Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1906-01-06
FINANCIAL LEADERS
(continued from Page e)


eating committee with vicious dc.
of the Officers Of the Equi.
table Life Assurance Society, whG
were declared to have bounded him
for six years and TO have attempted,
through paid spies, placed in the serv.
ice OF the Provident company. to bring
about the ruin of that concern.
MIR. Scott declared that in 1900 the
records of his company were stolen by
o man engaged by the Equitable So.
Ciety for the purpose of prying upon
the business" of the Provldent Life.
The stolen records. he testified, were
found in this mans room and he was
afterwards indicted. Prosecution was
Withdrawn, II was testified solely on
lehalf of the mans mother.
Mr.. Scott also charged that treach.
erous bookkeeper, who had beer dis.
charged for gambling, was in league
with the man who stole the records
and falslfied the books of the com.
pany. From this man, MIR. Scott testi
fed, he received a confession in writ
ing.
discriminating Letters.
The most sensational dramatic
scene that has occurred since the com.
nlittee began its sessions developed as
Er. Scott pleaded for the suppression
OF four letters MIR. Hughes was about
10 place in evidence. He protested
that the introduction might mean the
ruin of himself and family and II
would place the committee In the atti.
lude OF aiding the Equitable In the con
spiracy he declared Its officers had
formed against him.
His efforts were useless. however,
and the letters were placed in evi.
dence, showing that for seven years
TIE Equitable has had claim against
him OF nearly 100000. This debt, he
stated, was in dispute, although the
letters tended to show that the claim
had been admitted by him on several
occasions.
The strange affair was as deeply
cnyeloped In mystery when the aft.
eTnoon session closed as when the sen.
sdtional incident was developed.
Why the Equitable should have al.
lowed n claim OF this sort to lie with.
out an effort at collection for seven
years was not in any manner explain.
I'd, and II was easily understood that
back OF the whole affair was one OF
those inexpllcable incidents that ap,
pear to be a part Of high finance, as
practiced in the life insurance com
vanies.
The incident furnished absolute
proof of the fact frequently stated
that much Of the ammunition used by
the committee on its investigation Is
being furnished by Thomas +. Ryan.
II IL known that he had turned over
to the committee mass Of informa
ton tending to show that the New
York Life and the Mutual are worse
than the Equitable, and his close con
nection with the committee was shown
by the fact that a messenger from the
Equitable brought to the city hall cor
respondence between Scott and Alex
ander ond waited until the letters hat
been introduced in evidence and tool
them back again to be replaced in the
iies OF the society.
Mr.. Hughes revealed another sensa
ton in the admission that the reports
Of the company TO the insurance de
partments of Wisconsin and Connect
cut were falsiRed in the years 1897
1898, 1899 and instead OF showing I
goln in mortality in those three years
showed an actual loss.
Henry MORE, who has been employ
ed as actuary by the Provident Lift
for four and one.half years, was callet
10 the stand for a few minutes, ant
vas asked:
Nov, there are two years shown Of
a., Ia,
were extraordinary gains In mortality
in 1898 1895, 1862, and in 1899 1921
According to your information, bot
OF these are inaccurate" Ayes
Q.-And do you mean to say tina
II you got the actual figures iron
your record IN place OF these the en-
tire gain would be wiped out and
!, less substituted? Ayes.
Q.-Because mortality rate was owe
lCO per cent? Ayes.
The report in explanation of the eS
traordinary gains in mortality had sta
ted the mortality for 1899 to be ~ pc
cent. instead Of more than 100 per cen'
There had been many ether reveli
lions during the day tending to shoN
the Provident Life to be as badly tar
gled in its bookkeeping as the Ne'
York Life, which failed to record $3.50
600 given away in campaign contribl
tons.
II was shown today that not onl
had the funds of the company bee
used to buy It for Frank II. Hadley l
1896, but $4,000 was lent to Boswe
q Buckley, Cincinnati agents, to pc
J NIT them to purchase 100 shares {
stock.
The money was turned over to Scot
who purchased the stock and deposite
, the 100 shares with the New York s.
, curity and Trust Company as part {
, the collateral to secure the loan {
$4,000 advanced to Scott on the II
dorsoment OF John A. Mccall, an
with which Scott later purchased III
control of the PTovident Life after tn
death of Hadley.
The interest of seven per cent. o
this stock is paid to Scott, who pay
: the company five per cent. on the $25
. luun liam IN npgWaIl a nunklay