasmuch as several similar
suits are ' pending before the
court Including those against the
American - Fidelity Investment
company, the verdict In the Fliflet
case has been watched with con
slderabla Interest.
A motion for nonsuit was over
ruled by the fudge who said it was
for the plaintiff to show that the
stock was worth lees than $1500
wnen purshased, and ft question
for the Jury to decide. The com
pany, in the motion, had con.
tended that when purchased . the
stock was worth $1110 but that
it had decreased in Talae.
ChUilCtMddy;
Heanngup In -
,.. , waa wa , - WW S,
Hearing on habeas, corpus netl-'
Hon., ot Wandft Leono . Isaak,
was before Circuit Jodge Gale 8.
Hill yesterday, but the matter was
continued. - The child is but nine
months old, and Ss held by its
grandparents, Bert - and Mary
Hackett
rne zatner claims tnev are
holding the child as debt hosUge.
but they, say they are keeping it
Because tne lather ... should not .
have it. ThftvCather says bet is com
petent to care for the child. Jndge
Hill Is holding the matter open
pending snowing el satisfactory
arrangement for the child's
heep us . ,;"
ARE
YOUR
GLASSES
MODERN?
Why be satisfied
with anythino; but
the newest and
best in eye wear?,
Let us prescribe ' -.
glasses that not
only correct your
vision but improve
your appearance.
m
J fop i sgjfi i ;
ihT- A i ' '!v"l,ic!? Puled by a letter written Febru-
stationery of his company. . Hag-
erty's letter, In fuU, follows:
Uon of . the elaborately prepared
prospectus on the Empire Hold
tag company. The prospective
stock purchaser saw the ehlef jus
tice of tne Oregon supreme court,
carnation boutonnlere. leadlnr th
list with a complete and unquali
fied endorsement of the com
pany's operations. There follow
ed the story of I. H. Petty, hand
some former ..resident ot Savan
ash, Ga., and glowing testimon
bus ot nis ability as a lumber
man. Next loomed the ulctnra
and strong letter of Dr. Adams ot
Meaiord. fellow of the American
eouege of surgeons. Jay H. Stock
t man, general counsel, former as
aistant in the district attorney's
office : in Portland, came net
with his letter of stock subscrip
i Uon and support. Completing the
quintet, whose pictures The
Statesman today publishes, was
Frank J. Keller, Jr., general
saies counsellor, master mind,
. ehlef executive, and instigator of
the Empire . Holding company
wbkb in seven, short months
, ewept up $175,000 in cash and
, securities from 8 50, stockholders
throughout the state of Oregon.
When the company was insneetMi
July 31, 1981, by the state cor
poration commissioner, its cash
assets were $55, its bills payable
, were t ssvv.
With the quintet of leaders in
the Empire Holdinr eomnanv An.
ly displayed, the prospectus
Munched into accounts of the
, smaller men In the organization.
f1!,t "me A- E- Otis of the
Mathls-OtU Men's wear store In
Portland. "After a lenrth
thorough InTesUgatlon of the pos-
Miptuues or an investment In the
Empire Holdinc eoreoratlon i am
glad to hand you herewith my ap-
. pucauon ior $20,000 for stock,"
writes Otis. .The letter of oti
was accompanied In the prospee-
iu ny bos ruu-pago pictures. Odd
ly enough ; in the list ef assets
hewn by the Empire Holding
company July 31. 1931. no nnt.
from Otis appear or is there any
record that he paid for his stock
. la cash. Whether he canceUed his
subscription made In his letter of
-anuary ZU 1931. is not known.
McMinnville. Oregon,
February 5, 1031.
Mr. I. H. Fetty, Vice-Pres. A
Gen. Mgr.
Empire Holding Corporation,
Portland, Oregon.
Dear Mr. Fetty:
Through your official family
and other sources, I have con
cluded my investigation of
your company.
Having been in the insur
ance business for more than 20
years, I feel I am qualified to .
predict that your company will
meet wltn great success, as
there is a field for all the lines
of insurance in which yon pro
pose to engage.
In conjunction with my asso
ciates, we have contemplated
the organization of casualty
company to work with our Fire
Insurance agencies, but Instead
of carrying out these plans I
have decided to accent a Direc
torship and the Presidency of
your uasuany company.
-We are the pioneer Mutual
Fire Insurance company of the
Pacific Coast, with over S10O,
000,000 of fire insurance in
force; are doing1 business in
Washington, Oregon, Califor
nia, Idaho and Utah; have over
BOO agencies established : In
uese states and an of our
agents that I have talked with
have expressed their willingness
to act for your Casualty com
pany s soon as yon are quali
fied to ao business. By having
me cooperation of an our
agents and agencies in these
various states, yon will get re
sults immediately. f
In subscribing for the neces
sary stock to qualify me as m
Director under your 'plan- of
. organization, yon may rest as
sured you, will have my cooper
ation to the fullest extent tn
both1 the matter of organisation
and the conduct of the casualty
business. . , ,
-..... ,1 Sincerely yours, -'
(Signed) . W. O. Hagerty.
Several Portland
Residents Callers
In Eldriedge Area
ELDRIEDQE. Nor. 17 Sun
day guests at the W. R. Palmer
home were Miss Ruth Palmer
and Mr. and Mrs. Claud Palmer
f Portland and W. R. Palmer of
Linnton.
Mr. and Mrs. Elton Shaw of
Portland called Sunday at the
home of Mr. and Mrs. George
Brown.
Mr. and Mrs. Marvin Peterson
ot lke Lablsh are receiving con
gratulations upon the . arrival of
a boy November C. Mrs. Peterson
is a daughter ot Mr. and Mrs. W.
J. Wargnler of this place.
Mr. and Mrs. B. J. Miller were !
hosts at dinner Sunday for Mr.
and Mrs. John Imlah of Salem.
Garden Club Makes
Profit of $9 From
Shrub Flower Sale
- -.
WOODBURN. Nor. 17 A orof-
It amounting to $9 was realised
by the shrub and flower sale, giv
en by the Woodburn Garden elub
in the Ogle building Saturday. A
continual stream of people went
; tnrough the building. .
i Along with the sale an Interest
ing flower show was held. Chrys-
antnemums, dahlias, roses, Christ
mas roses, and other flowers were
on display. "
J. J. Hall was in charge of gen
eral arrangements tor tbo , sale.
Mrs. Richard Yates and Mrs. JL F.
iButterfield were in char re ot the
flower show, and Mrs. Walter
Schooler and Miss Ina Boaney at
tended to tne arrangement! for
the sale. - " - .;
Response as Usual
To Red Cross 'Call,
Reports D. McGlain
EHELBURN, Nov. 17 Ben
Denny and Bob Culver of Shel
burn spent Saturday in Salem on
business.
Mr. , Boyers and -family ot
Washington'' are now located on
the .Fred Grimes ranch south ot
Shelbunu i
K. Bnambrook of Rosebnrsr I scribed fnt th tu.v m,..i
appears next with w. .t I Mi
-MUOI , II. 1111. Q ? RnaaKnw 1 -C-mnl tT.UI - '
"I am vr li ---V.t-VJ :X I -JT. -i"" company pro-; Blieibunu i
Judrs c2oalt'L5itl1 1 !n? tat Hagerty should be Dillon McLain ls'canvassing the
sr:.5?V Coshow,". writes president of the Empire Casuilty ghelbum disfrSt"itw interest
vusju iri (til sr vmw n a M . - s . - - swre. . s - - .
eessfni i 7TO Tl-y17' Ufle. Lre5Iaf 01 : the annual Red Cross roll calk
fzatinn mA v 5 . WM" company rreaj mat Hagerty nev- Mr. McLain reports that people
you tu0 ;rPSe" 122a 8tock- rPondbou" uiaT dpUe
atandhfr "racting the out- his $30,000 subscripUon $1000 the depression.
late thun T-"wn A I i. IT -.-.wv w 09 ar. j. u. weiis, teacner .01
nen yOU.: Willr not ml n11wl a hftnna fn, M . . .
wrong. Shaabrook. declaresu. ; lot the contract. - Then ho was to I Thahksglvlnr urogram.
Golden Arrow Jubilee
SALE of
Suits and Overcoats
.4
vou. I
Hevr
tov
A6 of Out
I Reduced
Pair
1
elA9b
$4
an i,Kj a m a
OUT "-oa'.
ScT to py zZm& in
f r .iP" "" "
Don-1 Forget the
: : -: : Keho!
27SN.'IibeHy
Phone 8774
Salem. Ore.
Nov. 19th 1 20th
Bleached Mut 1 i n
Fine weave, soft
finish, tree from 4
starch. - Moder- f
ately priced.' It : ,
yards ........
Beverly Prints
superb
Ward's
All Silk
Regular
yd. Beau
color combina
tions. S for.
Fabric C"1
mbina- C J
lor. ...
Cotton Bedspreads
r Inkle Bed- 1
ireads. White a I
lth Gold 1) I I
rlpes. 80x105. f S
stripes
59c each.
Make your
frocks for less.
Fine Quality ray
on dress mater
ial. 36" wide. S
yds
Printed Pongee
Imported Japa
nese Pongee In
charming print
combin a t i o n s. V
Fine quality. S
yds
LADIES'
HERE IS YOUR CHANCE
- AD of Our 79c
Reduced to
2 for OH.
Children's Vests
Ladies' Slips
Ladles' silk
e r e p slips.
Flesh color only.
Fine lace trim.
SIse 14 to, 42..
Pinnacle Prints
A specialty with
Ward
attractive
frocks
dren
yds.
Cli iffon Hose
eclalty with
d's. Make C""H
ictlve house fi I
cs and chll- V J I
s clothes. S C J
pure
iffon I :
45 gauge
silk eh
hose. Attractive
fall shades,
ular $1.33 value.
S i lk H
Ton who want
hose without
seams in the ff
feet, buy this V
regjular 49c
lUty. g
0
Screwd river
Here is a Dollar
Day 8 p e e 1 a 1
worth buying.
ratchet
driver p :
low. ....
Electric Plate
Just the
tor a q
lunch. Small
handy,
heat. .
thing
11 and 0 I I
Single
Don't fall to no
tice this. Rag
rugs. Slxe 18"
it". Buy them
at 25c ea. or
Blue ti e eked
n a mjo 1 oval
roasters or hea
vy Quality Alum
inum. Round
type
Cast aluminum
fry pans. 'Medi
um size. Black
wood handles.. -
Steel
Wrench'
Genuine
L a keslde
Stlllson pipe
wrench. 18
in. length. A
big bargain.
l
Thursday & Friday
SV. Wool S o c k s
Y"T Buy your wool .
J VJVn socks on Dollar a j j
SOCKS and brown. Size - f
. 10 to 11. 4 pr.
6 pr. $1
Mens fancy BoyV Overalls
knit rayoa . ,
socks. Good Blue ienlm. Bib
Quality. 8Ise style. Heavy I
10 to 11. weight. Slse (to M JL
1C years. 2 for C J
1 Ladies' Pajamas
Ul 'al I Warm, flannel- r-q I C
I. niw I ette pajamas for a ll I si
II I winter. Colored
I TIES I borders and
1 I trimmings.
ijLadie.'Lin.erie R-yon Check
wuu 4 1 n -v
ties. Faney Best Quality
four in hands, non-run rayon. A S I
A regular 79c Bloomers, pan- Jj I I
Talue. ties A step-ins. " J
Lace applique
trim. 3 tor. . . n
Flannel
Shirts C h 1 1 d's Bloomers
$1,00 Sateen bloomers
Men's and tor children. The "I I
boys' wool ly thing for J J I
flannel shirts Kshool. Durable, UJ
in Grey and tor
&nas:L val
ues to 11.79.
Union Suits
$1.00
Men's winter
weight Union
-suits. Ribbed
knit. Lightly
fleeced. Grey.
Slse 3 to 4.
Ill Suede I children's non-
III Blazers I run rayon vests. r I Day 8 p e e 1 a 1
II nv I p"tel tt- O I I " I worth ""Tin. J I
II SI. 00 I With or without V J L I ratchet serewQ I
IL nw Snsds-lbttUt ll0Bl- " I driver prleedgLj,
1 -" . M M am
III uUi ivr.
Tan. Some
with leather-,
ette trim.
SUe I to If
years. $1.79
value.
Tthar
$1.00
Genuine black
leather caps.
Wool lined
. ear flaps. Sis
' v es C to
7.. A cold
weather ne
cessity. Dress Socks
16 pr.$l
III Men's cotton I I F v t n r P
I II Amu mnrVu fn I
grey, tan or
black. Slse It
to 11. Dol
I lar Day Spe
ll eiaii 1 qui
s
II A aa 1 1 I S for
i--;w..w urn sm
vyonr flannel IlJJ
'pajamaa mow. 'Jffff
Fancy atripei. pLJlJjfU
mi
mm
Sturdy.
Chair
$1.00
Smooth finish
hardwood.
Ready to
paint. A $1.49
value.
Children's
Dresses
$1.00
A limited
Quantity o f
our better
children 'a
dresses re
iuced. 91.98
values.
Mattress
Covers
$1.00
Unble ached
muslin, full
size. All tap
e d edges.
Rubber but
tons. Net Panels
Filet net pan
els. Ecru. 3
to 40 Inches
wide. 2 yds.
long. Some
fringed.
Smokers
-2 for $1
Walnut fin
ish. 24 In.
high. Hard
wood through
out. An excel
lent Xnti
gift.
Rnnrite
2L1
Good quality
Western Oil.
Reg. 51c gal.
For I Day
2 sL
31.00. Bring
container.
Ladies O
Hats
, $1.00
Of course It
is time ., tor
you to have a
new hat,' and
what is nicer
than one et
these felts.
Men's Pajamas
Genuine Amoakeag pajant
as. A real bargain I
Men! Bay
your flannel
.'pajamas now.
Fancy stripes.
AH sixes."
Work Shirts
A shirt for the school boy.
Buy now!
Blue, eham
brayi work
shirts for the
boy.. Sixes, t:
,10 if years.
-89e each;
Curtain : Material
Heavy Rayon curtain ma
terial. A f Day speciaL
$1.00
2 yds. -Looking
for
Bargains?
. Dout pass 'up
this one. Ecru
Beige, li
ft -48" V la.
widths. ' f
Have you heard aboutit7iThe Salem
its Turkey Keno Party November 21
in ue ougn ineaire ouuain . r
fillih tnmfa vaii sa
7 Pi M. to 12 Pi M.
QSSmmmrt Worn S (l
Z75 Ubertj
" WW - r v T, " " -. "