The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-11-08
State Treasurerprec ecipitates Title
Guarantee Failure.
BANKS AFFAIRS IN BAD SHAPE
Cash Was Drained From Vaults After
Failure Of Oregon Trust 4 Savings
Bank---Some Lean Securities Are Also
in Poor Condition to Negotiate,

PORTLAND, Nov, I,---Precipitated by
the demand Of George 4. Steel, state
treasurer, for 100000 OF the Sses,o0o
state funds deposited in the bank. the
Title Guarantee & Trust Company was
forced to 80 into the hands OF a receiver
late yesterday afternoon. George II,
Hill, vice. president Of the bank, being
appointed receiver by Federal Judge
Charles Il. wolverton. The assets Of the
bank are roughly placed at Ss,oOo,ooo
and the liabilities at Ss,660,000. Al
though the bank has $500 savings ae-
counts and 1900 accounts subject to
cheek. the deposits amounting to ST.
100000, there was but $1,000 in the
vaults and $4,000 on deposit In other
banks when the legal holidays were first
ordered.
The heaviest debt OF the Title Guar
antee 4 Trust Company Is an account
of S607 900. due Laid 4 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 milestone
around the neck OF the institution.
Contrary. to general belief. w. NJ. Ladd
lis not an officer in the bank, although
he owns 755 shares. valued at 500 each.
Originally Mr.. Ladd was president, but
resigned July !, 1906. being succeeded
by j. Thorburn Ross. Mr.. Ladd was
carried as director. however. until last
July. although recent advertisements
of the Title Guarantee 4 Trust Company
carried his name as director until the
suspension. The withdrawal Of Mr..
ILadd was, apparently. unknown even
to people in the bank. for 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 4 Savings
Bank in August caused a steady run on
the Title Guarantee & Trust Company.
At that time there was in the vaults OF
he latter s4s5.OOO. The deposits at the
line were S2.245.OOO. In the past two
months 100000 has been withdrawn,
md the climax came when State Treas
lrer Steel demanded 100000. which he
Intended scattering among other banks
n the Willamette Valley. Before the
eceiyer was appointed yesterday Steele
vas secured for the S395.000 BY surety
,onis, timber land in Benton county
ralued at 100000. on which the bank
lad loaned $5OO.0o0, and a mortgage
IN land near Silverton valued $42s, 600.
While the bank made the state a pre-
erred creditor, this action is meeting
With denunciation on the street, as the
tate money was secured by the bonds
men of Treasurer Steel.
NJ. B. Rankin was the heaviest Dor.
over of the bank, having secured $780,
100 for timber deals in Benton county
IN one transaction alone.
Lafe Pence induced the bank to lend
i'm S225.00O for his scheme OF filling
iuilds Lake, by sluieing down the hills
,ack of the city, and the bank also in
'ested sl75,O00 additional in the Fair
rounds Pence secured his loan through
T. T. Burkhart, the treasurer, and At
hison, the secretary, during the absence
If Ross in Europe.
About five months ago Ross and Pence
had a falling out. because the banker
refused to lend the promoter more coin.
The Pence enterprise was considered vis-
ionary, and although fortune had
been placed in sluice boxes and other
paraphernalia, the work ceased.