The OREGON STATESMAN, Salem, Oregon, Wednesday Mornfasr, November 1SV 1$2T PAGE TEN A i .1? j H u I 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, " " -. "