The Evening herald. (Klamath Falls, Or.) 1906-1942, November 07, 1919, Page PAGE FOUR, Image 4

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THE EVENING HERALD. KLAMATH FALLS. OREGON
TheEvening Herald
fcl
E.
J. MURIIAV
Kdltor
FJRKD HOULK
City Kdltor
Published dally except Sunday by
"! Herald Publishing Company of
Klamath Falls, at 115 Fourth Streot.
Entered at tho postoffico nt Klnm
tb. Falls, Ore, for transmission thru
Ike malls as second-class matter.
Subscription terms by mall to any
address In the United States:
One year $5.00
One month 50
Member of tho Associated lrcss
Tho Associated Press Is exclusively
otltled to the uso for republication
of all nows dispatches credited to It
or not othorwlso credited in this pa
per, and also local nows published 'suit as to n sufficient niunbor of wnr-
aerein.
of tho Warrants might bo discounted
and that tho Incoming county court
was Insisting that this bo done.
In order to relievo tho situation,
Mr. Long dually gnvo his consent
with tho understanding that It must
definitely appear that tho plaintiffs
In tho federal suit at Portland were
not parties to this part of tho trans
nctlon.
Wo thereupon drew up tho fol
lowing stipulatien:
"Memorandum of Agreement
"The partlus interested In the suit,
weyernnuser Land company, n cor
poration, et nl, plaintiffs, vs. Win, S.
Warden, county Judge of Klamath
county, Oregon, ct nl, defendants
have como to tho following under
standing:
"First Tno plaintiffs am willing
that the warrants Involwd In the
above suit may bo paid In full with
accrued interest, and agree that If
tho county court of Klnmnth county
will make lovics In un amount rang
ing from $100,000 to $125,000 per
annum, starting with tho levy made
In tho year 1915, they will release
from the injunction and dismiss the
All rights of republication of spo
elal dispatches herein are also resorv-
FIUDAY, XOVEMltKK 7, 10ID
-
AGREEMENT REACHED
ON WARRANT TANGLE
rants to cental tho levy each car
Warrants are to bo released In the
order of protest.
"Second Hut the plaintiffs in the
suits tiled In the circuit court for
Klamath county, represented by It.
N. Day. feel that a number of war
rants woro Issued at n discount, or
that tho prices for which materials
were sold to the county were above
market price, and that thorofore
some reduction should be mado in
tho warrants.
rloud , attorneys ripponrcd bofora
J ml go Wolvorton In open court nt
Portlnnd, and, after explaining nil
tho facta surrounding tho agreements
requested that tho order for tho lit'
Junction bo signed. Shortly after
wards tho It. N. Day nulla llled In
the state circuit court nt Klnmnth
Falls were dlsmusKod.
As a further putt of tho program
of rehabilitating tho credit of klnm
nth county, Mr. Long notified the
banks nt Klnmnth Falls that If they
would buy the salary warrants of tho
employes of Klamath county at par
without nny discount, tho Woyorhnu
nor Land company would take these
warrants off their hands without nny
discount and with accrued Interest
and use them In paying taxes. This
plan was followed by other timber
companies so that current warrants
of Klamath county were Immedlnlv
ly brought up to tho point whore
they woro as good as cash.
From time to time as tho treas
urer of Klamath county had funds
with which to pay tho enjoined war
rants, orders were tweurod releasing
them from the injunction.
Unfortunately, Mr Kuykondnll
was appointed circuit Judge before
he and Mr Stone had had an op
portunity to designate the warrants
which should recflvo the discount In
ncordnnco with tho plans set out In
tho agreement.
As tlmo went on, this font tiro of
tho agreement proved extremely em
barrassing to the plaintiffs in mo
federal suit .because In a way they
woro trustees under tho agreement
for those who had only consented to
the settlement of the suit on condl-
Continued from Page 1
Third The defendants In the!'!0" th,,t U wn" '"V.00.'1 tlmt ,mrl. .,f
"no., r.iitrnciuitni !,.. .ft. etn t, t l.nl.l- I 1 11V WUItlUin Oliwuiti u i .... .... ...
ers have agreed to a reduction, and
it 'has been determined that a dls
count of about $35,000 will be sat
isfactory. Tho manner and distribu
te tho program. They took the po
sition that they would not stand hllv
,by and allow all the warrants to be tion of tho reduction uro to bu left
"paid in full for the reason that they to the Judgment of D. V. Kuyken
fwere convinced that some of the dull and C. F. Stono.
warrants were fraudulent and somo "Fourth It Is agreed that all
had been secured at less than par suits and actions affecting county
by unfair means. They threatened warrants now ponding in tho clr
that as these particular warrants cult court of Klamath county, are to
were released from the case in the bo dlsmussed.
federal court they then would start "Fifth Tho present county court
independent actions in the circuit Is satisfied with tho abovo nrraiiiio-
coun oi Kiamatn county to cnlo n nient and will do overvthlntr In tholi'
It was necessary that they keep faith
with thCM taxpayers. This phase
of tho matter went along to tho sum
mer of 1917. when It was felt Hint a
decision of some kind must bo
reached. Finally. I wont to Klam
ath Falls In July. 1917. to discuss
tho matter with tho county clerk ami i
tho county treasurer and other par-,
ties at Klnmnth Falls who were In
terested in tho matter. No decision
was reached at that tlnw.
On August 10, 1817. I addressed
u lettor to tho county ci urt on tho
subject: and. after Uoting the agree
2122"!? ,
( rVvvvrrvr-vvvvvrir-vjviJir,-M-iri-'ii ,, 'rrVifyAvyftAiuvvAi,
nnnn(v
tho payment of these warrants. For power to carry out this understand- "'VA'' ""',,, ,, ..inhitlfM In tho
'-a time It looked as if we had reached Ing. ' ' r,eI,ritnt " l,lulu8 '" ",
a dendlock because Mr. Luig would,
vBot recede from his position that
the warrants must be paid in full
. with accrued Interest. I
Finally, I met with Judge Worden.
-Mr. Kuykendall and Mr. Stono of
Stone & Gale at Judge Webster's
office at Portland, and after confer-'
ring for a day, Mr. Stone, represent-,
ing some of the largest warrant
holders, offered to take a reduction i
in the warrants held by his clients!
in order to aid in bringing about a I
settlement. I then called Mr. Long'
up over long distance at Tacoma
.-and stated that I was convinced that
vtbere was no hope of avoiding a
tnerilla warfare in Klamath Falls
-on the warrants as they were releas
ing1 unless he would agree that part was thereafter prepared and the va-
Ing.
"J. T. S. LYLK,
"Attorney for Plaintiffs, Weyernnu
ser Land Company, Western Pa
cific Land & Timber Company,
Oshkosh Land & Timber Company.
"LIONEL I). WEBSTER.
"Attorney for Klamath County, Wil
liam S. Worden, C . G. Merrill,
John Hagclstcin.
KUYKENDALL & FERGUSON.
"Attorneys for Marlon Hanks. F. H.
McCornack, George Hayden, C. C.
Low, C. R. DeLap.
STONE & GALE,
"Attorneys for C. F. Stono, Attor
ney in fact for Hodson-Feenaugh-ty
Company and Coast Drldge
Company, et al. Defendants."
The preliminary restraining 'order
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HP
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mm 706 Main
1PI i
,ffirt 'J Iff
-W f ' J
Here is a Book YOU
Should Have
It has a most significant title: "What tt
Look For in Buying a Paomgraplk "
Its pages outline the vital points to be
taken into consideration before purchasing
a phonograph.
Its language is simple. Its message in
structive It was written by Henry
Purmort Eames, L. L. JJ., Concert Pianist
and Lecturer, Director of Pianoforte Dept.
Cosmopolitan School of Music. Wouldn't
you like a free copy
The Brunswick Phonograph which plays
the records of all makes invites the most
rigid application of the tests Mr. Eames
says should govern phonograph purchases.
Come in for the booklet today,
H. J. WINTERS
Jeweler and Optician
Phone 149W
lliilli
WallL oft mMsh ifaAt HKafiu e&vv!
m or Tw m " ! '
!
federal suit and no one else Our
position In tho matter has boon tliO
same from tho tlrst and Is contained
in Mint n.-irt of tho ianu:rai)h ciuotcd
as follows- The plaintiffs are willing (
that tho warrants Involved In the
above suit may bo paid In full with i
accrued interest.' We omphnsUo
this fact again In order that thoro
may bo no question about our at
titude. Paragraphs 2 and 3 above
quoted state the position of othors
interested in tho litigation which
was pending in the circuit court of
Klamath county nt the tlmo the
agreement was mado and wero In
serted by them as a condition prece
dent to tho dismissal of the suit
then pending in tho circuit court of
Klamath county.
"Our only concern with referonce
to the two paragraphs Is that, sinco
wo aro plaintiffs In tho fedorul suit
which Is the only one not dismissed,
wo are called upon to see that this
phase of tho agreement Is carried
out before releasing warrants. The
warrants released to date have been
released with tho knowledge and
consent of those Interested in tho
above litigation, but wo do not wish
to proceed further until the ques
tion us to tho discount on warrants
is settled either by determining tho
particular warrants upon whicli a re
duction Is to bo made or releasing
us from any further obligation In
this respect. Good faith with thoso
who dismissed their locul suits as a
condition of the two clauses in tho
agreement requires that we must
take this stand.
"We wish, however, to make clear
tho fact that we shall not take any
part in the matter of the reduction
of tneso warrants, Iwcause it was
never our desire that tho warrants
should be paid in any way excepting
at par and accrued interest, and
therefore we shall take no pnrt In
any negotiations relative to this
phase of the case.
"The matter has drifted along for
some tlmo and should bo settled one
way or another. You as the county
court have the disbursement of the
county funds and therefore aro di
rectly Interested. For this reason it
occurs to us that perhaps you could
take tho matter up with parties in
terested with a view of having tho
matter settled. Tho wholo situation
is perplexing to me because, while
not being interested In that phase
of tho case, nevertheless I am bound
by tho terms of the agreement and
must kuep faith with thoso who have
entered Into tho agreement, yet the,
matter is allowed to drift along1
without anything being done so that
the Impression has gono abroad that
thoso who aro plaintiffs In tho case
aro insisting on something which
they nover desired to have done."
Later on, I received word that
Charles J. Ferguson had been desig
nated as the person to figure out the
discount on these warrants. Mr.
Forguson then proceeded to work
on tho problem and adjustments
wero made with warrant holdors
from tlmo to time until In tho fall
of 1918, tho county treasurer paying
tho amount agreed upon with his
check to tho warrant holder and un-
cther check being Issued payablo to
tho county clerk for tho difference,
tho warrant was then cancelled so
that a complete record was mado
of each transaction which showed In
each case that Klamath pounty re
ceived tho bonelltfj of each adjust
ment. In tho fall of 1918, Mr. Long
wrote to It. N. Day, suggesting that
ho felt that tho time had arrived
when that phuso of the matter should
be brought to a close. I am now
advised by Mr. Ferguson that he hud
discontinued his part of the work
the first of this yeur. ,
Lafit-Juno I received a lettor from
Mr, Kiilott.dtepresenting tho present
county court, on' which it appeared
that tho present county officers wero
entirely out of touch with tho sltua
tion and did not even huvo a copy
of tho original agreement. After
discussing this letter with Mr. Long,
wo came to the conclusion that the
suit had already .served Its purpose
Li
s&Eh w
I A
Plain Facts
ROSE &. CO. lmvc won n
high place in the esteem
of their customers.
It's due to their sincere de
sire to Rive satisfaction in
value and service.
When they don't do thut,
they refund your money.
Come In and Inapcct tho Hose line fur
l'ull and Winter and Irani how you
cmi dtosa bettor for lc money.
Central Outfitting Co.
"THE HOUSE OF SERVICE"
Ninth and Main Streets
on n cash basts mid that probably It
would bo Just as well to dismiss tho
suit nnd bring the whole matter to
a close Howover, It was felt that
courtesy to Mr. Day for his part In
the local suits required that wo
should secure his views ai to our
conclusion.
Tho correspondence between Mr.
Day and. Mr. Long, becuuso of tho
many on forced business uliMonces of
Mr. Long from the city was some
what delayed, so It was that u con
clusion was not reached until tho
early part of September, when Mr.
Day, after bo had all the facts, ac
quiesced in our views as to what
should bo done.
Mr. Long then suggested that I
go to Klamath Kails to confer with
you nnd all other parties in Klam
ath Falls Interested to the end that
wo might dismiss tho suits.
Pending litigation has confined mo
to Tacomn so that I have boon un
ablo to make tho trip, and becuuso
of that tact I am now writing you
this letter.
Our conclusion, therefore. Is thnt
wo shall dismiss the suit at onco nnd
thus end the controversy. It can
well be done ut this time for tho rea
son thnt the decision or Judge Cal
kins in tho circuit court for Jackson
county to the effect that tho present
budget law requires that each coun
ty must 'run within revenues raised
for tho particular year, and that old
indebtedness can only bo retired by j
special levies, accomplishes tho very
purpose which was being served )y
our Injunction, namely, tho holding
back of warrants until tho county
coutd have cash on hand with which
to pay them.
Wo understand that it is your in
SPECIAL SALE OF
HATS
AT
The Parisian
....On Wednesday, Thursday, Friday and
Saturday all hats in our store will be sold
at a big reduction. This sale will include
all pattern hats. Also a large assortment
of children's hats priced from
$2.00 to $4.00
The Parisian
519 Main St
by tho county court In exlstenco nt. purpose. Hearing that they were In
from doubt ns to wliollicr or nui c -
iroin ',,. ,,,,, u,i,i.. nffreement because
, ,u '"I they were not complying with the
tiring of j n 0(jmt.nlM rcUtivo to the amount
tho tlmo provided that levies
$100,000 to $12d,000 woro
made and used In the re
ion ion to continuu making levies outstanding warrants. Unforttinnto- 5 '",, ","'" ' uj ,Me a letter to
with wh eh to nav tbeao wiirranlu l u.c ....... ... .i t ix i. "' l" ,ov' UU,"V.' ...... ui
.. . i r .. ...... . .' '" "" "" "" UUIIU. Ill I'Ul'UIIIUUI , I .,. pontlfV i'Olirt StallllB IDBI, """"
bo that In time they will all bo paid. 191 C, at tho tlmo tho first levy was'1'10 c"""ty c0"rl """""
i ou win noio uiai mo onginui to bo mado. tho county court do
qgrcomont which was consontod to elded to lew hut r.O 000 for this
(Continued on page i)
Films V V3iWMflMI
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and that Klamath county was. now
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