Morning Oregonian. (Portland, Or.) 1861-1937, July 28, 1905, Image 1

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    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
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