Vv- PRICE FIVE CENTS. VOL. XLV.-NO. 13,927. PORTLAND, OREGON, FRIDAY, JULY 28, 1905. DEFENSE BEGINS; PRQSECUT ON ENDS District Attorney Fin ishes His Case. v HEW WITNESSES ARE HEARD Williamson's Visit to Prineville in June Proved. NOW ADMITTED BY DEFENSE W. J. Burns Testifies as to the Dis appearance of Witness Starr. Defendants May Xot Takethc Stand. NO TRACE OF STARR. 'Ernest Starr, the nephew of Con gressman 'Williamson and the missing Witness for the prosecution In the case against' Williamson. Gesner and . Biggs, has not been found by the offi cers of the Government who are searching the passes of the Cascade Mountains for him. The prosecution has closed Us case, reserving the right to place Starr upon the stand should he be found and brought Into court at any time prior to the commencement of argu ment. Where Starr has gone Is a mystery. Although he Is being hunted by ten of the best men to be placed In the field by the Government, yet he can not be located, so that the only ex planation to be offered for his con tinued absence Is that he Is purposely absenting himself In order to escape giving testimony at the trial against his kinsman. The end is In sight. The prosecution. In the case of the United States against Williamson, Gesner and Biggs has rested and the defense begun its fight tt dis prove all that has been shown by the testimony of the Government., The story d of each .-witness put upon the stand by United States District Attorney Heney during the' second trial will be impeached by' the attorneys for the defense, who will make an effort to show that differ ent stories we're told at the two trials, from which it will be argued that the testimony is ol doubtful meaning and not to be credited. Judge Bennett has announced that the defense will close cither this evening or by Saturday noon. and it is the common supposition that( the Judge will give the- case to the jury before the end of the week. Before Mr. Heney closed bis prosecution yesterday afternoon at 3:30 o'clock he placed six witnesses upon the stand who had not appeared In the former trial, and by this action foreshadowed his pre sumption that the defense would rest Its case early in the fight and without placing the defendants once more under the fire of the Government's cross-examination. The attorney introduced J. M. Keeny. who was connected with the Shan iko. Antelope and Prlneville stage line In 1M2 and proved by him and by his records that J. X. Williamson was in Prlneville from June 15 until June 24, ISM. Williamson's Visit Proved. B. B. Pointdexter. the proprietor of the Pointdcxter Hotel in Prlneville. was also placed upon the stand and testified that Williamson was in the city during the period of time mentioned by the previous witness, and that he had eaten breakfast and slept In the hotel during that time. i B. McAlpln. a photographer of Portland, was put upon the stand to show by his pictures that the land taken by Biggs was without good timber, but his testi mony was ruled out by Judge De Haven as incompetent. Pearl Vanderpool, an- " other new witness, backed up- Maggie Glaze in her story of forgetfulncss, as given the previous day, in which the two girls testified that though Biggs had told them that they could make JT5 by taking a timber, claim, still they could not say when it was that the conversation took place, who had been mentioned, the claims, or what had been said, other than the most fragmentary sentences and expressions. Irvin Rlttenhouse. the secretary to the District Attorney, -was put upon the stand to show the testimony on the ilrst trial of Williamson and Biggs as to the connection of the two with the con spiracy alleged in the indictment, and W. J. Burns was called in relation to the disappearance of Ernest Starr, the nephew of J. X. Williamson, the miss ins -witness for the prosecution. All of this testimony pointed to the fact that the prosecution expects the defense to close its case with surpris ing abruptness. By Kenny, the stage proprietor. It was shown that William son was in Prlneville at the time when the Congressman could not remember havins been there. B. B. Pointdexter .supported the testimony of the first man. Rlttenhouse told of the admis sions made by both Williamson , and Biggs at the first trial, went Into the testimony of the former as to his lack of memory about the date of his visit to Prlneville In June, nnd related again the story told by Biggs In regard to the filing made by Williamson. Burns paved the. way for the prospective ac tion of the Government Jn calling Starr to the stand" at any time prior to argu ment, provided he can be found and I "brought Into court Jn time. All of this j evidence was placed upon the record with the evident intention of forestall ' Ing any action of the defense In not and by that action depriving the prose cution of a chance to cross-examine them and bring: out the various admis sions made at the first trial. Miss Ann Lang, the Receiver of the Land Office at. The Dalles, was the first witness called at the morning session of the court. She was asked by the prosecution to identify the -final proofs of the various claimants mentioned in the indictment and which had been a. part of the records of the Land Office. Miss Lang, after looking over all of the papers submitted to her. recognized them, and then identified and approved of a transcript of the accounts of the Land Office for a term covering all of the transactions coming under the notice of the case. The witness testified that Sarah B. Williamson bad mad.c final proof for her claim June , 1K0, and that she had paid for it in cash, which was ah un usual proceeding. All of the other claims were paid for with checks or drafts. Miss Lang said that the office had received word from Washington to return all money on claims suspended, but the court held that the evidence was not proper, and it was not allowed to go to the con sideration of the Jury. On her cross-examination Miss Lang told Judge Bennett that nearly all Com missioners had handled the money paid for the claims, and that the proofs of publication were In many Instances sent to the newspapers either directly from the Land Office or from the Commission er. She also testified that a great many claims had been held up In 1902, In fact that nearly all of those filed upon had been stopped, awaiting the investigation of a special agent sent out from the de partment. During the month of Decem ber. 1503, she had returned more than $50,000 that had been paid for claims. C. E. S. Wood was the second witness of the day, and he stated that he repre sented the Willamette Valley & Cascade Mountain Wagonroad Company, which had many hundreds of acres of land leased to the firm of Williamson & Ges ner. By his books and plat the witness showed the locations of these tracts of land, and told of hc conditions under which they were leased. He also started to show that the firm of Morrow & Kee nan had large holdings aujacent tb the firm of Williamson & Gesner, but the" court stopped him, on the ground that the testimony was not material, though Mr. Honey contended that ho wished to demonstrate that the defendants desired to secure the lands In that district for other reasons than to kcop the cattlemen out. T. M. Baldwin, the cashier of the First National Bank of Prlneville, testified to Gesner having negotiated a loan of J30M In 1M2, for which was given as security a firm note signed by both Williamson And Gesner. Williamson's $0000 Loan. Jesse C. Hostotler. the" cashier of the bank of French & Co., of. The Dalles, related how -Williamson bad rie'goDated a loan of 16000. which loan had been made on a note signed by Williamson and Gesner as individuals. The wit ness stated that the note had been signed by Williamson and then sent to Gesner for his signature, and that before its return checks drawn upon the account by Gesner had been hon orod by the bank. J. M. Keeny, who was connected with the Shaniko, Antelope and Prlneville stage line In 1902. was the next wit ness. He stated that Williamson had been a passenger on the stage from Shaniko "to Prlneville, reaching the latter- place on June 15, 1902, and leav ing on June 21. Mr. Bennett stated to the court that Mr. Williamson had made investigation of his presence in Prlneville on the Jate named and had found that he had been there and was willing to concede it. Mr. Heney con tonded that he desired to have Ihc exact date shown and accordingly pro ceeded with the witness. B. B. Polntdoxtcr. the proprietor of the Pointdexter Hotel In Prlneville. was placed on the stand to show the presence of Mr. Williamson In tne city t the dates In June, before men tioned. The witness brought his day book and register Into evidence anJ tes tified by them that Mr. Williamson had been nt his house on June 15 and had left June 24. Each morning of that time he had eaten breakfast with the witness, and had slept In the hotel. Wells A. Bell, the County Judge of Crook County, was the next witness. He told of having: had a conversation with Willlnmson in the hotel at which lime Williamson had asked him what feeling existed between the witness ano Gesner that the former had not been given any of the work belngJ done by the firm. As Bclr was at tnat time United States Commissioner in an adjoining district, the presumption was that the Cbnrgessman had been talking of timber-land filings, though nothing had been said as to the nature of the work. Mr. Bell also told of the finan cial standing of many of the -applicants who had taken claims, and pointed out that in many Instances the claimants did not have suffejent funds to file. Arthur B. McAlpIn, a photographer of Portland, was nlxt called by the Gov ernment. It was desired by Mr. Heney to' Bhow that the timber on the Biggs claim was -not good, contrary to the testimony of Biggs, and that the land was fit for pasture more than lor any other purpose. The court held this tes timony to be Immaterial. Judge De Haven ruled that the attorner would go a long way from the trial of his case should he attempt to prove the quality of the timber on the. claims. Mr. Heney therefore excused the wit ness. Pearl Vanderpool Forgetful. Pearl Vanderpool was a very .forget ful witness. She admitted that shehad a poor memory in regard to some things and became angry with the District At torney when he tried to help her to re-. member. The witness testified, that a-he ; naa renown n itnajason usrier h Jmeetoi jsiggs tor a long wme. .i4M, Mrt, "louare on .very inenaiy term imnj VISITS PRESIDENT TIE Japanese Peace Envoys Con fer With Roosevelt on Com ing Negotiations. THANKHIM FOR MEDIATION Several Honrs Spent In Conference, but Diplomats "Keep Silent and Flee When Camera Is Leveled at Them. OYSTER BAT. July 27. President Roosevelt entertained at luncheon to day Baron Jutaro Komura, Minister of Foreign Affairs, and Kogoro Taka hlra. Minister to the United States, the Japanese envoys to the Washington peace conference. Subsequently he had a long interview with them, at which all phases of the approaching negotia tions were considered. Neither the Pres ident nor the Japanese visitors care to discuss for publication the nature of their conference, except in the most general terms. Arrangements for the visit were made yesterday by Mr. Takahlra. The President expressed his pleasure at the prospect of meeting again Baron Komura, whom he had known several years ago and who. In addition. Is a fellow-graduate of Harvard college. Baron Komura and Mr. Takahlra ar rived here on the 12:30 o'clock Long Island Railroad train, to which had been attached a special chair car for their accommodation. They were the only occupants of the car, both en trances to which were guarded by rail road porters. No one was permitted to enter. The visitors were met by confidential messengers of the Presi dent, who escorted them to an open sur rey, sent by the President to convey them to Sagamore Hill. Both Smiling, but Silent. Baron Komura bowed gracefully to the newspaper men who made them selves known, but smilingly declined to talk. Mr. Takahlra shook hands with one- or -two of -his newspaper friends, hut said, there was nothing-of import ance he could "cay at this time. The En voys were driven directly to Sagamore Hilt;- attracting much ..-atlentlon.. en Toute. They remained with the Presi dent until 3:30 o'clock and then were driven to the station. Minister Takahlra, speaking for both Komura and himself, said they had a pleasant and satisfactory visit. Baron Komura. he said, had desired to pay his respects to President Roosevelt on be half of- the Emperor, and to thank him for his efforts to bring about peace ne gotiations. This mission had been ac complished. In respopse to Inquiries. Mr.TTakahira said It might be inferred that they discussed the pending peace negotiations, but added: "It would not be proper for me to give you the nature of the discussion. I could not do that." The Minister declined to say whether the subject of the terms Japan pro posed to make was considered, and would not Indicate whether there were prospects of an armistice during- the sitting of the conference. Both Flee From Camera. While Mr. Takahlra was chatting with the newspaper men Baron Komura stood on the platform, smiling pleasantly. A photographer asked the Minister to pose for an instant with Baron Komura on the rear platform, but the diplomat shook his head emphatically, and both he and the Baron entered the car rather precipitately. The door was locked at- ter them by the porter. The train left at 4:20 o'clock for New York. President Roosevelt, who was Inter rogated this evening about the confer ence, replied that It was a subject which he did not feel at liberty to dls cuss for publication. It is said that soon after the arrival of M. Wltte, the principal envoy of Russia, he. too, will make a formal call on President Roosevelt In advance of the presentation to the. President on August 5 of the two sets of plenlpoten tlaries and their suites. The President does not conceal his deep interest In the approaching conference, but lets It be understood that his Interest will not lead him to interfere, even by in direction, with the work of the, con ferees. WARSHIPS WILL ESCORT THESE Peace Envoys to Be Received by President. on Angus 5. WASHTNTOX. July 27: Arrangements were completed here today for convey lng the peace envoys' 'of Russia and Ja pan from New York to Oyster Bey, where they, will be received by the Presi dent, and from there to Portsmouth, X H. The details were arranged at a conference participated In by Acting Sec retary of State Pierce, who has been comratesioned by the President to ar range for the meeting of the envoys: Acting Secretary of the Navy Darting. Rear-Ad 3d ral Converse. Chief of -the Bh reau of Navigation; Rear-Admiral 9s- feee, commanding the squadron of the North AU&nUc fteei from watch veseek have Met swecteo. zor the nwifiup of the ptanlpotentiartea; and Ctwsasftr C "M. "WIimwow. comma ne'er e-f theMay- jrtMri94AMM'lN f m"j MlM the cruiser C1mmegaSl Commswiiec Mmx. at. UeH Tweatx-tafatf street, Xew York KOMURA jny, mia. o AttfWK a. tae jape nese plenipotentiaries embarking at the same point on the cruiser Tacoma. com manded by Commander R. F. Nicholson, an hour later, arriving at Oyster Bay within naif an hour of one another. After luncheon to be given by the President on the Mayflower, is over and the President has departed, the Japanese plenipotentiaries and suite will embark on the Do)ph!n. commanded by Com mander Gibbons, the Russian plenipo tentiaries and suite remaining on the Mayflower, when they will proceed to Portsmouth, convoyed by the cruiser Gal veston, commanded by Commander W. G. Cutler, which will arrive off Oyster Bay on the evening of August 4. A slow run north will be made, so that Portsmouth will be reached on the morning of August They will be received by the Admiral commanding the Portsmouth Navy-Yard, within which the negotiations for. peace are to be conducted. Mr. Pierce will go from New York to Oyster Bay on the Sylph. The three cruisers are sister ships, -and are now being prepared for the coming mission, having Just arrived from France In company wlth the cruiser Brooklyn. which brought back the body of John Paul Jones. Rear-Admiral Slgsbce. to whose squad ron the Tacoma. Chattanooga and Gal veston are attached, returned to New York today, and will Issue the necessary orders to carry Into effect the programme announced. ALL INFLUENCES FOR PEACE Kaiser's Advice and Insistence of Frenchmen Who Control Cash. CHICAGO. July 27. (Special.! The Dally News' Paris cable says: M. Wltte stated last night, before going on board the Kaleer Wiihelm. to M. Raf falovltch. commercial agent of the Rus sian Embassy here, that correspondence Just received from St. Petersburg "does not modify In any degree the Instructions already received from the Czar." The semi-official Frankfurter-Zeitung declares that "there Is no doubt whatever that the Kaiser, during his Interview with the Csa,r. manifested the conviction that It would be necessary for Russia to go as far as possible to secure peace In the coming negotiations." All this seems to convince the French official world that the Interview between the Emperors was not so unimportant as they thought at first. In other words, they believe that the Czar, even before the Interview, In structed M. Wltte to go further In the effort to make peace than was suspected even In- the best-Informed quarters. Full confidence reigns here that, when M. Wltte returns, he will bring peace with him. The further Impulse In that di rection needed was given In Paris, where M. Wittc Is assured of strong financial support Immediately on the conclusion of peace. It will shortly be known thai this Is France's contribution to peace. This course of conduct was dictated Imperious ly by the interests of thousands of French holders cf Russian bonds. It was pointed (ConchifW oa Ftftb fage.) CONSENTS 'TbpAY'S PAPER Tae TJjwuher. - TESTERDATTS Maximum temperature. 78 def.; mlnlmum 3S. Precipitation, none. TODAY'S Cloudy and occasionally threat ening Cooler. South to west winds. The War is the Tar East. Komura has long conference with Roose velt. Pag-e 1. Japan "propoxea to disarm Port Arthur and "Vladivostok. Pac U Germany aad France urge Russia to malA peace. Pase 1. Arrangements for formal reception of peace envoys. Pace V Japanese sain more successes in Sakhalin. Pase 4. . , TerelzH. Sweden resdy to Insist on terms offered Nor way; Norway considers 'referendum. Pae 4. King George of Friendly Islands .appeals against English merchant. Page 3. Terrible railroad disaster in Enjlacd. Page 3. Natiaaal. More festivities In honor of Taft party at Tokio. page 4. China will not renew exclusion treaty. Page 3. Reciprocity with Germany will be an Isaua In Congress. Page's. Peckbam refuses to tell about cotton scan daL Page 3. Great fleet of 'warships gathers at New Tork. Page 3. Investigation of Bennington disaster begun. Page 3. Desaestic. New Orleans fighting yellow fever, shut off from world. Page IT Police again atop betting at St. Louis races. Page 3. Equitable policy-holders renew suit for re celrer. Page 1. Serious charge against another life Insurance - company. Page 1. Sport. " Tennis games almost ready for finals. Page 7. . Portland plays town-lot Call and Siwashes take game. Page 7. Outsiders have Inning at racetrack. Page 7. Pacific Coast League scores: Seattle 3. Port land 1; San Francisco -. Tacoma 0; Los Angeles 6. Oakland 2. Page 7. rct8e Coast. Rev. T. L. Elliott, of the Vancouver. "Wash., Methodist Church, will probably face ccarges in conference, rage s. Mining casip in Blue River mining- district has great expectations. Page 6. Maxamas flash red fire from the top of XouBt Rainier. Page 6: Charge against Lawyer Col I! as of tampering with witnesses is aot prs-ed. Page 8. Forest Grove temperance people prepare for big fight agalast saloons. Page 6. CecBssercM astd Xartee. Values are nardealg in the hop market. Page 13. Light trading in wkcat .markets of this sec Uoa. Page 15. Barley standard fixed at San' Francisco. Page 13. Nearly all branches of Iron and steel trade active. Page 13. More aBt-siat!on In stock market. Page 13. Harrlmaa Use win add another steamer to FerUaad-Saa Frsaeisea Seac Pag 4. Telegrasfc will go ob Astoria, run. Fage 4. Lewb stad.Cbtrk Bay Klaau Attea4aace; 13. J 52. Page JV Big sham staval tattle w4H Tm ecta!ar feature or rajr. rage J. CesciBce-atB!ttt. boy e4 ajtMrter to Bx- jtesitloa to par ferjtt atastiitaa. rage 48. Fsfttaad aatd VtcteMr. OverHjneat elees its t4tiaaeey la Williaa- sa . ragel. fYar4s C JuvtwUa: Court leave for otlag a- ae-aatiare. Pare mi. Ofttttaa-aaaoke arrested- eaeaterfeR MttftiMM'M OsafJraas. -Page 11 He sat Jttrer fsMs fw aesjlia aectsreet. Jae 11. wHk aeaaa trafclaaa km a gatatra,aas,asi war. FaastjM. Aaasslat "Ttee -CMtC'SllfacM Mr L. X. Mxct aw JIsjtC l ' the WHT " aaaete 1s ara-gfc t Maiiitsss aaat m..kV: 7ae M. " - f CiMijtoiiaaisisar ssasi Cilia a refwisd tste III RECEIVER E Policy - Holders Renew Their Suit in United States Court. . WANT SURPLUS DIVIDED Waste, 3IIsmanagemcnt and Fraud Arc Alleged by Brown, or Bal timore, and Forty Others. Demand for Records. NEW TORK. July Z7. In the form of an amended complaint- to a bill filed last April, suit was begun today In the "United States (Circuit Court of the Southern New York district to throw the entire Jd.GXV 000 of the assets of the Equitable LJfe As surance Society into the hands of receiv ers, who shall "take possesion" of all the funds, assets and property held by the defendant society of every character and description, and administer the same as they may bo directed by the court." ilore than 40 policy-holders In the Equitable, representing a dozen different btates. are Included as comDlalnanta In the present suit, -which Is based In part upon the allegation that the society has no funds with which to meet Its enor mous losses, and Is Insolvent. J. Wilcox Brown, of Maryland, th holder of a SS.CC0 rolicy. as comnlalnant filed papers last April to compel distribu tion of the J54.0,CCO surplus fund of the society, to compel the management to maxe an accounting to the oollcv-holders. and for the appointment of receivers for the surplus fund, pending- judicial ascer tainment of the rtehts of the Dollev-hnM. era tnereto. Since the flllmr of that hill permission was obtained to fll an amend ed, complaint, and 44 other policy-holders nave intervened In "the suIL Mismanagement and Waste. In the amended bill, which t tar mnr sweeping In Its charges and In Its ap peal for relief than was the original sni of last April, there are Incorporated many citations rrom the Frick and Hendricks reports, published some month iar. The bill allege? that the soctetv has been guiu or- mismanagement in syndicate transactions; "that unreasonable salaries' have been paid." and that "Iarr.-im. n money ranging from r,0 to 327.000.660. Deranging to the said Insurance funds of tne society, were allowed by it to remain uninvested In banks and trust comnanf without adequate Interest, in many of wnicn name and trust comnanles th m officers and directors of the society, or many or tnem. were large stockholders. tor the purpose of securing: pecuniary benefit to such directors Individually; and ucn unaue and unreasonable cah hat -"" jaicu since at least the year 1S0H" Reciting the purchase of th- Hvii. t by Thomas F. Ryan, the complaint then denies the legality of the election of the directors who are not stockholders of the auucijr. me complaint goes on: AssHrancc Funds Wasted. The assurance fnnt k.i i .. have been fraUdlV,7; rfi. .1" are being wasted and Mismanaged and lost i, wTi,Al,. . .fT nf"Ion3 of dollars; It IS Without B. leratlv i . . m?1 i,ewraI v!a Property , S3 uu&uunB -na ,j speculative. Revertlnsr to a statement that the de fendant society "ha wilfully and neg lectfully and fraudulently mlsmanarf and through Its officers and agents, misappropriated assurance funds." the complaint asserts that "the said de fendant Is wholly unable to" repay thj amount of such wasted and mlsappro priated money to said fund for the hin efit of'your annuitants, and vour nntnr avers that the said defendant Is wholly insolent m consequence thereof." It Is further ndded that "the property of the defendants is now In the hands. or under the control, of the stockhold ers whose representatives have been guilty of misrepresentation, fraud and negiect in the management of Its af fairs and property. The business affairs of the society are at a standstill and its morale as an Insurance company Is de stroyed; whatever business it may do will be at an enormous loss and sacri fice on the part of the present policy holders. Their supreme interest Is to place its assets In the hands of compe tent receivers appointed by the court, and to gradually, prudently and eco nomically wind up the affairs of the company. In this -way only can the policy-holders and annuitants be protect ed from eventual less." Call for Papers and AccoHntlafr. In conclusion, the amended complaint prays for relief as follows: That the defendant society predwee aad male discovery of ail books, papers, etc.. In its possession or under Its coatrol, or oil Its officers or agents, relating to the matters aforetaid. and deposit the same t the of See of the clerk for the tuual perpesea. That an accounting be ordered aad .take under tbe cejart of alt dea)fcgx aad ttraaaac tl&BS of the dfeadet BAf-ietr- If. tmi-n .aeatt aad HockfceMers. afeoat saM swrphta' aM smnarc twos irem tae ocameaee--meat ot. the Vwstaesa of the seeietyL e-r fer nch other period as the court deem proper. It Is aloe asked that accoastlKg- he taken tinder the direetlen of the court of all dealings and- transaetieBe ef the ssciety. its officers, agents and stek asMers. In and. about the faade re ceived and atf i by tfee sclty real bed from tbe preasiksM paid by policy holders, and the aecretleH tkeref, and ef tMs account St be aseertateed" te what extet 'the elety Is indebted to the ?wd Mderived a sMeottat h-a-giMJeeeea and Jep4ethHw' oooaataned itjkm a-gHgce, wOhb stage eat, ssle-lapssajK-tatteai aad .Way w mas ew HJwUed Si te said bill am tbis aasetfji d bttV Tb St ia asked tbavt k"be adjudged tbat the J-ofmdatm aoy EOUITABL pay Into, the said assurance fund the amount ascertained on said accounting- to be due from the said defendant so ciety to the said fund." Willi cirr dowx pensions Directors Apply Knife Hcport of Equitable for Half-Year. NEW TORK. July 27. The directors of the Equitable Life Assurance Society held two meetings today covering- a period of three hours. The first was an adjourned session from yesterday, and the business Included the election ot George I Victor, of this city, and Er nest B. Kruttscnnltt, of New Orleans, to the board. The office of chairman was abolished. ns previously announced. The committee on pensions reported a number of pensions will be discon tinued entirely, and others reduced to SO per cent of salaries received by offi cials and employes at the time of the severance of their connections. It developed today that. In addition to the pension of $25,000 a year to the widow of Henry B. Hyde. tner was voted at the same time a pension of $18,000 to Mrs. James W. Alexander, the wife of the ex-president, to take effect upon the death of Mr. Alexander. The Equitable Life Assurance So ciety's income for the first six months of 1S05 was S3S.i99.133, an increase of S2.3S6.S11 over the corresponding; six months of last year, according- to a statement which was submitted to the board of directors yesterday. The fig ures, which were madeup from the au ditor regular report to the president give assets on December 31, 1904, of $413,953,320. and assets June 30, 1905. of $421,249,272, an Increase during- the last six months of $7,295,252. The In come for the first six months of 1904 was $36,412,327, while the Income for the first six months of 1905 was $38.- 799,13s. an increase of $2,386,811. The report also gives the following" figures: Policies issued first six months ot 1904. 65.392, assuring- $166,129,321. P.ollcles Issued during- first six months of 1905. 61,038, assuring- $150, 705.993. Policies terminated first six months 1904. 36.144. assuring- $100.2.78,199. Policies terminated first six months 1905. 42.123, assuring: $119,815,146. Assurance In force December 31. 1904, 564.5S4 policies, assuring- $1,495,452,892. Assurance In force June 30. 1905," 583, 554 ppllcles. assuring- $1,526,434,739. Increase in assurancein force during: last six months 18,960 policies, assuring- $31,941,847. ANOTHER COMPANY ATTACKED Mutual Life Accused of Juggling Ao counts and Delaying Claims. ALBANY. July 37. Concealment of judgments against the company amount In to S1S2.767. exaggeration of Its surplus by over $300,0CO and a fixed policy of delay in settling claims, are. some of the charges made against the Mutual Reserve Life Insurance Company by Chief Examiner Isaac Variderpoor In his report submitted to State Buperlntendent-of Insurance Hen dricks, and today made public by him: The examination was begun last Decem ber, and covers a. period back to-1889. The company has headnuarters In New York CHy and claims assets of between five and sir minions. Mr. Vanderpool says that the management of the company made no mention of these Judgments in the Item of liabilities resorted for the year 1S04. He says: Of the $104,913 reported by the company In its last annual statement as being due on accrued salaries, rents of office, expense, taxes, bills, accounts. $182,787 consisted of Judgments entered against the company. I am constrained to believe that the return of this Item after the manner stated could not have been the result of an inadvertence and certainly constituted a concealment of facts sufficient to "render tbe company's sworn statement for 1904 materially inaccurate. Further variations. In addition to thpsa ap pearing In credit assets and policy reserve, a betweea the figures published In the com pinya last annual statement and similar items embodied in this report, are produced In the Item of unpaid death claims since De cember 31, 1004. They are returned p tho annual statement of the company at $706,701. Aa the result of this examination the amount la shown to be $831,430. The company's last annual statement pro duces a so-called surplus ot unassigned funds amounting to $330,212. The examination Just completed fixes this Item at -$38,492. The report shows In detail how insur ance amounting- at one time to $1,923,090 finally yielded Its uenenciaries jew.sa. there having been deducted $293,5 on ac count of debts -ascertained by the com pany to exist- against the assured, with a further deduction of $722,636 retained by the company for various alleged viola tions of contract by the Insured. The examiner says: Making allowance for the time It may oc cupy to thoroughly Investigate all ques tionable death claims. I think that, as th result of this examination. It Is quite clearly In evidence 'that the company has adopted a settled policy of delay In withholding tb approval necessary to constitute an admis sion by It of the receipt of satisfactory evi dence of death In the case of all claims under policies and certificates issued. The company was operating under article six of the Insurance law. From the date of such approval 90 days ia the specified 'time within which payment is to be made. The average period elapsing between the filing of proofs of death, which were, baaed upon "investi gation." ultimately found to be valid claims. ia so lengthy as to properly subject the com pany to the severest criticism of its treat mest of those beneficiaries, many of whom aaust be subject, to no little suffering and distress by this seemingly Inexcusable pro craatlaatioa oa the company's part in tbe payment of Its Just debts to policy-holders. tn 1895 the department recommended that the company establish a sinking fund to offset the depreciation of leases. The. sug gestion was adopted, but the fund appears to hare been abandoned some time, for in ten years it has reachef'but $30,949. The sum of $42,006 has. however, been borrowed from this fund aad la charged to the mortuary accouBt. The balance, therefore, after the toaa to tbe latter account, reduces the sink- lag fond to $14.84 Instead ot $105,009, the amount which should now be reached under the recommendation. The resect alleges that coca missions by the Mutual Reserve Fund for securing the Bteawersfelp et the Northwestern Life Insurance .Cestpany of Chicago in ISM never seem ta have -been received by It. The receiver's report since the re- iMvrance was ejected' shews- no revenue from this searce. The eemralcnlon went to the third party. . Frederick. A. Buntan president of the MilstKiI Seserre Life Insurance Com pany. Suppressed It PlvlHft 2fewB. ST. FSTBMBUKG, July 37. The No- vesti. the leniMwa; Jewie Liberal ergan. today jor two Mesttfce. by the swrwiK cc prem naminlilnittoa. No ecmse fer this aetton vrt asesgned, kt in addition U Vm steady attach on the the Neveaxt feat weefc print erf the leaetuMpBo pasaad to Mm Semtv Outgrew at. lPaeecw regassJIag the Bui IM trajKt far a STRICKEN CITY FIGHTS SCOURGE Rigid Quarantiae Cuts Off New Orleans to Kill Yellow Fever. SLAYING DEADLY MOSQUITO Total of 200 Cases Springs From Pew Concealed Cases Among Italians--Escape From City Almost Impossible. NEW ORLEANS. July 27. All tho forces engaged In the battle against the yellow fever scourge today Joined In ex pressing the belief that, while the situa tion has been and is serious, enough suc cess haa already been achieved in the application of the methods applied, as the result of the work of the Reed com mission In Cuba, to justify the hops that, for the first time In the history of the country, what threatened to be a malig nant epidemic of yellow fever will bo stamped out before frost comes and that New Orleans will be spared the horrors of previous epidemics. It is the opinion of Dr. J. H. White, in charge of the Marine Hospital forces, and of the state and local health officials that, ff destruc tion of the stegomyla checks the spread of the disease, and enables the gradual eradication of the cases in hand!" and those which may be expected to appear for some time to come In the infected sec tions, the present visitation of the plague will have been a blessing In disguise. since Mt will have demonstrated the abil ity of science to control the most viru lent outbreak of the fever in the South. Disease Spread by Italians. "With the cases reported today the ag gregate since July 13 runs close to 200. These are Included In 20 to 23 foci, focus No. 1 including the section around the French market, where the fever first ap peared and where a large proportion of the cases and fatalities have occurred. This section runs from St. Ann to Bar racks streets and from Charles to the river. Including about 40 city blocks. Italians here are notoriously prone to avoid physicians and the fever got a foothold In the district before It became known to the authorities No precautions' were taken to destroy the mosquito and the scourge spread with such rapidity that out of the cheap and crowded lodging-houses the Italians who could get away fled, some going to friends In other sections of the. city, some by rail to surrounding towns, and some by luggers Into settlements- along the coast. The result Is the appearance of cases of fever In various parts ot the city, but principally below Canal street, in neighborhoods of the poorer classes. Almost every Instance of a new focus out side of the French market district is that of an Italian who escaped therefrom, or some one of a different nationality whose business was in the section. Xb New Centers of Disease As far; as the health authorities were able to -discover today, no case has thus far developed from outside of any of the outlying Infected districts and with a very few exceptions the capes and deaths have been among the Italians. Illustrating this fact, a report for 24 hours made offi cially to the State Board shows 13 cases and six deaths, nearly all of them being Italians. A great cleaning campaign ha3 begun. Every ward Is being thoroughly organ ized, with precinct organizations radiat ing from the major body, "Cleaning up streets and removing dirt .from gutters is energy all thrown away," declared President Konke. of the City Board ot Health, to a committee of citi zens who called to consult hlra on the subject, "Screen cisterns and drain standing- water from premises where it abounds," said he. Emergency Hospital Open. The emergency hospital which has been 1 fitted out for the care of yellow lever patients Is in full operation today. It is located In an old three-story building In the heart of the French quarter. The hospital will be operated at Its full ca pacity, patients being- removed to It from all sections of the city in a screened am bulance, which has already been- pro vided. A visit to the French market section-today gave little visible evidence of the serious epidemic that has prevailed In that quarter. Two weeks of hard werk by the public cleaning gangs showed in the general cleanliness of the surround ings, but there was no excitement among the residents. Every avenue of egress from the dty has been closed by the rigid quarantiae. and uninfected sections of the city are discouraging any further invasions by Italians. It Is considered wiser for them to remain where- they are at present and where they are to be charitably cared for If in distress, and nursed if ill. The detention camps established by the Marine Hospital Service In order to en- . able persons to leave the city who want to get into sections quarantined against. New Orleans, were opened, today. Permits, to enter these camps are to be obtained frsm the headquarters ef tbe Marine Hob-' pttai Service here. This Is te be required m order that each applicant may be. ex amined, the hospKal service net doolrlng- to send, into the detention camps, persona who are Hkely to become ill, thereby es tahWahlog new centers ef lnfeetfen. Every" Way of Escape Cfestl.. ' There Is a very slight exedos of 2feir: Orleans people. Some heads- of HmUkk ara seeding" their wives aad ehBdraa efe wore, and men whooe business has sut- ' Jered by the apeoarance ef the fewer a (CMM4ed-B Page ) i p