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BANK FAILS. (By United Press.) PORTLAND, Ore., Aug. 21-The Oregon Trust and Savings bank, with $2,000,000 deposits, failed to open its doors this morning. A receiver has been appointed. Unable to realize on the assets is given as the reason. The assets are equal to the liabilities.
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BIG BANK IS CLOSED (United Press Association.) PORTLAND, Aug. 21.-The Oregon Trust & Savings bank, with $2,000,000 deposits, failed to open its doors this morning. A receiver has been appointed. It is stated the assets will equal liabilities.
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OREGON BANK CLOSES DOORS. Portland Institution Suspends Because Unable to Realize on Securities. Portland, Ore., Aug. 21.-The Oregon Trust and Savings Bank, of this city, did not open for business to-day. A notice posted by the board of directors announced the inability of the bank to realize on securities, and another notice stated that it was closed by order of the Circuit Court for Multnomah County. The bank is capitalized for $100,000. Its deposits ten days ago amounted to about $3,000,000. That the directors of the institution, of which W. H. Moore is president. and E. F. Lytle vicepresident, knew of the impending crash several days ago. is shown by the fact that a meeting of the bankers of the city was held last night to consider the situation. The banks called upon for support did not respond to the appeal. The depositors are mainly of the poorer and middle classes.
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PORTLAND'S BIG BAND FAILURE (Continued from page one). ference with the receiver. For two nights he has not slept a wink. The blow fell heavily on Mr. Moore, and he blanched with pain as he saw several policemen holding the impatient and jostling throng of depositors, back from the door. The following notice was posted on the door of the bank at exactly 10 o'clock, though that something was wrong was evident an hour earlier when the doors to the saving account depositors did not open at 9 o'clock, the usual hour. Notice on Door. "Portland, Oregon, August 21, 1907.-Owing to inability to realize on our securities this bank is closed by order of the directors. "W. H. MOORE, Pres. "The Oregon Trust & Savings Bank has been closed by order of the circuit court of the State of Oregon, for Multnomah county, and Thomas C. Devlin has been duly appointed receiver for said bank. He will have charge of its property and effects and will conduct its business. "Customers of the safety deposit vault will please come to the side door on Sixth street." Bad Financiering. According to an analysis of the t bank's statement of its resources a made by experts, the indication is ( that the institution violated all the o laws of conservative and substantial v finance in placing so large a bulk of I its available assets in one class of t securities, the bank holding $900,t 000 worth of Home Telephone bonds S alone. V The bank has about 14,000 savings t accounts and over 2500 checking acW counts. The savings accounts are c with but very few exceptions less t than $1000, the average being only o $57 per depositor. The bank has 1 for months past been making a wideW spread campaign to secure small savo ings accounts, and did a land-office t business by mail. t Among the hundreds of depositors 1 who clamored at the door for admith tance were poor women and girls, old t men, laboring people mostly. There t were shop girls, waitresses and clerks S there were Italians, Greeks, Chinese t and Japanese, and in many cases the in savings of years had been wiped out. Tears fell freely from the eyes of a scores of women and girls, who were in hit the hardest. There were men a hose lips trembled and whose p cheeks paled when the closed and o parred doors broke the crushing to news to them. ti Inside the bank intense gloom preG vailed: the office force of a score, p ave those who were busy over ti ooks, accounts, answering telein hones, which rang insistently and g harshly, gathered together in little b groups and talked in subdued whisit ers. Most of them had not. only h ost their jobs, but their savings, ei which they had put into their own th ank. th
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PACIFIC COAST BANK OFFICERS STILL FREE. Report That Warrants Were Out for Their Arrest Founded on Indignation of Thousands of Depositors. PORTLAND. Ore.. Aug. 23.-Outspoken indignation among many of the 14,000 depositors of the Oregon Trust and Savings Bank. the doors of which were closed on Wednesday, caused the report to be circulated that warrants had been issued for the arrest of officers of the bank. It developed. however, that no warrants had been issued, and hat the net result of numerous demands for arrests by certain depositors was the preparation of complaints by the district attorney. A mass meeting of depositors has been called to devise ways and means to proteet their interests. While some of the directors assert that Cashier W. C. Morris erred in buying huge blocks of bonds and lending money to enterprises in which he is alleged to have been interested, friends of Morris warmly defend him. and assert that the directors should have been cognizant of the bank's dealings. It is said that Morris is now on the way to Portland from the East, where he went to dispose of securities in an endeavor to save the bank. Receiver Devlin expressed the belief that the depositors will be paid in full.
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see that none of the officals undertook to leave. Detective Maher is now locat-ing the bank officers and is preparing to have Morris apprehended in the east. The securities which Morris took east to convert into cash, bonds amounting to about $900,000, are now on their way back to Portland. It is also reported the cashier is accompanying them. Early this morning the District Attorney's office was besieged with depositors of the Oregon Trust & Savings Banks, who demanded immediate prosecution of the officials. These depositors carried accounts from $10 upward. Many of the employes of the bank are discharged, only a sufficient number have been retained to assist Receiver Devlin in handling the affairs of the concern. While some of the directors freely charge Cashier W. Cooper Morris with violating the banking rules in buying huge blocks of bonds and loaning money to enterprises in which he is alleged to have been interested, other bankers declare that nothing but gross, if not criminal negligence, on the part of the directors could have made such manipulation of depositors' money possible. The friends of Morris warmly defend his course. The assertion is openly made that directors were not kept in the dark regarding any alleged questionable enterprises of the cashier. It is understood that Morris is now enroute to the East where he went to dispose of large blocks of securities in the endeavor to place the bank upon its feet. Receiver Devlin expressed the belief today that depositors will be paid full.
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Received Deposits With Knowledge of Tottering Securities of Institution. PAY DEPOSITORS IN FULL Receiver Devlin Has Faith in Ability of Bank to Make Good-Cashier Morris is in East to Sell Securities and Place Bank on Its Feet-Directors Scapegoat. PORTLAND, August 22.-The charge is freely made today in connection with the failure of the Oregon Trust & Savings Bank that certain officials of the company let it become known to friends that the bank was in bad shape and a partial substantiation of the report is had in the alleged fact that $50,000 in deposits were withdrawn from the institution Monday and Tuesday. These reports bearing upon the alleged questionable business methods of the management aroused great indignation among the 14,000 depositors who were on the concern's books. Demands for the arrest of certain officials of the bank today led to the preparation of complaints by the district attorney's office. The warrants however, have not been issued. pending further investigation. The failure of the bank caused consternation among thousands of poor people whose savings were deposited with the bank, and a mass meeting of unfortunates has been called to devise ways and means for the mutual protection of their interests. District Attorney John Manning is now traveling to Portland on horseback from Carson Springs, on the Upper Columbia, to take personal charge of the case. He telephoned from the resort early this morning to Deputy District Attorney Adams to prepare complaints against the officials of the bank and to also prepare warrants. Manning sent orders to Patrick Maher, special detective of the district attorney's office, to
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RUMORS OF JOBBERY Methods of Wrecked Oregon Trust Co. Criticized. Portland, Ore., Aug. 23.-The charge was freely made in connection with the failure of the Oregon Trust and Savings bank that certain officials of the company let it become known to friends that the bank was in bad shape and partial substantiation of the report is had in the al. leged fact that $50,000 in deposits was withdrawn from the institution Monday and Tuesday. Reports bearing upon the alleged questionable business methods of the management aroused great indignation among 14,000 depositors who were on the concern's books. Demands for the arrest of certain officials of the bank today led to preparation of complaints by the district attorney's office. The warrants, however, have not been issued pending further investigation. The failure of the bank caused consternation among thousands of poor people whose savings were deposited with the bank, and a mass meeting of unfortunates has been called to device ways and means for mutual protection of their interests. Many of the employes of the bank have been discharged, only a sufficient number being retained to assist Receiver Devlin in handling the affairs of the concern. While some of the directors freely charge Cashier W. Cooper Morris with violating banking rules in buying hugh blocks of bonds and loaning money to enterprises in which be is alleged to have been interested. Other bankers declare nothing but gross, if not criminal, negligence on the part of the directors could have made such manipulation of the depositors' money possible. Friends of Morris warmly defend his course. The assertion is openly made that the directors were not kept in the dark regarding any alleged to have been interested other than the cashier. It is understood Morris is en route from the east, where he went to dispose of large blocks of securities to endeavor to place the bank upon its feet. Receiver Devlin expressed the belief today that depositors will be paid in fuil.
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NEGLIGENCE OF THE DIRECTORS Cashier Morris Not Alone to Blame for Failure of Portland Savings Bank. Portland, Ore., Aug. 22.-The charge was freely made today in connection with the failure of the Oregon Trust and Savings bank that certain officials of the company let it become known to friends that the bank was in bad shape and a partial substantiation of the report was in the alleged fact that $50,000 in deposits were withdrawn from the institution Monday and Tuesday. Reports bearing upon alleged questionable business methods of the management aroused great indignation among 14,000 depositors who were on the concern's books, and demands for the arrest of certain officials of the bank today led to the preparation of complaints by the district attorney's office. Warrants, however, have not been issued pending further investigation. The failure of the bank caused consternation among thousands of poor people whose savings were deposited therein, and a mass meeting of the unfortunates was called to devise ways and means for mutual protection of their interests. Many of the employes of the bank have been discharged, only a sufficient number being retained to assist Receiver Devlin in handling the affairs of the concern. While some of the directors freely charge Cashier W. Cooper Morris with violating banking rules in buying huge blocks of bonds and loaning money to enterprises in which he is alleged to have been interested, other bankers declare that nothing but gross, if not criminal negligence on the part of the directors could have made such manipulation of depositors' money possible. Friends of Morris warmly defend his course. The assertion is openly made that the directors were not kept in the dark regarding any alleged questionable enterprises of the cashier. It is understood Morris is now en route from the east, where he went to dispose of large blocks of securities in an endeavor to place the bank upon its feet. Receiver Devlin expressed the belief today that depositors will be paid in full.
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Officers of Big Portland Bank Not Under Arrest---But Ought to Be Depositors Are Decidedly Hostile and Plan All Kinds of Things Portland, Ore., Aug. 23-Outspoken indignation among many of 14,000 depositors of the Oregon Trust and Savings Bank, the doors of which were closed Wednesday, caused the report to be circulated yesterday that warrants had been issued for officers of the bank. It developed, however, that no warrants had been issued and the net result of numerous demands for arrest, by certain depositors were the preparation of complaints by the district attorney. A mass meeting of depositors has been called to devise ways and means to protect their interests. While some of the directors assert that Cashier W. C. Morris erred in buying huge blocks of bonds and lending money to enterprises in which he is alleged to have been interested, friends of Mr. Morris warmly defend him and assert that the directors should have been cognizant of the bank's dealings. It is said that Morris is now on his way to Portland from the East, where he went to dispose of securities in an endeavor to save the bank. Receiver Devlin expressed the belief that depositors will be paid in full.
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BANK FAILURE HAS BAD LOOK [By Associated Press.] PORTLAND, Aug. 22.-The charge was freely made today in connection with the failure of the Oregon Trust and Savings Bank, that certain officials of the company let 1/0 become known to their friends that the bank was in bad shape, and as a partial substantiation of the report, it is an alleged fact that $50,000 in deposits were withdrawn from the institution Monday and Tuesday. Reports bearing upon the alleged questionable business methods of the management aroused great indignation among fourteen thousand depositors who were on the concern's books. Demands for the arrest of certain officials of the bank today led to the preparation of complaints by the district attorney's office. Warrants, however, have not been issued, pending a further investigation. The failure of the bank caused consternation among thousands of poor people, whose savings were deposited with the bank, and a mass meeting of the unfortunates was called to devise ways and means for the mutual protection of their interests. Many of the employes of the bank were discharged, only a sufficient number being retained to assist Receiver Devlin in handling the affairs of the concern. While some of the directors freely charge Cashier W. Cooper Morris of violating the banking rules by buying huge blocks of bonds and loaning money on enterprises with which he is alleged to be interested, other bankers declare that nothing but gross, if not criminal, negligence on the part of the directors could have made such a manipulation of the depositors' money possible. Friends of Morris defend his course. The assertion is openly made that the directors were not kept in the dark regarding any of the alleged questionable enterprises of the cashier. It is understood that Morris is now en route from the East, where he went to dispose of a large block of securities, in an endeavor to place the bank upon its feet. Receiver Devlin expresses the belief today that depositors will be paid in full.
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CLAIM STRIKE BUSTED BANK PORTLAND, Aug. 29.-The telegraphers' strike is now offered as 1 of the excuses for the fatture of the Oregon Trust & Savings bank. It is claimed that the money which Cashier W. Cooper Morris went east to raise he negotiated for successfully the morning the bank failed. When he had about completed the deal he received a wire from President Walter H. Moore instructing him to ship the securities back to Portland, but Morris did not know the bank had suspended until he arrived in Chicago on his way home. According to the cashier, there is no reason why all claims should not be paid and there still be a surplus.
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TO RE-ORGANIZE PORTLAND BANK DEFUNCT INSTITUTION TO BE OPENED AGAIN WITH GOOD BACKING. PORTLAND, Aug. 31.-Backed by strong financial interests, action is being considered looking to the rehabilitation and early opening of the Oregon Trust & Savings bank, recently suspended on account of failure of its officers to realize cash in an emergency on its securities. It is said the proposed reorganization will result in a settlement that will clear the bank of its present troubles, release it from the receivership, and place it in a strong position in the community Officers of the bank are reticient as to the proposed plans. W. C. Morris. cashier of the institution, said today: "There is nothing definite to be said at the present time. We all would of course, like to see the bank reorganize and hope it may be done. But as yet such a movement has not assumed a form that would warrant any statement regarding it." Various stories are current regarding the character of the reorganization, and the amount of capital of the proposed bank. One statement is to the effect that the capital will be $500,000, another places it at $750,000.
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PORTLAND BANK MAY REOPEN Persistent Rumor That the Officials Will Succeed In Rehabilitation PORTLAND, Sept. 2.-A rumor is current that the Oregon Trust and Savings bank will shortly be reopened for business, says the Telegram. For several days the story has been in circulation that one of the largest banks in the city would soon be established in the quarters of the Oregon Trust and Savings, with W. H. Moore as its official head. Officers of the suspended band refuse to discuss the purport of these rumors, but there is an atmosphere about them and their actions which would seem to indicate that there is good news in store for the depositors of the bank. President Moore is active about the city, and the same is the case with Cashier Morris. Both, the rumor has it, are engaged in a movement to rehabilitate the suspended band and to start it anew. That President Moore will enjoy the fullest public confidence in the local business world should he enter upon a new banking venture, is predicted, in light of his offer to sacrifice his private fortune to reimburse the depositors of the insolvent bank. President Moore is preparing to turn over to the receiver by a deed of trust 6,000 acres of farm land in eastern Oregon and his local warehouse property. These properties, it is said, will aggregate fully $250,000 in value. The eastern Oregon lands are nearly all under wheat cultivation and are only slightly incumbered. Receiver Devlin has engaged Arthur B. Mason to assist him in checking over the assets of the bank, preparatory to making his report. Mr. Mason entered upon his duties yesterday noon. He was for six years a clerk in the First National bank of this city, and is fully qualified in point of banking experience. He has been a resident of Portland since 1885. Mr. Mason left the employ of the First National bank about two months ago.
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LATE NEWS ITEMS. Judges of Philadelphia have declared unconstitutional the 2-cent railroad fare law passed by the last legislature. M. F. Kincaid has resigned as warden of the state penitentiary at Walla Walla, to take effect as soon as a successor can be named. From her parents, both of whom died within a few days of each other, Mrs. Herman H. Wycoff of Bellingham has inherited a share, valued at $500,000, of an estate. It is reported that Japan does not intend to make an international affair of the Japanese riots which have occurred in Vancouver, B. C. A prominent offi cial of Japan says the relations between Japan and Great Britain are too close and too friendly to be destroyed by this incident. He says the Japs will demand damages. It is reported that a large paper mill is to be erected at St. Joe, Idaho, which will cost $1,500,000, Spokane has passed an ordinance that saloons must pay $1000 a year license. It is reported that the Countess of Montignoso, the divorced wife of the King of Saxony, was married in London to Signor Tozzell, the Italian singer. Plans are on foot to reorganize and reopen the Oregon Trust and Savings bank which failed in Portland a few weeks ago. Patrick Brice, hero of several Indian wars and an argonaut of the early 50s, died at Anaconda, Mont., recently. Brice was awarded a medal for signal S bravery during the Nez Perce war in 1877 in connection with the rescue of the 6-year-old daughter of an army officer named Manuel. The bond election at Tacoma for a new water plant to cost $2,000,000 was voted down. f The New York city bond issue of $40,000,000, was heavily over-mbscrib ed at premiums ranging up to 103. The Standard Oil company of Indiana has applied to the United States circuit court or a writ of supersedeas, S suspending the opeartion of the recent e decision rendered by Judge Landis in the United States district court in which the penalty assessed against the f company was $29,000,000.
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LATE NEWS ITEMS. Judges of Philadelphia have declared unconstitutional the 2-cent railroad fare law passed by the last legislature. M. F. Kincaid has resigned as warden of the state penitentiary at Walla Walla, to take effect as soon as a successor can be named. From her parents, both of whom died within a few days of each other, Mrs. Herman H. Wycoff of Bellingham has inherited a share, valued at $500,000, of an estate. It is reported that Japan does not intend to make an international affair of the Japanese riots which have occurred in Vancouver, B. C. A prominent offi cial of Japan says the relations between Japan and Great Britain are too close and too friendly to be destroyed by this incident. He says the Japs will demand damages. It is reported that a large paper mill is to be erected at St. Joe, Idaho, which will cost $1,500,000. Spokane has passed an ordinance that saloons must pay $1000 a year license. It is reported that the Countess of Montignoso, the divorced wife of the King of Saxony, was married in London to Signor Tozzell, the Italian singer. Plans are on foot to reorganize and reopen the Oregon Trust and Savings bank which failed in Portland a few weeks ago. Patrick Brice, hero of several Indian wars and an argonaut of the early 50s, died at Anaconda, Mont., recently. Brice was awarded a medal for signal bravery during the Nez Perce war in 1877 in connection with the resoue of the 6-year-old daughter of an army officer named Manuel. The bond election at Tacoma for a new water plant to cost $2,000,000 was voted down. The New York city bond issue of $40,000,000, was heavily over-subscrib ed at premiums ranging up to 103. The Standard Oil company of Indiana has applied to the United States circuit court or a writ of supersedeas, suspending the opeartion of the recent decision rendered by Judge Landis in the United States district court in which the penalty assessed against the company was $29,000,000.
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DEFUNCT BANK WILL PAY HALF FIFTY CENTS ON THE DOLLAR THE LIMIT Report of Receiver Devlin Shows That Unless Reorganization Is Effected, Depositors Will Receive But 50 Per Cent of Their Funds-Keen Disappointment In Store for Hundreds. What will be a keen disappointment to the hundreds of depositors of the defunct Oregon Trust and Savings bank of Portland is the announcement by Receiver Devlin that but 50 cents on the dollar will probably be paid on deposits. The Oregon Daily Journal says: Fifty cents on the dollar is all that depositors in the defunct Oregon Trust & Savings bank can hope to receive unless a reorganization is effected. Earlier and more sanguine estimates have been abandoned as the investigation of the bank's affairs has proceeded and as fresh evidences of its gross mismanagement have come to light. While Receiver Devlin still refuses to express any opinionn on the subject, it is declared in the most positive terms by those who have carefully examined the assets that depositors can not expect to the receivership to yield them more than one-half the face of their claims. Many ugly rumors are afloat concerning W. Cooper Morris, the cashier of the bank, and it is freely asserted that he was personally interested in many of the loans which he i made. He is in Medford today, having gone there, it is said, for the purpose of promoting the reorganization e of the bank. In his absence it has S been impossible to secure from him f either confirmation or denial of the stories current on the street. e There is no doubt, however, that he was chiefly if not solely responsible for the loans to the Golden Eagle a department store, the worst instance of the reckless manner in which the bank used the funds of its depositors. The story of these transactions is a startling illustration of Morris's system of finance. Eagle Company's Debt. e The Golden Eagle department store, which will be reopened by the ase signee tomorrow, owes the Oregon Trust & Savings bank, according to Receiver Devlin's report, approxi1, mately $115,000, which had grown from a small overdraft to the largest st of the hank's loans, and which fie nally engulfed the store and helped g to cause the bank's suspension.
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In his efforts to help reimburse the depositors of the defunct Oregon Trust and Savings bank, which recently failed in Portland, Walter H. Moore, president of the bank, with his wife, Mrs. Laura Moore, transferred to the receiver of the bank, Thomas Devlin, 7496 acres of rich farming lands in Multnomah, Morrow and Sherman counties, in Oregon, and in Franklin county, Washington, valued at $250,000. The deed to the receiver is made absolute and there are no provisions attached, it being the wish of Mr. Moore that the property be used to the best advantage in repaying the extraordinary losses sustained by the depositors of the bank. While this act on part of Moore is commendable, yet it is the common sentiment that it deserves no special commendation, as the president of the bank and all its other officers are in duty bound to make good every cent of the loss to depositors. This sum will fall far short of every cent of repaying the losses which will reach to more than $1,000,000.
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Moore Trying to Make Good. Portland, Ore., Sept. 21.-Walter H. Moore, president of the defunct Oregon Trust and Savings bank, yester day completed the transfer to Receiver Thomas Devlin of all the right and title to lands said to be worth about a quarter of a million dollars. They constitute the bulk of Moore's private fortune and are turned over to help reimburse the depositors of the bank.
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DEBTORS MUST PAY BANK RECEIVER DEVLIN WILL ALLOW NO EXTENSIONS. In Pursuance of This Policy Attachment is Levied on Property of Pullman Auto Company. Accounts payable to the Oregon Trust & Savings Bank are being pushed to settlement by Receiver Devlin as rapidly as they become due, and the receiver has notified debtors of the institution that loans must be repaid at maturity or he will be compelled to institute legal proceedings forthwith. In line with this policy the receiver filed an attachment yesterday on the property of the Pullman Automobile Company, at Sixth and Everett streets, in a suit to recover a loan of $13,000 due the bank. "In the reorganization scheme." said Mr. Devlin, "it will be necessary for the debtors of the bank as well as the creditors to give us all the assistance possible, and we therefore have notified all borrowers to pay up promptly so that the assets of the institution may be well in hand by the time the reorganized bank is ready to resume business.-[Extract from Saturday's Oregonian.]
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LATE NEWS ITEMS. Judges of Philadelphia have declared unconstitutional the 2-cent railroad fare law passed by the last legislature. M. F. Kincaid has resigned as warden of the state penitentiary at Walla Walla, to take effect as soon as a successor can be named. From her parents, both of whom died within a few days of each other, Mrs. Herman H. Wycoff of Bellingham has inherited a share, valued at $500,000, of an estate. It is reported that Japan does not intend to make an international affair of the Japanese riots which have occurred in Vancouver, B. C. A prominent offi cial of Japan says the relations between Japan and Great Britain are too close and too friendly to be destroyed by this incident. He says the Japs will demand damages. It is reported that a large paper mill is to be erected at St. Joe, Idaho, which will cost $1,500,000. Spokane has passed an ordinance that saloons must pay $1000 a year license. It is reported that the Countess of Montignoso, the divorced wife of the King of Saxony, was married in London to Signor Tozzell, the Italian singer. Plans are on foot to reorganize and reopen the Oregon Trust and Savings bank which failed in Portland a few weeks ago. Patrick Brice, hero of several Indian wars and an argonaut of the early 50s, died at Anaconda, Mont., recently. Brice was awarded a medal for signal bravery during the Nez Perce war in 1877 in connection with the rescue of the 6-year-old daughter of an army officer named Manuel. The bond election at Tacoma for a new water plant to cost $2,000,000 was voted down. The New York city bond issue of $40,000,000, was heavily over-subscrib ed at premiums ranging up to 103. The Standard Oil company of Indiana has applied to the United States circuit court or a writ of supersedeas, suspending the opeartion of the recent decision rendered by Judge Landis in the United States district court in which the penalty assessed against the company was $29,000,000.