The Corvallis gazette. [volume] (Corvallis, Or.) 1862-1899, 1879-02-14
A PLAIN ISSUE OF FACES.

Speaking of the loans to. McClane
and Myers, the Standard says sit has
the best of authority that Grover did
not receive cent of the money, nor
was it borrowed tor his benefit.
This makes a direct issue of fact,
which is very easily settled. Grover
held a note of So. 900 against Nc
Clane. TO this same McClane he
made large loan out of the school
fund, on very insufficient security, |
and with portion Of the money this
$4,000 note was paid. McClane's
own testimony before the committee
shows that the money never passed
through his hands. Grover simply
transferred it from the school fund TO
his own pocket and gave up the
note to McClane. The Myers loan
was made under the following circum-
stances: Grover sold his Salem facto-
ry stock, understood to be controll-
i"g interest in the corporation. The
persons who made the purchase had
not tire money to pay him. Through
a.circuitous transaction water pow
er at Salem belonging to the proper
ty was sold to A. Myers, to whom
Grover made loan out of the school
fund, taking property of little value.
as security. Myers, however, did
not get dollar of the money thus
nominally borrowed. The whole sum
of $4,000 was transferred directly
to Growers company by Grover him
self, and the State was put off with
security which has proven almost
worthless. When the property was
sold to Myers, and coincident in time
with this school fund loan the facto-
ry company-that is Grover-ac-
knowledged receipt of $4,000 for
the property, and the same is mat
ter of public record. If these are
not facts we invite any one on be-
half of Mr.. Grover, or Mfr. Grover
himself, to show the contrary; and as
the Oregoniam wishes to do no injus-
tice, it will gladly publish such state
ment, and on fair proof will withdraw
it's own. Here, then, is plain issue
of fact. The Standard is also good
enough to say that it "thlnks public
official who has money in trust should
not loan it to himself" This raises
the question of the loan nominally
made to the West Portland Home
stead Association. In this case also
Grover resorted to roundabout
method to get money out OF the
school fund. He organized a straw
corporation under the above name,
mortgagcd some land west of Port
land, whicl: is covered with brush and
timber, and is described as being $50
steep that 1t stands edgewise;" and on
this imperfect security, on which no
private capitalist would loan S. 900,
he took $4,000 out of the school
funds, and nsed the money, as he him.
self has admitted, to ''pay his debts. -
Now if the Standard really thinks
that "public official who has money
in trust should not loan it to himself" ;"
1t will speak out in censure of this
transaction without further delay.
And since it professes also TO have
the chest of authority that Grover
: did not receive the money" on the
McClane and Myers loan, it is incum-
bent on it to give that authority and
clear up this matter. We have now,
as before stated, plain issue OF fact,
stripped of all superhuous and irrele-
want matter, and there is no longer
excuse for evasion or silence on the
. part of those who profess t, be pre-
pared to maintain the proprIety oi
Mr.. Growers action.-Or Oregoni0n.