-?j
THE MORNING OEEGONIAN, FRIDAY, FEBRUARY 7, "1902..
"7""
i
OPPOSE RUSSIA'S GRAB
ALL NOT SEREM3 1VITII MAXCIIUR
1XS TREATV.
Enxlnnd, America nnd Japan Object
to Secret Denlinjc With, the
' Chinese.
PEKIN, Feb. C The British, American
and Japanese Ministers here have renewed
their oppoFltion to the Manchurian ar
rangement between China and Russia. It
Is probable that this action will result in
the further postponement of the consum
mation of this treaty.
The powers opposing the Manchurian
tnaty are now beginning to recognize
the force cf the representations of the
Chinese plenipotentiaries that China is
making the best terms- possible for herself
and Incidental- for the equal rights of
the other nations in China, and are shift
i'.g their protests to Russia as the re-s-po-isible
party. Paul Lessar. the Rus
sian Minister here. Is endeavoring to main
tain tho transparent diplomatic Action that
the Manchurian treaty and the Russo
Chlnese Bank agreement are not related.
Ho has informed his colleagues that the
Russian Government has no official knowl
edge of the negotiations of the Russo
Chlnesc Bank. The Russian agents are
playing their part with the greatest regard
for appearances, while M. Lessar is- ar
ranging the treaty with China. Tho man
ager of tho bank, M. Pocatillo. one of the
most able and trtif-ted of the Russian
agents in the East, is negotiating the
bank agreement with "Wang "Wen Shao.
In the light of tho statements of Chinese
officials, which were repeated yesterday,
namely, that Russia Insists upon the sim
ultaneous signing of the Manchurian
treaty and the bank agreement, the rep
resentations of M. Lessar fail' to carry
weight. The native newspapers arc filled
with stories that Russia Is trying to gain
her ends by offers of heavy bribes. Ger
many remains a disinterested spectator of
the affair.
Chang Chi Tung, the Viceroy of Han
kow, and Liu Kun Yi, the Viceroy of Nan
kin, continue their efforts against the
treaty. They are co-operating with the
Japanese Ministry. The correspondent of
tho Associated Press has seen a draft of
the agreement. This provides that China
shall build all railways and develop all
mines in Manchuria. If she Is unable to
command the capital, the shall apply to
the bank. If the hank is unable or un
willing to enter into arrangements. China
may apply c!iewhere for the capital. The
iinal clause stipulates that the agreement
shall in no wise impair the existing rights
cf other nations, which clause is palpably
nulllfied by the preceding conditions.
ADAXDONS TUB IIOKR CAUSE.
Dntcli Government linn. Hne! EnnuRli
of the ?e'ClinlIoiiK.
LONDON. Fob. ".The Brussels corre
spondent of the Daily Telegraph declares
it to be an absolute certainty that, owing
1 1 the attitude of the powers and the
Focr leaders, the Dutch Government is
r w firmly determined to abandon the
Boer cause and any Idea of fresh Inter
ne rtion.
In tlie House of Commons Mr. Balfour,
gc eminent leader, announced that copies
eif the correspondence exchanged between
the Government of the Netherlands and
the Government of Great Britain on the
si bject of peace In South Africa had been
mailed to Lord Milnor, who would be in-
structed to ask Lord Kitchener to com
municate the contents to the Boer leaders
in the field.
Mr. Chamberlain, the Colonial Secretary,
added the information that if the leaders
of the Boer forces proposed to Lord
Iv.tchene-r negotlHtions for a settlement,
the proposal would be forwarded for the
consideration of the government.
Itrnp-cr and Ivoyper.
LONDON. Feb. C The Daily Mail this
rrorning publisher an article devoted to
showing that Dr. Kuyner. the Dutch Pre-
mier. has for 20 vears been the devoted
friend and correspondent of Mr. Kruger.
and quotes from various documents, chief
of which is a letter in Dutch to Mr! Kru
ger. dated December 7. 1S9S. from Mr.
Van der Hoogt. secretary of the Maryland
Bureau of Immigration, offering him por
traits bearing the autographs of the late
President McKlnley and the late Vice
President Hobart, in their behalf, con
gratulating him on the repulse of the
Jameson raiders and tendering him the
homage of the United States. The letter
in ejuestion further records that Mr. Van
der Hoogt introduced Dr. Kuyper to the
late President McKJnley, testifies to Dr.
ICuypcr's strong sympathies with the
Transvaal, and offers Mr. Kruger the
writer's assistance and inlluence in for
warding the interests of Mr. Kruger with
the American Government. The article
in the Dally Mall points out that Mr. Van
Alphen, Postmaster-General of the Trans
vaal, was In the United States at the
same time, ostensibly upon postal busi
ness, but believed to bo on a mission of
intervention with the assistance of Dr.
Kuyper.
Captured Letter Published.
LONDON. Feb. C In accordance with
the promise of Mr. Chamberlain, the Col
onial Secretary to Parliament, the letter
recently captured in South Africa has
been published. It is from General Smuts
to General Botha, and is dated September
2, 1901. General Smuts protest against
his dismissal for burning farms at Bre
mensdorp. The writer of the letter ad
mits tliat farm-burning violates Boer prin
ciples, but contends It was Justified in
this case, because Bremensdorp Is outside
the Boer borders. General Smuts pleads
his military prowess as a reason for mlt
iratlon of his punishment. In the course
of the letter he shows that, at Botha's
orders, the. Boers drove their women un
willingly into the British lines, to force
them into the concentration camps.
The Conservative papers point to this
letter as proving Boer brutality and
treachery, while the Daiiy News points
out that although Smuts was a successful
General and a personal friend of Botha,
the latter was Inexorable in punishing him
for farm-burning.
Sues Balfour fer Slander.
LONDON. Feb. C The Sun has brought
suit against A. J. Balfour, government
leader in the House of Commons, for
slander, because of Mr. Balfour's declar
ation in the House that the Sun's inter
view with him concerning the overtures
recently made by the Netcrlanus Govern
ment is a fabrication.
Hrltlsh Losses in South Africa..
LONDON. Feb. C The War Office to
night published a summary of the British
losses in South Africa. Up to January 31
the total reduction of the forces, from
death or permanent disability, was 2.1.305
men. rne total oi tne casualties, includ
ing surviving wounded, was 32-JO officers
and 100,701 men.
BRITISH: STEAMER ATTACKED.
KIred on by Chinese Mutineers on
the West River.
VANCOUVER. B. C. Feb. C News re
ceived by the steamer Empress, of China
glvcd details of a recent attack on a Brit
ish steamer by Chinese mutineers. Chi
nese soldiers, 200 In number, fired on the
steamer Nanking on the West River,
-wounding the chaplain of the British
flagship Glory and slightly injuring an
other officer. The shooting took place
at midday on January 15 when no trouble
of any kind was expected! The affair
-was reported to Hong Kong by Rev. E. J.
Hardy, military chaplain at the city, and
he said the soldiers concerned, though na
tive troops, were mutineers.
The two wounded men are Rev. Charles
33 L. Cowan, chaplain, and an unknown
European customs officer. The gunboat
Jtubin has gone to investigate the matter.
IncJ'.'iled in the Oriental advices is a de-
cree of the Empress Dowager which
shows a most friendly spirit towards
foreigners. The drcree issued In con
nection with the anti-Christian outbreak
In Kansu calls upon the Viceroy Sung
Fan to act In connection with the Gov
ernor of Shanal and cause the desper
adoes who have killed the Belgian mis
sionaries and their converts to be sur
rounded and slain. A number of local
officials are cashiereti and ordered to
cause the capture of the desperadoes,
and in the event of failure they are to
be forever dismissed from service.
From Vladjvostock news is given of a
battle between Cossacks and a band "of
2000 ex-Boxers, who were found near the
village of Tukhumo, which they had plun
dered. The brigands were behind earth
works, and the Cossacks, after shelling
them with guns, charged them with
swords and bayonets in the face of a
severe fire from the Chinese. The losses
of the Boxers were heavy, and the Rus
sians had seven wounded. The rebel lead
ers fled to Mongolia..
The Japanese . have an expedition in
South Formosa which is engaged in wip
ing the bandits out who have been ravag
ing those districts, and up to January 10,
MAY BE ASKED
PROFESSOR CHARLES AV. PEARSON.
CHICAGO. Feb. 0. Professor Cra-les W. Pearson will be asked to resign from
the faculty of Xorthw.tern University, the Tuuune hays, if the Toport of the
committee upjtolnted to Investigate his eae is aecfptwl by the fxecutlvc commit
tee of the board of trustee'. Th declMon iok reached, according to the Trlbun-,
aftpr a two hours session behind closed doors lat night, -at which the communi
cation written by tho prof-sor on Tuesday was read' ami the en-e reviewed. The
members of the examining committee are: Daniel Honbrlght. acting rresMent of
the university: Dr. Hob-rt 1. Shepard. buMness a-ent. and M. H. Wilson, a
trustee. The report. In substance, frill declare that Profesr Pearson has tran
Krescd the rules of propriety in openly declaring the fallibility of the Hlble while
occupying a chair In an institution supporter! mainly by contributions from mem
bers of the Methodist Churcn; and that be rhould seek a chair In iomc liberal
institution where he would be at liberty to preach any doctrine he might desire.
For thee reasons the conclusion is drawn that the university trustees should
ask Professor Pearson to resign
Professor Pearson, when inform -d of the verdict of the trial lor.rd. decline!
to discuss the matter. On previous occasions, however, the professor ha de
clared that he would accept the wrdlct of the trustees without a murmur. He
has raid furthc- he would not stay where he was not wanted. Professor Pear
son was not askd to attend the meeting, and did not know one had b-en held
until It was over. The executive commltte-e of the iioard of trustees will meet
next week. The Pearson rejiort win be given to them at that time.
. , , , , ,
the expedition, which is made up oiwj
troops. 150 police ana zw cooues, mm
killed between C00 and 400 bandits. A
number of officers and men of the expe
dition had been killed in the severe
fighting. The districts south of Tainan.
which Is closely guarded and all nates
watched, are terrorized by the bandits.
BELFAST IS EXCITED.
Opposition to Government Won In
the Keeent Election.
DUBLIN. Feb. C The election for mem
ber of Parliament In the eastern division
of County Down to succeed Dr. J7 A.
Rentoul (Conservative, elected without op- j
position in 1900), who was recently ap- t
pointed a Judge of the City ot ionuon.
has resulted as follows: James Wood
(Land Purchase candidate). 357fi; Colonel
R. H. Wallace (Unionist). 3428: Wood's
majority, 147.
- --;- - , ,f ;-,,
ft neat in Parliament the fruits of T. .
nn result is inni mo oniiusiLiuii uains
jiuKcusiuiHimisuu wu ,FUic.. y
nalKn arcalnst the government, of which
he is former member, as Parliamentary
Secretary of the local government board.
A great demonstration followed the an
nouncement of the vote. Mr. Russell
and Mr. Wood were carried on the shoul
ders of their supporters through the
streets.
Mr. Russell, in a speech, challenged the
Unionist members of Parliament for Ul
ster to vacate their seats and he would
contest them. He said they had beaten
the landlords and the goveTnment and
the "entire Parliamentary deadhead of
L'lstcr."
Mr. Wood's victory has excited Belfast,
and lively times arc anticipated there to
n.ght. Mr. Russell, when Interviewed after the
election, admitted his candidate won by
a small majority, but said he had to light
against great odds and was justly proud
of the result. "What Fast Down had
said today, the whole of Ulster will sav
tomorrow." declared Mr. Russell. "I am i bocker Athletic Club tonight. It was gen
convinced it will compel the government I erally expected that the game would be a
ip prouuee a rcuca more comprene-nsive
land bill than if my opponent had won."
Mr. Russell declared he intended to es-
tablish a morning paper at Belfast to he
devoted to land reform, and thnt every
seat In Ulster which becomes -acant will
be fought as East Down was fought.
LONDON. Feb. 7. The Daily Express
tnis morning, reiernng to tne i.nst uown
election, says the Unionist party will : n,i lhc acCuracv of his masse" and draw
take steps, to exclude T. . Russell from .shots was frequently applauded. His stroke
their ranks. j was rather hard at timco. but he soon
learned the speed of the table, and some
Archduke and IIIh Wire in a Balloon, of his gathering shots left nothing to be
VIENNA, Feb. C In accordance with i desired. His opponent. Dr. Miller, gave
a scientific plan, several simultaneous j another exhibition of his wonderful cush
balloon ascensions were made today ion carom work, and in addition to this
from various European capitals. Three I his gathering shots were extremely well
ascensions were made from here, one J judged and frequently brought desired re.
being undertaken by Archduke Leopold, suits. The game ended in favor of "sin-mirl
! He used his new balloon, the Meteor,
He was accompanied uy ins wife, the
Archduchess Blanche, who is a daughter
of Don Carlos, and who has previously
sly
,ot
'"l
rl.
",
maae iour oanoon trips, iney were not.
accompanied by a professionad aeronau
their only attendant being an inexpe
enced tlde-dc-camp. The Meteor starteei i
at 9 o'clock in the morning in
and cold wind. The voyage
eventful and four hours and a half
the Archduke and the Archduchess
..1.U n.iffArtf cqrnd noo- nncliti W1
,o, , ,- t, o tr.,.,.
an express train occupies about eight J Tln afrnoon game was the most splr
hours. The maximum altitude attained I "e i" 5Var; i lhe tournaxnent. It
by the Archduke was 10.000 feet.
Snitnn Sentence IIU n'rothcr-In-Lniv
rovqTAX-TTVOPT v Vnu c The ;!
CONSTANTINOPLE, Feb. C.-Tlie Sul-
LbLn;iaW;d a?
mVCVT;:. r '""IXr:,.,;" r: : V;
Mahmud has long been prominent in the
Young Turkish movement, and was re
cently expelled from Greece at the be
hest of the Sultan. Mahmud went to
Rome, and the Sultan requested his ex
pulsion from Italy. It was refused, but
Mahmud proceeded to Paris, where he re-
mains in safety. All the Sultan's blan
dishments failed to induce him to return
to Constantinople, and the criminal court
was instructed to issue a warrant for
Mahmud's arrest and to try the fugitive
by default, with the result that he was
condemned to death.
Mahmud is about 50 years of age. The
Sultan, after Mahmud's flight, decreed
the divorce of his sister, Seniha Sultana,
in consequence of her husband's deser
tion. Mahmud realized 2,000.000 francs
just before his departure, but his prin
cipal estates were confiscated and he
and his sons were officially proclaimed
renegades and outlaws.
London Dinner to Sehwnb.
LONDON, Feb. C Joseph Lawrence,
M. P., and Archibald W. Maconochls. M.
P., entertained Charles M. Schwab, presi
dent of the United States Steel Corpora
tion, and Mrs. Schwab at dinner at the
House of Commons tonight. The guests
included Mr. Chamberlain, the Colonial
Secretarfy: Lord Kelvin, president of the
Royal Society, Edinburgh: Sir Thomas
Llpton. Sir Edward H. Carson, Solicitor
General: Colonel Hunslcker, chairman of
TO RESIGN.
(I
the Nickel Corporation, and Mrs. Hun
sickor: John Fletcher Moulton. M. P..
and Arthur Keen, chairman of the Dow
lais Iron, Steel & Coal Company.
French Deputies KkkciI.
PARIS. Feb. C While the Chamber of
Deputies was discussing the colonial
estimates today, a woman In the visitors'
tribune suddenly shouted "Down with
the thieves." and at the same time threw
Into the hall a package of eggs, which
grazed the heads of M. Pasci! and other
Deputies. The ushers Immediately ex
pelled the woman nnd wiped the mess
from the floor and benches of the cham-
bcr.
Ivory Const Concession.
LONDON. Feb. C Negotiations were
completed today between the Ivory Coast
Gold Fields Company and Albert Kahn.
the Paris representative of Kuhii. Locb &
I -".. -e irh, oy wnicn .Mr. ivann s
j concessions, amounting to nearly 3O0.00U
i rv-. r -v ii. . ...- .. .- . .
i acres, are amalgamated with the flrst-
named company. Reninald Ward and
other Americans, both here nnd in Amer
ica, are interested In the company.
ltnlKiirinn .Minister Assassinated.
SOFIA. Feb. 6. M. Kamtchefa. the Min
ister of Public Instruction, was assassl-
i ""tc,i jny n h!s study by a Macedonian
who pretended he wanted to present a
petition. J he assassin subseeiuently com
mitted suicide by shooting himself."
SIGOURNEY BEATS MILLER
Puciile CoxiNt Champion Wins in n
LoiiK-Drnwn-Ont tinme.
NEW YORK. Feb. 6. Nelson II. Sigour
ney of San FranciHCO. the amateur cham
pion of the Pacific Coast, defeated Dr.
C. B. Miller, of this city. In the A. A. U.
class A billiard tournament at Knicker-
close one. and that both players would
I make a high average but instead of this
the game was a long-drawn-out one the
e-aiiiornian having to play 77 innings be
fore he had counted the desired 4(0 point."
The Western player was handicapped a
good deal by the temperature, which was
uneven, and the Ivories did not roll to
ins iiKing; but during the game he showed
marvoimw tv r ,.., . ., . .,
ney by a score of 400 to 332. Follow-in" is
I me -core in detail:
j Sigourney 9. 5. 4, 7, 4. 7, 5, 20 21 0 31 0
1, 3. 0. 0. 3. 3. 0. 4. 17.' 12 13 'l d V "n n n
1, 3. 0. 0. 3. 3. 0. 4. 17. 12. 13. 1.0 0 7 0 o'
3. 30, 0. 0. o. 0. 0. 3. 23. 1C. 0. 1.0. 11 1 0 L 0 3
i 0. 4. 2. 0. 5. 3. 4. 2. 0. 10. C. 2. 0. 6 4 U o '
! J. 2. 1. 0. 0 23 0. C. 1. 7-total.' 400; aveS
I age. . l-( i : high runs. 31. 30. 27. 23.
Referee,' W. R. Bracken.
was between Dr. L. L. Mini and John A
Hendrlck. both of New York. It wn. won
i b Henarick after a wonderful uphill
Kamc- hendrlck was over 100 behind at
one t,mc havlnts made but m ,
tam but he began to pick" up and
I ww,OOK n.,s opponent rapidly. Making
tne most or every opportunity, he steadilv
closed the gap on Dr. Mlal. and finally,
with a run of 11. won tho game with Dr
Mlal having only four to go. Dr. Mlal
eclipsed the previous high run of the tour
nament with a cluster of 79 by good nurs-intr.
a violent , 0. 0. .'.. 6. 4. 1. 0. 0. IS, 0. 'l7. 3' 7.' 2' 9 10 a 6
was tin- I 0. 0. 3. 0. 1. 11. 0. 0. 2. 0, 0. 7. 10. 0 12 0 ' 1
-tuner a. i. tt. is. :. n l 7 n n i n e
If later 'AV'J' 15' ' - 6' - 0- " 0 0
i landed ' &,. - - ? ,1TtaL S32: average. 4 21-77;
1 W0I1 1 UIIO, -!, JO.
RESULT OF ITS SNDY
INDUSTRIAL COMMISSION SUBMITS
ITS FINAL REPORT.
Dcnli Wltlt the Nation' Progrcaa In
Agriculture, Mining and Trans
portation. WASHINGTON, Feb. 6. The Industrial
Commission has submitted Its final re
port to Congress. It is a document of
more than 1000 printed pages. The first
part, which has been made public, deals
with the progress of the Nation, Including
agriculture, mining and transportation.
Recommendations are made on the sub
jects of transportation and agriculture.
The commission advises as to transporta
tion: "That the policy of Governmental su
pervision and control of railroads, as
originally ltld down In the Senate com
mittee report of 1SS6. and embodied the
following year In the Interstate commerce
act, be revived and strengthened: that
the authority of the Interstate Commerce
Commission, necessary for the adequate
protection of shippers and clearly In
tended by the framcrs of the laws, be
restored, and that the powers and func
tions of the commission be enlarged
practically as contemplated In the so
called Cullom bill of 1500. except as to
authority to prepare and enforce a uni
form classification.
"Such legislation should provide for
more stringent regulation of the condi
tions under which freight and passenger
tariffs are published and filed: no rate of
classification ought to be changed with
out at least 60 days' notice to shippers,
unless specifically authorized by the In
terstate Commerce Commission: that
strict adherence to published tariffs be
required and rebates or discrimination
prevented by an Increase of the penalties:
that the long and short haul clause In
section 4 of the act of 1SS7 be strength
ened and rigidly enforced, unless the
carriers shall-be released by special or
der of the Interstite Commerce Commis
sion; for the definite grant of power to
tho Interstate Commerce Commission,
never on Its own Initiative, but only on
formal complaint, to pass upon the rea
sonableness of freight nnd passenger rates
or charges: also that the definite grant of
power to declare given rates unreasonable,
as at present, together with power to
prescribe reasonable rates In substitution:
for early hearings upon complaints and
for prompt elecisions by the commis
sion, the purpose being to obviate In
tolerable delays: for a specific grant of
power to the Interstate Commerce Com
mission over classification, both as to
items and grouping. Coupled with this,
however, we dissent from the section of
tho so-called Cullom bill requiring the
Interstate Commerce Commission within
a certain period to promulgate a uniform
classification for the United States: for
the establishment of a permanent corps
of expert auditors, who shall hive au
thority. under the supervision of the In-
terstate Commerce Commission, to ex
amine periodically the accounts of all
railway companies, whether operating or
financial In the nature; that violations of
the act respecting the keeping and filing
of annual reports by carriers should be
made misdemeanors, nnd promptness In
making such returns should be required;
that to further the effectiveness of the
commls
directly
te-rests
commission. Its membership should be
tly representative of the various in-
concernrd, in the persons of ship
pers or business men, traffic experts (rail
and water), and men of legal training,
and the number of commissioners should
he Increased to seven: that legislation
analogous to the anti-stock waterirg
stntutes of Massachusetts be enacted by
the several states; that railroad compa
nies be prohibited by law from making
lower freight rates upon imports billed
to the Interior of this country, in connec
tion with ocean transportation or other
wise, than are made on similar articles
from the seaboard to the Interior, or thnn
are made from one inland point to an
other, when the distance is not greater."
Prefacing Its recommendations regard
ing agriculture, the commission says that
"agriculture has derived more benefit
from the establishment of the Department
of Agriculture and from Its administra
tive work than from any other Federal
legislation." It makes the following
recommendations on this subject:
"That the Secretary of Agriculture be
given authority: To inspect products in
tended for export and to certify to their
grade and quality: to fix standard grades
for cereals, based on season of growing,
quality nnd weight per measure, and.
when Intended for export, to inspect and
certify the same; to cause stockcars and
stockyards to be clcanscel and disin
fected whenever he considers such ac
tion necessary: to make adequate regula
tions prohibiting the shipment of unin
spected or diseased meat from one state
to another, or to foreign countries; to
require and direct the proper disposition
of dlseised meats.
"That a more comprehensive penalty
clause for shipping diseased meat be en
acted. "That a law be enacted to provide:
For the Inspection of nursery stock In
tended for Interstate commerce or for
export and prohibiting the transporta
tion of diseased, infected or uninspected
nursery stock and for rules and regula
tions to govern the Importation of nurs
ery stock and fruit and prohibiting the
importation of diseased. Infected or unin
spected nursery stock or fruit.
"That a pure food section in the
chemistry division in the Department of
Agriculture be established to prevent the
adulteration, false branding and de
ceptive imitation of foods, beverages,
candies, drugs and condiments in the
District of Columbia and the territories,
and for regulating Interstate' traffic there
in. "That adequate legislation be enacted
by the several states, where needed, for
the control of such diseases as glanders,
tuberculosis, etc.
"That whatever changes be made in
the tariff by reciprocity or otherwise,
adequate protection to the beet sugar in
dustry be maintained.
"That Increased appropriations be made
by Congress for building sample stretches
of Improved roads In various sections of
the country, so as to encourage the more
rapid construction of such roads at state
and local expense.
"That the system of free rural delivery
be extended, as recommended by the
Postmaster-General In his latest annual
report.
"That the policy of setting aside forest
reserves, already inaugurated, be ex
tended "and the three bureaus of the Gov
ernment, which have charge of investi
gations and administrative work con
nected with forestry, be consolidated."
Indian Depredation Clnlinn.
WASHINGTON. Feb. C. Senator
Mitchell has Introduced a bill ex
tending the act to provide for the ad
judication and payment of claims arising
from Indian depredations so as to apply
to citizens or persons who had declared
their Intention of becoming citizens of
the United States, .and to allow them to
have their claim? for property destroyed
by Indians belonging to any tribe in amlty
wlth the United States properly adjudi
cated. Gold Diwcovcreel In Netr York.
OGDENSBURG. X. Y., Feb. 6. Gold has
lately been discovered on the farm of J.
L. Hockens, of Depeyster. The discovery
has been kept secret awaiting the report
of an assayer, which, just made, places
the ore at a value of $75 per ton. Expert
miners say the find is a valuable one.
India Threatened "With Famine.
LONDON, Feb. 6. The Calcutta corre
spondent of the Daily Mall says there Is
little doubt that India Is threatened with
another severe famine. Much depends
upon the rainfall during the coming fortnight.
FIFTY-SIXTH ANNUAL REPORT
OF THE
CONNECTICUT
MUTUAL LIFE INSURANCE
COMPANY
To the Members:
One more has been added to the many
years in which, by the diligent exercise of
carefulness, prudence, and economy, your
company has, in th'e fullness of strength
and in a degree equaled by none other,
been realizing for its great membership
the perfect intention and the Ideal results
of life Insurance: absolutely reliable pro
tection to the beneficiaries needing it at
its actual and lowest annual cost to the
person paying for It. with complete equity
between the members: and what Is of
equal moment. It has steadfastly main
tained those principles of administration
which are essential to enduring success:
those conditions of vigorous vitality deter
mined by the selection of sound lives In
healthy localities. low cost of business,
the conservative extent and character of
contract undertakings, with their proper
financial basis and protection, which will
still enable It as the years go by to fulfill
to the letter, at least cost, and to the
highest hope and trust of the dependent
iamny. tnc one specnic service which life
Insurance, alone among human institu
tions, can render.
The Secret of Iti Success.
It Is by resolute adherence to these prin
ciples and the maintenance of these neces
sary conditions, against a competition in
spired by very different views, that The
Connecticut Mutual has come to that es
tate of solid strength In its membership,
health and soundness in its business. Its
condition, and that steady uniformity of
the best results year after year, which
have been and continue to be among tne
most marked characteristics of Its pros
perous anil beneficent career.
"While others strive for great and rapid
growth, regardless of the great cost and
t no:mous waste of business that goes with
their fierce competition, and would per
suade the public that all who do not adopt
their alms and follow their methods are
deficient In ambition and energy, your
company holds steaely to the purpose of
furnishing the best that life Insurance can
do at Its very least attainable cost.
What better can it do? What other or
different thing ought It to strive for?
What other or different thing can It, or
any other company, undertake with real
success?
The Trne Aim.
For consider: Life Insurance contem
plates and Is adjusted to just one end
the Immediate ami sufficient protection of
those dependent ones who are either not at
all or insufficiently provided for In case
their breadwinner dies, and for whom, he
can make no other provision at once, and
can -make no other at all except by the
long process of yearly savings slowly ac
cumulated In savings banks or by invest
ment in safe securities bearing Interest at
a moderate rate, all subject to interrup
tion and delay by unfortunate contin
gencies, and to be brought to an end at
any moment by his death.
Life Insurance changes all this: It, and it
alone, among human schemes, can pro
vide atonec, in case of death, the fund
which couid have been accumulated only
In a long lifetime, which might never have
been otherwise accumulated at all. which
it best could have grown but ,-!owly. and
might have been stopped at any time.
This is the one thing life Insurance can
do; this !s the one thing which no other
device of man can do. iSvery other thing
thnt can he done for men with money and
with their money, can be done, and best
done, by other t'mncjal schemes and the
institutions designed and fitted to their
specific purposes, hut this one thing none
other can do. Therefore must he on whose
life others depend, use it for their imme
diate and sufficient protection.
The Liniltnt inn of Life Insurance.
In dealing with life Insurance as one of
the most useful and intluenMal factors In
the development of our socio-economic life.
It is of the highest importance not only to
recognize at its fullest use and value Its
true aim nnd single function, but also to
recognize the limitations of that function
by reason both of the singleness of the aim
Itself, and by certain incidents Inseparable
from the conduct of tne business as a ousi
ness; which Incidents sum up their effect
in an expense of management necessarily
higher than that of any other class of In
stitutions used for the care and invest
ment cf money.
Unfortunately the business Is and appar
ently can be. done only by solicitation,
which Is costly: and It demands the em
ployment of large office and medical staffs
and field organizations.
While, then, the service life Insurance
renders Is unique. Its cost, even when kept
rigidly down to a minimum. Is unique as
compared with that of savings banks or
the investment of money in ordinary safe
ways.
But because a man's duty to protect his
family Is imperative, and because he can
not otherwise rightly and fully discharge
It. he Is Justified in Incurring that expense
for that purpose. But he is not justified
in incurring that expense by using the
company to do some other nnd different
thing which can be done by some other
instrumentality at far less expense.
Moreover, a life insurance company can
not undertake the obligations and opera
tions peculiar to other Institutions with
out using methods and subjecting Its busi
ness to contingencies which contravene
and imperil the very structure imposed
upon life insurance by its own particular
purpose.
When a life Insurance company. In order
to attract business, undertakes to treat Its
reserves, created and held for the ultimate
payment of all Its Insurance contracts, as
If they were deposits In a savings bank.
subject to withdrawal at the will of the
depositor, and so to be looked upon by him
as an investment; or makes its policies
seem to be a "bond" comparable In co3t
and outcome with a real bond Investment,
It not only exposes Its whole Insurance
business to the sudden paying out of the
reserves necessary to Its Integrity, but. If
It regards Its premiums as "deposits" or
as "installment payments," for the pur
chase of "bonds. It has to charge these
deposits or Installments with not only their
annual contribution to death losses, but
with commissions to agents and other ex
penses which take cut of them every year
a large percentage on each $100 deposited
or paid In, varying accortllng to the com
pany's economy or want of it. And this
stanfls In contrast with deposits In savings
banks without any commissions at all. and
but jl'.ght comparative cost of manage
ment, and with real Investments In -mortgages,
bonels, or gooTl stocks, with no ex
pense at all.
Present Competition.
Obviously one cannot afford to employ
a life insurance company- with Its neces
sarily high expense rate, to act as his sav
ings bank, nor to regard Its policies, how
ever phraseel. as real Investment bonds,
nor to have his life Insurance on which
his family depends exposed to the constant
menace of the wholesale withdrawal by-
others of the necessary" reserves as If they
were really mere deposits In bank.
Yet It Is precisely along these lines that
business Is most sought today, and the
companies seeking It most eagerly are
those that have the heaviest expense rate,
and the business is secured In part at
least through misapprehension. The ex
pense Is concealed from the 'policy-holder
for the present by postponing dividends
for long periods of years, with the expec
tation also that meantime many forfeitures
will occur for the benefit of those who
outstay tne period: the "6 per cent bond"
sell3 through concealment of its real cost
and of the fact that for the same money
one pays for a $10,000 "bond" he could
have instead $13,000 cash down; and the
companies turn themselves practically
Into savings banks, trusting luck thnt the
run may never cotne which would destroy
them as insurance companies.
LcftHon of Experience.
And yet one of the most striking feat
ures of the experience of the companies
competing by these methods for great
growth for. twenty-five years and more Is
the fact that, notwithstanding the enor
mous lapses and forfeitures which have
occurred and upon which they have de
pended for unusual profits to those who
outlived and outstayed the deferred divi
dend period, the expense has been so great
that the actual dividends have not even
approximated the estimates upon which
the business was secured.
The Sound Position.
It is because there is but just the one
thing that life Insurance can do that no
other Institution can do, and because, at
best. Its necessary' cost is relatively high,
and because any other financial operation
can be better and more cheaply done by
some other institution organized for its
own specific purpose, and because a life
insurance company cannot do anything
that ether institutions sneclficallv under-
1 take except at a disproportionate and ex
cessive cost, and yet more, because any
other thing which other Institutions under
take Is, in specific aim, method and inci
dent, in conflict with and more or less
destructive of the proper alms, methods
and results of life Insurance and its ad
ministration; it is because of these things
The Connecticut Mutual has refused to
be led aside by the stress of competition,
to deck out life insurance In the garb of
something else, has adhered to the true
and particular aim of life insurance and
Its necessary method, and has thereby
accomplished Its intended result of perfect
protection at low cost In an Incomparable
degree: it Is because of these things that
it still so bases and frames and adminis
ters its contracts as to give to its benefi
ciaries sure Drotection at least cost and
at annual cost to the payer of the prem
iums, according to his own proper rak
from whatever cause, protecting him
against fraud by others, and the cost of
it. and not taking anything from him by
any device for the benefit of some one
else.
It is in Its business so conceived, so
based, and so adminlsterctl, that your com
pany has achieved that great strength,
steady prosperity, and that steady and
great volume of operation that have en
abled It to serve Its members to their
unique advantage; ami It is in holding to
the same sure conditions and in the full
fruition of their consequences, that it con
fidently hopes to render a future service
of equal beneficence to dependent families,
and of equal value to those whose eluty
It Is to protect them.
The Operations of the Year.
In Its main results and in the conditions
affecting the future with which It closes,
the year 1501 was a satisfactory one. i-e
details are given so fully elsewhere that
we shall here deal only with the general
features of the ye'ar's experience.
The new business written was larger In
amount than in the previous year: the
number of lapses and other terminations
was consideiably smaller; the Increase In
the amount of business in forc was conse
quently greater, with a corresponding in
crease in premium income and in assets.
Mortality.
Owing to the age of the company and
the remarkably small proportion of lapses
and surrenders anil the consequent persist
ence of its business, its risks have come
to have a greater average age than those
of any other company: it has also propor
tionately larger resources in the reserves
held on the amount at risk. Although
from the greater average age the mortal
ity Is uecessaril large, it is far less than
was expected and has been provided for
by these greater resources, a correspond
ing part of which becomes each year a
saving from the expecteel losses. This
saving during the past year amounted to
?3r5.Sl
The volume of risks, their excellent char
acter, their steadv persistence, and the
care with which the new business is se
lected to replace the old, all combine to
give a mortality experience very favorable
in rate and very uniform on the average.
Throughout the e-ntire history of the com
pany Its losses have been less than four
fifths of those expecteel.
Expe-nse.s f tlnnnccnicnt.
The same careful economy has been ex
ercised as In all the past. For the last two
or three years the expenses incident to the
care and repairs upon foreclosed real es
tate, which have been charged to expense
account rather than to the property ac
count, have carried our expense ratio tem
porarily higher than our usual standard.
This difference wl'l disappear as the prop
erty which hrs caused it Is disposed of.
The ratio for 1SQ1 was less than that for
1D0O.
Real Estate, Interest nnd Invest
ments. For the seven years prior to 1501 fore
closures of mortgages were In considerable
excess of sales. During the last year,
however, the situation has changed: we
took in properties costing us $217,S14 23. anel
sold properties that had cost $S6S.379 2d.
Some of thete sold at a profit, and some
at less than original cost. Many of i..e
properties solel were among our older
holdings In localities where changes of
business centers had permanently- ilepre
ciated values. We still have some prop
erties In like situation, whicn will prob
ably sell for something less than cost,
and It Is our purpose to dispose of them
as It can be done without unnecessary
loss, and so improve income and reduce
expense. Upon the greater body of our
holdlncs. however, we may reasonably ex
pect some gain in a fair market. We
have made a good deal of money on the
whole on foreclosed real estate.
The large addition to the Home Office
building, rererretl to in our last report, is
nearing completion, and is being followed
by changes in and additions to the olel.
which will bring the two advantageously
together, with a gocd prospect of a satis
factory financial result.
The Interest rate on desirable loans and
securities has tended to a still further de
cline, with a growing scarcity of satisfac
tory' investments for funds in the nature
of a trust. We have considerably reduced
loans on real estate and increased our
holding of first-class railway securities.
The balance or net profit of the year
upon changes In securities and sale of real
estate was $SS,G03 75.
The market value of our securities has
Increased considerably during the year;
anel thoy are of a character to be least
unfavorably affected by market fluctua
tions. Surplus nnd Dividends.
As the cost of a man's policy In a mu
tual Insurance company is the difference
between the premiums charged and the
amount returned to him by way of a divi
dend, the surplus earned and the surplus
divided, become very Important factors
In his experience with his company. Sur
plus can be earned legitimately In only
three ways: 1, by smaller expenses than
the premium provides for: 2. by a less
mortality than Is provided for: 3. by a
higher rate of interest than is assumed as
probable In computing premiums and re
serves. For many years the competition has had
a bad effect upon the expense account of
most companies: It has silso led to a gootl
deal of apparently doubtful experimenta
tion in the selection of risks and in dealing
with hazards; and the steaely decline in
the Interest rate has eaten away much of
a very Important Item of possible surplus.
The matter Is of somewhat special in
terest to us at this time because the tlis
agrecable task of cutting dividends has
been in recent years and Is still being quite
largely performed by some companies; and
any reference to their reduced dividends In
comparison with the Increasing scale
maintained by The Connecticut Mutual for
now twenty-one years, is met by the as
sertion that this company, too. must pres
ently cut down its returns: that the rate
of interest is going down, and that Its
surplus is already diminishing.
We have never undertaken to prophesy.
We do not try to prejudge events. We
prefer to meet them, and our duty to you
under them, without pressure or prejudice
from wrong preconceptions, or from hav
ing put ourselves In a false position. When
we can no longer earn the surplus we are
dividing, and can no longer safely trench
upon the large existing surplus, kept up
for the purpose, to maintain the present
rate of dividend, we shall not hesitate to
say so and to act as the facts may require.
History of Our Surplns.
We only wish to call the attention of
those In any manner Interested to a few
pertinent facts:
For many years this company has been
governed by the Idea that, while surplus
should be quite closely diviiled each year,
so as to make a man's payments as small
as possible, yet, as It Is impossible that
an absolutely complete division can be
made, and as a gradual If small annual
reduction in payment tends to the per
sistence of the business, it Is desirable in
unusually good years to accumulate such
margins of surplus as may be earned over
and above ordinary surplus-earning ca
pacity, to be used In maintaining the divi
dend rate In the years when the margins
may fall below. "It greatly helps the
premium-payer, and. the proper adjust
ment by post-mortem dividend being made.
It works no inequity- to any one.
During the decade 1S70-S0, the company
had occasion to trench very largely on
accumulated surplus in this manner. In
1SS1 its surplus was 53.351.155. which was
6.77 per cent" of Its assets. Tho conditions
being untoward, it was decided to reduce
the dividend scale to the apparent actual
earning capacity. From this point we be
gan to earn small items of surplus above
the amount annually divided. In 1SS2 we
recast the premiums and reserves for all
future business on a basis of 3 instead of
4 per cent Interest, which cut down the
margin for expenses and Increased the
amount required tor reserve, notwith
standing. In 1S92 the surplus had crept up
to SG.059,156. It was then deemed proper
to liberally revise the scale of division;
but the surplus continued to Increase until
lS9S.when It stood at $7,521,909. Since then
it has been somewhat drawn upon each
year to maintain the long-continued scale
of dividend. How long it may be neces
sary' to do this. If It long remains neces
sary, or how far we may deem it wise and
prudent to continue the process, we can
not predicL It is a just and proper, as
well as the intended use of past accumu-
mulations of surplus so long as it is safe.
When it approaches the questionable point
we shall stop and franklv go upon a scale
that squares with the facts and conditions
likely to govern the future.
We could spare over $2,500,000 from our
present surplus of $7,011,040. and yet have
as large a percentage to assets remaining
as when we made the last cut In 1SS1, say
ing nothing of over $2,4T0,000 greater com
parative strength in our reserves by rea
son of the 3 per cent interest assumption.
" e are maintaining the low cost of busi
ness: the sales of real estate will gradually
reduce taxes and expenses and improve
the surplus Income, and we shrunk our
surplus last year only $1S0.30S.
And our situation respecting the use of
surplus differs materially from that of
most companies in this, that the bulk of
theirs Is held under a moral though not a
legal or contract Hen for the deferred divi
dends hoped for by those who outstay- the
next one to twenty years. Jt is not so
with us. It Is not held as a speculation for
a few, but for the benefit of the business
as a whole.
We ask careful scrutiny- of the following
record of the operations of fifty-six years:
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The Connecticut Mutual has returned to
Its policy-holders and their beneficiaries
9S.SG per cent of all it has received from
them: what it has returned and the assets
It still holds for the security of Its con
tracts are 123.0S per cent of what It has
received for them; and its expenses of
management for all that time have been
but ?.13 per cent of its total income.
It is the simple fact that no American
company matches this record. And It Is
this record of the past. the. present main
tenance of the conditions which made it
possible, and a financial condition of un
usual soundness and strength, that we of
fer as the best possible guarantees of the
future. Respectfully submitted.
JACOB L. GREENE, President.
January- 21. 1S02.
CHICAGO GAS EXPLOSION.
List of Dead Is Relieved to Aumber
Eleven.
CHICAGO. Feb. 6. It Is believed that
11 Is the correct number of people who
lost their lives by the explosion of gad
in the Trostel butcher shop at 376 Twenty
second street, last night. The bodies,
charred past human semblance in the
majority of cases, lay at a near-by morgue
today, while firemen, assisted by labor
ers, still dug In the ruins on the bare
possibility that more bodies might be
under the debris.
Firo Chief Musham today declared his
belief that the explosion was that of a
pocket of gas. A force of laborers was
put at work at daybreak tearing up and
repairing the gas pipes which figureel
in the two explosions which followed that
In the butcher shop. When the Coroner
learned of it he ordered the work stopped.
"I want no changes in the present condi
tions made unless necessary, until I have
Investigated fully to discover if negligence
was in any way responsible for the loss
of life." said he.
The following is believed to be a cor
rect list of the dead: Otta Trostel. owner
of butcher shop; Augusta Trostel. wife of
above; Totta Trostel. Jr., aged 11 years;
Anna Trostel. aged 9; Lena Trostel. aged
7; Minnie Trostel. aged C; Baby Trostel,
aged 2 years; Fred Trostel. nephew of
Otta Trostel: Sophia Knelpp, niece o
Mrs. Trostel; Marie Rosenthal. 32. a
neighbor visiting shop: Tom Gierman.
employe in butcher shop.
Search is being made for a sausage
cutter named George, who, minus one
shoe and with his hair and moustacho
singed, escapetl from the butcher shop.
He Is believed to have been the only one
who escaped alive, and the Coroner de
sires his testimony. His blackened fig
ure was seen to crawl from the ruins last
night. He crossed the street, and. It is
said, seemed crazed from fright. He ha3
not been seen since.
Thawing: Out Glnnt Powder.
TELLURIDE, Colo., Feb. 6. Two men
are dead and four others seriously Injured
as the result of an explosion of powder
In the powder-house at the mouth of
Japan Tunnel. The dead are:
D. R. O'CONNELL, 45 years of age,
married.
ALPHONSO FLARIETTA, aged 22.
Injured: John Franck. shift boss, badly
jarred and cut about head; Santino llar
ta, powder-thawer, will lose one and
probably both eyes and badly burnt about
face; Henry- Meldrum. blacksmith, right
arm and side badly hurt by falling tim
bers. All buildings around the tunnel are a
complete wreck. Marta. who was thaw
ing powder in the powder-house, stepped
out of the building for a moment, and
the powder, becoming heated, exploded,
the concussion setting off the entire
powder supply, amounting to several hun
dred pounds. About 400 yards distant
was storeel tons of dynamite. The 'door
of the building was blown In, but the
dynamite was undisturbed.
Another Snliwny Explosion.
NEW YORK. Feb. 6. An explosion of
dynamite in the rapid transit subway
In Park avenue, between Forty-first and
Forty-second streets, today hurled a pieco
of rock weighing 30 pounds through the
plate-glass door of the Grand Union Ho
tel, and broke several windows in that
establishmenL Two persons were hurt by
flying fragments, but neither of them sus
tained serious injury.
The Six Dnj.V Rnce.
ROCHESTER, N. Y.. Feb. 6. The re
sult of the fouth day's race In the six
days' heel-and-toe walking match at Fitz
hugh Hall show? little relative change In
the position of the three leading men, who
are keeping up the daily- grind. Score:
Miles. LaDS.
i-toaginna
Messier
Weir
Klubertanz
Loeslin
Moore ,
"Chop Suey"
Huxley
Hart
Barclay-
Robinson
...171 14
...170 7
...168 2
...161 3
...14S 14
...141 3
...131 10
...123 W
...120 11
...116 1
...102 3
Ryan 100
11
Helenn Assay Oillee Receipts.
HELENA. Mont. Feb. 6. The January
receipts of gold at the Helena assay office
amounted to $190,760 93, against $k:Mio oj
In January, 1901. the largest receipts for
that month in the history of the office.
The gold was practically all from stamp
of cyanide mills, and the receipts from
this source are likely to grow rapidly this
year, as mills will be put In operation and
new mines opened.
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