The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-12-06
DURLAND IS A HUSTLER
Career of the Get Quick Scheme
Organizer.
TELLS HIS STORY IN COURT
Some of the Companies Formed, but
Can Give Dizzy Dividend Figures by
the Yard-An Interesting Case.
BY the United Press.


BY the United Press.
Philadelphia, Dec. 5-Dr. John H.
Durland, president of the Provident
Bond and Investment company, who Is
on trial In the United States district
court on the charge of using the malls
for fraudulent purposes, testified in his
own behalf today. He stated that he
had gone into the bond enterprise in
1889, and for twenty years had been in
the life insurance business. He organ
ized the Mutual Saving Fund and Dis
tribution association, in New York,
which had a run of about sixteen
months and the business of which was
conducted on the same principle as
that Of the Provident company. The
witness told of "scurrilous' attacks
being made against the New York con-
Germ by the New York Herald, which
resulted in a temporary injunction be-
ing granted against 1T, and for the pur-
pose of continuing the business, OBJ
tained q charter in West Virginia,
following the building and loan asso-
citation act. He then came 10 Phila-
delphia and organized the Provident
company.
Dr. Durland then detailed the work
tngs of the Provident company, he
prefacing this portion of his testimony
with a declaration that the business
sis as legitimate as any that exists
He said that 80 per cent of the bond
holders in the New York concern eX-
l,nl fnt oaptitip "a
in the Provident company, the latter
concern taking up the business at the
point where the New York injunction
stopped it," and declared that all the
bonds agreed to be paid were paid ana
that the Provident company is pre-
pared to redeem every bond as it ma
lures. The witness endeavored to IL
lustrate that the principle underlying
the system is similar to methods en-
ployed by life insurance companies, but
Judge Butler interposed "He is not to
enter into theories with the jury or
court. We could refer to pages of mat
ter relating to such things. From the
time of the South Sea bubble every
now and then such schemes crop up,
and some men work themselves to be-
lieve in them" The judge said that
The defendant should have every
chance to defend himself, but he must
mot go into theories.
An Insurance Company Lost.
Gross examination by Assistant DIS
trict Attorney hewitt brought out the
fact that Durland had organized the
Citizens Mutual Life Insurance COM
pany of New York, and had served as
its actuary for one year. Being pressed
to tell what had become of this COM
pany he said he did not know, but that
he had heard of it's amalgamation' with
another company.
In 1881, Durland said, he was presi-
dent of a cooperative life association
which was not success, and two years
later organized the Union Benefit
league in New York, which was after
ward amalgamated with the Citizens
association.
In reply to Attorney hewitt DR.. Dur
land stated that he organized the Equit-
able Investment and Trust company, or
Washington, and was its president. The
capital stock of the Provident company,
the witness said, was 100000, of which
$20 900 was cash.
After denying the truthfulness of the
printed charges, DR.. Durland said he
got 800 shares of the Provident company
and $1,000 in cash for services. The
stock was re-distributed among the
stockholders, this method being pur-
sued to make 1t full paid stock. Alto
gather, he continued, 29 per cent. in
dividends had been paid on the 100000
capitalization. He was asked how
many suits were pending against the
Provident company, and answered that
there was one in Cincinnati and one in
Philadelphia.
On re-eXamination by Lawyer Gross,
Durland said that he had been connect
ed with the New York Mutual Fund
Life association. He added that this
company had paid over $20,000,0O0 to
members, and had a reserve fund of
$S,OOO,0O0. He further explained about
payments of premiums of the Provident
company and the method of payment of
dividends. He said that per cent on
the 100000 capital, $1,000, had been car
ried into the expense fund and the bal
ance into the reserve fund This con-
cluded Durland's s examination. Several
other witnesses testified in Durland' $
defense.
FOR AMERICAS CUP.