East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-01-11

Is the Pacific Coast Construction
company working scheme whereby
II makes Il discount of 10 per cent
in the amount paid TO its laborers in
wages? That 1t is doing so is believ-
e1 by those who have had experience
with the company's time checks.
Since the work on the branch line
began the laborers have been paid by
the various sub-contractors with
"Time statements" These have all
been countersigned by II. n. Balm,
auditor for the Pacific Coast Construc-
ton company, which has the general
grading contract. The statement sets
forth the amount due laborer upon
certain date after hospital fee and
other deductions have been made.
However, unlike the regulation time
check the are all stamped mot ne
gotiable" In large red, letters. Be
meath the same is the following note:
This memorandum shall In no in
stance be deemed, considered or held
as a final statement of balance due,
as a time check or order, but merely
as a memorandum. 1t is subject To
further legitimate deductions or cor
rections, and must be presented by
payee."
All of the checks are made payable
on the 25th Of the month following
the one in which the work is done.
Those issued I'm December mature
January 25, while some given for Mo-
vember work were due December 25.
During the last month scores of the
above described checks We're brought
to the city by the laborers and in spite
of the apparently dubious nature OF
the paper they were taken. The
stores of the city declined to accept
the checks but several saloon men
took them i'm the belief that they
would be worth face value when ma
ture. j =. sullivan now has $500
worth OF the paper while the Column
bia saloon also loaded up strong.
When the checks were issued by
the contractors the workmen We're told
they could have them cashed at the
Commercial National bank. However,
it was found by those who applied at
the bank that a discount 10 per cent
as demanded. Consequently the sa-
looms taking the paper at face value
secured the most that was afloat.
But recently II was discovered the
checks apparently are not to be taken
at face value even after maturity. one
check secured by Joe sullivan was
due December 25. 1t was for $14.25
and payable to John Tinkham, who
duly endorsed the same when he sold
it to the saloon man. On presenting
the check at the Commercial National
hank Mr.. Sullivan declares payment
was refused except at a 10 per cent
discount.
In hopes of avoiding the discount
he sent the check to Rothschild Bros,
of Portland, for presentation to the
Pacific Coast Construction company
direct But when the paper was pre-
scented by Rothschild Bros, at the
company's head office, payment was
refused and the check marked "paya-
BILE only through the Commercial Ma
tional Bank of Pendleton."
Following the above action the
check was turned by Rothschild Bros.
over to the Bank OF California for col
lection. That institution sent the
check to its Pendleton correspondent,
the Savings bank, FOR collection and
with instructions n accept no dis
count The check was then regu-
larry presented at the Commercial Ma
tional, but payment was again de-
clned except at 10 per cent dis
count.
II Is now feared that the same
course will he followed with reference
to all the other checks now outstand-
ing. Should such be done and a dis
count insisted upon even after the
checks are mature, a clear loss OF 10