8eecc493Capital injected, Full suspension, Books examined
Other: Receivership appointed by federal court; criminal prosecutions of officers followed; later attempted absorption by William M. Ladd was reported.
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High score Cressman, 205. High average-Cressman, 189. At Anacortes the following scores were made: First game 922, seeond game 914, third game 874. Vancouver bowlers rolled as follows: First game 869, second game 827, third game 787. The Title Guarantee and Trust company of Portland has gone into the hands of a receiver.
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SOME BUSINESS DIFFIC ULTIES Receiver for the Arnold Print WorksBank Concerns Close. Boston, Nov. 7.-Declared to be perfectly solvent, but unable to renew mautring loans held by savings banks, the Arnold Print works at North Adams are in the hands of a receiver. The concern employs 6,000 men. The sole cause of the receivership was the present financial stringency. The company has a large number of contracts in process of manufacture on which collections would be made in the ordinary course of business at the end of the next three or four months. The corporation has liabilities of $9,500,000 and assets estimated at $15,000, 000. Buffalo, N. Y., Nov. 7.-Judge Hazel has appointed as receivers of the New York State Steel company Spencer Kellogg. George Urban, Jr., and Adolph Rebadow. A statement was given which says: "Owing to the severe stringency now existing in the business world it has been deemed best to conserve the interests of all to have a temporary receiver appointed for New York State Steel company. While the company is perfectly solvent, yet such action has been taken, which Is but temporary." Portland. Ore., Nov. 7. -- The Title Guarantee and Trust company, of this city. has passed into the hands of a receiver. The complainant says the liabilities of the concern are $2,640,000 and the assets $2,500,000. San Francisco, Nov. 7.-Taking ad. vantage of the bank holidays declared by Governor Gillette the Citizens' State bank. at 1445 Fillmore street. has stopped paying. The doors of the bank are not closed. but no money is received or paid out. Not being in the Clearing House the bank had to settle its balances in gold. and was being rapidly drained, so that it was deemed best by the board of directors to avail themselves of the holiday.
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State Treasurer Precipitates Title Guarantee Failure. BANK'S AFFAIRS IN BAD SHAPE Cash Was Drained From Vaults After Failure of Oregon Trust & Savings Bank-Some Loan Securities Are Also in Poor Condition to Negotiate. PORTLAND, Nov. 7.-Precipitated by the demand of George A. Steet, state treasurer, for $100,000 of the $395,000 state funds deposited in the bank, the Title Guarantee & Trust Company was forced to go into the hands of a receiver late yesterday afternoon, George H. Hill, vice-president of the bank, being appointed receiver by Federal Judge Charles E. Wolverton. The assets of the bank are roughly placed at $3,000,000 and the liabilities at $2,660,000. Although the bank has 5500 savings accounts and 1200 accounts subject to check, the deposits amounting to $1,800,000, there was but $9000 in the vaults and $9000 on deposit in other banks when the legal holidays were first ordered. The heaviest debt of the Title Guarantee & Trust Company is an account of $607,000, due Ladd & Tilton, drawing 8 per cent interest, payable monthly. This debt has been an incubus of long standing and, as one of the bank officials declares, has been a millstone around the neck of the institution. Contrary, to general belief, W. M. Ladd is not an officer in the bank, although he owns 755 shares, valued at $100 each. Originally Mr. Ladd was president, but resigned July 1, 1906, being succeeded by J. Thorburn Ross. Mr. Ladd was carried as a director, however, until last July, although recent advertisements of the Title Guarantee & Trust Company carried his name as director until the suspension. The withdrawal of Mr. Ladd was, apparently, unknown even to people in the bank, for a few days ago Receiver Hill said that Mr. Ladd was back of the bank to the best of his knowledge. Failure of the Oregon Trust & Savings Bank in August caused a steady run on the Title Guarantee & Trust Company. At that time there was in the vaults of the latter $485,000. The deposits at the time were $2,245,000. In the past two months $500,000 has been withdrawn, and the climax came when State Treasurer Steel demanded $100,000, which he b intended scattering among other banks B in the Willamette Valley. Before the receiver was appointed yesterday Steele was secured for the $395,000 by surety bonds, timber land in Benton county 4 valued at $600,000, on which the bank B had loaned $500,000, and a mortgage 1 on land near Silverton valued a $428,000. b While the bank made the state a pren ferred creditor, this action is meeting with denunciation on the street, as the W state money was secured by the bondsfi men of Treasurer Steel. t M. B. Rankin was the heaviest born rower of the bank, having secured $500,000 for timber deals in Benton county S on one transaction alone. Lafe Pence induced the bank to lend f him $225,000 for his scheme of filling Guilds Lake, by sluicing down the hills back of the city, and the bank also in 6 vested $175,000 additional in the Fair h Grounds. Pence secured his loan through T. T. Burkhart, the treasurer, and Ate chison, the secretary, during the absence of Ross in Europe. r About five months ago Ross and Pence ( had a falling out, because the banker refused to lend the promoter more coin. PROV. The Pence enterprise was considered visionary, and although a fortune had been placed in sluice boxes and other paraphernalia, the work ceased.
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PORTLAND BANK OFFICIALS WILL BE ARRESTED Attorney Manning at once, and ar(By United Press.) rests will probably be accomplishPORTLAND, Ore, Nov. 9.ed before night. All of the bank's Charging J. Torburn Ross, presiofficials are in Portland and none dent of the Title Guarantee & will attempt to escape arrest. Trust company. George H. Hill, vice Immediately upon information president and present receiver, T. that the complaint had been sworn T. Burkhardt, treasurer, and John out against the officials, Vice PresE. Atchinson, secretary, with reident Hill, who was appointed recelving his deposit of $1,330 after ceiver by the federal court. went they had knowledge that the trust into consultation with bls attorcompany was insolvent, C. F. neys. It is understood he is makEhman, a Portland real estate dealing the necessary arrangements to er, today swore to a complaint relinquish his position as receiver against the bank officials. Warupon his arrest. rants will be asked for by District
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TROUBLE AHEAD FOR OFFICIALS Warrants Sworn Out in Connection With Portland Bank Failure and Arrests Made. Portland, Ore., Nov. 9.-J. Thorburn Ross, president; George H. Hill, vice president, and T. T. Berkhart, treasurer, of the Title Guarantee & Trust company, which went into the hands of a receiver Wednesday last, were arrested today, and a warrant is out for John E. Aitchison, secretary of the defunct institution. The charge lodged against them is accepting money on deposit while knowing the bank was insolvent. Under the laws of Oregon this is a felony, punishable by a maximum fine of $1,000 or imprisonment in the penitentiary for two years, or both fine and imprisonment. The arrests were made on complaint of C. F. Ehman, who alleged that on Oct. 28, the day before the present dayto-day holiday period began, he deposited in the bank the sum of $550. Ehman alleges that the officials of the bank knew on that day, and had for some time previous, that the bank was insolvent. Aitchison is now in New York City, but will be arrested on his return. Those defendants who have been placed' under arrest were released this afternoon on furnishing $2,500 bail each. Will Be Made Good. In a signed statement to the Associated Press tonight, William M. Ladd, head of the firm of Ladd & Tilton, bankers, who is a large stockholder in the Title Guarantee & Trust company, which failed here Wednesday last, says he will guarantee the savings depositors in. the institution will be paid in full within two years from date, and as representative of W. S. Ladd's estate, which is back of Ladd & Tilton, states that Ladd & Tilton will relinquish to the general creditors of the Title Guarantee & Trust company the securities which they hold for the debt of $607,000 due to Ladd & Tilton. The total obligation assumed is more than $1,000,000.
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BANK OFFICIALS ARRESTED Accepted a Deposit While Knowing Bank Was Insolvent. Portlanl, Ore., November 9 -J. Thorburn Ross, president; George H. Hill, vice president and T. T. Berkhardt, treasurer of the Title Guarantee and Trust Company which went into the hands of a receiver Wednesday last were arrested today and a warrant is out for John E. Aitchison. secretary of the defunct institute. Aitchison is now in New York city. They were released this afternoon on furnishing $2,500 bail each. The charge against them is accepting money on deposit while knowing the bank was insolvent. Under the laws of Oregon this is a felony punishable by a maximum fine of $1,000 or imprisonment in the penitentiary for two years, or by fine and imprisonment. The arrests were made on complaint of C F. Eman. who alleges that on October 28, the day before the present day to day holiday period began. he deposited $550. Eman alleges that the officials of the bank knew on that day and had for some time previous known that the bank was insolvent.
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the speculative undertakings, outside all the principles of banking, which brought two establishments to disas- ter, and created an alarm which pre- cipitated itself chiefly upon this one, that at last has been forced to sus- pend. But from the showing made it is clear that the suspension is only temporary. The run upon this bank never would or could have been so se- vere but for two reasons: First, mali- cious and persistent rumors; second, the disastrous experience the people of Portland have had with other banks, which, unlike this one, were plungers and promoters. With the fear or frenzy that pro- duces a run on a normally sound bank it is useless to attempt to counsel or reason. The fear or frenzy, after it has gone a certain length, will exhaust it- self. But the financial stress in Port- land is now virtually over. We have arrived at bedrock, after a series of thumps from most unexpected causes. But from this day there will be steady upbuilding. and we may look to com- plete restoration of confidence within a short time. The assets of the Mer- chants' National bank will completely cover its liabilities; while the guaran- tee by Mr. Ladd will go far to dis- charge the obligations of the Title Guarantee & Trust company, and probably will completely discharge them. And the Oregon Trust company has resources which there is promise of bringing into shape for relief of its creditors. Meanwhile the country is full of all sorts of resources, with abundance of merchantable commodi- ties. The worst row is known, and business soon will be normal again.- Oregonian.
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BEST ASSETS ASSIGNED. Preferred Creditors Get Cream of Resources of Portland Bank. Portland, Nov. 8.- - Developments yesterday in the bank failure of the Title Guarantee & Trust company were as follows: Marquam building, included as $400,000 asset, is not available for meeting claims of depositors, because held as security by Ladd & Tilton, for $607,000 debt. Three depositors of broken bank, dissatisfied with appointment of George H. Hill as receiver, petition Federal District court for involuntary bankruptcy, their object being to supplant the receiver with trustee appointed by bank's creditors. Validity is doubted of assignment to State Treasurer Steel for security for $395,000 state deposits, of timber land collateral in Benton and Marion counties. So much of assets of bank are assigned to preferred creditors that it looks as if depositors will suffer heavy loss. State Treasurer Steel exacted only $100,000 security for $395,000 deposits of public funds, thereby violating the law. It seems likely that Treasurer Steel's bondsmen will be called on by the state to make good the loss of public funds. The American Surety company has given bond for $650,000, and six Portland men for $50,000-J. Thorburn Ross, Wallace McCamant, Louis G. Clarke, J. H. Peterson, M. B. Rankin and J. W. Cook. Ross' liability is $25,000. District Attorney Manning hears that the bank received deposits while insolvent, and that there were swindling operations, and will make investigation.
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RECEIVER FOR BANK IS NAMED Affairs of Title Guarantee & Trust Co. of Portland in Bad Shape. Heavy Investments on Which Officers Could Not Realize* Quickly and Steady Drain on Depssits Are Chief Cause of Suspension-Action in Federal Court. Portland, Nov. 7.-Distress of the Title Guarantee & Trust company reached a climax yesterday when Judge Wolverton of the United States District court ordered the institution into receivership, on application of Nathan Coy, a stockholder, through Joseph Simon, attorney. Judge Wolverton appointed as receiver George H. Hill, vice president of the bank. The matter was taken into the Federal court because Coy is a nonresident of Oregon, living near Boston. The bank closed on Monday of last week, with only $9,000 bank money in its vaults and $9,000 due from other banks, out of deposits aggregating $1,800,000. In the succeeding holidays proclaimed by the governor, the bank, unlike the other money institutions of the city, remained closed. The trouble of the bank was precipitated by the call of State Treasurer Steel, on the last day it was open for business, for $100,000 of state funds. The state has on deposit $395,000. This money, says J. Thorburn Ross, president of the company, and other bank officers, is amply secured by surety bond in Treasurer Steel's favor for $100,000 and by timber land collateral made over to him in the last few days, from the assets of the bank. How much depositors will get of their money depends on the handling of the bank's assets, which are of a kind that cannot be turned quickly into cash. They consist chiefly of real estate. The liabilities are placed at $2,560,000 and the assets at$ 3,000,000. The failure of the Oregon Trust & Savings bank last August, started a run on the Title Guarantee & Trust company, resulting in withdrawal of $485,000 deposits up to October 28. This exhausted the bank's supply of ready funds and it was unable to realize on its several big projects.
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NEWS OF THE WORLD Important Events of the Week in Condensed Form. FINANCIAL AND INDUSTRIAL General conditions in the New York financial situation are favorable. The runs on trust companies have practically ceased under the encouraging support of the trust company committee, gold engagements have been further increased and the stock market rose buoyantly. The announcement that an agreement had been reached by which the Trust Company of America and the Lincoln Trust company were to deposit their stock with a committee of trust company presidents and in consideration of this were to receive all the support required cleared the trust company situation. Senator Nelson of Minnesota and a delegation of Twin City bankers and grain men had a conference with President Roosevelt and Secretary Cortelyou regarding the financial situation in the Northwest. After the conference Secretary Cortelyou said measures for the relief of the grain men of the Northwest were talked over and it was authoritatively announced that the secretary had agreed to extend help and to do everything else possible to expedite the movement of grain. The tightness of the money market is reflected in the monthly report of Colonel Edward Fowler, appraiser of the port of New York. His figures for the month of October show an approximate decrease of over $3,000,000 in the values of importations compared with the same month of last year. Henry F. Adams of Boston has been appointed receiver of the Arnold print works of North Adams, Mass., one of the largest textile concerns in the country. The corporation has liabilities of $9,500,000 and assets estimated at $15,000,000. Largely increased business, but with considerable loss in revenue, is shown by an investigation made by George J. Charlton, general passenger agent of the Chicago and Alton, into the effect of the 2-cent fare laws. The total known gold engagements passed the $50,000,000 mark Saturway when Lazard Freres announced that they had secured an additional $1,000,000 in gold in Europe. The financial situation throughout the country from the treasury department standpoint is more encouraging than at any time during the past two weeks. The Citizens' State bank. one of the small financial institutions of San Francisco, has closed its doors. The Title Guarantee and Trust company of Portland, Ore., has passed into the hands of a receiver.
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RECEIVER FOR BANK IS NAMED Affairs of Title Guarantee & Trust Co. of Portland in Bad Shape. Heavy Investments on Which Officers Could Not Realize Quickly end Steady Drain on Depssits Are Chief Cause of Suspension-Action in Federal Court. Portland, Nov. 7.-Distress of the Title Guarantee & Trust company reached a climax yesterday when Judge Wolverton of the United States District court ordered the institution into receivership, on application of Nathan Coy, a stockholder, through Joseph Simon, attorney. Judge Wolverton appointed as receiver George H. Hill, vice president of the bank. The matter was taken into the Federal court because Coy is a nonresident of Oregon, living near Boston. The bank closed on Monday of last week, with only $9,000 bank money in its vaults and $9,000 due from other banks, out of deposits aggregating $1,800,000. In the succeeding holidays proclaimed by the governor, the bank, unlike the other money institutions of the city, remained closed. The trouble of the bank was precipitated by the call of State Treasurer Steel, on the last day it was open for business, for $100,000 of state funds. The state has on deposit $395,000. This money, says J. Thorburn Ross, president of the company, and other bank officers, is amply secured by surety bond in Treasurer Steel's favor for $100,000 and by timber land collateral made over to him in the last few days, from the assets of the bank. How much depositors will get of their noney depends on the handling of the bank's assets, which are of a kind that cannot be turned quickly into cash. They consist chiefly of real estate. The liabilities are placed at $2,560,000 and the assets at$ 3,000,000. The failure of the Oregon Trust & Savings bank last August, started a run on the Title Guarantee & Trust company, resulting in withdrawal of $485,000 deposits up to October -8, This exhausted the bank's supply of ready funds and it was unable to realize on its several big projects.
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BANK RECEIVER IS REMOVED PORTLAND, Ore., Dec. 12.Federal Judge Wolverton has removed George H. Hill as receiver or the Title Guarantee and Trust company, and appointed E. C. Mears, formerly cashier of the Bankers' and Lumbermen's bank, to take his place. Hill's removal was sought by the depositors' association and the state of Oregon.
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That grave suspicions are entertained by the public in regard to the failure of the Title Guarantee & Trust company of Portland, is shown by the following from the Portland Oregonian of December 29. The Oregonian says: Poverty is not the share of J. Thorburn Ross from the wreck of the Title Guarantee and Trust bank, according to a statement of his property left by him with the bones of the institution. The statement shows the president of the defunct bank still to be the possessor of a good income and wealth to the value of $202,435, plucked from the Title company during the halcyon days, largely from rakeoffs and stock jobbing. And not only were the pickings fat for Ross, but also for Ladd and Tilton, who in less than seven months of the present year collected from the now defunct bank the sum of $193,363.40, of which $167,363.40 was principal and interest payments on two notes for $740,000 owing Ladd & Tilton, and amounting on April 15, 1907, to $769,794, including interest. That debt is now $607,256.86. Where Did They Get It? Whence came the $167,363.40 payment to Ladd & Tilton? As the Ross bank was run on the money of depositors and the state, and this money was not separated from the earnings, there is little room to doubt that it came from depositors. If be added the $26,000 which the bank paid Ladd & Tilton on November 6 during the holidays, from the proceeds of a mortgage sale, the total money collected by Ladd & Tilton from the institution since April 15, 1907, was $193,363.40. Ross will be called upon to give over to the Title bank the property in his hands to help pay the bank's creditors. He obtained his holdings. as the books show, by means of rakeoffs from deals between the bank and its various subsidiary companies.
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PORTLAND, Jan. 2.-T. T. Burkhardt, late secretary and treasurer of the defunct Title Guarantee & Trust Co., is ready and willing to tell all he knows of the deals and transactions of the suspended bank provided the district attorney grants him immunity.
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PORTLAND BANKS WILL OPEN Institutions Are to Resume Business By the First Day of February. Unless the unforeseen happens, all three suspended banks in Portland will be in operation within a little more than two weeks' time. The Title Guarantee & Trust company is scheduled to pass under the control of William M. Ladd about Monday or Tuesday. The plan of absorption of the Oregon Trust and Savings bank by the German-American should be in such shape that liquidation of the defunot institution may be begun some time during the week of January 25 to February 1. As for the Merchants National, President J. Frank Watson states that while the officials hoped to be able to resume operations February 1, it might be a few days later than that before the reorganization plan was in such shape that it would meet the approval of Special Examiner Wilson and the controller of the currency.
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# MORE LIGHT ON STEEL. State Treasurer's Wife Owned Stoolk in Defunct Bank. Added light was thrown on the connection of State Treasurer George A. Steel with the tangle of the wrecked Title Guarantee & Trust company in the federal court this morning when W. C. Bristol made application for the settlement of the account of the Home Security & Investment company, says the Oregon Daily Journal. At that time it was stated that Mrs. Eva Steel, wife of the state treasurer, owned practically all of the stock of the Home Security & Investment company, which was a subsidiary corporation of the Title company. According to the statement of the district attorney made to Judge Wolverton the Home Investment company was formed as a subsidiary organization under the wing of the Title Guarantee & Trust company, practically all of the stock in the concern being held by Mrs. Eva Steel. Prior to the failure of the bank the Home Securities company purchased lot 2 of block 57, being property in the business district. The Home investment company borrowed $13,000 of the Title Guarantee & Trust company with which to swing the deal, giving in return for the money, a mortgage on the property. At the time of the failure this amount was still owing, while the private account of Mrs. Steel was $7018. Application was therefore made this morning to the court to allow Mrs. Steel to apply the amount due her, $7018, on the mortgage of $13,000 due the bank, or the receiver as the matter now stands. It was explained by Mr. Bristol that an arrangement had been reached whereby Mrs. Steel agreed to clear the property of all debt and to repay at once to the bank the amount due after deducting the $7018 paid by the transfer of her private account against the mortgage. Judge Wolverton allowed the motion and made an order to that effect.
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BANKERS SCORE FIRST. Ross and Associates Get Change of Venue in Fight Tor Liberty. Portland, April 4.-J. Thoburn Ross T. T. Burkhart, J. E. Aitehinson and G. G. Hill of the Title Guarantee and Trust company, charged with fraudulently handling the funds of the suspended Title Guarantee and Trust company, won the Tirst round in their fight for liberty today when Judge Cleland granted the bank officials a change of venue. The case will be heard in Marion county probably either by Judge Barnett or Judge Galloway.
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# BANK WRECKERS WIN # THE FIRST ROUND J. THOBURN ROSS ET. AL. GRANT- ED A CHANGE OF VENUE TODAY. PORTLAND, J. Thoburn Ross, T. T. Burkhardt, J. E. Atchinson and G. G. Hili of the Title Guarantee and Trust company, charged with fraudulantly handling the funds of the suspended Title Guarantee and Trust company, won the first round in their fight for liberty today when Judge Cleland granted the bank officials a change of venue. The case will be heard in Marion county, probably either by Judge Burnett or Galloway.
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THE SCENE SHIFTS TO MARION GO. INDICTED OFFICERS OF DEFUNCT TITLE, GUARANTEE BANK SECURE CHANGE OF VENUE. (United Press Leased Wire.) Portland, Or., April 4.-J. Thornburn Ross, T. T. Burkhardt, J. E. Altchinson and G. G. Hill, of the defunct Title, Guarantee and Trust company, charged: with fradulently handling the funds of the suspended bank, won the first round in their fight for liberty today when Judge Cleland granted the bank officials a change of venue. The case will be heard in Marion county, probably by either Judge Burnett or Galloway at Salem.
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SALEM, April 23.-J. Thorburn Ross, the former president of the defunct Title, Guarantee & Trust Co., of Portland, was this afternoon convictd of larceny in having converted to his own use $288,000 of state school funds of the State of Oregon which had been placed in his custody, as the president of the bank by State Treasurer Steel. The jury was out an hour and thirty-five minutes. Sentence will be imposed Monday. The State law provides as a penalty for this crime, imprisonment in the penitentiary from one to 15 years, together with a fine equal in the amount to twice which the offender is proved to have stolen. Immediately after the bank closd its doors, Ross and the other officers of the bank were arrested and later indicted for the larceny of state funds. Although numerous demurrers were interposed by the defendants, all objections one after another were swept aside except the one which charged that a general bias existed in Multnomah county and on their urging that a fair trial could not be secured in that county, the court sent the cases to Marion county on a change of venue to be tried before the state circuit court in this city. The Ross case which was first assigned to trial came to a hearing on Monday last. The case is of added interest because Ross has been a prominent member of the First Presbyterian Church of Portland and was because before coming to that city from Ohio, but 20 years ago, was a Presbyterian clergyman. Failing eyesight compelled Ross to abandon the ministry. Judge Burnett in his instructions to the jury gave what was considered an impartial summing up of the evidence, but the effect was taken as an intimation that the jurymen should disregard the technical pleas that had been raised by lawyers for the defense. Judge Burnett consumed only 25 minutes in his talk, which opened at 2:40 and ended at 3:05, but during that time he went into all the salient details of the evidence. Judge Pipes spoke briefly in conclusion. for the state.
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Conclusions From Correspondence of Steel and Ross TRACED VARIOUS ACCOUNTS When the Investigators Discovered That the Home Security & Investment Co. Was Represented, They Concluded They Knew Enough. PORTLAND, April 27.-Behind an entry of $4148 on the trust ledger of the Title Guarantee & Trust Company, under date of June 6, 1907, the day following the segregation of the educational account of the State of Oregon on the books of the institution, may, in the opinion of investigators, lie an explanation of the relations really existing between George A. Steele, State Treasurer, and J. Thorburn Ross, president of the company. Considering the item in the light of other entries and various debit and credit accounts, as well as checks and deposit slips and the correspondence between Steel and Ross, Attorney W. C. Bristol, who represents the state relative to receivership proceedings, and Governor Chamberlain formed certain conclusions. Their deductions were aligned in every particular with those made by Ben W. Olcott and J. W. Ferguson, the expert accountants, who devoted much of their time while investigating the bank's affairs to throwing light on this phase of the situation. Three per cent was paid by the Title Guarantee & Trust Company on check accounts. That the educational fund of the state was deposited in the bank by Treasurer Steel as a check account is undisputed; in fact, the defense during the trial of Ross at Salem was founded on the theory that in view of court decisions this procedure was lawful and proper. It is a peculiar fact that $4148 lacks only 89 cents of being the exact amount of interest on $69,148, the average of daily balances of the state accounts with the bank from January 15, 1907, until June 5, 1907, at 3 per cent for two years. Mr. Steel took office January 14, 1907, and the educational account by his order was segregated by the bank June 5, 1907. His term of office was for four years. The amount of $4148 was credited to him June 6, 1907. The amount of $4148 having been