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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 17, 1915)
TTTR BnVRNTXG OHEaOXIAN, WEDNESDAY, BIARCH . . 17, 1915. COMPANIES SAID TO BE LONG INSOLVENT Horticultura Fire Relief ana Jwo Subsidiaries Grilled "v.. by Harvey Wells. MANAGEMENT HELD LOOSE Insurance Commissioner Declares Receiver Should Have Been Named Year Ago Liabilities Tar la Excess of Assets. ' BALEM. Or.. March 1. (Special.) ctorriiTK. rvlalinns relating- to the innSnu rtt nuiiacement and the al leired deceiving of policyholders and the former head of the state insurance department by the Horticultural tire t? rA twn niibsidiarv companies .t ihi. ..tv which have been placed in the hands of a receiver, were made nubile bv Harvey Wells. Insurance PAmniitcinnr. today. Thiu una naraaraph of Mr. Wells' statement shows that the Horticultural ire Relief and the Oregon Aiercnanis Mutual Association should have been put out of business months before the Trtvi war aimointed: "It appears from the report of the .Tomlnor W. TV. Chambreau, that the Horticultural Vire Relief and the Oregon Merchants' Mutual Associa tion mutual companies, have been in solvent probably since the early part of last year. Wells Beslaa at Once. Mr. Wells had been in office Just six lava when he called the officers of the companies to hie office and urged that n examination of the books be made at once. He had heard reports that the concerns were in a bad way financially, and determined to find out the true condition. The investigation liad proceeded only a few hours when It became apparent the companies were insolvent, and the directors agreed to Hk the court for the appointment of a leceiver. Since then the Insurance Commis sioner has received hundreds of letters skins why the insurance department had not protected the policy-ho'.Sers by putting the companies out of h"-.:ness earlier. The letters were from persons who had suffered fire losses and want ed their insurance and from others who wanted their premiums returned. The text of some of them are pitiful. Mnn and women lost everything tney had when their homes burned, and they cannot understand why their insurance money is tot forthcoming. The com panies had policies in force aggregat ing $13,000,000, and about 10.000 policy holders. Pacific Roane Involved, Too. The other company that went down In the insurance crash which Is one of the worst in the history of Oregon, ras the Pacific Home. Mr. Wells says the Horticultural Re lief policyholders assumed the entire indebtedness and liabilities of the Pa cific Home, and have assisted in paying the claims of the Oregon Merchants' linlual. His statement continues: "These two companies probably' cost the Horticultural Kire Relief $42,000. and the only apparent offset is about $10,000. consisting of some real property nd their office furniture and fixtures, making a net loss of $32,000. "The three combined companies show outstanding losses, adjusted and unad justed, of $39,000; unearned premiums, which have been collected and should be returned to the policyholders, of $70, COO; bills payable of $9000, making the total apparent liabilities in the neigh borhood of $11S,000." Assets About 2S,000. Mr. Hells, who is the receiver, says be has about $3000 cash; $8500 in first class mortgages; uncollected premium unpaid, including assessments, about $14,000: premium notes. $1300; real es tate, $2000; making apparent total as sets of about $28,000. Deducting $17,000 unpaid premiums from the assets the receiver will have about $12,000 with which to meet an obligation of about $118,000. The conimissioner. in accordance with itn opinion rendered him by Attorney Oeneral Brown and the opinions of au thorities on the assessment features of mutual insurance, will call on all pol icy-holders to pay up to 100 per cent of- the standard rates. In other words persons who have policies in the compa nies on a basis of 60, 75 and 90 per cent, will be called upon to pay to the full amount.- Whether the return will be mifficient to pay the outstanding claims for fire losses Mr. ells does not present know. The following from Mr. Wells' statement shows how the compa nies, while actually insolvent, made re turns to policy-holders for the probable reason of bolstering up their standing. "it appears that during July of last year the board of directors authorized a return of 25 per cent on all policies that were paying the full standard rate and returned to the policyholders f the Horticultural Fire Relief nearly $7000. Later on this order was re scinded and during December they lev led an assessment to secure funds to meet unpaid claims and. f'lither. took part of their securities and placed them In several banks as securities for loans .which are now due. IVrlla Tntnka Companies l ulu formed. Mr. Wells believes-that the directors of the companies and the s'ate insur since department were uninformed re garding the true condition of affairs. lie says: "There is no question but what the board of directors was misinformed or in other words honestly misled re- carding the true condition of these companies. It is true the insurance department also was misinformed. 1t was led to believe these companies had sufficient funds on hand to meet outstanding losses. This is no doubt the explanation why the former Com missioners letters to the policy-hold ers at various times were so worded as to lead them to believe the company was solvent. This will explain why so many policy-holders are Indignant, and are crit icising the insurance department, and. as 1 have only been In office 60 days. 1 am not in a position to offer any further explanation as to the action of the former Commissioner. Mr. Wells succeeded J. W. Ferguson, w-nose resignation was asaea by Gov ernor Withycombe because of his not being in sympathy with the new ad ministration, soon after the new Gov ernor was inaugurated. land at San Francisco May 1. After spending a week at the Panama-Pacific Exposition the delegation will embark on a special train on an 11,000-mile tour of the country. Because of the limited time at the disposal of the tourists the only Pacific Coast cities to be visited will be represented In the Associated Chambers of Commerce of the Pacific Coast, under whose aus pices the tour will be made. Although the itinerary has not been definitely settled it is probable that the following cities will be visited San Francisco. Oakland, Los Angeles, San Diego. New Orleans'. Kansas City, St. Louis. Indianaoolis, Columbus. Cin cinnati. Pittsburg. Washington. D. C. Baltimore, Philadelphia. Boston. Provi dence. New Haven. New York. Sche nectady. Syracuse. Buffalo. Cleveland. Toledo. Detroit, Grand Rapids, South PEOPLES OF STAGE DEFENDED BY ACTRESS m fimi ii Til I 'Leila. JAIhttkl Imnatient because the nublic still re- e-ards the theatrical profession with suspicion. Miss Leila Mclntyre is going to talk to Portland - women at tne Orpheum "Wednesday afternoon tea re garding the "home life of etage people" Because some actresses seea no toriety, or because the escapades of other performers are used by their managers to work up crowds for the theaters they are playing is no reason why every woman in the business should be placed In that class," de clared Miss Mclntyre. whose real name is Mrs. John Hyams, and who gets more pleasure out of her home and baby girl than she does from the ap plause of audiences." Bend. Chicago, Milwaukee, Minneapo lis, Spokane, Portland and Seattle. Plione Manager Found Under Pier. SEATTLE, Wash., March 16. -The body of H. C. Uttlefield. manager of the Farmers' Telegraph & Telephone Company of Wenatchee, Wash., who left his room at a faeatue Hotel early on the morning of February 18 and was not seen again, was found today be neath a pier on the waterfront. He is supposed to have committed suicide. Tieton Demonstrator Arrives. NORTH YAKIMA, Wash., March IS. (Special.) Roy P. Bean, formerly su perintendent or tne state iarm at rao fields, S. D., arrived yesterday to take p his duties on the Tieton project, as representative of the United States ureau of field demonstrations. BABE STAR WITNESS Alice Rotchford, 6, Testifies at Mrs. Diffley's Trial. LAWYER'S TALK REPORTED Lass Says on Examination That Her Grandmother's Attorneys - Had Talked to Her of Case. Boy's Father, Is Recalled. TACOMA. Wash.. March 16. (Spe cial.) Six-year-old Alice Rothf ord was the star witness for the defense todav at the trial of her grandmother, Mrs. Bertha M. Dirtley, wno is accused of whipping to death 3-year-old Clar ence HalL for whose father she was housekeeoer. The little girl, extremely pretty, wun her short, dark curls and clad , in Dink dress, on direct examination by Mrs. Diffley's attorneys carefully testi fied that little Clarence fell ott a trunit. She said: "Grandma spanked him. She used a little switch. Then grandma stood him on the trunk and he fell off. She Dicked him ud and put him to bed. was partly dressed ana she tola me to eo and call Mrs. O Keele. Cross-examined Dy state s Auurnej Remann, little Alice just as iranKiy testified that she was in bed and asleep when little Clarence fell and did not see him fall or see him get switched and that she then got partly dressed and -went over to O Keefe s when Mrs. Diffley told her to do so. The child then told how much the attorneys for the defense had talked to her. This defense comnleted Its case tnis afternoon and the state began rebuttal. Amos HalL father of the dead child, will be recalled tomorrow ana go over again his dealings with Mrs. Diffley In Portland, where he hired her and the family lived until last septemper. LISTER SIGNS 22 BILLS UNIVERSITY TUITION MEASURE FOR BUILDING APPROVED. Weekly Flag Drills Required! Hatch ery Authorized and Phone Roles Are Ordered. OLYMPIA, Wash, March 16. (Spe cial.) Governor Lister yesterday signed 22 bills, including' the bills appropriat ing $300,000 for new buildings for the State University, xnis measure pro vides a tuition fee of $10 for a semes ter on every student of the university, which, with rentals from the univer sity grounds in Seattle, will go into a "university building fund." Out of this fund $150,000 is appropriated and the remainder of the $300,000 is taken from the general fund. Other bills signed include that re quiring weekly flag salutes in com mon schools, authorizing the establish ment of a trout hatchery in Lewis County at Mineral Lake, If found suit able for that purpose ly the Fish Com missioner: admitting to the bar law students of Gonzaga University, of Spokane without state examinations; changing the name of Chehalis County to Grays Harbor County; authorizing the Industrial Welfare Commission to CHILD GETS SICK :, FEVE IF CROSS R SH CONSTIPATED "California Syrup of Figs" Can't Harm Tender Stomach . or Bowels. A laxative today saves a sick child tomorrow. Children Bimply will not take the time from play to empty their bowels, which become clogged up with waste, liver gets sluggish; stomach sour. Look at the tongue, mother! If coated, or your child is listless. cross, feverish, breath bad, restless, doesn't eat heartily, full of cold or has sore throat or any other children's ail ment, give a teaspoonful of "Califor nia Syrup of Figs," then don't worry, because it is perfectly harmless, and in a few hours all this- constipation poi son, sour bile and fermenting waste will gently move out of the bowels, and you have a well, playful child again. A thorough "inside cleansing' is ofttimes all that is necessary. It should be the first treatment given in any sickness. Beware of counterfeit fig syrups. Ask your druggist for a 60-cent bottle of "California Syrup of Figs," which has full directions for babies, children of all ages and for grown-ups plainly printed on the bottle. Look carefully and see that it is made by the Califor nia Fig Syrup Company." Adv. establish special rules for telephone girls in towns of less than 3000, and making it a misdemeanor for any per son falsely to represent himself as physically defective. CITY'S THREATS CUT RATES Lighting Company Official Says Mu nicipal Plant Would Be Ruinous. BAKflR. Or, March 16. (Special.) That the proposed municipal electric light plant would put his company out of business and that the company had been forced by threats of the municipal plant to lower its rates was the tes timony of F. A. Harmon, general man ager of the Eastern Oregon Light & Power Company, before the State Rail road Commission in its final hearing of the company's rates here today. He told of the company s purchase of the Baker Light & Power Company, saying that at the time a total of $542, 000 was outstanding in mortgages against the company. He said that the Baker, La Grande and Elgin plants had to be practically rebuilt, but that he considered them good purchases. He showed that the Hot Lake. Sanitarium was getting a 1-cent rate. HOOD RIVER GROWERS MEET Distribution of $000 Being Made to Members of Exchange. HOOD RIVER, Or., March 16. (Spe cial.) Kenneth McKay, manager of the Fruit Growers' Exchange, the local af filiation of the Northwestern Fruit Exchange, today distributed $2000 among its growers. To date the ex change has returned to the growers $12,000, between E0 and 60 cents a box. owing to different varieties. With prominent officials of the Northwestern Fruit Exchange, J. F. Sugrue, of Cashmere, and Dr. C. A. Macrum, of Mosier. here for addresses. Hart SchafTner &.Marx r-'.ti.riiV-:: HarchaflTner Book Marx correctly and other The Spring Style bv Hart Schaffner & . - . If you men and young men want to be . informed regarding styles in spring clothes ; apparel, the Style Book, will tell you. It describes Varsity Fifty Five, the most popular young men's model in America. It also tells you: How to save money in clothes buying. Names of the newest spring fabrics. How to be correctly fitted. ' What to wear and when. If you will give your name to us, we" will have a copy of the Style Book sent, to you by Hart SchafTner & Marx. You'll see in our windows the above picture, enlarged and in colors. If you would like to possess a copy of it, tell us and we'll get you one Sam'l Rosenblatt & Co. .The Home of Hart Schaffner & Marx Clothes, Northwest Corner 3d and Morrison Sts. Copyright Hart Schaffner &Marx the exchange is holding a series meetings with- growers this week. of Racer on Horse Fined at Cenfralia. CENTRALTA, Wash..' March 16. (Special.) Ellsworth Smith, a young farmer living four miles north of Cen tralis was arrested last night after he had twice raced, his horse through the business section of the city, im periling the lives of pedestrians. The firet time it was presumed that the man's horse got away from him, but after traversing the full length of Tower avenue Smith turned around and raced back. He was fined $10 and costs at a night session of Polio Court 50 CHINESE TO MAKE TOUR Distinguished Merchants. Bankers : and Officials to Visit in May. SEATTLE. Wash., March 16. The Seattle Chamber of Commerce today received cable advises from the Chi nese government announcing- that a party of 50 distinguished Chinese mer chants, bankers and officials will make 70-day tour of the United States this Ppriny. The Chinese delegation is expected to Ha sup Victrola IV, $15 Oak remacy coupled with the greatest Vict roia supremacy artists.- of the the The most famous singers and musicians make records for the Victor exclusively., There are Victors and Victrolas in great variety of styles from $10 to $250. Victor Talking Machine Co. Camden, N. J. The Victrola gives you instant command over the artistic resources of the entire world, and enables you to spend a portion of each day in intimate associ ation with the greatest artists. i All music is in the province of the Victrola; all artists composers, singers, instrumentalists, enter tainerscontribute to its wealth of musical treasures. And should you want to dance, the Victrola is at once transformed into an orchestra to play all the latest dance music with a tone and rhythm that are perfection. 0 Visit our Victor Department and select the style you like best. If you only knew the pleasure the Victrola brings into your home, you would not be, without one tor a single day. q Victrolas, $15 to $250, on the terms. Steinway . Weber and Other Pianos xi, $100 m or oak y Victrol Mahogany 'ii. Morrison at easiest ' - ; " filiii? "" sixth m 1 Go. Opposite Postoffice Pianola Pianos