The Seattle Star Newspaper, April 13, 1923, Page 1

"TURN TO PAGE 15 : PERING SAGE,” THE STIRRING NEW WESTERN NOVEL THAT IS JUST BEGINNING ; dé a © (= +TAX tt et WEATHER Temperature Las: Maximum, 53. Hours Minimum, 40. Entered as Second Clare Matter Kelleher Charged With Padding Inventories and Falsely Stating Values 'Accusations Against Waterhouse and| Howdy, folks! This is Friday the 13th. It is unlucky to sass your mother-inlaw. see Business men will not buy Russian roubles on this day. ee It is also co: on two treys ¥ joker are wild. . aered unlucky to bet the and| . People who are superstitious will not jump off the L. C. Smith build Ing. *. BASEBALL, NOTE The Chicago scientist's system of bringing dead ones to lie may encourage a lot of folks to het on Portiand to win the pennant this year. eee Perhaps the surest sign of spring is when the evening air echoes with the cry; “Olee, Olee, Out's in Free!” eee Angus McBimp disappeared In the South, ‘Tis rumored he gazed fn a crocodile’s mouth. oee At tho rate It ts now progresaing, the Waterhouse trial should be fin- ‘shed about the year the municipal railway gets out of debt. see GRAPHIC SECTION Our aaff artist hus sketched Mr. Waterhouse in two poscs. On the left he pictures Mr, Water- house as he looks today. On the right is Mr. Waterhouse as he will look at the end of the trial. ee Six stencgraphers are employed at the trial to take down the arguments between the lawyers. The testimony of the witnesses? Oh, that’s imma- terial. insolvent, IN 1983 Clarence L. Reames’ grand- son: Your Honor, I object to that question as being iramaterial, ir- relevant, incompetent and dia- betie. Jobn B. Hart's grandson: 1 have @ right to ask 1ha5 question, your Honor. My grandfather asked it for 17 years, and if it was good enough for him, it’s good enough for me! 1,478 Waterhouse heirs: hum! 147,890,347 heirs Laube; Ho-hum! o- Ho- of Bill . Cleveland girl dances 52 hours. know a fellow once whole month, . We who drank for a This is * Kind to Dumb Animals Week,” so we haven't said a single * mean thing about Gov. Hart, sae A dame I like Is Wilma Mott; She's teaching me The King Tut trot, one Wonder why parliament doesn't pass a law forbidding the Prince of Wales from falling off his horse? ose SIGN OF SPRING When you keep your eye on the girl and not on the taxi- meter, . Harding has ” April 22-28, a 10 minutes will be taken noon hour by rummy President "Play Wi An ext off every players endovsed i ere Another «everyday hero is the wife who does not remind her husband how attractive he was before they ware married, tee LIL GEE GEE, TH’ OFFICE VAMP, SEZ: world loves a lover ex. trie light companies %) | All th’ copt the Ite ail right to be proud of your ancestors, but your ancestory never got you @ raise in wages, | | the board of directors Banker Are About 50-50 Both in Number and Seriousness ‘FOUR AUDITS, THEN nd fall of Frank | | N $500,000 SUIT HS is tho fiith In a suchas of artic ia on the sensational rise Waterhouse, deal with the astonishing mass of litigation which has arisen out of the failure of Waterhouse’s company, Tomorrow's installment will BY BOB BERMANN HE history of Frank Waterhouse & Co, up to the time of is certainly its failure | have since occurred. sensational enough. | dimmed to insignificance when compared with events that Yet it is Just pause for a moment to consider the situation as it ex- ists tod On the one hand we have Frank Waterhouse, serving his }second term as president of the Chamber of Commerce, head jot the White Cross and the Red Cross, president of the Olym- | pic Hotel Co., and interested in many other civic activities. | Certainly a citizen of outstanding prominence. And he faces charges which, if proved, | mean a penitentiary sentence. would certainly His opponents, of the Seattle National bank coterie, accuse him of borrowing money on automobile contracts, and then getting the automobiles back and selling them—and leaving the bank to hold the bag. They say he juggled huge sums of money belonging to his company in such a manner that, when the crash came, he came out with a personal fortune amounting to at least half a million. B° TH Men Are Charged With Serious Offenses May 3, 1899, | } } And, more serious still, he is charged with selling mort-| gaged prope: less than grand larceny. incidentaiiy, too, he h | of Comimerce to exploit hi | government trust fun rty without authority—which {is neither more nor} s been accused of using the Chamber personal interests; of misapplying ; of short-changing the internal rev- | enue bureau on his income tax, and of numerous other high crimes and misdemeanors. (All of these charges On the other hand, we hav: ing figure in the Bank for uable real e: wealth west. and recognized No less a neédless to ently denied—but they have been made and, true or not, they |are certainly highly sensational.) of the Seattle Nationa! bank, ate, unquestionably one of the big bankers of the “prominent citizen” say, have been vehem- Daniel Kelleher, chairman of dominat- yings, interested in much val- aman of great pers than Waterhouse. And he faces charges that are just as serious—and even, more sensational—than those against Waterhouse, If one Waterhot s to believe Waterhouse without question, Kelleher deliberately set out to ruin him personally and hi: e has charged that Kelleher, as his old and trusted] financial advisor, deliberately misled him and persuaded | to go into a number of disastrous financial enterprise: If silence ts golden, lawyers are| has charged that the most unscrupulous methods wer company. him used | by the bank and its officers—including the theft of securities, connivance with an embezzlement and numerous lesser acts. | And his attorneys are now charging that Kellener Is behind a | deliberate paid propaganda to wreck him. YULCAN Plant Grossly Over- Valued, Says Waterhouse | sentations, The charges | house. against Kelleher and his | ter of fact, are more extensive than thc But this is probably merely because, se against Water- at present, | Kelleher holds the best cards and there is no neces: ty for him to complain so loudly, The basis of the whole feud is the deal by which the Waterhouse Co. bought the Vulean Iron Works “trom the Se- attle National bank and the Canadian Bank of Commerce which turned out to be the most monumental of all the com-| pany’s failures, | He| | | jtion, 1 | sociates, as a mat-| | | | | | According to Waterhouse’s formal complaints he was badly | | duped by Kelleher in this deal. He says that Kelleher repre- | sented to him that the plant was worth more than $500,000 in itself; that its othe er assets totalled around $400,000; that its | liabilities were less than $200,000, and that its profits were around $20,000 a month. 900, paying $225, | two equal installments, On the strength ‘of these repre- Waterhouse & Co, bought the property for $57 000 in cash and agreeing to pay the rest in 5,- In the sale contract the stipulation was made that a new on this basis. ‘inventory was to be taken and the sale prive readjusted later This was done, with the result that the bank was paid an additional $3,311.16. According to Waterhouse’s friends, he was not long in learning that he had ventured not wisely, but too well, The iron works was operated at a loss from the beginning, every- thing going out and nothing coming in, ee Waterhou: something fis UR Separate Audits, Then $500,000 Lawsuit finally began to suspect that there had been hy about the inventories which had been made at the plant and, as a result, had four ¢ separate audits made. All of these, it is his contention, pr ‘oved that the works had been tre! endously over- valued—but it is charged that Kelle- her refused to consider any of these audits. A suit for $500,000 damages against the banks was the re- | sult—and this suit was the direct cause of the present feud. Waterhouse not only charged Kelleher with selling the plant on the strength of a highly padded inventory, but also (Turn to Vago 9, Column 3) At the Postoffice at teattlo, Ww rASH.,. W ash, under the Act of Congress March §, 1879, Per Tear, by Mall, § MURDER SUSPECT HEL The seattle Star TV vO TS IN SEATTLE, 'Author of Tarift! Bill Says Boy- cott: Futile BY ST “Ninety per tations of Cut icans. finers combin: of Bosto ix the post-wa for the can't get ‘em, ment ¢ what the Joseph W. man from Mic Pacific-ce underlying cav vances in pric Fordney is tarift act, that er imy rover st 76 cents a tariff, ments to the e bill might hav by wood | with the recent pric congr lool M ‘Now, get this, import dut .76 of a has jumped since that act we Now, where any compart Bankers, AD, oman 1 ent, (Turn to Page 9, Coli EVE ARNETT t of the sugar plan 6 owned by Amer ectlators and re on and New York, In a to make back some of their «in sugar manipula. | oy who are responsible boosts, vv courts and I don’t think the und there you h— can we do,” Fordney, higan, summed up t ug ex-cong for the sudden ad s in his hotel Friday author of the Fordney | increased the duty on yorted into the country | pound over the Under-| In answering state {fect that the Fordney © had something to do boosts, tho ex ently: Kk here, und try to ly tariff raised the on a pound of sugar Woll, now, sugar 7 cents a pound it into effect, in h— do they get in between % of a mn 1) eplied vehen Today's Want Ad Co full of tho are for Home Used lumns many onportunitios Buyer Car Buyer Investor And Renter ‘Turn to the NOW and # barguing 4 today. ore Want Ad Columns soo what wonderful wre boing offered are. | he r situation and the | | Folks, Have “The government will start but what the to?” @ sugar probe, h will it queried Joseph W. Fordney, former congressman and author of the Fordney tariff bill while in Seattle Friday. “I don't see what there is to do. The people won't boycott the speculators. When they want sugar they get it re- gardless of the price.” Ford- ney, shown here, is having a good time in Seattle cele- brating the sale of lurge tim- ber holdings in Southwest Washington. Photo amount Price & Carter { Photogra You Any | Suzu-Machi That You | Might Spare Jack? HAT Ho! More propaganday” | shouted, Mayor Edwin J Brown’ as he opened a letter from Jack O'Toole, room 115, | Pp. RR. building, Wilming- ton, Delaware, containing ciipping from the Philadelp North American, Under the xport Insect cf | a the following | “news with a Seattle dateline, appeared “The suzu-macht, or singing inyect, confined In minute but exquisitely ent bamboo cages is. offered for sate by the crews of almost every Japan: ese steamboat arriving at tle, ‘The cagen, about the size of a demi-tasse, niake ¢laborate decorations for any living room. The note of the suzu-mach! bug 1% belllike, SUGAR PRICE IS BOOSTED TODAY BY JOHN G, MATTHEWS, JR. - Altho seme retailers wero still selling their old stocks at 91% conts a pound, the wholesale price of sugar had jumped to $10.10 a hun: dred pounds in Seattle Friday morn. saint $9.06 Thursday afiors Japan ese secretary of Re soctation, urged Seattle residents a lower price ank Kannalr, Merchants’ ny that until | | | | per cent of the ® used In Seattle today joes to the making of home-brew," Kayinalr sald, “Cut out the home brew and the cheap candies that have no food value and # material reduction the useless con: that can bo made in |}sumption of sugar | make the prices soar | Kannair anyy that at (Lurn to Page 9, Column 2) helps to the next \three men near Arlington, which at room. trill a worge with a silvery intervals fills “The Orkntal insect, or beetle, singer will not inyade America, generally, for the consists siiced cu The insect requires a full meal once u week, the rest of the time being spent resting and practicing its internal chime O'Toolkk says his girl friend is highly desirous of obtaining one of these insects and he asks } Brown to send one, C. If possible, the should send cwo. Anyono hav- ing spare suzuimacht will oblige Mayor Brown by send ing {t on to Jack and his sweetie, mayor CONWAY OFFICE Expert cracksmen blew the sate in the postoffice at Conway, Skagit county, at about 4 a, m, Friday and made good their escape Sheriffs’ posses of Skngit and Snohomish counties scoured the country tn search of tho fugitives und arrested who later wero releasod Five dollars In currency and two postal savings certificates, belonging to Anna Skindal comprised the loot obtained by the robbers, Cash usu. ally Kept in the safe was removed Thursday night, The fob, investigators sald, was one of the cleanest ever discovered In Northwost Washington Nitro: glycerine was used to blow. the doors. So expert was the work that the doors merely were blown open without even so muck as warping them, |up to the morning recess was taken |up by continuous bickering between | opposing counsel and tong and high- AND “Frank Marsh” A taxi driver, on a lonely road se in El Paso, Texas, reli) at} The suspect, according to T. Armstrong, captain of detectives, El Paso, was arrested there on a charge of passing bo checks. He | was driving a new iliac auto a Washington license, which | h wattle police have identified as | the car stolen from Mursh at the} time of the murdi The suspect had name of Frank nd told Arm: strong that his fs owned the auto and t 1421 Seventh aye. the Milton apartments, which {, the address of George Marsh, the murdered man Armstrong immediately wired Capt. Charles Tennant for firma. | tion, stating that the suspect had passed bad checks. Tennant notified day to hold the assumed the Armstrong Fri-| man as the sus- lalive In Feeney’s cafe NAB MAN CAR IN TEXAS rrested on Bogus Check Charge at El Paso; Auto Identified as Victim’s Suspected of brutally murdering George Marsh, Seattle | ven miles from Tacoma, April *|8, a man giving the name of Frank Marsh was arrested Thursday he t police there for Seattle and Pierce county authorities Friday. and was being held by the pected slayer of Marsh, and prom- ised immediate action in getting ex- tradition papers for him, Marsh was murdered by an ume fdentified man after-an all-night drive from Seattle to Tacoma, be- ginning on the night of April 2 and lasting until the early hours of the next day. He was last seen in Tacoma by a member of the Tacoma police departmgnt with a man who had hired hfs car. He was found lying beside the roadway near Ardena station, early in the morning un- conscious, having been beaten over 7 the head with an iron coupling bare He died some time later. The slayer stole Marsh's auto, & new Cadillac, but failed to find $40, which was hidden in Marsh's shoe. SUIT MAY DRAG ON FOR WEEKS Waterhouse’s Attorney Says He Will Probe Accounts That the trial of W. T. Laube’s} suit, as trustee in bankruptcy,/ against Frank Waterhouse may! drag on for weeks was indicated at Friday morning’s session before Judge Calyin S, Hall when Clarence L, Reames, chief counse! for Water- house, announced that he intended to find out just exactly where every penny expended on the construction of the steamer El Aquario went. Such a procedure would involve days of tedious examination, as more than 300 checks were issued | on the account and more than $300,- 006 expended. Reames contended that this was necessary to disprove the plaintiffs assertion that Water-| house took company funds to pay personal losses incurred thru build- ing the El Aquario. MUCH BICKERING TAKES UP TIME Practically al! of Friday's session ly involved arguments on technical points, The first tilt of the day came be- fore the jury had been brought into the court room. John B. Hart,} jofferea | several |Join valid minimum wage Tegisiation and chief counsel for Laube, produced the contract under which Water- house alleges that all funds were} expended on the 1 Aquarlo and it to Attorney Reames ‘ia compliance witu m request made ago. Reames protested sharply that in view cf the fact that Hart had previously in the (Turn to Page 9, Column 2) Wisconsin Governor Accepts Invitation MADIS Wis., April 13.—-Gover- nor John J. Blaine, of Wisconsin, today wired Governor Louis F. Hart of Washington that he would in any conference to effect suggested that the proposed con- ference of governors be held in Chicago early in yury. | The supreme court decision in ho District of Columbia case may not affect Wisconsin’s law, but in any event I giadly join In calling a conference," Blaine’s telegram sald. CITY OFFICIAL SHOOTS SELF After writing two farewell letters, | one to his wife and the other to the) coroner, Frank A, Rapp, 47, city! bridge engineer, shot himself thru) the head at his home, 6312 4th ave. 8, W., at about 6:30 a, m. Friday, and died soon after. Rapp had been suffering from can- cer of the throat for the post years and hud-been forced to edt by way of a tubo in his th: . Rapp gained renown thru the many bridges he has designed for the city aince he took charge of the bridge department im 1912, He de- slgned an@ drew up the plans for the University bridge, the Fremont bridge, t Spokane st, structure and many others, many of which have brought vorable comment TWO HELD ON BRIBE CHARG Claim Men Accepted Money _ to “Hang” Jury Charged with accepting money on the pretense that they could “hang” | the Jury in the case of A. L. Mi Kenzie and J. T, Stanton, accused federal court of using the mails to defraud, Guy Bonnar, 40, and Mare tin Sholund, 23, were arrested Thursday night by police detectives and federal department of justic agents, Sholund is proprietor of the O st, Bottling and Supply Co, at Olive st. and Bonnar is owner of furniture store at 705 Olive st. | According to McKenzie, he was approached Tuesday night by Bons nar and Sholund near the B building. Tho two offered to sect a hung jury or an acquittal for bo McKenzie and Stanton for $800. Kenzie is said to have stood th ; off and promised to return with money Wednesday. In the means time he informed his attorneys the case, who in turn stated facts to department .of jus agents, City Detectives Walter Dench and Joe Smith were assigned to the c: to assist the federal men. A “plant was arranged and after McK had been supplied with a roll counterfeit bills he met Bonnar and Sholund and handed over th money, The two were immediately arrested and are now being held im the city jail. They will be charged with accepts Ing money for interfering with fede | eral justice, according to Thomas Hy” Revelle, U. 8. district attorney. Bonnar is said to have a poli recerd and is believed by fede agents to havs been using Sho! as a tool in the swindling de Mohammedan Is Cal, April 18—Ullah Mohammed, 4 Afghan, was hanged here today for the murder of Allah Akbar, a coun. tryman, at Petaluma, Cal. At 10:1 the trap was sprung and 13 minut later a prison aurgeon pronounced. the man dead. The Rev. J. B, Burton, Episcopal: rector, walked beside Mohammed on the march to the gallows, HAD UNION LEADERS JAILED, SAYS OPEN SHOP PLANT OWNER | New ORLEANS, La, April 13,—Samuel Vauclain, presi: dent of the Baldwin Locomotive: works, im a speech te business men here, declared that he dealt with union leaders at his plant by having them jailed. “When the railroad shopments strike began last summer) a deloe gation of unlon leaders came te ow works,” Vauelain declared. “Within 20 minutes 1 had every ono of them in jail, Ho. asserted that the shop” is provided for under € conatitution. ~ ystuelain’, was made to the Association of Commerce. The speech also dealt with transportation jjonditions and the business outlook. from nationally prominent engineers,