Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-16
co M ITTEE AT WORK.
Two Directors Of the Endowment Associa-
ton Present.
The Chairman Tells What They Said
While the Reporters Were Exclude
ell From the Meeting.

| OF policy holders of the Washington Bene-
! fcial Endowment Association yesterday
was full of interesting incidents. The
meeting was held at 5 o'clock in room 1 of
! the Central National Bank building and
was held at that hour for the purpose of
! having the directors of the company pres
ent to enlighten the committee as to the
| nature of their connection with the asso-
citation and its president.
| Ali the members of the committee were
on hand, and Mr.. Wolf again presided Us
| charm an OF the directors of the associa-
| ton, however Mr.. Edison and Mr. Somer-
| Vile we're the only ones who put In an ap-
pearance, and it was said that, with the
| exception OF Mr.. Vented, all the others
were out OF town. Mr.. Vented was cogni-
zant of the statements his associates would
| make, and concurred in them.
| Statements in secret.
All the local newspapers had representa-
| tives hand, but for some reason or
other, best known to themselves, the COM
| Hittee decided not to allow them to be
present, although every word that might
be said and everything that could be done
was of interest to several thousand other
| people, as we'll as the particular individ-
| uals composing that committee. Mr.. Brown
| ing escorted the reporters to a room across
| the hall. and told them that they might
| stay there until after the meeting, when
| they would be given much information
| about what had happened was proper
| to get into print. Some of the reporters
Stald' ana some went away under protest.
| The Chairman's story.
At the conclusion of the conference the
| chairman made an oral report to the news
paper men, giving the following account of
what had happened:
Gentlemen, l wish to say that the re-
quest to have this meeting without your
presence was not a matter of our seeking
1 hNr fhn tt.-N
| tSomerville and Edson), who are here from
any desire TO control anything. They were
sensitive about the matter. and. therefore,
they thought they could talk more unre-
servedly in the absence of newspaper men.
Both of them were before us, and have
given US complete statement according
| to their knowledge, of the business for
which this committee was created. We feel
satisfied, from their statements that
neither they any other members of the
board of directors were consulted in any
way whatsoever in the transfer of the
policy holders to this company, nor did they
have any knowledge of the transfer of the
property. We learn from them that there
was no meeting of the directors for the
transfer of the policy holders or the prop
erty.
These two gentlemen-as to the others
we don't know-Wera simply asked to sur
render their stock. for which they were to
get so much was its par value and this
is all they know about it. They had unlm-
tied confidence in what was told them.
tide. and they now express themselves
feeling as much chagrin and regret az this
condition of things do.
They have promised absolute co-opera-
ton with us in all things necessary to
bring about a clear understanding of The
whole business
In answer to a question. the chairman
said that one of the two directors present
had received the cash par value of his
stock and that the other one had not. 1t
was stated that the board was never called
together 10 act with reference to the trans
fer of the business. and that everything
bad been done by Mr.. Gardner on his own
responsibility.
Similar Happening In Maine.
The experience of the certificate holders
in the Washington Beneficial Endowment
Association appears to repeat in some de-
tails that to which the policy holders of a
company known as the Maine and New
Brunswick Insurance Company were re-
Gently subjected. the coincidence being more
marked because in both cases the CONNER
cial Alliance Life Insurance Company Of
New York appears as the concern to which
an effort was made to transfer the policy
or certliicate holders. An account of the
Transaction in which the Maine and New
brunswick Company figured, has been
brought to the attention of policy holders
here through copies of New York insur-
snce Journal sent in the mails. This in
surance journal repubiishes from the Port
land Press of July last the story of the
organize ton of the Maine and New Bruns-
wick Life Insurance Company and of its
reinsurance by the Commercial Alliance
Life Insurance Company of New York, as
follows:
The legislature of 1887 granted a charter
of Incorporation to the Maine and New
Brunswick Insurance Company to conduct
a life insurance business by assessments.
Among the inCorporatorS were many lead
ing men of the state and. as consequence,
when the company began to do business, /
great success was had. The headquarters
of the company were in Bangor, and the
office work was placed in the hands of ex-
perienced Insurance men, and agents were
employed at liberal terms canvassng for
patrons. A club plan of insurance was
started, and became very popular with the
members. For several years the company
proSpered "A little more than a year ago,
however, with d membership of 1900. in
spite of the protest of hundreds of policy
holders, the business transferred under
a peculiar arrangement to the Commercial
Alliance, New York company. This ar
rangement provided that any policy holder
of the Maine and New Brunswick could
be transferred to the Commercial Alliance
without passing medical examination.
Out of the 1000 members about 400 awaited
themselves of this arrangement Hon. Her
tert NJ Heath of Augusta, acting for the
insurance commissioner Hon. Joseph O.
Smith, brought a suit in equity to stop the
Maine and New Brunswick from doing bust
ness, and it has just been decided by the
law court. On the 18th of July, 1893. when
the court decided the Maine and New
Brunswick Company died. there were valid
claims amounting to about $4,000 due to
widows and orphans of deceased members,
and to the surviving members of the
various clubs established by the company.
Their division of the remaining funds of
the company will amount to between ; and
per cent of the face value of their pol
icies."
An announcement is also made on the
authority of the Portland Sunday Times
that the Commercial Alliance Life Insur-
ance Company of New York has notified
the insurance commissioner of Maine that
the company would withdraw from that
state, as it's business there has been UNI
satisfactory to the company.