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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Nov. 19, 1931)
PAGE TEN - The OREGON STATESMAN, Salem; Oregbn, Thursday aiorfag. NoVmbe'r isC 1931 -.'' ' . .... - - . ...r -jv h 'ii : f DIRECTORS Prominent men are Quoted In Empire's Praise; Letters Printed ; - (ConUnu4 from pace 1) tness which win be most gratify tag." . ! Kozer concluded his glowing testimonial letter as follows: A further appeal to me Is the fact that there are no bo 1U ' stocks ST other induce menU fsvorinK one aet of stock- ' holders to the detriment of other-classes ef stockholders. All : of the stockholders in the Em pire Holding corporation share equally in the profits of the various insurance companies of which the Empire Holding cor poration holds the stock. I am glad to be associated with the " organization and to hare had the opportunity, with the back ground which I hare of the in surance business of .the state, to be Identified with it, and feel confident that with a personnel " possessed of the .integrity of those who are associated with tt and the fact that it will hare able underwriters for the var ious classes of business which will be written by it, that it cannot be otherwise than suc cessful and return to those who hare confidence In its personnel and business ability, substan tial dividends upon their invest ments therein." Koier's subscription to $20, 000 worth of Empire Holding company stock, an amount which entitled him to a-directorate, was mads Jane 2, 1931, according to tho books of the company. Ko ser. unlike Judge Coshow, did not pay $2000 down in cash but gave his CO-day note for $500 as first payment and contracted notes for the balance of $19,500 on his stock to be paid over a five year period.' Whether Koxer ever paid the first $500 note is not revealed In records now in the hands of tha ;sta.te corporation commis sioner. i The loose-leaf prospectuses used hr Oregon's" vast holding com pany grew as the tide of Empire wept throughout the state. In the elaborately printed and en graved cards which salesmen and directors carried and used liber ally on "Investors" there was em blazoned the company's signifi cant insignia; a drawing revealing a staunch pioneer surveying his vast domain and lettered in an are over tWTrioneer's head were the significant words: "Serving an Empire." VanWinkle Is One Of Finn's Investors I ; The Empire Holding corpora tion soon had added several prom inent Marion county stockholders to its rolls and their letters, all written on significant stationery, to their selling kits. ! April 1. 1921. I. H. VanWinkle, attorney-general, Joinel the ranks, writing on the letterhead of the stat ' of Oregon, legal depart- ' meat: "I am highly in accord , with the plans for the organlza tlon as outlined by your Mr. Tlournoy, of a number of insur ance companies, which I am con vlnced will find a valuable field of service in Oregon and the en ure Pacific coast. I am willing to assist your company In any way possible and am pleased to be come a subscriber for a block of your capital stock." The "block" .referred to was evidently a sub scription for $75, payable in notes due within three years after April A"1 . U. G, Boyer. county clerk here, Your Heating Problem is Easily Solved by Using the :ID) . This beautiful heater wall add comfort to your home. It is econ omical in operation and constructed along scientific heat produc- : ing lines. - Years of service are built into it. The cast body is ex ceptionally heavy and double constructed. And the price is just half as much as it was five years ago ... Now on We have other patterns as low as $18.50. heater in trade. write April 7. 1921, on official county stationery! "I am satis fied after reading your prospect us and having the plan ef your corporation explained to me by your own Judge O. P. Coshow: that there Is a field for a holding corporation in Oregon, such as yours, for writing life, casualty, fire and title Insurance, and a mortgage company." , County Clerk Boyer's letter continues: I have known your Judge Coshow for a number of years, and feel that a man of his reputation is well quali fied to hjf ad your company, and by this act I am convinced of his intentions to make the Em pire Holding corporation one of the greatest institutions of its kind in Oregon. Basing my judgment upon the statements above made, I am handing you my subscription for stock, be ing satisfied that this will be a profitable investment." Mr. Boyer's subscription does not appear in the audit of July SI, 1931, his stock evidently hav ing been paid for prior to that time. Colonel E. Hofer, long-time res ident of Salem, and now living in Portland where he heads tho firm publish ing The, Manufacturer, writes Judge Coshow, president of the company, April 39, 1931: "Dear Judge Coshow: Enclosed is my check for stock certificate sold to me by your Miss Ethel Gordon In the Empire Holding corporation. My life-work has been to build for the betterment of the state of Oregon. I think it is highly commendable that Oregon men should develop such an institution as the Empire Hold ing corporation. You may expect my hearty, cooperation at all times in the building of this or ganization." The colonel does not indicate the amount of his sub scription and the state's audit July 31, 1931, does not reveal it. .Normal School's President Approves President J. ;. Landers of the Oregon Normal School at Mon mouth writes July 2, 1931, that "I believe the organization Wis a unique place in the financial in tercets of the state. It gives every promise of great growth and extended influence." The president concludes his letter by the statement: I shall be glad to commend the interests and the stock of the corporation to my friends, whenever opportunity pre sents." Lander's subscription on the books of the company is dated June 1 1931, $500 worth of stock being purchased. He gave $125 note for 90 days in pay ment and offered two year notes, payable semi-annually, for the balance of $375. Walter M. Smith and G. A. Coffey, Salem insurance men, is sued a letter to the Empire com pany April 12. 1931, declaring: After a most thorough investiga tion we are convinced both of the safety and profit of an investment in the Empire Holaing corpora tion and hand you herewith our subscriptions for a block of your capital stock." Smith and Coffey both show as debtor of the com pany to the extent of $750 each July 31, 1931. Apparently they were $1000 stock subscribers in dividually paying $250 in cash on their individual purchases. The potency of Judge Coshow's name and business judgment in development of the Empire Hold ing company throughout the state, is superbly illustrated In the "Letters' prospectus by the coop eration the company received from various attorneys, some of them prosecutors, in widely var ied parts of the state. Earl A. Nott, district attorney for Yamhill county, writes April 28. 1931, addressing his letter to Judge Coshow as president of the Empire corporation: "I have just subscribed for some stock in the Empire Holding corporation and I am frank to say that no small part of the inducement for so do- I ing consists of the fact that you ' are at the head of the corporation V lllLlLaiLs . W Hsjrdware PainU Plumbing 236 N Comm. St. and that there are also ' other prominent men associated with you In whom I haTe great eonfl dence. " Nott then further commends the corporation by saying: I feel that this enterprise Uke most others depends for its suc cess largely upon the manage ment. This feature seems to be well taken care of by the high character of the person nel of Its leadership, and be cause of these facts, I feel that this investment is good in spite of the present unfavorable eon- . ditions." Nott is charged on the company's books with $223, due within two years and pay able semi-annually, according" , to the July 31, 1931 audit. Similarly, W. T. Miller, district attorney for Josephine county at Grants Pass, writes Jndge Coshaw March 3, 1931: "It is a great pleasure to send herewith my subscription for a block of stock in the Empire Holding .corpora tion.. This is eertainly a great field for such an organisation, and I am sure that with you as its guiding head. It is sure to have a great future. I feel as sured that an Investment in your company will prove . to be very profitable to all who participate in it," District Attorney Miller is listed July 31. 1931, in the audit of the Empre company, as a debt or to the extent of. $2250, due semi-annually over a . three-year period. Over in eastern Oregon at La Grande, another attorney was lis tening to the call of Empire. He was George T. Cochran, senior partner in the law firm of Coch ran, and Eberhard, the latter for many years state senator from Union county. February 14, 1931. Cochran, wrote Judge' Co- show, in part, as follows: "I have Investigated your Empire Holding corporation with a great deal of Interest and have found that It is being organized along the lines of good business principles look ing towards honest Investment. - "I am further impressed with the fact that there is no bonus stock. I feel, therefore, that there are great possibilities in an investment in the corpora tion, and I hand you herewith my application for $20,000 for stock in your company. "Having entered your com pany I am indeed glad to rec ommend this Investment to any one who may be interested. Cochran dated his investment February 9,1931, according to the company's books. Of the $20,000 due. $5000 was to be paid in six months and $15,000 was to be paid in annual installments of a five-year stretch. Cochran's cred its on his subscription total $556.50. The swelling group of facsimile letters? made the prospectus of the Empire Holding company more inviting. Here, there and yon. from almost all quarters of the state and even from Salt Lake City, Keller's eld stamping ground. were pouring in subscriptions to the Empire Holding company. Consistently laudatory letters, on official stationery, accompanied the checks. What proportion of the total subscription letters re ceived found their way Into the "Letters" nrospectus is not known but it was a galaxy indeed of busi ness, legal, professional and offi cial testimonials which Empire salesmen had to present to the unaware "investor," desperately anxious as always to get in "on the ground floor" of some enter prise which was soon to sweep aim into the Valhalla of security hold ers; The Statesman herewith notes succinctly other "Investors" whose names appear in the Empire's prospectus. Similar Phrases In Many Letters It Is to be noted in passing that the majority of letters contain the phrase "a block of stock," Indi cating clearly that while the sig We can use your old Machinery lit I natures and the letterheads were different, the glowing testimonials for the Empire Holding corpora tion were being produced from the same facile typewriter. : The following men subscribed for $20,000 each Is capital -stock of the Empire Holding company, thus entitling them to director ates. The subscription letter ot each man Is reproduced in the prospectus: .... .. . , Dr. C. L. Ogle, Jr., physician and surgeon at Grants Pass, who wrote "I am convinced , Invest ments made In this company, will prove to bo very - profitable aad safe." Joseph G. Vollmer, Portland at torney,, who declared I am glad to recommend the Investment to anyone concerned as being sound. "Seldom does .the opportunity of purchasing Insurance stock at anywhere near the par valne pro sent Itseir." wrote Dr. William H. Dale of Eugene in tendering his application. Descry Opportunity For Public Service Karl J. SUcklan, horticulturist and fruit distributor of Cove, Ore., wrote "I feel that serving on the botrd of directors of one of your companies will enable me to best serve the people of my com munity after 35 years ot close business relations with the people in union county. W. T. SpychalskI of Pendleton subscribed for $20,000 in Empire stock "after thoroughly Investi gating." His letter continues: "Af ter eigLt years of serving the pub lic In Umatilla county, I feel that I will be able to serve your cor poration to a wonderful advantage In this county." SpychalskI Is with the Ortgon Bakery in Pendleton. Janws B. Grieve, proprietor of the Prospect hotel out from Med- ford was tremendously enthused when he subscribed for his $10, 000 "block of stock." "Never In my business career have I had an opportunity to invest In any en terprise with sueh wonderful pos sibilities for success with safety EXTRAORDINARY TlniLarsdayo Friday and Saturday One thousand pairs Regularly t I $ I t j as your company, ho wrote. The crystal bluo waters ot Crater Lake on the letterhead ot Grieve beam at the prospective "invest or- as he : thumbs the glowing prospectus of the builders of Em pire! -u-- J. If. A." Harrison, proprietor' ot the Blue Mountain garage at La- Grande came into the fold and In to the prospectus" after a lengthy and thorough lnvestlg atlon through your Mr. C. J. Keller." - Cv I McKay who knew Keller In Salt Lake City. Utah, wrote Jndge Coshow: "It is with a great deal of pleasure and satisfaction that I accept the invitation of your executive committee to be come a director of one of rour companies and herewith hand you my subscription for $20,000 of stock." JJcKay wrote on the let terhead ot the Pacific National Life Assurance 'company of Salt Lake City -but his exact connec tion with that Institution does net appear. Subscriptions Come From Near and Far J. C. Robinson who was gener al manager ot the Wuilcl Motor Co. at Reno, Nevada, wrote Judge Coshow April 15, 1931, "You have had my efforts 100 per eent in the. past in the building of this corporation and I can assure you that you will meet with the same cooperation in the future." Into the prospectus went a viv id letter from Leonard F. Koepp, manager ot the Commercial and Employees Loans, Inc., Portland. "After a most lengthy investiga tion ... I take pleasure . . . , $20,000 stock." writes Koepp. Down from Seattle, Wash., came a subscription from H. M, Dagg, city sales director of the Dagg, Derneden Manufacturing Co. Dagg leaped at the opportun ity for a directorate and $20,000 in Empire atock. He wrote: "Aft er having given this matter and the personnel surrounding It most rigid investigation .... in quiring Into the field . . . more TUT O We Ll ' 011 IT Big New Shipment Factory Close-outs, aClieS Ollk I lOSe $1.65 and $2.00 Values AH Go at Our Regular Grenadine & Roll Twist Silk Hose Guaranteed Not to Run Former Price $2.00 Now 1 65 "3 Raj" than satisfied , , .v wonderful op portunity . ... 'heartily, endorse . . Issue . .'. ; honest invest ment security. . - r. Thornton Smith of LaGrande on April f ,1121, took a block ot 9X0,000 stock, and accepted a di rectorship In tha Empire eomoanr AprU ; 11 3 L By a coincidence not explained by the editor ot the "Letters" prospectus, whoever he was, Mr. Smith in LaGrande wrote as follows: "Seldom does the oonortunitT of purchasing insurance stock at anywhere near the par valne present Itself. This Is the first time I have ever had the priv ilege of making such an Invest ment.' The Identical words ap peared two months earlier, Feb ruary 10. 1931, when Dr. Wil liam H. Dale at Eugene wrote the Empire company his stock order and his acceptance of a directorship I Alfred E. Peacock, M. D. at Marshfleld, took $20,000 and ac cepted a directorate and wrote: "While it was with some sacrl flee, for my subscription for the amount necessary to qualify me as a director, I have done so glad ly." Peacock's exact sacrifice does not appear on the books of the corporation since his June 4 1931, subscription was paid for entirely with notes, one for $500 dee in 90 days and one for $15,' 000 due over a five-year period. The Empire company, in truth. aped soviet Russia consistently, most of Its stock payments, where eash, mortgages or bonds were not available, consisting of five year plan notes. The selection ot W. C. Hager ty, president of the Oregon Mu tual Fire Insurance Co. as presi dent of the unincorporated Em pire Casualty company, and Ha gertys acceptance of the presi dency at an annual salary of $(000 beginning February, 1931, Will Place on Ladies' Pumps, Ties and Sold From $10.00 to $13.00 at One Price 74 added fresh fuel to the prospec tus fire. -; -' lift' Scarcely had Hagerty rbeen paid the Initial year's salary than the salesmen were out and a very fine swath they cut as they used Hagerty'a prestige to induce his friends and his agents to taxe "a block of stock" in the Empire Holding company, j In the pros pectus entitled "Letters" no less than ten men .subscribed for stock, mentioning Hagerty as their reason for subscribing. Three of tho agents use Hager ty's own company's stationery for their subscriptions - and - these promptly find their way into the ' prospectus. These tea men induced into the' Empire through Hagerty's election were, the prospectus shows: F. E. Siemens, Dallas; Charles L. Walker, Hills boro; P. M. Bewley, St, Helens; H. E. Hopfe, Vancouver, Wash.; Roy Hesseltlne, Vancouver, Wash.; R. L. Young. Mt. Angel; Chester P. Walker, Yamhill; C. L. Goff, Medford: Kargl and Hurley, The Dalles; P. W. Thorne, Gresham. These men, insurance agenta for the Oregon Mutual Tire Insurance company, follow the other "investors" in using very warm terms in describing their purchase. "Low "overhead . . . unusually good opportunity. . . great success . , . very great ' enterprise . . .' ft means a tre mendous lot for the people... profit accruing' will be tre mendous ... one of the great est new enterprises that has been brought to my attention in the northwest ... imme diate success" these were some of the striking phrases culled from this group of let ters. "Our money has tor the past man years gone to outside companies which, it appears to me, Is almost a crime. The fact that Mr. Hagerty has become ac- Sale p n IF lofS I : ' - New Shipment Ladies Leather Hand Bags Formerly Sold at $4.95 and $5.95 : Now On Sale at $P 295 17, ' L Uvely Interested make me feel safe: in Identifying myself with this organization,", wrote R. L. Young of Mt,' Angel. " r "I consider it the chance of a lite-time to subscribe for capital stock in your company at par. wrote C. L. Goff, insurance agent at Medford. Great . Confidence Is Voiced by all Lack of space forbids further testimonials to the enormous possibilities which lay before the Empire Holding company. Al most without exception the "in vestors" were; fairly overcome with confidence in the immediate success ot their new, great, huge profit organisation,. Men whose letters, firm names and glowing testimonials further adorn the "Letters" prospectus include W. O. Gallaway, insurance, HTlls- boro; George B. Robinson, Allan B. Kirk company. Portland; J. A. McFalL optometrist, Ontario; Harley H. Richardson, art deal er, La Grande; E. B. rars:, warehouseman, Eugene; H. B. Parker, secretary. La Grande Credit association; M. ciarse Webb, Equitable Life Insurance company agent at La Grande; F. F. Whittle, transferman, Asn land; C. C Furnas, tire dealer, Medford: M. B. J arm In. druggist. Medford; Ernest L. Scott, Metro politan Lite Insurance agent, Medford: Drs." Renter, Thompson. Coberth it Griffith, The Dalles; William S. Bolger, manager J. C. Penney, Medford; G. W. Good win, formerly agency supervisor All America group of insurarce companies, Seattle. Tomorrow The Statesman will show where the money these men paid went to. It will make an analysis of the "assets" of the company July SI, 1931. It wDl detail some ot the methods used by the Empire salesmen in their hur ried sweep to "serve an em pire." Oxfords $1.00 S'