Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-01-14
To the Policy Holders Of the Mutual
Fire Insurance Company Of the
District of Columbia.


District of Columbia.
on behalf OF many members OF the above
company who are dissatisfied with the past
management Oh its affairs. we respectfully in
vite your cooperation in the efforts which are
being made
1st. To secure substantial reduction IN the
salaries and running expenses paid by the COM
pany and in the rates OF insurance;
IDLY. To have the books of the company
thoroughly examined, and to compel the mama
gers to account for all the money which they
have Illegally received as salaries for all profits
realized by them ON the funds of the company
in their hands. and for all deficiencies found to
exist In the assets; and
3dly. AS preliminary step to elect a board
OF managers who will have no interest in con-
cealing or covering up any of the past transac-
lions of the company, or in refusing to compel
the present managers to give strict account
of their stewardship.
In setting before you our reasons for seeking
to effect these objects, we shall not indulge in
vague predictions or solemn warnings of what
''unScrupulouS and self-Seektng men" might do,
but we shall confine ourselves to statement
OF what has actually been done by the very
honorable and self-sacrificing gentlemen who
have managed the affairs of this Company for
so many years.
The company was organized in 1885, on the
mutual principle, the aim Of which is to fur
nish insurance to the members at the actual
cost thereof. Under the charter, its affairs are
entrusted to seven managers, chosen annually
at general meeting OF all the policy hOlderS.
tIOm TIE OTBdnlLdtlOn uOWn 10 Une annual
meeting in 1879, the great body of the members
seem TO have taken no active part in the man
agement and substantially the same board
continued in control; but at that meeting
committee of seven policy holders was ap-
pointed to investigate the accounts and general
affairs of the company, and report to an adj
journed meeting on the 1st February, 1879. On
the aforementioned day the committee SUBJ
m1tted an elaborate report, the correctness OF
which was conceded on all sides, and which
was printed and distributed Among the dis
Foil
LIST. That the managers had, without lawful
authority, been paying themselves salaries, COM
mencfng with small per diem allowance in
1865, and gradually increasing to $500 per an
IDLY. That they had loaned to themselves
about $4,000 OF the company's funds at low
rates OF interest, most of it at per cent, and
had kept it at that rate for years, although it
might have been readily loaned during great
part of the time at 10 per cent. (Rep., PIP.
to6.)
3dly. That in addition to his $500 as manager.
the president was receiving an annual salary OF
81 SEQ, and additional allowances amounting to
$3.50, making his total annual pay s2.450 rep,
4thly. That the annual salary of the secretary
had been increased TO $4,000, although he
could not tell the amount of outstanding insur-
ance, or of the premium notes, and although
his books were five years behind in posting, and.
in other respects very fndifferent1y kept, and
wholly inadequate for the purposes of the COM
pany;r (Rep., PIP. II and lS)
5thly. That $, 600. 90 had been loaned to Cas-
tlemaD, at six per cent, in 1870, secured by a
deed of trust on a brick house on ST., between
5th and 9TH StS., and although the security was
insufficient, the note long overdue, the interest
in arrears and ten years taxes unpaid, amount
ing, without penalties, TO 81 266.35, no effort had
been made to realize on the security; ('ep., p g.
6thly. That in the ten years and seven
months ending Jan. 3lSt 1879, the amount paid
In salaries and office expenses was S63, S62.5T,
the total losses by fire, during that time, being
81 1919, (Rep., p. 49,; from which iWould seem
that fires are not SO much to be dreaded by the
company as its own officers.
.thly. That in the year ending June 30th,
1878, the last full year of which any accoont had
been given, the total losses from fires was
So 654.52 While the total salaries and office ex-
penses were S, 19S. Al; Rep., p. 49,
Sthly. That in the same year, leaving out OF
consideration the rents and expenses of the
Marble Building, the amount OF which does not
appear, the total amount paid into the company
from all sources was $50. 225.o4, and the total
amount paid out was sS,i55.06; for conducting
the business OF this year 50, 1854, being about
25 per cent. OF the total collections was paid in
salaries and office expenses; lRep., p. 13.)
9thIy. That the managers had purchased for
the company from one of their number the
Marble Building" at an excessive price, the
transaction resulting in loss to the company
OF SS4 000.0G (Rep., p. 1S.)
SO great was the interest excited by the report,
that at the ensuing election 1881 ballots were
cast; the highest number ever cast before that
it was found that Geo. T. bearing, G. w. Coch-
ran, j. S. Edwards. and Samuel Norment had
received a majority OF the whole vote cast Mr.
Norment being the only member of the old
board reelected, although the members of that
board cast 223 votes, presumably. for them
selves. John b. ClagetG William King and
Henry Polkinhorn received the next highest
number OF votes, but less than majority, and
at a subsequent election Messrs. Clagett, Polkin-
horn and L. II. Schneider were chosen TO COM
plete the board. The newly elected members
organized and demanded possession OF the books
and papers OF the company, which was refused.
At this stage OF the proceedings it seems to
have occurred to the old board that although
they had been Overwhelmingly defeated at the
polls, they might still use the funds of the COM
pany to advantage in employing lawyers to
pick some flaw in the title OF their chosen sue
cessors. The result of this new move was that
the old board undertook to declare the election
void, on the ground that they had caused the
notice OF the annual meeting to be published in
only one newspaper, and only ten days before
the meeting, whereas the charter required " O
weeks notice, to be published in two news
papers; and thereupon they published notice
that new election would be held. The cleo
lions under which this same board of managers
had held Office for years would have been open
10 the same objection. In the call for the new
meeting the managers designated at the place
the Office or the company, which had been
found entirely too small to accommodate the
previous meeting, which had for that reason
adjourned to a large hall. When remonstrance
was made on the ground that the room was not
adequate for the purpose OF holding a meeting
which 1000 or 5000 persons had a right to
attend, one OF the managers replied that, ''those
and those who wanted to make speeches might
hire hall"
No other course being left, the members op-
posed to the old board obtained an Injunction
against the holding of an election, and Messrs.
bearing, Edwards, Cochran, Clagett, Polkinhorn
and Schneider commenced proceedings to have
their title passed upon by the court. After many
delays the case was heard and the court decided
that the election was void, on the sole ground
that the notice given by the Old board was not
in compliance with the charter, having been
published only ter days before the meeting in
stead of two weeks.
This ended the controversy, and made another
election necessary.
In the course OF the litigation, it appeared
twenty-three votes cast by the managers at the
Wood-houSeS, diyisiOn-fenceS and priyies one OF
the managers. Mr.. Barker, having sixteen risks
on the buildings on lot II, square 23S, the total
OF said risks being on wooden privies. AS every
entities the holder to one vote, the improperly
OF accepting so many small risks from the same
person must be apparent.
The last election having been thus annulled.
the old board holds over under the charter un-
til their successors are chosen. Instead of TAX
ing steps TO have new election Immediately
as their plain duty required, they saw fit to
lengthen their lease of Office by poStponing the
election until January. They probably found
1t very convenient to use the funds OF the com
pany to hire lawyers to keep them In office In
defiance OF the will OF the majority of the MEM
berS who voted Mt the last election and fbav