, 1877-08-06
PRICE FrvEsy1N 1NTs.
got an immense easy-chstr. Into which he lf-
stalled himself ~ Secretary. Thn new man
ayers llatf a
rnOrnaCFEn txrEnvtEw WITH AUDITOR ZIP.

and promised that thcy would put in enough
eaiatsI 10 put the Company on aouni footing.
provisions ot The law. Edwards gave j, cuIor Of
DUNG what b. prs,trfsc1 to perform. 4 hundrc,l
t''a7rs nl Carlnvi1ie bank stock, wortl, *to,ka1,
nO.flcsl with tlo Auditor. Some nf tic WORTH
less SECURITIES then In the hands Of tho Depart
insnt we're Withdrawn, and others of equal
yalus. . but which were wtnke1 At by the In
the management of the i.surancu bureau, wcru
tlepositci III their place. In this war lieu. Lip.
pl1.catt was dsscfred, and the day Of reckoning
pnstponr1; d. fe failure Of Jay Cooke In sep;
to the einbnsrnFsncnts f't tic Company. Tn
der date uf Nct. ., 1873, Martln i.ynp, the
he.uasy of tlm COMPANY, wrote to C. J. Hess,
1ne ohs @ nafn sai the tf,9ss weto swfuy
al Bank bad left them Without tlo1ar. Eev-
ety sacatll 1usscs bud then bccn scot,rtctt, and
more were e.:n'ns IN: n the statement for tho
its rash capital ut si!s,3k. In lie asstts were
slfktN0 loaicd Oil rial cstlte. e3l, 100 luanctl
Oh so:ks aud bonds. IN tic item nf "tnsll ir.-
coma - sras the sun, of s3y,stD for the sale OF
no cash ca,,ttal, there we're no rash leans, and
M Interest he'd accrued IN tic susnile loo,ls.
No casi,. itlcofnc Ind been received irofu tho
saic of stock. Am:ue, the c1psndttures
VS.. ILL., TIC So c;nS c:;;s'sn ss,syst sossys1'
rcn'!ttca !" ihe sttxktodcrs ;!c interest n.er,,.
.HG IN the obligations EtYcn bv them fur their
"paysug deyide1.1s." It lUokcl well IN tau
sworn reports, aaMl certainly wEs ably calculated
y t1trti'c the n1'suspecshg and hrius grlst tu
the mill.
sust ilcsc It may 10 well 10 rctracc lew eteps
and investigate what !. known ns
THE CONTACT WITH Z. !. MEsa,
to whonl reference Las already BETH made.
Char|csJ. 1]est WAY NJ experienced ltlc.Inaar-
aacc solicitor. With him tLc Fruic.ficu matic
at agreement in january, lsiee, Whereby h. was
10 bes unit the Rctcra agent III the Cotnf,cIy
IN Olt,. liz was furnished with .hN duly cit,
ruted policies IN Gank for 85,ts1 rac.l. Fur
t''e;e po''tsss hs ngTss.l 10 10y the cnnrnny ;ss
cies ior $500 :. sac' for ''''',i %1,isl, ~
,tpl,s ,pv ,sy, to E.y thc .aas prc ,, Ts Co;
these policies, aud Tint fur tlip purpose Ut
! placing :rm where. siey wuakl do tic .utst
Eoul. he was - Organize series # trs.tt a+rt-
clntons. During tlic yenfs VI ~ Aud ~ lless
or:au'7el auct. assoesat!os 70 l'on.sroy, Atd6:c-
turt, Portsmouth. Seioto, ZanesylI1c, Ernlkl,,,
Columbus, a1,d utttrr points In t}lio. lie then
Stipulated With tlIe.e .l:toeations th"s they
shonia ray him IS sp.e. !ur .hs policies, ,-,nus
20 PLACED: On the hypotl1css tin: ic su-ccc:cl
IN ltspos!hc 1t the lt'10 policies, his gam un tbs
tra1sactior would be ea0,1D. How tie a.socia~
/ 11GfaH WEiE III DG 1EE1fhI)EIttt1 1GE tHEif
Eazrllc catne iu. The parties to whotn ,l.ey
usslgnei Tie po'ictes-ln III uthcr words. The
| pasties purchasing litc insurance through tbs
the fare ot the ppliyy, thu poicy-'loldcr retain
| iu:: ote-tet'ttt a,sd paytu9 thstcfor $40 as \
| membership fee, and mn a,inual due OF s35Q.
III consideration II this membership fc1 ami nn-
hual due, LhU associations cGyenante1 to keep
up tLc 1ic insurance atsd ,ay ono-tcnth of t',,
nluncy received fru1n the frutectlon un oil death
lasscs on the policies Centralized BY tI,en.
Ticsc trust associations llad u big thing. II
properly workcd, though this in tncaou1c was
dependent Oh the sucscss Ut thu Ctsurany II!
greater ,hc number OF ths outside
| tl,c associations In having an accelerated Mof-
tulity Alnurg tho hndcrs Of tho policies tz,,i-
tro!!cA ny them. Tue liability " thu asHfci'sr
t!ona to ttle Protection WIS thc regular pro .rata
assessment ieylct! to pay all tleath lo'sce; but
thty Ind this nnranta-c whacl the ordinary
poliey-i,olders did not: The Company agreed to
carry Tic as6oe,Atibtin 10 prevent tfr policies
i!u!', la!'slly TIC Interest Of ths incurred IN
$50. The associations lIal ny legal i1lsurabln
interest In tho rcn,alntnc II .no. Hence tho
policy was q WAGER, contrary 70 good morals,
accession u the .Eiwarls.lsvlA dynasty,
the Protection haul d ruw with Hess,
whom they tlcposca from his Ohio agency.
G =, ,,,a,t suG ,,c t'Ss. fit'<o1 oaaR tha H. aEa
s, Ms n''tneuM w. "MsM 'omsn NV sH 49, sn
sIss Nv ~, .'is,, ""i '"s "u5v.'s -.
ss,atss , "ose .nss's ' puo"e 'aot H. oI nHeo H.,
as" msm nas "srrs tnrnniso I wae .,c '' n III -,
oAnt , .o:.st tatsr.p psW.as - - .h,. as 49,
!eE4. irKcso.mEs ssapeu III u, s1smt' o"lR"
s'A n''',1'eu u '''oso a@'oe"A''o"" n'e Nv" az
'ofec' -
TnE onp Inlan
about these wagering policies Is that, although
thctr tssuanec ts::sail ih ls'a, ana they hare
bsen kspt n!ise nntn the present. tlfne' a''tl
published n tle papers. cspctla!'y dnf!,;;;
lssii when l4cts started to MAKE y war1nFur
the Company, the ll!'I!ot" insurance usraa t:s
but Just 'ltseoyctcd TINT there werc euei'
rollclcs,, aud they wcro contrary to law.
As will bo seen W Springfield dispatch. t!'o
Auditor recently referred u the attorney lien
etal tho N,Icstfe OF the legality of theSe wagcE-
IN. pniisies' anA ihe Atsefmey'tse Ina Eyv1'
MI ol'!tlon that thcy aIc Illegal aaa thI Aunt.
" ta"5 IT, u'1u ss. ~ ~ ,. tt tIaet ny
. ,, IS sss ~ sssss w.. anInu poaas
e!es nasu oeon no"m M ~ LUG ipsa'iI :. uui'I1t
msM a .aese ~, amy yeags' n a ~ ~ VIZ VIZ a. tas h
!ate ~! sat H.. ,,.s;,. -" sn.1'' LIZ
ptsuaapt!o.i ~ tua' ..te Auui.os ~ Is,.ns tneso
poug,sa "a aa uss uu Mtca : ~ tosa =,
up LIZ HipanJ; ~ *aN tnat u "as uot u
| g.