, 1875-03-27

circumstances incident to holding an oIllco of
trust In a corporation depending npon tho coufl-
donco Of tho public for support, OF conducted In
its interests, is tho fact That 10 must run
tho gnuntlet Of abuae and SANDER OF every shark
who, undor threata OF public a.lack, NAV mako
fraudulent demands. 1t liz not. apprclead.
within tho range Of human possibility to NO co1,-
duct tho Affairs OF corporation like lilo iusur-
nnce company, dealing, AZ 1t must, with mapy
thousands Of persons without gottiug iuto a snarl
onco In wlltlo, but Wien difficulties ar,se II In
tile duty Of honest men to got ont Of them tho
bcat way they eau, anl asoid tLe,n 10 far an DOS
aibo III future.
In bis recent attacks on the Protection Lifo
Insurance Company, Mr. slufeldt claims 10 bo
acting solely in tin interests Of the public but
now propose to show that l,o ia not exactly Tue
dfBntesestod champion Of the public whjci, lie
claims to bo. aud tia! tie real anisuua Of his a.
lack Ind itB origin Ia hiA tailuro to prosecute.
successfully, fraudulent claims ou the COMPANY,
ono or winch. ho complains, wss "compro-
Inaed. Before entering on tLis Hubject. lluweYcs,
wish to reior 10 the manner In which he dodgcs
my challenge to sutstautfRte hin ilrst charge Of
assessing tor more tlan ~as paid out liy saving.
"That mnttor cGn only bo nAccrtattlcd upon d
special examination made upon the authority Of
tic AUDITOR" thus virtually confosslng ip knew
nothing nbont Il, but asserted tllH falae-
hood, with others, Mt random. Tho fact is, tic
Protection Life Insurance Company Ian boen Of
lcially examined and re.exsmined every year
Hinco its organization. ar1 Alwayg passcd tho or.
deal trlu1uplsantly. Does any ono tclievc tho
Company would be permitted 10 transact buA.
moss for d day II m ot1lcal examination could
Stop 1t. wllen nsuo-tcntlls Of tbs insurance do
partments nro uufricmlly7
!, Ihe auvo'ts-odd thousand dollars casl willcl,
tho Company las iii bank, subject to draft at
sight. seems to worry Mr. Stufellt tn-tav. We'll,
u IL hard to please oycry ono. Sometimes tho
Company IL charged with having nothing to pay
loeaes with, but air. SAufoldt cla.ns it Inns too
ia u respectable aun, but IL should 10 remom-
bored that tue Protection IL doing very
large busiDess, aud that its disbursements III
caall to tho fanafliea OF deceased members avor-
aged About $4,000 day every working dor dur
lug tho past ycar-and stil it did not cost tho
surviving members over one half the ratas re-
CURED in advnncee on lilo old r,au. In any
eront, Mr. shufeldt conld hayo ouforced pay
Inout Il 1lo did not know tho claims ho attempted
to collect wcro fraudulent; aud t4is brings us To
tho consideration Of tbs eccra: cause Of hiB altu-
dcrous nttaciis, roterrud To previously,
MIR. Sllufcldt BayB:
Upon more careful examination, flnl that sau
rh'Ybe lotlwlek, who dcl ut candor, Toga County.
n. y, lad two poucies-ens tor $3,.0} aid ons fIr
@ 'Ss = Of ia,:ssai1 IT, 'n is sas
been Alcd, mud Ito dobt compromised for $50,
AR afr. shufslat waa tho attornoy for tito coll
aplrators who attempted to ougneer this fraud
OIL tho Company (which fact, u ordor to appear
. tllHnterostcd champion Of tho public, he care
fnly coucea's), ho knows moro about tho fr1ls.
trated httetups to 1wi.ilte THAI 4o tells will
supply Lis omission. however. The insurance III
this case .waa obtained by . conspiracy which ~
occasionally attempted on all lifo companies but
which rarely succeeds. Tho applications ant!
represented tho heai.l aud hab!s such as
any company would Rcccpt. In about yonr
afterwards the insured dsol, and tho claim "
was duly proved aud tho assessments mAllo for
urgent appeals made for immediate payment.
and further Investigations revealed tue trauu
and Showed that tho party lad been several
times ''tarpea for dropsy ut tho t;u.o tho ia-
stlrauoo WIS obtained Ofcourso the Company
and tho . claim " was rapidly transferred from
ono party to another, WHO, by tho way,
bud no iusurablo. interest III 1t. until
IT. found ;, in obedience to e., well
Tho Company did not compromise" tho Both
WICK claim for $500, but 1t did oxrnud tint sum,
and moro too, in lnoarthing tho lacts which
showed It to DO boglH, and every dollar OF The
Au1n collected by asaousnlon.a from. tho rolic,-
holda1a on that claim MAS credited back to The
momborB, a. Tho Con,pauyH record, show.
Mr. Sl!ufoldt's poxt attack iA on tho discrep-
ancy between tlo EMnoers liable for II. ".
Morgan's and 0rrin Fo7sy.h's losscs, both OF
attention to large discrepancy In tho uumber
Of members liable for them when assessed for
aftcrwArd. IIo fa,Is to note tho fact,
borrower. tla., owing to. difference Of
to1sauod bo.wsen shs asses.moots @ 0Ahs as .hot ,o
Has tue timo Immediately succeeding the panlo.
slsen vary n,any Wcle obliged 10 drop thelr in.
a,lrance, and also about the tImo 1lr. Bhnf.ltls
~ . ll's " "clionta" from Ohio Of tho nothwteIs
rany. causing over 1,0oo to lapas III OHIO alouo,
il culld not assess moro mombeFH for the later |
.ssess1nent than 1t had In good standing on its |
books. Z IT,, All M this has been publicly explained
3shos point tho Company itas nothing to conceal I
iron, Its nemhorH or tho general public whpu.
,yar information iH desired.
Thaa iu tho "truo stosyn Of the clafm Mr.
,sat saKs ehKa'gss g tho COMPANY With eompsomis,
ho cash OIL baud. or has It baesa paid back to
ho poor Epooy.Aollats." We'll, It llas not gone
o "swel! the cash on hand Of conspiring ras.
'ala or ahystors any way; but Mf. shufe|dt'a
'!l DO appreciated eyen at this lato :tay by tho
!nHdFotls OF swlndlsd yictims OF tho late bank
upt 6tato and Lamar Firo INSURANCE Coul-
,anles, some Of l,la operations in connection
s.a ,p1a, ~hsea It VIII be necesaary to show up in
Iasstand the full c1tcnt Of his phl!anthEophy in
s'elr, behalf. Ar Ar. Shufcldt has imrugnea
i!o honesty Of tho management oi the l'1o.o,-
ION. a'lu claims that ho io "exposing" what
% calls sts frauduleut practices purely from lls-
ntorosted motives Oil bchali Of tho '.poos
oltcy-llolders, 1t ia very important tia. q per-
on assuming 40 mucll honesty aud Virtue Ah1nid
tand aboye Fopsoach himself. Therefore hs
NJ not, hope, fail TO answpr tho following
cations tn Ills no1t eifusion, III there xro, to
ny oertssn knowledge, inai.y l!uu.!fotls In this
NY marc aoxtot,a to hear from Al!n III thus Fea.
lou than to toaa ILLS "exposurea" Of .hs Pro-
ectiout
tHss-What Was 3lr. Bhufstdt's connection
at4 thu btat6 Fro Insurance frauds?
Stcond-Iiow mucl, did no and ls folloa.co-
d{utorS yet out OF shn slGo, QUO belonglug TO ths
olloy-hoidsfs OF tho Stats F!so INSURANCE Com
ago At tbs tlme2
7htrd-What are tho facts regarding tho de-
ftn'ldlng Of the lato Ut. i. larlham out Of his
lains AgainBe the state Eitey
toarth-Dltn't you, Mr. 6hufsdt, dc.nand
hHo OF Maj. Villas. OF tho peop!e'a Fire Of
4i'fori.n, to keep atllI, mud did La kick you out
hia Office At that time :
When atr. HhufelAl l,aa sAtisfecto.ily Anawcred
hess queries he may considsr hiu,s1lf entitled
ihe position OF public eensor. Yours respect