The herald., 1897-09-03
OFFICE OF THE HERALD,
Los Angeles. Sent


The collapse of the Massachusetts Bene-
this column yesterday, is commented upon
by the Chicago Investigator as follows:
"The tendency of members to stampede
from an assessment association and thus
bring disaster upon the loyal members and
the institution itself is again shown by
the recent history of the Massachusetts,
Benefit Life, although in the case of this
association the stampede has been mainly
due not, as is usually the case to internal
causes. but to persistent and unusually
powerful hostility from without. Yet only
few months ago there appeared no reason
why any such catastrophe should occur.
The directors of the association as far back
as 1889 had seen the dangers of pure assess
mentism, and had taken steps toward plac-
ing the association on a sound basis. Their
efforts were so far successful that with
wise management the association could
fave succeeded in freeing itself from the
incubus fastened upon it by the errors of
the earlier period Of it's existence and have
developed the institution along sound lines
into one of the most important and stable
institutions of the kind in the country. The
wisdom shown by the changes made in the
plans of the association, together with it's
great vitality as shown by it's steady
growth, were guarantees of such develop
ment.'
The Investigator goes on to say that the
action Of the state legislature last year in
ordering an investigation of the affairs
of the association was the death blow.
Finally the levy of an increased assess
rnent to meet liabilities overdue came as
the coup de grace 1t draws the conclu-
sion that "thus a fine business, amount
ing to nearly sl0O, 100, 900 of insurance in
force, has been needlessly destroyed and
the interests of $4,000 policy holders reck-
lessly sacrificed"
Certainly an institution that cannot
stand the test of a state investigation nor
survive the strain of an extra assessment
must be in bad shape, and the bigger the
institution the more widespread the calam-
ity to those who have invested in it.
= \
The deposits in the New England savings
banks in 1890. according to Prof. Mulhall
were $755 100000, or an average of $151 for
each inhabitant. Great Britain has saw
ings deposits of s64s Oo0, ,OoO or SIS for each
inhabitant; Prussia. s5OOOO,00o, or $N for
each inhabitant. while France has savings
deposits of s754,oO 900, or $40 for each in
habitant of the country. The excess of de-
posits in the New England savings banks
is credited by Prof. Mulhall to the large
number of factories in the New England
states which give profitable employment to
many people.
y
The officials of the Long Island Mutual
Fire Insurance company have denied that
the capital of the company is impaired as
charged by the state insurance department
to the extent of $4,000 The officials say
the company has no capital, and there
fore there could be no deficiency.
The rumor of the incorporation of the
piano business of Steinway & Sons has
been confirmed, and it will cover all the
business as conducted in London, Ham
burg aVd New York. The capital, which
has been placed in London by public sub
scription, is s1,25O,0O0 in 5000 8 per cent
preferred shares of E1O each. and 1901 900
common shares of G5 each. Only English
capital has been interested, and 1t is pro-
posed to conf1ne operations in the securities
to the London stock exchange.
= y =
Under a new law in New York state
bankers are required to turn in reports
to the tax assessors showing the names
of stockholders, the capital, surplus and
undivided profits Of the institutions, and
also the market value of the stock of the
respective banks. 1t is the intention under
this law to tax all bank stocks owned In
the state. not at its par value, but at its
market price. Officers of state banks ex-
press the belief that the enforcement of
such rule will cause great many stock
holders to sell their holdings.
The Homestake Mining company has de-
clared dividend No. 229 of 25 cents per
share ($S1 25O) making Sc. .sS7, 500 paid in divi-
dends to date, payable August 25th at the
Office of the transfer agents, Messrs Louns-
berry & Co.. Mills building.
The mining industry in the Transvaal is
for the most part, played out, says the
London Economist. The financial position
of the industry six months hence, unless
great reforms are granted In the mean
time, will be thoroughly rotten, and until
this is remedied investors should abso-
lutely refuse to touch a single Transvaal
stock.
= + +
The July output of Cripple Creek was
over $1,O000O0. The tonnage of high grade
ores showed a failing off, but that was
made up by an increase of the low grade
ores. The railroads hauled total tonnage
OF 24,4O0 tons, while the estimated tonnage
by wagon haul was about 23OO tons.
Y 4
1t is reported from Boston that the Wal
ter Baker Company, chocolate manufac-
turers, will be sold to syndicate for IS, 900. :
0oo Of which 100000 will be in cash and
H,O000oo in bonds of the new company.
4 4 +
1t is said that a new pool has been
Formed by the National Linseed Oil Com
pany with mills outside of the trust, and
that the heavy advance in the price of lin
seed oil has been due as much to this or
sanization as to the rise in the price of
flaxseed.