Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-09-06
SUBMITTED
Case Of the Policy Holders Of the
Beneficial Endowment Association.
fHE Committee OF INVESTIGATION
Criticism of the Course Pursued by
Mr.. Gardner.
THE LEG AL PROCEEDINGS

The long-awaited report of the commit
tee of policy holders of the Washington
Beneficial Endowment Association, appoint
ed to look into the affairs of the associa-
ton, and especially the transfer of its
business to New York company, was
made public last evening. The statement
Of President Lawrence Gardner was pub
lshed some time ago, and this lends ad
ditional interest to the lengthy answer Of
the committee.
The committee appointed by the policy
holders of the association held a meeting
yesterday afternoon at the office Of Simon
Wolf. the chairman, on street, and unani-
mously adopted the report which had been
prepared to cover the facts of the transfer
as gathered from a searching inquiry into
the transaction. The report is addressed to
the policy holders of the association, and
Is as follows:
THE undersigned, your committee, were
appointed at mass meeting Of the policy
holders. held at Willard Hall. We were:
First. to get at the facts of an alleged
transfer on the part Of the officers of the
Washington Beneficial Endowment Associa-
ton to the Commercial Alliance Life In
surance Company of New York city. Sec
ond. We were to find out what rights, II
any. the policy holders had in the premises.
Third. what remedies existed. and what
course was to be pursued. Fourth, we
were authorized and empowered to secure
legal advice. and to take such steps in
court as, in our judgment, might be deemed
necessary. Fifth, and. for the purpose Of
carrying on such litigation, 1t was moved
time being, 81 toward the defrayiug of the
necessary expenses.
Aour committee organized the next day,
and 1t having alie ady been determined at
mPafinO Nr Inn Alf Aaa
as chairman Of the committee, Mr.. T.
Percy Myers. secretary, and Mr.. H. o.
ClauShton was elected vice president of the
committee. The work that the committee
had L. do was divided, Messrs White
GiesekinS and Bauer being appointed as
experts 20 discover If any errors or irregu-
larities existed in the books of the Endow-
ment Association, and Messrs Claughton
Miller and Mackey were appointed a COM
m'ttee on law and securing legal advice.
interviewing the Officers.
1t was deemed proper that, before any
aggressive steps should be taken, the Off
GERS of the association should have an op-
portGnity to appear before the COMMITTEES,
so as not to do any one an injustice, but
to get at the facts. Mr.. Gardner had, In a
circular addressed to the policy holders,
given his version of the matter 1t was
deemed advisable that the members of his
board of directors or trustees should be
summoned first. Those in the city at the
time, and In condition of health to come,
did appear before the committee, to wit:
Messrs. Edison, Sommerville and Wetzal
Mr.. John T. Given was too Ill to come, and
the other members of the board were out
of the city.
These gentlemen expressed thorough
sympathy with the aims and objects Of the
committee, promised hearty cooperation
and distinctly stated that no meeting of
their board had been held for the transac-
ton whereby the policy holders were bodily
transferred to another company. Suisse
Quent to this Mr.. Bailey, another member of
the board Of directors. in a letter to Mr..
Edison. made the same definite statement
that he thought the policy holders were
acting in the right, and put the query to
Mr.. Edison whether a meeting Of the board
of trustees had been called for the purpose
Of deciding upon the action that had been
taken
After these gentlemen had been before
the committee the chairman was instruct
ed to see Mr.. Gardner in person and to
invite him to a subsequent meeting for the
purpose Of hearing his side Of the matter.
The chairman did visit Mr.. Gardner and,
after a lengthy interview, Mr.. Gardner said
he saw no reason then why he should not
appear before the committee. Mr.. Gardner,
however, instead of appearing in person,
sent a letter, which has been printed in the
daily press of this city, and needs no COM
ment. The committee on books, through
its chairman, Mr.. White, tried for several
days to secure an interview with Mr.. Gard
ner. but without success. Subsequently Mr..
White wrote a letter to Mr.. Gardner en-
bodying our request, to which he received,
in the course of two or three days. an
answer, promising to have a statement made
for him, but no offer to have the books and
papers shown, since which time nothing
has been heard or done in this direction.
The New York Company.
THE committee on law had been re-
quested by their fellow members to act for
them, having every confidence in their
ability and judgment. But they deemed it
better to secure legal advice outside of the
committee, so as not to be embarrassed in
any way or manner or to be subject to
adverse criticism, and they retained and
secured the legal services of Messrs. Phil
lips and McKenny, eminent counsel and
the result of their labor is the filing of a
bill in court, which asks, in brief, re-
straining order to prevent the transfer of
any OF the property of the Washington
Beneficial Endowment Association to any
other corporation; to secure an accounting
and for the appoint of a receiver.
The committee has acted in every way
possible with the desire to be fair, just and
impartial to get at the material facts as to
the financial condition, reliability and char
acter of the Commercial Alliance Life In
surance Company. The object of this be-
ing that II the company was of a character
to recommend the policy holders could for
desired to keep on with that company, pro-
vided that the Endowment Association, as
such. should not be kept either intact or be
reorganized. Information has been secured
from sources deemed reliable, fro;s official
statements, and from report of a recent
examination made by the superintendent of
insurance of the state of New York, and all
lead to the conclusion that the committee
cannot recommend said company TO the
favor or patronage of the policy holders of
the Washington Beneficial Endowment AS
ISOLATION, nor should Mr.. Gardner ever have
recommended them had he shown as much
anxiety In our interests as he had to sell
his stock.
1t is proper to answer the charges and
insinuations made on the part of Mr. Gard
ner and the officers of the Commercial Al.
lance that this committee was engineered
by or through the influence of rival insur-
ance organizations or their agents We
stamp this assertion absolutely I'M
founded and untrue. Not a single member
of this committee has been actuated by any
such desire or motive, nor have they either
individually or collectively made use of
their position to the detrment of any one
company for the benefit of another The
subject of insurance has never been touched,
either at their public meetings or in their
private consultations. 1t Is true the chair