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The Colville examiner. (Colville, Wash.) 1907-1948, October 12, 1912, Image 2

Image and text provided by Washington State Library; Olympia, WA

Persistent link: http://chroniclingamerica.loc.gov/lccn/sn88085318/1912-10-12/ed-1/seq-2/

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"in s,.me oases the candidate -
is not the real < Boe seeker, iut ti
simply a tool of a former politician ■ 0
hopes to make money through having
his tool kept in effloe, In the
treasurer's ollice If LSliss Phillips, un
doubtedly honest, well liked, and evl
dently competent. liut Phillips would
never have had The job if his under
standing With Utorge Seal had lOt
previously been thorough. Seal's bunk
and ills newspaper have bot
considerably by having Phillips B
strong friend in Ui a treasurer's office,
and I'hiUips is, ol course, •! candidate
for re-election, supported by ;:i
bank, ills newspaper, and Ills b
associates."—Colville Examiner, OctO
her 5, 1912.
The- above article which appeared In
the editorial! of the Bxamli ci last
week, is, a malicious, inisleadin
tnent, Intended I ■
preiflon to inj dl. .. lvantu«e. Tl c ai -
tide v-.as Intend: i ti
sion tliat tlie Colvllle Loan ami Trust
Company wan receiving t ulk >ii Hie
county funds for dVjioßit To pi ive
that the nil er l«i : Ing Instltutio ,
this city are wuiautd U.u.t tlie,\ un ri
ceiving a fair distribution uf II
ty funds, I submit the following Big pd
"October 8, . :■.
■■staii; ur Washington, county of Sto
■l, Hugh Waddell, president ol I
First National lianl< of Colvllle, Wat
intjton, will say Unit 1 am latUßed I
during Bliss Phl'llps' term as county
treasurer of Stevent county, >.
ton, the First National Bank liai re
ceived its ihar* ..: deposits of the
county funds.
"Wltneia my band thla Mn .1 , ol
< October, A. D. l«2,
(Signature iji" p •• 1 Itti •.. 1
"Prealdent First National Bank, Col
vllle, Washington."
"October B, 1:1..
"State of Washington, counts "' ■-■■
"I, W. It. Baker, cashier of the Hank
of Colville, Colvllle, Washington, > ,11
aay that 1 am aatlHfted that durln , 13]
Phillips' term aa county treasurer ol
.Stevens oounty, Washington, the 1 1
of Colvllle lias received lta share ol
deposits of the county funds,
"Witness my hand tfals Stll U 1
October, A. D. mix.
"(SigTiedJ w. i;. BA.ti.lfß,
(Signature typew 1 Itti n.j
'Cashier of the i'ank of Colvllle,
Two years ay,, i made my campaign
•in the following grounds:
First. My ability to perform the
duties of the ollice.
Second. i promised impartial treut
ment to the patrons or the office and a
fair distribution ol the county funds
to the different banks on condition IVcl
proper security was furnished.
On the first proposition the editor o£
the Bxamlner has conceded that I
made food, but 1 11 the second ha \ ould
create the impression that 1 was favor-
Ing the Colville I*an and Trust Com
pany to the disadvantage c,i the ut ■
banks. An exami lation of the records
will disclose the tact that during mi
term of ollice the Uolville Loan and
Trust Company in.s not received the
largest depoaits of county funds..
The statement tnat I had a. previous
understanding; with an} banker, before
tills or the last election, under oath, 1
brand us insinuating, intuiting- und 1 11
absolute falsehood.
On Wednesday, County Treas
urer Bliss Phillips appeared at
the Examiner office and patent
ed the above documents to be
printed in the Examiner, offering
to pay for the same. Inasmuch
as Mr. Phillips claimed to feel
aggrieved at the Examiner state
ment last week, the editor assur
ed him that the articles would
be printed without charge. At
the same time, Mr. Phillips was
asked to assist in furnishing the
necessary figures in the treasur
er's office which would settle the
matter beyond any personal state
ment, and the figures were furn
ished to the editor of the Exam
iner by Mr. Phillips personally.
Twice Mr. Phillips refused to
furnish certain figures, but he
County funds deposited in the banks of the county
Deposit at End of Quarter Depodt at End of Month | Daily Bal.of Deposit
lxtClr. 2d()r. »<1 <■><: Ith IJr. Ist Or. hvfnge Average Average Average Average
1909 I'jiS 1909 1909 1810 Hay-Dee "10 Ywir l'Jll Year 1912 Year 1911 Year 1912
BANK C0LV1LLE...547046> 19 $4<i716.34 947686.71 $12712.1)5 $502*4.2!) $:i14!)7.2S $31211.73 $25306.81 $34133.83 $27509.43
FIRST NATIONAL.... 34927.80 29608.77 26123.53 11366.76 :'.7042 45 20926.68 25268.01 20544.04 25555.36 21271.08
LOAN & TRUST t t 15H03.77 12275.84 55721.69 29120.81) 28061.13 19687.61 .10697.52 20042.09
BANK CHEWELAH t t t 5215.15 3000.00 4887.22
FIRST NAT. t ♦ • 7110.53 3000.00 6467.28
F.& M.SPRINGDALE t 20110.00 2000.00 4000.00 4000.00 4000.00 4000.00
HUNTERS .EX * * 1843.16 1419.84 1901.60 1012.54 3110.19 3366.20 • »
MARCUS STATE t t t 2671.52 * 2677.20 2000.00 2707.03
NORTHPORT STATE 5169.31 7508.44 7546.03 5(182.30 5107.74 8000.00 9500.00 10000.00 10000.00 10000.00
CALISPELL t t 1791.31 2315.55 t t t'
FIRST N.NEWPORT 4913.46 4879.91 4019.73 2a58.02 4771.64 3630.48 4660.24 t t f
wECURITY, " " 4714.93 4613.20 5801.28 4316.M7 5543.42 4214.33 6292.60 t t +
IONE STATE t t t 1527.84 2217.47 f f f
* Not figured up. t Bank not in county; or not receiving county deposits.
Mr. Phillips objected mainly
to the statement as above that
"Phillips would never have had
the job if his understanding with
George Seal had not previously
been thorough." He denounces
this as "insinuating, insulting,
and an absolute falsehood."
The editor admits that it is
impossible to prove in a direct
manner that Seal and Phillips
had any worded "understand
ing." To prove Buch would neces
s overhearing them
or intercepting correspondence.
Bui there is such a thing in
our jurisprudence as "corrobora
tive testimony" which has sent
many a man to th< ;caffold, and
instead of backii, up ■ r apolo
gizing for any previous state
ment, the Examii i hero and
now goe a Btep farthi . . .. i dates
il at it noi only believes Mr.
Phillips had an understanding
withGeorgi \V. Seal, but it be-
Mr. Phillips while in the
treasurer's office has been a will
ing tool for said !. ■ rge W. Seal
in supplying exe< i ive funds to
the banks in whi h Seal is inter
ested, and in supplying work to
the newspaper i': which Seal
is a targe stockholder.
This is a serious statement for
anj i ewspaper to make unless
it has sufficient proof to back it.
It is a serious thing to charge
any county officer with using his
a favor personal friends
at the expense of others. It is
bad to have . uch a matter
come up just at election time,
i'or it savors too much of pre-elec
tion scandal. But i'acts are facts,
no matter what the time, and in
asmuch as the Examiner has
talked of the "courthouse ring"
for years, in and nut of election
time, this paper can not be charg
ed with now bringing up some
thing new, especially as Phillips'
statement compells us to open up
the subject.
Bui Mr. Phillips is charged
with favoring the Colville Loan
& Trual Co., which he denies.
Let's Bee who is telling the truth.
Table No. 1 shows this county's
deposits in the various banks of
the county since -Jan. 1, 11)09,
when Chas, Adams commenced
his second term. The deposits
show for themselves, and they
show how Ch is. Adams dumped
nearly $19,000 into the Colville
Lean & Trust Co. when that
bank first started in 1909. The
fourth quarter of 1909 showed
more county funds in the new
Loan it Trust than in the First
National, an institution many
times larger. The first quarter
of 11)10 showed Adams had more
in the Loan & Trust than in
either of the oth r !>;nks in Col
ville. The only monthly figures
available for 1910 showed a big
balance in the Loan & Trust over
the First National, and almost
as much as the big Bank of Col
The month-end statements for
1911 show more funds placed in
the Loan & Trust, than in the
First National, and almost as
much a.s in the Bank of Colville.
This was Phillips' first term in
the treasurer's office. And the
The Colville Examiner, Saturday, October 12, 1912
question arises, why did he give
the Loan & Trust more money
than the first National, and al
most as much as the Bank of
Colville, unless he had an "agree
ment" with Seal? For remem
ber, the first bank statement of
1911 shows that the Loan & Trust
was three times smaller than the
First National, and more than
four times smaller than the Bank
of Colville.
In 1912, the month-end bal
ances show that the Loan &
Trust had practically as much
county money as the largerbanks
The last two columns show the
average daily balances of county
funds in the banks of the county,
an average deposit for every day
in the year.
The average daily balance Jan.
1911 was more by about $12,000
in the Loan & Trust than in the
Bank of Colville, and more
by $14,000 than in the First
National, the first month Phillips
was i?i the treasurer's office.
Does it look like an agreement?
Well, call it an accident. The
second month Phillips was in
office, the Loan & Trust had
more than either the other Col
ville banks by about $7,000.
Agreement? Phillips says not.
But in 1911 for 3 months Phillips
had more in the Loan & Trust
than in the Bank of Colville, and
for 9 months more than in the
First National. Agreement?
Phillips says not. And these fig
ures in this paragraph refer to
through the month, not just one
day in particular.
Of the 9 months this year,
during 5 of them Phillips has
had more average daily balance
in the Loan & Trust than in the
First National, yet the Loan &
Trust is but one-third the size of
the First National. Agreement?
Phillips says not.
The inference is apparent that
Phillips either had an agreement
to favor the bank in which Seal
is an officer and in which Adams
is also an officer, or else Phillips
has relegated the county de
posits to the kindly care of the
janitor, who may have thought
that the previous political work
of Seal entitled him to superior
deposits regardless of the size
of his bank.
During the 21 months Phillips
has been in office, his average
daily balances at the Colville
banks were:
Bank Colville $31,294.80
Loan & Trust 26,073.77
First National 23,719.24
When any one compares the
assets of these banks, he can de
termine whether or not favorit
ism was shown any particular
bank, and judge for himself
whether or not the Examiner is
a liar in stating that it looks like
a previous frame-up—an "agree
ment" if not an understanding.
Mr. Phillips was asked in the
Examiner office Oct. 8: "Why do
you give practically as much de
posits to the Loan & Trust as to
the other Colville banks, when
the other banks are two and
three times larger?" He stated
that he would not answer.
County Deposits in 5 Banks at Date of Bank Examiner
Call, Comparative Assets of the Banks, and Taxes Paid.
JAN. 7, 1911
Assets $480,581.71 $364,931.67 $114,053.81
County Deposits.. 16,254.33 17,703.40 20,643.05
MARCH 7, 1911
Assets 511,558.45 354,048.15 148,328.82
County Deposits.. 59,066.31 27,247.33 46,248.78
JUNE 7, 1911
Assets 490,614.34 398,857.01 137,699.54
County Deposits.. 48,392.92 33,733.29 47,083.56
SEPT. 1, 1911
Assets 480,821.72 351,555.16 111,386.58 $42,331.89 $221,417.75
County Deposits.. 31,469.65 27,676.74 24,563.09 3,000.00 3,000.00
DEC. 5, 1911
Assets 463,610.63 348,892.19 108,518.19 46,984.21 225,615.40
County Deposits.. 18,904.65 16,780.54 18,499.34 3,000.00 3,000.00
FEB. 20, 1912
Assets 420,681.20 332,172.44 94,926.57 46,752.77 216,194.07
County Deposits... 12,902.28 12,392.76 11,595.74 3.954.78 3,321.41
APRIL 18, 1912
Assets 464,975.08 373,204.36 131,009.86 57,350.27 222,818.31
County Deposits.. 44,493.32 38,494.66 32,553.66 5,936.00 7,893.66
JUNE 14, 1912
Assets 458,413.34 346,085.62 121,681 15 53,615.96 229,635.05
County Deposits.. 32,429.88 20,298.39 21,035.44 5,718.00 9,276.03
SEPT. 4, 1912
Assets 449,199.03 344,568.56 111,876.01 55,561.34 240,140.19
County Deposits.. 17,824.60 15,407.83 14,472.13 5,094.00 7,315.81
Tax 1909 1,650.00 880.00 400.00
Tax 1910 1,911.00 1,140.00 959.00 348.00
Tax 1911 2,070.00 1,500.00 900.00 612(10
Valuation 1912 38,070.00 28,775.00 11,810.00 5,700.00 12,800.00
A summary of how County Treasurer Phillips helped
a certain bank make a good showing in the
required bank statements:
Jan. 7, 1911, the Loan & Trust Co. had $87,327.98 deposits, of which Phillips
furnished almost one-fourth.
Mar. 7,1911, the Loan & Trust Co. had $122,856.95 deposits, of which Phillips
furnished more than one-third.
June 7, 1911, the Loan & Trust Co. had $112,153.01 deposits, of which Phillips
furnished almost ONE-HALF.
Sept. 1, 1911, the Loan & Trust Co. had $83,834.78 deposits, of which Phillips
furnished almost one-third.
Dec. 5, 1911, the Loan & Trust Co. had $81,049.93 deposits, of which Phillips
furnished over one-fifth.
Feb. 20,1912, the Loan & Trust Co. had $68,136.13 deposits, of which Phillips
furnished about one-sixth.
April 18, 1912, the Loan & Trust Co. had $103,109.61 deposits, of which Phillips
furnished almost one-third.
June 14, 1912, the Loan & Trust Co. had $96,183.19 deposits, of which Phillips
furnished more than one-fifth.
Sept. 4, 1912, the Loan & Trust Co. had $85,535.74 deposits, of which Phillips
furnished one-sixth.
Geo. W. Seal, ex-county treasurer, and Chas. Adams, ex-county treasurer,
both of whom helped to elect Phillips as county treasurer, are the two officers in
daily charge of the Loan & Trust Co. bank. Phillips was deputy under Adams four
years, and his character was thoroughly known to Adams and Seal.
The matter of the comparative
assets of the Chewelah banks,
and deposits given them by the
treasurer, offers room for still
further investigation as to whe
ther or not there was an "under
standing" with Seal. We can
delve into this matter if Phillips
But to go a step farther in con
firmation of Phillips' "lack of
understanding with any banker."
The national and state bank ex
aminers require a sworn state
ment of condition from each
bank certain times in the year,
and it is the laudable desire of
every banker to make as large a
showing as possible. It is possi
ble for a county treasurer hand
ling large funds to slip a big de
posit to a certain bank just in ad
vance of the probable coming of
the bank examiner. The public
records prove that Phillips did
this very thing to favor the Loan
& Trust, and we submit Table 2,
the figures obtained from Phillips
himself as to deposits, for the
readers to determine the obvious
Out of the 9 bank examinations
in 1911-12, the Loan & Trust has
had a large share of the county
money to meet each examination,
and in 5 out of the 9 had more
county funds than the First
National. The comparative
standings of the banks are given
in Table No. 2, which should
show in what proportion the
banks are entitled to the county
funds, and also the amount of
money the banks pay into the
county treasury.
We submit Table No. 3 to show
how a bank statement can be
made up of county funds.
If anyone questions in the
least these figures, he can go to
the county treasurer, or to any
of the banks interested, and veri
fy them.'
The Examiner has charged
many times that there is a
"courthouse ring." Now this
statement is either true or it is
a lie, and if it is a He the Examin
er ought to be made to take it
And while on the subject, it
might be pertinent to go into
the matter and tell about this
The courthouse ring is made
up of individuals in and out of
office who use the county's re
cords, funds, information, and
the advantage of the office, to
make money for themselves.
The work of the ring costs the
county some money—and this
money comes out of the taxpayer.
But the people should remember
that the ring does nothing
against the law so far as the Ex
aminer knows. It is all legal—
sinfully so.
For instance, the county treas
urer appears to have used the
county money to help start and
to keep on a good basis a certain
bank controlled by political
friends—ring members, if you
will. This cost the county noth
ing in cash, but is it fair? "Good
things" in this line should either
be passed around to all the banks
of the county or stopped. Fav
oritism is not right in a county
office. And for one certain bank
to get large deposits through fay
oritism, at 2% interest, so it can
lend the funds at 8 and 10%, is
pretty soft for the individuals
interested. But the average
taxpayer gets nothing. Then
again, deliquent tax titles draw
15% interest, and after 7 years
the county can foreclose and get
the property. But how much
property has the county had a
chance to foreclose in the last 12
years? By having a friend in the
treasurer's office, the favored in
dividual can step in, find out
what tax titles are delinquent a
few years, buy them in, and get
the 15% himself, while the coun
ty can make up the difference by
assessing taxes.
It might surprise the good people of
the county to know_ just who are the
men who make it a specialty to grab
up the tax titles in order to get the 15%
instead of letting the 15% go to the
county where it belongs. And if any
question is made to this statement, the
Examiner would just as soon go ahead
and print the names, dates, and how
much they made out of the county, for
this kind of a graft, while called legal,
is not RIGHT to the rest of the tax
payers, no matter who the individual
may be who benefits. But you can rest
assured that the members of the court
house "ring" are the ones who get
these easy things—and no one else.
Ask Lon Johnson, in the clerk's office;
he knows. Ask Shelton, who wants to
be clerk after Johnson goes to practic
ing law; Shelton knows some of them,
too. Ask Howard Stull, prosecuting
attorney who wants reelection; he also
knows. It wouldn't do much good,
perhaps, to ask Phillips, who wants to
be treasurer again; he might claim he
had "no understanding" to tell.
And then there is another matter of
vital import to the "ring." The
Statesman-Index is largely owned by
members of the courthouse ring, and a
ring member (agreement or not) is
practically obliged to take his office
printing to the ring printing office,
where work can be done without any
bid as to price. If he don't he won't
be renominated.
And then again, political fences must
be kept up, and if any favors are re
quired, the ring can trade county fav
ors for political aid. This was charged
against the prosecuting attorney in the
Springdale-VanDissel case. The prose
cuting attorney prosecuted VanDissel's
enemies, and failed to prosecute Van-
Dissel's friends, until now Van Dissel's
/ather-in-law has killed one of Van-
Dissel's enemies. But VanDissel has
come out in his paper in favor of the
entire r'mix ticket, in return for some
thing—or in return for nothing, just as
it may appear to you. What "agree
ment" there was we cannot prove, but
the result is quite plain.
The Examiner does not in the least
desire to attack the "ring" on any per
sonal grounds, or to call them dishonest
or bad citizens. They are living and
prospering according to the way the
law reads and according to the way the
people^vote for them to keep them in
office. The men themselves rriay be
all right—but the system is wrong. It
is wrong to keep men in office indefi
nitely. It is wrong to elect men who
can be controlled by outside business in
terests. It is wrong to the candidates
themselves, for with the present
strength of the courthouse ring it is
next to impossible for a man to be
elected on the republican ticket unless
he will submit to the dictates of those
who help to elect him.
The Examiner ha 9no fight with Phil
lips—or with Geo. W. Seal, or Chas.
Adams, or any of the rest of the bunch,
but we have no hesitancy in printing
the thingß which have happened in this
county and which form a part of the
county records. And we take it all
back about Phillips having an "agree
ment" with Seal. We just THINK he
had. And we here submit an appropri
ate statement which should have been
signed and published with the letters
from the bankH, at the beginning of
this article:
"State of Expectancy, County of
Promise, as.
We, Geo. W. Adams and Chas. Seal,
will say that we are highly satisfied
that in Bliss Phillips' term as county
treasurer our bank has received its
share of county funds—and then some.
But there was no understanding. It just
happened. Signed:
The Auditor* Office.
For a year previous to September 1
of this year it was conceded by both
wings of the republican party, the
courthouse "ring" and even democrats
who had any knowledge of the doings
or plans of either of the wings or the
"ring," that A. J. Montgomery was the
rightful heir, and v ould be the popular
and only candidate for the auditor's
office this fall. In March more defi
nite plans were formed and Mr. Mont
gomery was announced In a statement
under his photograph as a candidate
for the office. It may be stated inci
dentally here that since Mr. Montgom
ery left the hardware business nearly
five years ago lie lias been In the audi
tor's office at a salary of $90 per month,
and by the law of progression, adopted
by the "courthouse ring," should have
been entitled to four years' more at
$133 per month. These plans adopted
by Montgomery nnd the "ring" and the
time-honored precedent of perpetuating
themselves in office seemed inevitable.
But about the first of July it became
known that A. B. Kansburn would file
for the office of auditor on the demo
cratic ticket. Tlnj news fell like a
pall. Alontgomery threw up Ills hands,
refusing to Hie, and the ring and their
pans were "busted." This was an un
expected emergency. Something had
to be done. .Montgomery and the
"busted" "ring" tl tn gathered them
selves together and agreed that A. H.
Morton of SprinniHle would file for the
office of auditar, providing nowever,
that lie would pay the required cam
paign expenses and ftrther, that If
BlCOted lie WOUlil retain Montgomery
as chief deputy, Ing-ether with the pres
ent corps of clerks and stenographers.
This plan was agreed to, Morton filed,
and the "ring" wus once more Intact.
From these facts It Is apparent that
the old deputy did not care to run
against Sansburn again. And It ap
p««M to lie good business on his part.
lor with SaiiHliurii out ot the way, he
iius again Hied for the ofllce of city
clerk, which sali'.ry added to that of
chief deputy would amount to |120
per month, with no campaign assess
ment to pay, or In other words, every
thing to win and nothing to lose.

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