Capital journal. (Salem, Or.) 1919-1980, 1922-10-25
DEFENDS P|ERCE'S
.ACT|ONN NGETT|NG
SCHOOL FUNDS

m the Editor--In justice to
walter NJ. Pierce, democratic can
Sidate for governor, an apology
should be made by some Of the
newspapers and a lot of politicians
~ oregon that have circulated the
yenort that Mr.. Pierce had secured
hans from the state school fund
through questionable methods.
Tbe statements of these news
raners and politicians are that, in
narrowing $25,000 on different
tracts Of land he so depleted the
scbool fund that other farmers in
need Of loans were deprived of the
prlyilege of borrowing.
Injustice Alleged.
To show the injustice of the
charges made, an investigation OF
the records in the state house has
been made and shows that, in the
wear 1903 Mr.. Pierce borrowed
this money, there was, in the ire
ducible school fund, subject to
loan-iust as the loans were made
10 Mr. Pierce-the sum of $602,-
AGO. This does not look as if any
persons desiring state loan were
derived of any rights, does 1t?
The records also show that during
the period that Mr.. Pierce had the
use of this money upon which he
was paying the state 6 per cent in
terest, there was from 100000 to
$1,000, 900 subject to loan, each
and every year.
As to the fraud" suggested by
Mr.. Pierce's political enemies in
connection with these loans, the
following telegram from Hon. Geo,
3. Chamberlain, governor of Ore
gon in 1908, is sufficient to set
all doubts at rest. The message
Il is dated Washington, d. c., Oct.
10. and sent to T. Fl. Crawford,
Portland, Or, campaign manager
for Mr. Pierce:
Chamberlain's Explanation.
Dunbar, Moore and l consti-
tuted the board to loan irreducible
school funds in 1908. 1t was ar
ranged 10 roan Pierce and four or
\ five relatives and friends $4,000
each on valuable tract of land If
title to it was in these parties in
ldividually, and each made applica-
tion for $4,000, provided security |
ample and the loan were recon-
|mended by the local agent of board
'tn the county where the land lay. |
This was afterwards done and the
Security was ample, title approved
And loans recommended by the To-
eal agent. There was nothing
fraudulent about it. Two repub-
licans and one democrat, consti-
Suting the board, made and Nap
proved these loans.
AT that particular time we
Rere anxious to keep irreducible
school fund invested to realize as
nuch as possible for the children
Pf the state and the security in
his case was so ample that there
Fas no hesitation on the part of
lhe board to approve the loans.
MY recollection is that it was
quite difficult at that time to keep
kne money Of the fund revolving,
Fnd this loan seemed so amply Sc
cured that the board did not hesi-
late !
You will find the board did not
II that time insist upon payment
Y any loans at maturity but was
Slad to let them run as long as
spe borrowers, who were usually
ssfmers, wanted the money and I
E w PoJ lAbCL Gol. LID
purse saved the expenses of re- y
zppraisement, examination Of t
W. and expenses usually incident '
y affecting new loans. S
This statement is sent in JUS I
Are 70 Pierce. I think you will U
#ud that all interest payments t
Here promptly made and the prin- I
n spal paid in due course and that t
leiSe acted with perfect fairness v
'ne board and the state" d
II is quite apparent that Ex- p
vernon Chamberlain's explana-
III of this matter is sufficient to
A'ince any man who wishes to
wv the truth, that this whole v
rusaetlon was absolutely above t,
Ppicion' Very respectfully, "
II w. H. DOWNING, t,
Ralfman Democratic Committee. b
Naiem, r, Oct. 20. tt
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