Nebraska Newspapers

    TJII2 OMAHA DAILY BEl-1 : WKDNKSDAY , KK1WUARY 3 , 1892.
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Head of the Great Now York Life Carefully
Eoviews His Eoviowora.
HIS LETTER TO THE POLICY HOLDERS
OntnlltMl Inrnrinntloti CmirrriiliiR tlio Com-
jimir'n Illinium * Not Ciintiihlfil 111 till ) III-
iir.inril > i-mrtinmit'H | Kppnrt Siiinn
Vrry Intcii'MIni ; i\ilaimtl : | < > in.
Nnw YOIIK , Fob. 'J. The following address
was given out hero today :
To TUB POI.ICV Hoi.DKiisorTiiiiNuw YOUK
LIFE Issriuxcr. COMPANY : On the Kith day
of Juno , lbl ! ) , the following communication
wns transmitted to the Insurance depart
ment of the stnto of New York :
Nuw YOIIK , Juno 10 , 1SOI. Hon. .1. l\
Plorco , Superintendent Insurance Depart
inont. Albany , N. Y. ; Dear Sir. The
charges Hint Imvo bocn made against
the company nnd Its management In the pub-
lie pros , growing out of mutters connected
with its Spanish-American department ,
having bocn cabled to our president In Lon
don , wo nro In receipt of a cablegram from
him In response suggesting that the Insur
ance department bo Invited in the puhlio
Interests to so ninko nn examination of the
company for the satisfaction of nny policy-
liolders who might bo disturbed by these
charges , nnd In accordance with his sug
gestion the finance committee of the company
nt Its regular meeting held at this data
adopted thu following preamble and reso
lution ni a meeting of the llnanco committee
of the Now York Llfo Insurance company ,
hold lids data the following proceedings
were had :
Whort'iis , Certain charges and criticisms
Imvo neen nitidi ) nKulnst this ciiinpnny In the
publlo press , growing out of ceitaln mutters
connected with thu Spanish-American depart
ment ; and
WhoiaitM , The flnanco committee of the
bonrd of trustees Is satisfied front the state
ments of the olllces that there will bo mi loss
to this company by rn isim of the matters re
ferred to ; lint It Is deslrjns that Iho public
should lie equally satisfied ; therefore ,
Itesolved , That to tbut end the superin
tendent of inmiranroor this state be Invited
to inuKo u thorough examination of nils coin-
In nccnrdiinco with tbo forocnmi ; thu com
pany will bo nliiascd to have Ibis examination
at your eiirllest convenience. Yours truly ,
A. II. Wei.cn , Second Vice President.
Tn accordance with the nbovo-on the 'J'Jd
day of Juno , IS'Jl , the Insurance department
was plaecd in charge of the books , records ,
etc. , of this company nnd remained In charge
Until the -tth day of January , 1802. Thcro
nro many reasons why it seems not only
proper but necessary to rovlow with you the
insurance department llndinL's.
first. No corresponding tests have over
bcou applied to the llfo Insurance business
and the results ough to bo presented to you ,
not only without prejudice , but from the
company's point of view , and to mo it seems
to bo cloir that the only way to achieve this
Is by personal statement. 1 do not mean by
this to relied In any way on your sources of
Information hitherto. I say that no
corresponding test bus ever boon
applied to the businsss of lifo insurance. By
this I moan no investigation by a staleic -
Burnnco department hns ever bcou made of a
company whoso assets and general business
roach corresponding proportions. Since any
test has been applied to the conduct of this
business results have been achieved which n
few years ngo seemed impossible. Tbo
horizon has expanded and duties and re
sponsibilities Imvo fallen upon mo and the
executive ofllcers of this company , and of
nearly all other llfo companies which , if not
new in kind , nro so much greater In degree
as .to constitute almost a new world of ex
perience in our business. The Investigation
just closed has therefore been remarkable
for this , as wall as for other reasons , and ,
beyond question , in addition to Its proportions
tions , bus bean the most searchlngnud merci
less inquiry over made In thu executive oftlco of
a llfo insurance company. Tbo central fact
In any' suuh investigation Is nnd must be thu
Integrity of the assets of the company. The
figures of the Inquiry were brought down to
Juno 80 , IbOl , and the Insurance depart
ment's general/statement Is as follows :
Assots. trJO,7li.fliOLU4. ( !
Liabilities , JtOtWU.O 0.81.
Qr 9s Miirplus on policy holders account.
m,708G.r > .8J.
The superintendent ot Insurance well said
in commenting on the above : "Thoso Inter
ested may bo assured that this conclusion Is
correct mid trustworthy. " These words will
boar reading a second time. They mean
something different from a casual statement
of llnancial responsibility on the business
world. They could bo used only nftorourns-
sot.4 had been subjected to u test which might
ioem from many points of view unnecessarily
iovoro , hut which from the nature of busi
ness ntd ) tbo sacred character of its trust Is
unquestionably wbo. Thy suDorintondcnt ,
therefore , means that all doubtful items were
eliminated , that our opinions were necessa
rily Ignored , that disinterested opinion was
the standard and that wovcro obliged to
plead before a bar where mitigating cir
cumstances were ruled out of evidence.
After such a test , I may bo allowed
to offer my congratulations to our membor-
ihln on the result and to the atato that the
other executive oftlcars of the company , us
wall ns myfcolf , share with you 111 the satis
faction of so great nn achievement.
I doslro personally to emphasize my con
gratulations on this particular and most Im
portant vlow of the report. It would have
boon unnatural , I think , If the Idea of my-
sclr mid ngaocintos of the nggroRato value of
the assets of this company as expected In
our last annual statement had differed to
considerable degree from the Idea of the
gentlemen who llxod the values expressed In
thu Insurance department's statement. Dif
ference * could arlao only In certain classes
of investments. A largo portion of the as
sets of such an Institution Is of such a character
actor that there could bo no va-
rloty of opinion us to Us value
on nny given date. But It is
equally true that a consldornblo portion of
the assets of this , ns of every similar com
pany , Is of such a unturo that Its value ut
nny clvon llmo must necessarily bo expressed
in dlfloronv totals by equally capable und
responsible mon. The variation would express -
press no actual fluctuation In value , hut
simply a difference In opinion. Which opin
ion might bo for your purpose most nearly
corroet is apaiti a nmttor ot opinion , and
whtlo I coucodo the wisdom In such Investi
gations of n conservative view , und , under
the peculiar circumstances surrounding our
request for this examination , ' the wUdom
and necessity of an ultrn-couiorvatlvo vlow ,
I cannot avoid the conclusion that In ttoso
particularisms the opinions of mon who have
planned nnd directed thu erection of the
great company , whllo they may bo accepted
as the utterances of special pleaders , are
worthy at least of consideration by you.
I accept tbo ngcroguto llnnnclnl findings of
the limit-unco department , as constituting an
endorsement of the management of this com
pany at once satisfactory to you and credita
ble to uio and my associates. It Is possible
that In splto of the peculiar character of this
Investigation you would not have expected
any word from uio hud thu matter rested
there , but Iho lupcrlntondotit of Insurance
has aeon tit , after announcing not only the
solvency , but the great prosperity of the
company , as evidenced In Its erosi surplus
of noarlv * 15,000,000 , to toke up nnd dJscuss
certain Items , and In doing so has criticised
the management of tbo company In 11100 de
tails very severely. This constitutes an
added uud by Itself a sulllcleut rcaion why 1
should eo with you ever the ground traversed
by the Insurance department , In order that
your attention may bo called to many re
lated facts which do not appear In the re
port. The department's crltlclsnn cover
several phases of management , especially
Investments In real estate und Dgonoy work.
The criticism of real oituto matters calls at
tention to lossoi , which may bo divided Into
gntual losses , which I admit , and losses
theoretical which arUo from difference * of
opinion. 1 admit certain losses which 1 wilt
point out specifically , with the attendant
circumstances , and I raise the question of
dlffurouce of opinion as to iho remainder ,
lioforo entering on the discussion ot any ot
those matter * , It 1s uuo to all parties to say
the Investments are made only with the ap
proval of the finance commlttoo , consisting
jf llvo members and of which I aui a member
ex-oniclo.
Pluza Hotel The ror.ort alleges a loss on
this property of S3Oyi. The super In-
toudout of uuurauco uses this language In
wtiuoctloii ; "In property of tula character ,
nnd of such great vatuo. the opinions of
real ostuto experts of equal ability
and Integrity of ton differ , nnd other
nbl9 and conscientious appraisers might
vnitio this property nt higher ligtircs , nnd
even beyond Its cost. " The gentleman who
by direction of superintendent of Insurance
vnlucd this property nt ? Jr > 00UOO Is n man
eminently qualltled to give nn opinion on
Milch n question. Hut U If , nlso n fuel that
another gentleman of cqt.nl ability nnd char
acter within n few weeks test Hied before the
supreme court of the stnto of New York thnt
In his Judgment the pioporty at nresu.it U
worth jtUOiUOO. : From your point of view ,
then , is It not fair to conclude thut the al
leged loss may after all be only n mailer of
opinion , but the cnso will bcnr ono tnoro com
ment. This property Is ns llncly located ns
nny on Manhattan Island for hotel purposes
nnd perhaps ns finely ns nny hnlol property
In the United Slates. U Is In the line of In-
cioaslng values , und In my judgment will
ultimately yluld the company n largo return
on the original Investment.
Homo Ofllco Hullding The report alleges
n loss on this property of $ 'UHUO.Y Its book
vnlno Is JIll-l'Jir | > , and It enters the superin
tendent's report at | lf > .W,000. To Illustrate
aenln how opinions vary ns to the value of
real estate , lot us mnko a parallel between
this nml property of < i slmllnr cnnrnctor In
New York and draw n conclusion. Tnko the
value placed upon our homo ofllco building
for the purposes ol taxation nnd place It bo-
slilo the same vnluo of the Equitable Llfo
Assurance society's homo ofllco building. The
olllclal valuation fur purposes of taxation of
your homo onicobulldlnglslor > 0OIU ) ; of the
Equitable homo oltlco building , f < , SIWt)0 ) ( ) . A
statement of the figures nt wnlch each
property was entered In llio assets of Its re
spective company December 31. ISW ) , Is ns
follows : The homo olllco building of the
Now Yont Llfo , 51,011,000 ; homo ofllco of tbo
Kqnltiiblo , $15,140,000. The department's
estimate of the value of our property Is ap
proximately 80 per cent , whllo the associate's
llguros for Iho purpose of luxation nro httlo
more than 50 pur cent of Its book vnluo. As
the gentleman who appraised oar homo oltlco
building has never maUuiu ! appraisal of thu
vnluo of thu Equltablo'd homo oftlco building
wo can hardly draw n conclusion 'from that
basis , but tlgurlng from the vnluo placed
upon It by the assessors the total vnluu would
bo approximately $7,000,000 , If the book vnluo
of our homo odlco were ncccptcd at par. I
Ute these figures ns strongly brlnglni ; out
the truth of my suggestion concerning opin
ions ns to ronl estate values. Every one Is
familiar with the eminent success of the
Equltnblo Llfn Assurance society , nnd no ono
would be so absurdly unjust to that company
ns to allcgo n loss on tills ono parcel
of real restate of $7,500,000 or , In
deed , nny loss nt all. From the
policy holders' vlow , thorcforo , is It not
worthy of your consideration that in this
case , as In the matter of the Plaza hotel , the
loss alleged is after all perhaps a matter of
opinion )
In fact , I could cite you good authority on
real cstato values In Now York who will
place on our homo ofllco building today a
valuation In excess of Its cost. There nro
many reasons why this estimate .vould bo
consorvatlvo. In the first place , the real
ostnte was purchased In ISO'J , nnd l excep
tionally well located. Anyone who knows
anything about the history of real estate
values In Now York for twenty years will
agree that there has been during that period
n heavy advance In value on this nnd all
property similarly situated. The building
hns'not been allowed to deteriorate In any
particular , and-lt would seem that our state
ment of actual cost , $ I'JUUOU was n very
consorvatlvo figure.
Hoi brook Hall ( now called the Yosmlto )
On this item a loss has been mado. Briefly ,
the facts are thesoi. In 1SS2 wo mndo a loun
on this nroDcrty when in course of construc
tion , nnd after the man to whom the loan
had been made spent not only his own means ,
"a considerable sum , " but the money loaned
him ns well , ho failed and wo were
obliged to foreclose. The cost of the property
to u after foreclosing was very little moro
than the amount of tbo loan. Tno work of
completing the structure .vas then placed In
the hands of an eminent constructing en
gineer. He supplemented hl.s own knowledge
by employing an architect and the building
was lluisned. It was tilled with a doslrablo
clnss of tenants and would have paid a fair
return on its cost , out for two errors which
could not have been foreseen and which do
not Justly su bjcct the flnanco camraltteo to the
charge of mailing u bud Investment of monoy.
In carrying out a theory of fireproof con-
struption the architect mndo the snmo error
Precisely that tbo architect of Vice President
' hotel the Shbreham nt
Morton's , Washing
ton , made , nnd both buildings bud to be re
constructed for substantially tbo same
reasons. The mistake of the architect In
ouch case WMS In creating such n condition
that dry rot speedily destroyed the timbers
and the building bad to bo vacated at once.
It wi.3 then discovered that in addi
tion the foundations of Hoi brook Hall ,
put in by the mon who llrst obtained
the loan , were Insecure , nnd as u llnnl
result the wholn structure had to como down.
It was then rebuilt under the supervision of
ot MoKimmoad & Whlto , on the most ap
proved lines , and there is not u ilner struct
ure of its class In this country. The abso-
late loss to us there was approximately the
cost of the llrsi building. This wo charged
off and entered the property In our annual
siatamont at the cost ot tbo present building
and ground. The llgures , $7iliHi(5 ( ( , the ap
praiser of the Insurance department refused
to accept nnd 14si,000 ) was named instead ,
and entered in the Insurance department's
finding. It is proper to add thut on our
present basis of rental , this property will
yield , when fully rented , a not Income of
Ok uor cent on the vnluo placed upon It by
tiiu Insurance department , and would yield a
little mete than 4 per cent on our valuation ,
( $720,000) ) . I do not deslro to evade
full responsibility for raysolf and the
finnnco eummllteo In this matter. The
claim of Infallibility In ttio Investment and
reinvestment of hundreds of millions ot dollars
lars Is ono I hnvo never sot up.
Four The Paris Property. This property
was purchased some years ago under the
supervision of the chairman of our llnanco
committee , who wus on the ground nt the
time. His investigations ns to the vnluo of
the property were most searching , nnd the
purchase was inndn with all duo euro. Thut
the rental vnluo of the property has Hlnco
depreciated Is true , and thut there is an ap
parent loss is true , but If the superintendent
had not only secured an appraisal of the
value of the property as It now stands hut
had nlso Investigated the vnluo of the prop
erty when It wns nurchnsed , ho could Imvo
fully satUllod his duty at , examiner nnd at
the snmo time have given you n satisfactory
mason for the original price paid. Hut no
such investigation wns made , and us his find
ings scum to do us injustice , notonlyasnbovo
cited , but also In the value ulacod upon tbo
property now , the matter will bear u word
morn In explanation. It was brought to my
notice during the '
superintendent's investiga
tion that the llgnrus supplied by iho depart
ment of taxation of iho French government
on his request , represented values ufllxod
solely for his particular purpose. Our mana
ger nt Paris with u great deal of difficulty
succoded In setting thu Credit Fancier , the
largest Institution of Its kind In Franco , and
a bociety the reputation of which U well
known throughout Europe , to have a valua
tion made of our property. This valuation
was made with the greatest cnro by two of
Its most experienced inspectors , nnd their
findings properly attested were submitted to
Iho superintendent of insurance. Ho pre
ferred , however , inasmuch as he could not
procure in the limited tlma nt our disposal an
admission from the French government thnt
Its llguros represented Uxublo value only , to
reject tbo figures offered. In this way the
estimate of the Inspector's exceeds the
figures of the French government uy
fllii,000 : and tholr estimate of its
prospective value , with the improvements
certain to bo made by the cltv of Purls , exceeds -
ceeds ibo llgures adopted by the superinten
dent by &l'iauOO. ' An I understand it , the
vuilntlon in the superintendent's llguros
from thu probable value of this property Is
"
similar to iho loss which would appear If" the
homo otllco building of the Equitable Llfo
Assurance society should bo placed on u
schedule of Its assets at lt > 00,000. Us value
for purpose of taxation , and not at f 15,000,000 ,
Its book valuo. To place the projtorty of Iho
Equitable In u schedule of its Bs.seta at such
a total as to show a loss of fllHOuK : ) would
bo to unjust as to become absurd , yet a simi
lar thing seems to have been done In this
caso.
caso.FlvoOn Western Buildings. The report
of thu superintendent of Insurance values the
olllco buildings recently oruotod by us In
Minneapolis , t > t. Paul , Kansas City ana
Omaha al tholr cost to Ibo company , but his
opinion of iho wisdom of the Investment
seems to be uncertain , as this language Indi
cates : "Thcro is no immediate prospect that
they [ the buildings ] will provo us profitable
as iho Investments of llfo Insurance compa
nies should , " 1 doslro to offer a word In that
connection. Tbero are two rousous why iho
Immediate lucomo from these pronorllos Is
smaller than we may fairly expect to recolvo
In the future. ( I ) The buildings were begun
under normal conditions but were completed
in the midst of a period of business depres
sion In the four cities mentioned , and accord *
ingly wo have hud fewer tenants nnd lower
rents than wo may reasonably expect hero-
ntlcr. ( i ) The buildings were located with n
view to future developments ot their res-
pectlvo clues. Any ono who hns observed
the rnnld growth of the wst will npprcclnto
the necessity of considering the future ovoti
moro than the present In thu location of an
oftlco building. Present rovcnuo wus , thoro-
foro. not so much of n consideration ns that
the buildings should bo so located thnt thn
future may tend constantly to Incronso nnd
not decrease the rout-procuring power nnd
vnluo of thu property. You will undir.stand
of cojrso that Investments of tills character
nro valuable , because tbo element of rhk In
lolnvcstmcntis practically eliminated , The
money expended In this way Is a tlxed Item
foi it very long period of years. The full
wisdom or folly of such n transaction is
developed only by tlmo. You will bo Interested -
osted to know , however , tliAt ono of these
buildings Is already yielding ns n fair return
on the money Invested , nnd I inn further nd-
vhed by competent authority thatslnco the
date of our purchase of the real o.stnto on
which these buildings nro situated there has
boon a not appreciation In iUs selling vnlno of
f.)00,000 , as shown by the appraisals mndo nt
iho close of IS90 and by purchase of adjoin
ing property Mnco mndo by oilier people , In
entering these properties on books and
in submitting our estimate of tholr
vnluo to the superintendent , which
ho accented , wo did uot take this-
evident Increase Into account us evidence
thut the erection of this chain ot western
buildings was well considered , I point you
to the fuel thnt investment wns entered upon
nftcr discussion and approval by the bonrd
of trustees , In my theory that It Is only fair
to the members of n company 11 ho this , the
nature of whoso business makes largo ac
cumulations of money necessary , that llio
money to bo invested should go us far us
practicable to these sections ot the country
whence it emanated. In this case n purl of
the money received was Invested amongst
tbo people who paid IU Tlio only theory on
which these buildings can 60'rated ns bud or
even doubtful investments Is ono which dis
credits the future growth ot the western
states. The report notices that ; as adver
tisements of the company thnt they
( the buildings ) no doubt have n considerable
valuo. This Is eminently true , the territory
In which these buildings servo especially to
advertise the company include thu slates of
Minnesota , North nnd South Daltota , Mon
tana , lown , Nebraska , Knnsns , Missouri ,
Texas nnd Indian Territory. Tno people of
tDoso slates are in constant business nnd
social Intercourse with ono or moro of the
cities In which the buildings hnvo been
plncod. The buildings have , therefore ,
become widely known or ns the superinten
dent's report nays , "each of them forms ono
of Iho attractions of the city In which It is
located. " Their Influence upon the com
pany's busmosf Is extremely Impor
tant. In 188J ( the year before the
buildings were begun the nggregnlo now
Insurance written by the company In Iho tor-
rllbry In question was $ ,017 , 00. This aggre
gate has steadily Increased until for the year
15)01 ) It amounted to $ 8,800,950 , which is the
largest business that wns secured In that
Hold during thut year by nny llfo insurance
campauy , und not only wus the quantity of
the business remarkable , but Ita quality was
such as to mnko It most desirable in every
way. Without the buildings it is snfo to say
such results could not have boon obtained.
I may add , by way of general comment on
real estate matters , thnt while the superin
tendent notices that the company owns 147
parcels of real estate nnd hns 1)00 ) other
parcels under mortgage , and the further fact
that these properties are scattered not only
through many slates of this country , but
ever two continents the nature of such duties
made It necessary perhaps , to omit comment
on the real estate transactions in which
profits hnvo been realized and to conllno
himself an radically to the four parcels
which ho discusses , but your interests reach
further , and you will naturally bo pleased to
learn in this v.'ay not only the relation of tbo
Items criticized to the company's total holdIngs -
Ings , but also the circumstances surrounding
ouch caso. If these related facts tell you
anything. It is the probnblo existence today
of a surplus largely | n excess of $15,000,000.
Wo all accept the superintendent's ' figures.
Yet , ns you and 1 nro particularly Interested
in the whole case , wo are permitted between
ourselves to vlow the possible effect of
these facts. Suppose , for example , that
the superintendent , had accepted the well
known opinion of one of the heaviest holders
of Now York real estate as the value of the
Plaza Hotel , . ' ,750,000 , and that ho had ac
cepted the value of our homo ofllco building ,
on a rental basis of 5 per cent not , and that
ho had accepted the Insldo figures of the
inspectors of the Credit Fancier , as to the
vnluo of tbo Paris property , his not deduc
tions on real estate , Including his heavy
deductions on Holbrook Hall , would have
been only $1200'.t.25. : ! This aloiio would
Increase our .surplus 5800,000.
Agency Management Under the head of
agency management , Iho superintendent ol
Insurance says that funds of the company to
the extant of hundreds of thousands of dollars
lars have been advanced to those agents
without interest nnd upon Insufficient se
curity to persons unfamiliar with the llfo of
insurance business , nnd this statement would
scorn to Indicate iho worst possible manage
ment of uur agency department. The facts
ought therefore to bo fully explained. The
general system upon which advances have
been made to ngcnts by this company and
other life companies may bo Illustrated as
follows , the figures used being merely illus
trative , and not the terms of any actual ex
isting contracl- The company , wo will soy ,
enters Into n contract with Brown , who Is
general ugont for a stale , that ho shall receive -
ceivo a commission ot'J5 per cant of tbo first
year's nromlum of all policies placed by him ,
and a renewal commission of 5 per cent on
ouch renewal premium paid on each policy.
Brown , of course , finds It necessary to
omuloy Jones and others as sub-agents and
ho ordinarily pays them ± per cent commis
sion nllowop him by the company on first
year's ' premiums. Brown relies upon his
renewed commission for his own compensa
tion , but while ho continues In active nor vice ,
ho Is frequentlp allowed to dmw on a lixod
amount against commissions for hi * living
expenses , such amount being rogulntod by
the cucumstanccs of the case. As competi
tion increases , Brown llnda that In order to
retain Sub-Agent .lones ho will bo obliged to
pay moro than 2. per cent commissions. To
do this Brown Is obliged to mane a now
arrangement with the company. Instead of
Increasing Brown's tlrst year commission ,
the company agrees to advance to him n sum
oquul to two renewals or 10 per cant , on iho
business secured by Jones and to hold nil of
Brown's future ronownlo commissions
under the contract is security for
the advance. Brown is now able tote
to nay Jones ; ir > per cent commission , and so
rollovo his service , but nt the end of the year
Brown Is apparently In debt lo tbo company
In an amount equal to 10 per com of all first
year premiums secured \ > f Jones , and tbo
larger the business the larger thn apparent
dobt. This will continue until such time ns
the old business kept on the books greatly
exceeds the amount of the now business' an
nually done. In a rapidly Increasing busl-
nors this result wilt not bo reached for
several years , but If the total amount paid
Drown hns not exceeded what the business
was actually worth , the time will coma when
the commissions accruing under his contract
will exceed thu total cost of the year's busi
ness. Brown's business from thh tlmo forth
will require a less expenditure on iho part
of the company , nnd In proportion to its
and his so-called In-
volume than heretofore , - -
dcblednoss , appears under his contract.wlll
disappear more rapidly than II accumulated ,
at which time Brown wilt realize thn profit
for which ho has worked , The company
having already paid for this business In
largo part , will have a lower expense ratio
to this extent in tbo future , and its surplus
will bo correspondingly Increased. You will
notice that this debt does not represent
money which Brown has squandered or ra
tamed for his own uses. Ho hns Hlmply used
iho money to carry on the company's busi
ness. If it should over natipen that Brown's
renewal commissions full to rmiccl iho debt ,
the business has simply cost the company
wbut it cost Brown , and thu
company has taken good care that
the total amount of commissions ana
advance received by Brown should never uo
a sum greater than the now business secured
by him was worth.
On L. C. Nanuxom & Co. The suporln-
tondont criticises the nganov of Messrs. L.
C. Nnnuxum & Co. , at Philadelphia , Pa , ,
and alleges n debt to the company on account
of what , hotoims "extravagant iillowances"
of several hundred thousand dolla-s. Re
ferring to the Illustration above of the
method on which a general agent's business
U conducted and the manner in whlo an ap
parent debt might bo contracted when I state
that from 1887 to 1801 Inclusive , this firm
wrcU ) business aggregating tiui,00"i,000. " a
clear ojcpluuauou U offered you of Uow ,
under iho ntTovTprnellce , n Urge dolil mlitit :
appear lo exist. In Ibis particular nponcy
the ndvnnco contemplated In our It
lustration look on various forms under
various codJrncts which , howvver , were
nlwnyssubjeVt to our npprovnl , niralnst the
coimnlssiona-fynrnod. nnd to bo earned , the
members of ihtu tlr.n drew advances for liv
ing oxponsusjjifjbofon' referred to , nnd ad
vances on account were mndo to some snb-
aucnts , but nt no tlmn has the amount of
money ndvuim.it to L. C. Vnntixon & Co. ox-
cncded Iho value of their firm's business.
I'ndcr this system ol organization It has
been posslbl ? tfr a dlnglo llrm to handle n
largo territory nnd In' creating ronownl In-
toroft ( In this cnso of very largo pronortlons )
wo hnvo nvofdt-ilfrequent [ chnngos of general
necnts nnd Ifnvo largely escaped thodungurof
having our bimiyss cnrricd to olhor compan
ies by nn agent whoso Interest Jn nny given
polloy ceased with the llrst year of Its exist
ence. In this way Messrs. L. C. Vnnuxem
ft Co. have done for yours iv larger business
than the now business ot three smaller Ufa
Insurance companies nnd the Inrgoat business
of nny single agonoy In tlio United States. It
hns been done ut n not unrensonnblo expense
nnd the cost of Us procurement has been In
eluded each year in the disbursements of the
company.
The whclo theory of this organization and
the pttrposu of the advance Is (1) ( ) to produuo
n largo business and ( - ) to create nn Incen
tive for the general agent or manager to pro
cure business at the1 lowest possible cost , In
order that nftcr a period of years ho may
begin to ronllzo a return commensurate with
the work done. Astlio , cost of the business
Is charged oft each year It becomes neces-
nary to keep with the manager n blotter or
Btib-ledpor , nhd the Horns nro nil brought
forward from tlmo to time. Of course this ,
under the Illustration whould show for nn
ofllco doing S-'O.OOO.OOO of now business In a
yrnr , nnd for n series of years , u Inrgo ap
parent debt , and the superintendent sf lu-
sur.inco , Instead of viewing the business ns
wo hnvo done , ns simply business paid for ,
decides to go Into thlt subject nnd spread before
fore you the apparent dobt. It ! > ot llrst Im
portance that you understand clonily
that this money Is not duo from
L. C. Vnnuxem & Co. , In the
ordinary acceptance of the word
"dobt. " It IT duo under the terms of their
contract nt such llmo as llio commissions
earned on iho business done will liquldalo
Iho money advanced from llmo lo tuna for
the conducting of iho business. It has not
benefited them personally and never can
until , ns slnled , the earnings of their busi
ness hnvo liquidated nil moneys drawn for
every purpose under the contract , Including
advances nnd agency expenses of every kind.
And hero lot nib call your attention to nn
oxuomoly Important fact which applies to
nil discnsolon of agency mailers by the
superintendent , nnd which ho forgot to men
tion , namely , that these ndvnncos In every
cnso were charged to expenses In
the company's books when ' the nd-
vnnccs wore mndo nnd the company
hns never counted them ns u partof its iiKsets
or surplus. The superintendent , therefore ,
instead of unearthing with great difficulty
something the company dcslrod to conceal , as
ho states , practically sot un an arbitrary
standard of what ho thought our business
cugnt to cost In any given vcar and charged
up ns n debt the dilTcrencc between his opin
ion nnd ours , ft would scarcely bo loss un
just to the company had ho nllcgcd In tiny
given year thnt the nggregato paid for the
account of the i business of that vcar was
$1,000,000 or J-i.000,000 too largo , nnd
in his rqHqrt had sot this up
ns a sum , duo from tbo men to
whom U was .paid. Kipht hero I doslro testate
'
state , and I alatM'lt with all duo respect for
the opinion of'tlio ofllclal whoso conclusions
I differ from ; thttt In matters of this character - ,
actor , the conclusions of mon who have
thirty years' pxjjerlenco in this businnss as
to the prospects.of paying a given sum for
Blven volUrao .p/puslncss ( they nlone being
conversnnt wttu all the surrounding circum
stances and cp'nHngencios ) are ns likely to
bo correct In tlio'interests of policy holders ,
as the opinion 01 n gentleman who , while
eminently qunliflod for the duties of bis
olllco , cannot bp credited with spccinl knowl
edge in tbo particular Interests now under
discussion.
Spanish American Department The super
intendent nntLrMly treats at some length the
affairs of the Sbanish-Amerlcaii department
Tno invitation "cxTcnded " to him by our bdnrd
of trustees to examine tbo condition of this
comprtny was caltad oiirchlolly-'by an incor
rect and misleading statement relative lo an
alleged defalcation Jjy ono of Us managers ,
for which the company. . It was stated , alone
must suffer. I shall refer , principally in the
matters discussed by the superintendent
under this head to this central and to you
Important quesstlon the fact that Mr. J.
Morsebache , ono of the managers at thnt
tlmo of the Spanish-American department ,
became n dofallor for a largo amount. The
statement ns originally published thut
Mr. Mersobnchor defaulted direct to the
eotnpuy was un error. Uji'dor the
contract , which wo had with the two managers
agors of the South American department ,
each became rcsponsiblo for the action of
both , uud Mr. Sanchez , Iho other general
manager at this time nnd manager of the
Spunisb.-Amcrio.in department at the present.
tmo ; , accepted , under tbo terms of his con
tract , full responsibility for ino Morsobachcr
shortage. This shortage consists of two
parts. A direct theft by Mr. Morse-
bachor from Mr. Sanchez of $11'- ' '
8'JJ.IO nnd $110,030.10 which was an
ever payment by Mr. Morscbacbor
to the former general manager of the Span
ish-American department. Since the data on
which the accounts were made up and thu
shortage definitely determined , the Horn of
$110,059.10 hns bocn considerably reduced on
the books of tno company by accrued re
newal commissions retained liy Mr. Sancho/
and by him turuod ever to the company In
cash. The larger Item , representing the
money appropriated for bis personal
use by Air. Morsobachor , has boon
reduced since December ill , 1SOO ,
bv 8160,071.80 , leaving n balance
duo January 1st , 1602 , $2 : : il5I.Oi. : Thoiictual
not profits inr the year 18111 to this depart
ment have not yet been fully determined , but
Its balance sheet , shows that they will not
full short of $100,000. This leaves the bal
ance dun the company on thin account on
this dnto a sum but little In excess of
$150,000 , for which the company also holds
abundnntsocurlty. Thosuporlntondentcloses
bis rovlow ot ibu Spanish-American depart
ment with these words : "From the
foregoing fncts wo must conclude
thnt Sanchez nnd Morscbuchor were
treated a degree of liberality inconsistent
with the boat Interests of the company. "
That , conclusion is uot correct. The depart
ment has always been eminently successful
nnd Its business has been obtained at n
normal cost.
S , L. OlnkcsplolTho suporlntondf nt ex
presses the opinion that S. L. Umkolsplel
was retained too .long us agent of the coin-
company. Mr. Dlnkeisplol secured for
us a larc'j amount of desirable business.
The men whom ho lusurod were among
the wealthiest and most Influential lu the
cities where ho worked. It came to my
knowledge , however , after n time , thut his
business motliodslU'oro objcctionnblo and for
that reason , In tfcoiyoar 1880 , his agonoy was
terminated. Mrj'ipAukulsplol's contract comes
qnder the general illustration cited above ,
oxcopl that hoi was personal solicitor only
and many modifications were made to enable
him to handle thu peculiar class of business
which ho wrote1. " vl\dvtincos were mude for
the same purpoW H Is probable , howovor.
that whllo thorcj'il loduy on our books a largo
volume of buslnvof the host quality written -
ton by Mr , - Dlnkonsplel , n reasonable
renewal IntoroMtndll not finally liquidate the
advances mado/.iuld that this business will
ultimately cost-rj-yuoro than It should , for
any error of Judgment .lu omnloylng this man ,
as well as forffluy ultlmnio loss , I do not
desire to escaoo Worn , any proper responsi
bility. " ° '
Mr. Lee nils * } Whlto , the superintendent
ot insurance , dismissed at some length the
relations wnlch > | Ii k'o existed for about six
teen yoarj boty ) ( < { ryjj Iho Now York Llfo In-
aurunco oompany.and Mr. Loomls L. White ,
a member of Its board of trustees and of I is
finance committee , and two questions are
raised. *
First As to whether or not a firm , a member -
bor of which was s member of the company's
board of trustees aud o ( Us finance commit
tee , could nut for ltas brokers without buy
ing the opinlonf of such trustees us to llio
value of securities affected by the probable
commission which'the linn would receive on
suoh transactions ,
Second Whether or not the company hud
the right to purchase securities through such
a firm of brouers.
The tlrst question may be briefly -disposed
of , without discussing by u simple stulemout
ot the resultt. In they cars covered by Mr ,
White's connection with the Now York Llfo
Insurance company about { 05,000,000 of se
curities Imvo bton purcnasoM by tbo com
pany'u llnanco committee , aud a considerable
pronortlou of this Ihrough iho firm of
whl'ch Mr. White U a member , Messrs.
Loom Is L. Whlto & Co. , aud ou the yoth of
Juno Inst the superintendent , after valuing
these securities at n tlmo of depression ,
found thorn worth to the company something
moro thnn1,000,000 above iho coil vnluo , nt
which they are carrii.il on the comnanv's
biroks. Sncli a result is thn bc.t answer to
nil questions us to the wlsdon of the tlnancu
cominittoo's ' action , und In so Jar ns Mr.
Whilo's action Influenced it is nn evidence of
the vnluo to the compunv of this connection ,
The second question is ono of which opinions
of counsel differ.
1 hnvrt reviewed now with you thu graver
criticism's of the superintendent's ronort. I
shall stop here , I icullza that there nro
oilier criticisms which I hnvo not referred to
and I do not deem It necessary to do so. 1
hnvo tried to present to you fairly the fncts
concerning those of most Importance , nnd I
bcltovo 1 hnvo shown you thnt whllo there
hnvo been errors in the mnhngomunt of this
company , thorn has been no betrayal ot trust.
A full criticism of errois with an equally
full statement of management deserving
commendation would have been only fair to
you and perfectly satisfactory to me , how
ever scvciM these criticisms might hnvo
been , but the superintendent pf In
surance , who was Invited to oxnnilno
condition of this company , whllo prop *
orly criticising whatever ho deemed
crlllclznbk1 , omitted to stnto the
other stdo of the case , nnd In addition un
fortunately so stulod bis criticisms ns lo
molio It protmolo that you may hnvo misun
derstood und obor rnlcd tholr Importance. 1
desire to rcitcrnlo my disclaimer of InfnlU
blllty and rnd repeat the message sent from
Europe last summer , thnt In business of our
magnitude mlstattcs are Inevitably and wo
comnaro favorably with others. Itut my In-
tcf rlty of purpose cannot bo shaken. Gen.
oral dot results are the touch stones in every
business. Wo need not go far to llnd
confirmation ot this. Errors have been
mndo , norhnps , In the management of every
company doing business , but ns there nro
some of common notoriety , I may refer to
thorn without seeming to nttnck the com
panies themselves. In addition I will suv
that to llio best of my knowledge nml belief
nil of those cases ate natural experiences , In
elJont to the fact thnt no ono Is Infnlllh'u ,
Thd Connecticut Mutual lost outright M10-
000 through the defalcation of 1(3 ( llnancial
correspondent ut Indianapolis in IhbS. The
Mutual Benollt Life Insurance company of
Newark , N. J. , n company eminently conservative
vative In all things , lost nbout the unmo In
Ellniboth , N. J. , bonds. It is n well-known
fact thnt The Equltnblo Llfo Assurance
society marlted off In 18SO nnd Ib''O ' almost
$1,000,000011 real estate , nnd that It carries
nearly & ! ,000,000 in Its published statement
of assets and surplus ns commuted commis
sions , ngenoy balnnces , etc. , which Is pr.icll-
uilly nnotho form of expressing
what the superintendent culls n "uobt" in
the cnso of L. C. Viviuxom & Co In the report -
port of the department examination of the
Mutual Llfo .Insurance , company made in
Ib''O ' ' It wns stated that f'.ISO,701.18 ' had been
charged off to profit and loss on account of
Its oftlco buildings.
Aftgr naming these cases ( and others
might bo referred to ) wo hnvo simply recited
n list of average errors , which , in pro
portion' to the interests at staUe , repre
sents loss loss thnn the experience of
any business of which I hnvo knowledge nnd
With which the management of the New
York Lifo Insurance company invites com
parison. 1 referred- ono of the opening
paragraphs of this letter to the now nnd
larger responsibilities which hnvo bocii mot
to the best of our ability within ton years.
Amongst these has been the growth of cor-
tnin evil practices In the conduct of ttio
business of llfo insurance. Several sugges
tions for their remedy huvo been offered , but
for rhetr complete reform It docs not seem tome
mo that any adequate remedy has yet been
named. The worst practices , the most de
moralising , and in ouery way tlio most.rop-
rehonsiblo , nro the giving of rebates to in
surers nnd the moro or less con
stant attempts of companies to onlico
Into their own service the ntrenUs of compoti
tors. This Is a natural result of fierce com
petition , nnd In my ludgmont should bo
speedily eliminated , nnd it seems to mo thnt
the ono and all sufficient remedy would be ,
aud I deslro to go on record ns endorsnm-
that plan to limit by statute the amount of
insurance tbnt n company shull plnco upon its
books. Thnt nniotint having boon reached ,
tbo incentive of thnt company for obtnin-
ing now business is entirely taken nwny and
it is practically eliminated from the contest.
Ths | mlirht disappoint umblttoas managers
( myself included ) , out from the point of
viowof u citizen. It would bo altogether ben-
clicial. Such n law would tend to give the
younger and smaller companies u better op
portunity to grow , nnd would greatly
strengthen and extend tno bono-
ficlont work of lifo insurance , by
at once curtailing errors In the
conduct of tbo business , nnd widening the
Hold of its operations.
In conclusion lot mo say , when my ofllrinl
relations with the Now York Lifo Insurance
company began twenty-nine years ago , its
assets , nftnr eighteen years of existence ,
were less than $2,000,000 , und its
surplus loss than $200,000. Its history
since , its ofllcinlly determined assets
Juno ! > 0th last of JI'iO.ODO.OOO , its $ I3,001)1000 )
In surplus and Its annual Income of over
* aoKX ( ,000 , I submit to your Impartial Judg
ment ns the achievements of my nssoclatos
and myself during the administration of our
trust. . I remain yours faithfully.
W. II. HKBIIS , President.
I'llOM VKSTRIIlm's < * EfiNI ) KIIIT1OX. 1
Kcsults ill ( ilonccilrr.
Gr.orrKsrai , N. J , , Fob. 1. Weather clear :
track hoavy.
1'Irst race , five-eighths of a mile , solllir- :
I'en/aneodlio favorite ) won. William Henry
eeonil.'Kuim tblid , Time : ll.r : > li ,
Second race , six and nne-fmirlh furlongs.
soiling : 1'mllta ( thn favorite ) won. Jersey
second , Comforter th'rd. Time : l : ' i't.
Third race , one anil one-eighth miles. sellIng -
Ing : Birthday won , C'rNpIn ( thu favorite *
second. Kblo-s third. Time : -IO. ! :
I'mirth rne" . one and tlnec-slxtucnllis miles ,
selling : t'un't Toll wun , liruvn second , Illuek-
biirn ( the favorite ) third. Time : IS : .
rifthr.iee , llye-ulnhtln of u mile. Mclllng :
Guard won , Jnck Murray second , ICinma J ,
ithu favoille ) third. Time : 1:07' : i.
Sixth race , tlircu-iinaiters of a mile. selllir.r :
Itleli.il won. Jiick-aiiir second , Little Addle
( the favorite ) third. Tlmo ; la'i. ;
Hull Couldn't Do II.
Citir\iO'Foi ( ) . 1 , Tonight ut nailery 1)
armory 5,000 , people dtrw Jim Hull , the
Australian , try to stop Mike Bodcn of Phila
delphia In four rounds with four-ounco
gloves. It was an exciting struggle , but
Hall , though plainly Ilodon'ssupnrlor by fur ,
failed to Knock out the Philadelphia man.
Uodon clung lo wrestling tactics and made
no attempt to punish Hall.
Aimtlicr .Minor l.c. < im' .
KANSAS Cm , Mo. , Fob. 1. There is a pro
ject on foot to orgunuo u now minor western
league , nnd a strong offorl will bo made to get
the matter in shape. Ttio towns which II is
proposed to have In the now circuit are St.
Joseph , Lincoln , Sioux City , DCS Molncs ,
Qulncy , ICnnsas City , Kan. , Topeka nnd
1'corla. A circular has boon scut out from
St Joseph to all of thn towns which it IK
thought will taKe hold of the project , and
favorable answers have been received from u
number of the cities , A meeting will proba
bly bo called shortly to consider iho muiior.
n , N. J. , Fob. L Truck wns In
fair condition today , Iho attendance wns
largo ,
1'lrst race. Iho fnr'ongs : Illas won , Vim
Oyl.eHOcond. Al'-'ebrn third Tune : I.n.Vi.
Second race , six furlong * : Muhluun won ,
Jay I1' . Dee second , Maxim filly third. Tlmo :
I : in.
Third r.ice , sK and onu-hiilf fnrlonns : liil-o )
John WDII , MmiitKlur second , I'rlnuu Howard
third. Time : ! : : < ,
I'oiirth nicu. ono inlliii Mubolle won , Itan-
couus aucond. Text thlid. Time : I:4V :
I'lftli race , five furloiuii. Ont-o Again on ,
Htrutiiiom second , Hwlftor third. Tlmn : IMtlV , .
bUlh race , ono mile : l.i : ( irlpfiovson. Alcei-
non second , Kxi'ollonuo thud. Tlmo. l ; . " > l'i. '
Toledo \VIII llu\c u dull.
TOI.KIIO , O. , Fob , 1. ( Special Telegram to
Tin : UIKJ : Valentino H. Kotchuti and oth
ers have placed Toledo on bur base bull lugs ,
and In tbo Western association. President
O. M. Evaiib und Manager ( jus II. SchmeU
of the Columbus club vUitoit thu cltv today ,
and after a thoit talk with Mr. ICctchum
convinced him that Toledo wants base ball ,
It was decided lo meet In Columbus tomor
row , when Mr. Kotctium wllltako the vacant.
place made for Toloda ut the Chicago meet
lug. About f'30,000 will bo put In tbo club.
Hut li Men nVr Tln-d.
Sr. Lot ic , Mo. , Fob. I. -In the wrestling
match 'hero tonight between Max Luttborgof
Nuw York and I ) , S. McFaddon of Missouri
for the 140-pound championship of the United
States , Mc/-'addon / won llio llrst full In ono
hour nnd twenty-llvo minutes , but owing to
thu exhausted condition of tbo men Iho match
was declared olf. A now ono may bo made.
RAN OX A LEDCE OF ROCKS
Dangerous Position of tlio Big Transatlan
tic Liner Eider.
HER PASSENGERS SAFELY TAKEN ASHORE
ArromiUor llu > Accident Told Itytlio I'm-
HriijjrrH Cnotnt'HH of tlio VcH nN Olllcr-i's
.1 Thlrli rojrltc | niiiill > lr lor tin' Vet-
iKKr itml ,
LONDON , Fob. I. On a rocky IcitRO of the
Isle of Wight , only nlno nillin from Oaborno
house , wuoro Queen Victoria is , ttio bl *
steamship ICtdcr of the North Oorir.an Lloyd
company , li rocktnu : fore nml aft , her
bows nnil stern In ilooo water. Two
hundred of her imsse'igors hnva been
tnnclcd In surf boats mill $300,000
In com , \vhtch U part of tlio steamer's freight ,
lint bocii brought from thu hotil and plica In
sacks on the shoreward side of tlio mnln
deck. It serious danger should aovclop this
coin will bo orotipcd overboard upon the
rocky Icilgo whence It nmy nt nny tlmo be
recovered by divers.
CittflngTIirniiKli llio roR ,
At nbout 0 o'clock last night the nose of
the big steamer was cutting through n dense
foi ; tryltiir to II ml the Solent between the Isle
of Wight imrt the KuglUh mainland. She was
bound In from Now York January ! W to
Southampton on her way to Urctnen , which Is
her homo port. The Needles nml tit. Cnthnrlnu
lights should Imvo boon kept on her rlpht
sdo | nnd the mainland lights ( it the on-
tranro to the Solent on the loft. In the dense
fop , however , the Elder dropped south of
wlmt should Imvo been her course nnd at Hi
o'clock wns bonding dead on to Alherllcld
Iciigo , a dangerous formation of rocks on the
southwest coast of the Isle of Wight ,
nnd soon nftorwurd stranded npoi < them. To
judpo irom her position the Elder evidently
wns carried by n roller about half way over
tlio lodge and was then dropped on the rocks.
She llos with bor bow and stern In compara
tively deep water , her midship section roit-
Ing on the lodgo. EITorts to dislodge the
steamer at the next How of the tide were not
successful but muny powerful tugs are about
the ship und It is yet hoped she may bo
pulled off.
Among the first passengers landed from
the Elder by the 11 fo bouts were Mr. I'ickurd
of Kansas , Mrs. Martin , Mrs. nnd Miss
Grant unit two children of Now York , Mrs.
Wullsovor and three children of Brooklyn ,
and Mrs. Hcndip , Mr. and Mrs. Abraham , i.
M. IColler , Mr. nnd Mrs. Ashendor nnu Mr.
liankln ,
Account of n Pussi'ii er.
Mr. Ashcndcr was interviewed after ho had
reached the uhoro and ho gave an account of
the accident und of iho scenes attending the
stranding ot the big steamer. Ho suld that
at tbo time the Eider struck on the Icdgolho
weather was foggy nnd it was only possible
to see objects n short distance away. Two
lights , however , were visible.
The pa'songors were somewhat startled
when the steamer llrst wont on the lodge , but
they were soon reassured by the news that
tbero was no danuer. No confusion occurred
among the passengers nnd no nlarin pre
vailed , owing to the assurance of the steam
er's ofllcers that the vessel was sufo and UH-
sistnnco was near If it was ncodod. So con
fident were the passengers on those
assurances that , acting under the advice
of the captain ot the Elder , they were nil
reluctant to quit the vessel on the Athonlold
life boat when the Hfo savors succeeded In
reaching the side of tbo steamer nnd olTcrod
them the transfer to the shore. The lifo boat
remained at the scene of the accident for
some time , but the crew said their services
were noUiecossary , so tlioy decided to return ,
and they loft tbo steamer without taking any
of the passengers buck with thorn.
ArrUnl of tlio l.lfu Hunts.
When tbo Brightstono life boat came
alongside of the steamer later on , the cap
tain of the Eider ngnln refused the offers of
help from the lifo savers unu the uoat started
to return to the shoro. The crew had only
rowed n short distance , however , when Mr.
Ashcnder dcehicd that us the steamer still
remained fast on the lodge , and that as thcro
seemed to bo Htilo likelihood of
her getting afloat , it would porhatw
bo the safest plan to go ashore , and In ; there
upon shouted for the lifo savors to como
back'nnd entered the boat with twelve others.
Soon after ttio two lifo boats begun landing
putsengcrs as quickly as possible. Tbeso took
tefugo temporarily at the Bluck CJanc hotel ,
while tho"o landing ut Urightstono , pro
cceded to London. Tlio passengers con
curred in the statement that thcro Is no ap
parent danger to the vosiol.
IJv nightfall six tugs hud arrived nnd were
awaiting the attompl to tow the vrssel off.
During the day the Eldursunl : on the rocks
considerably about half u milo from shore ,
the seas breaking ever hor. A dispatch sent ,
at 10 p.m. says : "All passengers and the
rest of the iniilli Imvo been safely landed. The
crow remained aboard preparing for the at
tempt to tow the steamer off. Tno attempt
will bo made at 1 n. in ,
Safely I. milled on Shore.
The lost boat-load of passengers was taken
on amid the rujolclng of n largo crowd on the
beach. The rescuing crows received nn ova
tion. The specie remains on board the ship ,
The captain thinks the vessel will como to no
harm during the ulcht. The weather Is liner
than during the day , tbo night being clear
und starlk'ht.
The landing of the Elder's ' pawoncers by
the lifo boats bectimo somewhat , risky after
3 o'clock in the evening , when the wind ,
which was blowing dead ashore , freshened
considerably und thrcatrno.l to Increase to u
gale. This chungo in the wind rendered the
operations of the llfo boats vorv dilllcnlt nnd
much euro hud to booxerclsed In the manage
ment of the craft , hut all were II n ally drugged
fnfely through tbo surf.
The captain of the Elder took precautions
to save the largo amount , of nionov which
was being shipped by the steamer. Ho gave
ordor.s to Ihivo It carried from thu pl.ico
where It was stored to the deck und a
largo number of ungs , containing In all WOO-
000 In specie , were soon piled on the deck of
the votsc ! facing the shoro. The big heap of
money wus so arranged us to bo ready should
the necessity arise , to bo ntoncosunk In a
safe plnco iimopif the rocks , whence it could
nftorwaras bo recovered easily by divers.
.Mlicalciilutcil UN 1'onlllnn.
Captain Addlson , one of the passengers of
tlm Elder , in givliu ; uu account of the acci
dent , suld that the captain of the Killer
calculated that the vessel was u few mlltw
westward of the Needles , a nlustor of
three Islands to the west of the Isle or
Wight. The steamer struck on Athcrllold
ledge 1unt a * llio loud wns being hoiivcd. A
sounding taken only llvo minutes previously
had Indicated ten futhomsof water. Neither
the Noodles light nor the Hu Catharines
llgni were visible when the Elder struck.
Tim men In charge of thu ( St. Catharines
light suy mat thu fag nlron was in full opera
tion at tlio tlmo ot the stranding of the
stcjinnr , and was nlowlitg nil through the
four hours the fog lasted , mill , that
the clci'trio light with which St.
Catharines Is furnished was burn
ing ut Its fullest pownr. The weather
was bo Intensely heavy , however , that al
though the ICldor wai only thren miles dis
tant from St. Catharine nelihor the sound of
the siren nor the ray * of the light penetrated
the fog to give those on Iho atoumer any Inn
*
mutton of the dungur with which they were
thioatonod.
Kcllrl lor ItiuxU'H Starving ,
Ouimt Uu'ins , In. , Ken. -Special [ Tolo
grain to I'm * HUB. ] Saturday evening
"Everybody's Friend" was presented uy
local talent for the bonellt of the Russian
sufferers. The house * was packed , each per
son paying the price ho desired for scuts ,
ranging from $1 to f.1. When the receipts
were i counted today It was found that over
had boon roulUod.
Will Altiirtluii Kurort.
The Samoiut club hold un Impromptu meetIng -
Ing at Moynlhan's Ian night and It was
agreed thai when ( Jovornor Hoyd went buck
to Lincoln to occupy the governor's chair the
Samonet flub would t > o In It. Suvoral promt
tiont members of the club stated that fully
; WO members of the organisation would go
down with Governor Itoyd to sco him tnko
possession of the ifovoriior's onico. -
At n special incctlng of the Omnns Gunrds\\
held hut ovnntng , the company decided to
Hfcompaiiy ( Jovernor Hoyd on hli trip to
Lincoln. This move on the part of thnJl
cutmU omanntos wholly from n nonpnrtUnti ff\ , \
standpoint , nnd the nulton wn * taken Docauso
Initei E. Hoyd tint been declared governor
of Nobraskn. fully fifty member * of the
RtiiHih will niiiko the trip to Lincoln with
thu governor.
r/fj.VM ir.i/tft'.s M
Allen Mllclicll nnd HIT I'rleiicl , l.lllle .lolin-
son ,
Tonn. , Fob. -MUs Alloo
Mitchell , the murderess of Ftodn Ward , nnd
her frlond , Miss Lllllo Johnson , worn ur
ralguod hofoi-o .Hideo Dubolso In the criminal
court this morning. They were accompanied
by sovernl members of tholr families , Uotti
young Indies were heavily veiled.
ludgo Dubolso ordered the prliouor * to
stiiml up and rcmovo tholr veils whllo the
Indictment was being road. Miss Johnson
oboyod. nut. Miss Mitchell uopt her fnco
covered. Neither showed any emotion.
Deputy Clerk Hunter read 'tho liidlctmonl
nnd the accused were called upon to plead to
it. Miss Johnson snld , "I nin not guilty , "
nnd dropper Unlc voll tnntnntor. Mtss
Mitchell was linmovnblo. Not n tound us-
cnped her lips.
Colonel Ciiint of counsel for the dcfenso in *
terposcd In her behalf , saving : "Your honor , X.
wo plead not guilty as to Llllle Johnson ana * -
pi-psont Insanity n s to AUco Mitchell. "
The urlsoni'i-d were then returned to the
Jnll.Tho
The defense xvill present their plea In Miss
Mitchell's ' eitso In duo form some time this
week. His tholr Intention to summon n
number of medical exports to testify before
the inquisition of the lunacy and will tnko
tlmo to got thorn In hniui.
In the event Miss Mitchell is declared in- "
snuo which will bo the iilToct of n verdict on
Miss Johnson's cuso , nMiod a reporter of Col
onel Ciiint.
"In law none merely speaking , n great
diml , " nnsweied the colonel.
"It Is not reasonable to suppo-so that nny
sane person would conspire with n lunatic to
commit innrdor. No upplir.ation for bull for
Miss Johnson will be mndo If the cuso shall
be called for trial nt nn early duv
Justice P. AI. Winters has boon retained
for the dofonso.
.son-/ i-ni.inr.i.
iM llchic 'Miiilo to Srlrct Douui-
cnille Comciilloii Dulogalcs.
YANKTOX. S. D. . Fob. 1. iSpociul Tele
gram toTur. BIIOtto : : | 1'ec'iilllor of this
city , chairman ol the democratic stnto rent -
t ra I committee , hns cnllod 11 meeting of that
commlltoo to occur In Huron Wednesday ,
Kobruarv 21 , for the ptirnoso of calling 'a
stnto convention to elect delegates to the
national convention to bo hold In Chicago.
The stnto convention will probably bo hold In
this city. _
Omnlm I'lrniH linolieil.
YVNKTO.V. S. U. . Kob. 1. ( Special Tele.
gram to Tin : Hur. ] . C. M. Wilson. 11 heavy
dealer In general merchandise at Avon , a
small town in Bonhomuiu county , wns
closed on n loreclosuro of chattel mortL'iigivj
by the sheriff today. Wholesalers In Sioux
City , Chicago and Oinnhti will bo losers tc
thu aggregate amount of $112,000. Two Sloiu
City firms are , however , protected.
Summer ArrUali ,
At Queenstoivn-Brittsh Prince from Phil
adelphla.
At Gibraltar Wcrru from Now York.
At London Sighted Callu from Now
York ; Switzerland from Philadelphia.
At Copenhagen Italia from Nuw York.
At London Michigan from Philadelphia.
.it Glasgow Nustorlan from Philadelphia.
At New York Spain from London ; Aur-
aula from Liverpool.
No ollicr meillclne ever
placed befoio the piihllo
lm wo" tlu |
dcnco so thoroughly as Hood's H.usa-
liAillla. From u small beginning this
' "Clllclllc I | ! " steadily
uni , rapidly Increased In
popularity until now Ithas the largest
sale ot any iiiep.ii-atlon of Its kind.
Its success It ha.s won almply
became It U constantly proving
that It possesses positive incilt , and
docs aecompllih wliat Is claimed forlt.
Tllls Im > rlt u t'iven
Hood's Sarsapaillla
by a
1'ccnllur Ooiiihliiiitliin , I'lojxir-
tlon and I'I-OCCHH known only to
I1'1'8 Saisapaillla ,
. „ „ ! iy , uie , | ] , the full
"leilli'Iiuil power of all the
ingii'dlents used Is iclained.
Thousands of vohniLii > w llnt'sses
all o > er thu country testify to
woiiilertnl brnvlll derived
from it. if you suffer from
One DoEar !
by Impure blood , take
Be Sure
Hood's Sarsaparllla.
To Get Hold
( J. I. HOOD
&f ( ) . . Lowell , Mu'is.
f.pt iws pic "Clols
J' * ] raniamadc il inZOMmules'
In paper lioivs ; CIIOUKI ! for two large pies.
Always icadyj easily prciuiul.
THE ORIGINAL
.inrl only Complete anil Satisfactory
Condensed Mince Meat In thu MatKi I ,
Cheap Substitutes and Crude Imltntlonii
are altered with the nfin tn profit by Iho
popularity of Ilia New England.
Do not be deceived but alwa > 9 Inilif nn
the New Bntrlund UranJ. Tlm liotl inailu.
HOI.I ) 11V AM. OKOCIIIIH.
OUBEB
GOU6H CURE
IS A
One Minute Remedy
I'or all ulrucllnnsnf the
Throat , Lungs and Broncliiil Tubas
KXcni'T ' '
CONSL'MI'TIQN
iib AND DO GRISTS.
I'orHalo by
H/IRD / DRINKERS
KunvrltiKlii mlnill. < HlyanclHirbii | from DIIIINK.
ICNNKn.Sur DII'MI.MAMA CUM IMI uit-lv , n < Vly
anil .pft-Ully cured tijr tlm wondvrf ul now ixiclUq
CHLORDOGOLD I
No uinltcr wlmttiur tlio uerxin Inn mrxleruln or
" peril. Ik-Mi" drinker or n ' lulul wruok. " 41III.O-
I < I (1OII > < lc lruv > lluiprtlloori'rutlnic
lor iilcaliollo IlimilunU without harm or In-
loiiYurlunui. uiiiluiuurcm llio imlluiiliiu * Iliu uiul
Imi'iiliiuM. ' lluliix Cailulru It can to ulvvn tijr u
trli'ml lu tru. ooffi'ti. Icimoimdo , b < 4 r , Iliiuorf. or
fuoilMllliuiU tliu liutlont' * klm wliMlt-u , or K call tM )
taken I > r tlio iiutluul In tliu miuio Ilinhl | , with a
uruurunloo of uunlutuuccuBSUinl a niUleiil rure
hi dither ram. lluiiilrtxliof ciiroaliavo bveunmila
with < 'III.OU1 < ( UI > I.1 > III llllnnli uloim. I'rlru
Mltliliirenrlior ull.cinlr W . < JHI.OUIonoi.il
run lieliuil of our iivruloiir | iuil | > i ltl by
ui * I'aioiildot * f urnlvhiMt frvu. All oorr * tMimloDc
ci'iitlilonlla. . AI A IIKIUJUIKMIOA M' " . . Kola
I'toprtotor * for iho If. a , i IXiurtioru bt. , Chlrayu.
r-Olt BAI.K IN OMAHA. NEIL , II V
Kulin A On. . Co.r HUi A Iiouulu 8U.
J A , Fuller d Co. , Cor HIU A IkniKlti bt * .
A. li , rotter A Co. , CuuucJI Ulu& . U.