The Washington times., 1894-08-30


to our stockholders and without deprivirg of the
advantages OF insurance those VINO had paid as
sessments due us for many years, who could not
relnsure without reorganization, IL they could
DO 80 at all such were the circumstances and
causes that lead to the sale of stock under con-
ditions that seemed the most favorable 70 WASH
ington Beneficial poicyholders 1t was possible to
obtain. The officers OF the Commercial Alliance
have already spoken for themselves To the peo-
pie Of Washington. During my negotiations with
them found them to be upright, prudent, and
frank.
TO MEET THE SHARP RIVALRY.
"They have to meet the sharp rivalry which has
been so largely instrumental in the attack upon
our association, and which has gone to the e1-
treme in the effort TO the custom of our
policyholders, as is shown by the flood of adver-
tSements in Washington daily papers. openly
bidding Tor the business OF our pUlicyholders
The Commercial Alliance Is a young and vigor-
Gus institution, with sufficient means and scope,
1 hrmly believe, to psotect all the rights and
promote the advantage of Washington policy
holders, and free from the disadvantages that
peculiarly afiict O local assessment company in
hard times.
"There is no attempt to force members out OF
the Washington Beneficial Endowment Associn-
tion. They can remain there II they wish, but IL
Is to be appreheuded that their assessments will
shortly become SO heavy that their insurance
VIII cost them more than the amount they would
be asked TO pay in the new company. They have
lHelr cnOlco rs 10 the course they Will pursue,
after having during previous years enjoyed the
benefits OF good insui ance at less than half the
usual rates
''The step that has been taken was not re-
sorted TO hastily, but after deliberate and
anxious consideration during an entire year and
consultation with the best advisers could find
among the insurance men OF the country For q
time there was thought of changing the plan of
our association 80 as to get rid of the assessment
feature, but legal obstacles were encountered
That would prevent this without injustice TO the
n and hold ~ fhns
ganizatiOn
NOT CUT AT THE ROOT OF THE EVIL
''The only companies with which we could have
consolidated whose premiums would have been
less than those of the Commercial Alliance were
assessment companies, and union with any of
them would not have cut at the root of the evil
from which we were suffering. 1t should not be
forgotten that 1t was necessary to provide for the
meeting of s21 500 of outstanding death claims,
and also 10 make provision for other death losses
that might occur before the polices of certificate
holders could be transferred. This point was
carefully and effectively guarded in the arrange
ment with the Commercial Alliance Life lnsur-
ance Company
''lt is as clear to me now as It was at the time
OF the transaction that the course pursued was
the proper thing to do, and done at the proper
time. The ruInor passed from mouth to mouth
untll 1t became the common talk OF the town
that received q commission for my interest in
etfecting the consolidation i brand as an abso-
Lutte and unmitigated falsehood. sold my stock,
as did the other stockholders in the association,
for the regular and equal market price, no
more, no less There was no legal reason why ],
or they, should not have sold at any time,
stock OF the company was sold before, time and
again. But IL seemed better for to remain
connected with the association, dischargtng the
duties of my Office and bearing its burdens,
until / could make such an arrangement that
our certificate holders would be protected and
their insurance continued upon fair terms,
without liability TO rejection on re-examinatiOn,
as would naturally have been the case with
many where the average age of the insured had
become great
HIS ATTENTION TO OTHERS BUSINESS.
"At a recent public meeting one speaker as
serted that great deal OF the trouble had arisen
from my attending to other peoples business.
For this criticism there was foundation. If / had
looked out only for myself, and not for other
people, had been needless of the interest of
those insured in our association and sought only
10 do for my own advantage, by sale of my stock,
that which had perfect legal right 10 do at
any time, the union OF the Washington Bene-
fetal with the Commercial Alliance, and !, as an
instrument of that consolidation, would perhaps
have escaped much cruel criticism. Our Asso-
cIation was perfectly solvent There was no eI-
cuse for throwing it into the hands Of a receiver
who could only have paid OF death claims, and
leave, without any place TO 90, old members un-
able 10 stand medical examinations. The course
preferred was 20 do the best could for the
policy-holders ard secure To them opportunity
TO reinsure, reliably and reasonably
II have 10 desire TO ascribe 10 interested or
sinister motives the action of all who have taken
part in the recent unseemly agitation Many,
no doubt, were misled by the false notion that
the association was 4 mutual company, in
which policy-hoiders were legally entitled TO he
consulted in general meeting, instead of a stock
company, with relations TO those insured by il
similar TO those of the holder of fire insurance
policy to the company that assumes his risk II
Wolld, however, be unfair to my association and
TO myself TO omit TO call attention to the fact
that those most active IN criticisIng the COnsoH-
dation and transfer were connected with rival
insurance organizations, as their agents or Of
ficers, or were formerly associated IN the man
agement OF our association, which they left un-
der circumstances which rendered the sever
ance of their relations more satisfactory 10 the
company than to themselves"
HON. SIMON VOLTS COMMENT.
TINES reporter called at 1890 o'clock
this morning at the residence of Chairman
the above letter That gentleman briefly said:
''The committee will be convened to-day and
If there is anything in Mr.. Gardners letter that
made. 1t is very curious that in the
opinion of MIR. Gardner the Washington
Beneficial Endowment Association still existed
and am wondering whether the impending pro-
ceedings in court may have produced this lumin-
Gus opinion"
Mr.. Wolf has received letters from New ork
and Boston which he has to submit 10 the COM
mittee before publication. These show the ex-
act status and condition of the company 10
which the policy-hOlders have been transferred
In saying good night he added:
~ thank THE TIMES for its kin dness in calling
my attention TO the matter We shall have a
meeting of the committee at IL noon at my Of
fee"