The Athena press. [volume] (Athena, Umatilla County, Or.) 18??-1942, 1907-12-06
MONEY FOR NOTHING.
Investigation of Title Guarantee &
Trust Co., Discloses Sterling
Methods of Finance.

L. L. Burkhart, treasurer of the
Title Guarantee & Trust company, used
the funds of the bank for the business
of the A. @. Burdiok company to the
extent of $4,000. according to the
information CLEANED from the investi-
CATION. now teihg conducted into the
affairs of the institution by the district
attorneys Office. To secure this sum
says the Oregon Daily Journal. various
bills of lading for purchases and ship
ments, of prunes and lease on the
warehouse controlled by the A. G.
Burdick company have been found not
ed on the books of the bank and of the
Burdiok company.
According to the Investigation the
A. U. Burdick company was formed for
the purchase of and speculation in
prunes grown in Oregon and the north
west and sold to eastern buyers. The
ledger accounts of the company show
the stock to have been Leld and the
profits enjoyed by A. q. Burdiok, "T.
Il. B. and Ourselves. These three
accounts were kept open and were paid
the dividends from such profits as
came into the Golfers of the company.
The investigation so far competed
has shown that all of the notes given
by the A. Q. Burdick company to the
bank for the aggregate sum of $40, 900.
were written in the hand writing of
L. L. Burkhart, who apparently held
the largest share of the stock and stood
at the head of the company in active
operation.
BurkhaIt, from the records of the
company, was the guiding hand in the
management of the corporation, direct
ing its movements and securing its
funds. Burdick, who is a Portland
man. held the title role in the concern,
but be seems to have been potentially
valuable chiefly through his knowledge
of prunes and how to buy them.
Under ordinary business or banking
conditions it is usual to require ade-
quate and certain security for large
sums of money loaned to any firm or
person, but in this case this practice
seems to have been cast aside for the
security given by the A. G. Burdick
company for its $4,000 of notes is
problematical, depending upon market
conditions and the chances of specu.
lation.
Further investigation will be made
by the district attorneys office into
the transactions of the A. @. Burdick
company. An effort will be made to
ascertain just how much stock in the
corporation was owned by A. G. Bur-
dick, how much by "T. T. B., how
much by Ourselves and also who
came under the ambiguous title last
named. 1t is presumed, however, that
outside the small holdings of A. G.
Burdick, practically the entire stock
of the company was either owned or
controlled by Mr.. Burk hart.
II this supposition is true it will put
Mr. Burkhart in the position Of hav-
lug passed upon the issuance of large
loans of the money deposited in the
bank to company which was con-
trolled by himself. he at the same time
being an officer and director of the in
stitution intrusted with the obliga-
tion of securing adequate security for
all money loaned by the Title Guaran-
tee & Trust company
The work being done by the district
attorneys Office iu delvlng into the
condition of the Title Guarantee 81
Trust company is exhaustive and will
perhaps require three more weeks to
complete. The end of the investiga-
tion, however, judging from what has
already been discovered. will bring to
light somel startling conditions and
transactions which will be used by the
district attorney in the trial of the
criminal action begun SOON after the
suspension of the bank against the
officers and directors of the corpora
tion.