Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-09-06
ercomiums Or respect Of the policy holders.

doubt, inspired by the same motive that In
spired all of the policy holders to insure in
the Washington Beneficial Endowment AS
ISOLATION, being a local organization, OFF,
cered by men known to all Of US and in whom
the insured had confidence. There was no
reason in the world why they should not
support and further the interests Of an or
ganization such as the Washington Endow-
ment was. 1t was not question between
an assessment company and regular life
insurance company; 1t was purely matter
of confidence, and for seventeen years, dur
ing which time said association. We believe,
paid it's obligations in full and discharged
the duties incumbent thereon, there was no
reason to doubt the integrity of the one or
to cast reflections inimical on the plan.
Therefore. it was the more surprising that
the policy holders were not taken into the
confidence of those who had been implic-
lilly trusted and in whom the most I'M
bounded confidence had been reposed.
IF a condition of things had arisen which
proved the assertions of regular life In
surance companies, there was every rea-
son in the world why the policy holders
should have been convened and MADE
aware of the actual condition Ut things:
That the company was bound to succumb
to the ravages of time, unless new blood
was infused into 1t, and that those VINO
were insured had either to scale their i'll
surance or advance the amount they had
heretofore paid, so as to bring into the re-
serve fund under all circumstances suffi-
cient money to meet the liabilities arising
from increased death losses but instead CT
doing this Mr.. Gardner nursed for a year
or mere, as per his own statement, this
phantom, day and night, until 1t almost
caused the complete prostration Of his
health, and finally, when he saw no other
means Of saving the poor policy holders. he
transferred them. without consultation,
without intimation. to company doing
business in New York, with no better
standing or outlook than the one over
which he presided, asking the policy holders
to pay for this glorious privilege. twice. or.
in many instances. three times. as much as
the victims of misplaced confidence had
heretofore paid.
Mr.. Gardner's Proper Course.
Now. any reasonable person, even the
most intimate and loyal friend of Mr..
Gardner. is compelled to ask this question:
II Mr.. Gardner really cared for The interest
Of those who had known him and whom Re
had known for a lifetime, why did he not
consult them? Why did he not ask for a
conference Of the policy holders, submit
the condition Of things. and arrive at a
satisfactory conclusion? Was it not just
as easy to do this as to go outside Of the
city and traffic with stranger who had
no earthly interest in our welfare or our
future happiness, whose only ambition 1t
was to make money and strengthen their
own depleted Golfers and their reputation?
was there any reason in the world why
Mr.. Gardner. could not have said: Gentle
men, this matter has given me serious
concern. / have lain awake night after
night IN your interest, ana can see no other
outcome but bankruptcy unless something
radical is done. I have other business to
attend to, and am tired Of this. AS have
sacrificed myself trying to do the best, l
desire to be released from this trdst and
responsibility. The stock that l hold am
willing to sell at cost nay, more, If neces-
sary, l am willing to sacrifice 1t to show
my sincerity and business integrity. See
If you cannot take this load of responsible
ity off my shoulders-reorganize the COM
pany, either scale the insurance that you
have or increase the rates so to guaran-
tee beyond question that the amount of
insurance carried will eventually be paid.
You can very easily keep up the associa-
ton. If you wish to pay approximately
life insurance rates. Does any sane per-
son suppose for a moment that the policy
holders, under such conditions would not
have cheerfully complied with any reason
able request, fairly stated and so dis
interestedly made?
Equity and Fair Dealing.
ION the other hand, where does the dis
interestedness of Mr.. Gardner come in,
when, instead Of doing this, he sells to a
foreign company-after having purchased
the stock of others at cost-all the right
title and interest Of the Washington Bene-
fetal Endowment Association, including
their real estate. for a sum that is entirely
unknown to the public--a matter of private
speculation between himself and those to
whom he transferred the property? Mr..
Gardner states that this is not a mutual
concern. True; 1t was started upon the idea
that II was an assessment company; that
no more than a certain number of assess
ments were to be levied each year; and
yet, Mr.. Gardner knows that during the
last year or more double the number of
assessments promised at the inception have
been levied without complaint and without
any question being asked by the present
policy holders. and, notwithstanding his
first circular to the members, after weeks
company. thus destroying the illusion that
1t was even an assessment company. And,
having acknowledged that it was a stock
company, where does the equity and fair
dealing come in on the part of himself TO
those most interested in abandoning the
policy holders to the mercies OF an un-
known sea. wrecking and loo,ing the ship.
when common honesty would have dictated
that the least he could do was to sacrifice
his holding. coupled with a regret that he
was incapable of carrying out in good faith
the aims and objects of the association?
None of these things have been done,
and all the explanations do not explain,
and the high-soundng phrases INDUCED in
are as idle chaff sown broadcast to catch
the gullible, and cannot affect in the slight
est degree the minds of any enc unbiased,
for the simple reason that he who wishes
to do right needs but state facts and let
them speak. Mr.. Gardner, In his late state
ment, says the Washington Beneficial Ed
dowment Association still exists. How can
he reconcile this statement with his acts?
If it exists, then there has been no sale,
but he says there has been a sale. sale
of what? The assets beloI gng to the policy
holders, trust fund created and accumu-
lated, and transferred from its legitimate
owners to entire strangers, leaving Mr.
Gardner's victims with shadow and a
promise.
Mr.. Gardner Threatened an Injunc-
tfOn.
1T is proper to recall to Mr.. Gardner's
memory some of the history of the Wash
ington Beneficial Endowment Association,
First At a regular meeting, at the time Mr..
Gardner was only secretary, the board of
directors considered the subject of trans
ferring the company to another, SO as to
prevent financial disaster. The offer was
n ade to one of the New York companies,
who declined it subsequently. The same Of
fer was made to one of the companies of
this city, who asked for the privilege of
examining the books, and after such ex-
animation declined, giving as a reason that
they were not satisfied with the condition
as they found 1t. Pending these matters
Mr.. Gardner threatened that If the board
would transfer the business he would Sc
cure an injunction-the very thing the poll
cy holders have been at last compelled to
do. But when this transfer was supposed
to be imminent, Mr.. Gardner implored the
a<1 <.f