The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-10-06

How the Eastern Washington Farmers
Were puped by Alliance Leaders
The Washington Farmers Insurance
Company. Of Spokane, whose swindiing
operations have received so much mention
recently, was organized . little over two
years ago. The subscribed capital stock
was SO 900, but s., $50 is the only cash
that was ever paid upon the same. The
officers Of this company were Paul Book
mire. president, who is one Of the princi-
pal Farmers Alliance men of this state;
James Hopkins, manager, and J. b.
Flynn, secretary. The books of the COM
pany show that IL has outstanding policies
10 the amount OF s. iis.0o0. None OF this
amount can be reinsured by the receiver.
as there are no available funds or assets
with which. to effect such reinsurance.
The books show that the company has col
iected from the farmers of this state
nearly so, 900 In premiums, and yet as the
company stands today its loss amounts to
more than s2s 900. which win have to be
borne by such subscribers to the capital
stock as are responsible.
Receiver Smith has found among the
effects OF the company two contracts
with Mr.. Bockmire. one Of which
shows that he was to receive 10 per cent.
on ali cash subscriptions 10 the capital
stock. 5 per cent. on all stock notes
and IS per cent. of oil premium
concessions were granted him as general
agent Of the company. The other con-
tract showed that he was to receive q
salary OF xi25 per month a. president of
the company. The minutes Of the meet
ings Of the board OF directors shcw that
Bockmirs's expense account had been
approved and allowed, In addition to the
above commissions, fees and salary.
The most infamous part of the whole
management Of this company seems to be
that wherein the Popuiist leaders. those
on the inside. tried to get from under and
leave the wreck upon the hands of the
farmers Of the Paiouse country. This
was 10 have been done by solicitation of
subscriptions to capital stock. and as it
was subscribed and new notes and mort
cages OF farmers given, the amounts were
to have been applied upon their own obli-
cations until the same were paid. The
stock was then to have been surrendered
and Cancelled and new stock issued to the
new subscribers. The new stockholders
would then have found themselves in the
ownership of a bankrupt concern. while its
projectors had absorbed its substance and
got from under.
The most liberal estimate of the assets
OF the company. not including the securi-
ties which were distracted, 10 not more
than 5000. The company owes the Brown
National bank. of Spokane, one note for
$500. and also owes a poor country girl
81. 800 borrowed money, besides q number
of other claims, debts and unpaid policies
which have become due IN consequence of
losses by fire. One little incident will
show how things were going. At meet
ing Of the directors September 81, at which
Secretary Price was present, Il was
claimed that Il. ID. Sutton. one of the direc-
tors and the Populist organizer of that
district. was worth at least $40, COO. The
county records showed that sil the taxes
he paid last year were on $40 worth of
personal property. A horse aud buggy
used In the transaction of the company's
business. and which it was said be-
longed TO the company. is now claimed by
Hopkins. When the receiver took charge
only s. was found In the bank account OF
the company. Even that Was held In
Hopkins name.