The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1907-03-02
PACIFIC COAST LIVESTOCK IN
SURANCE CONCERN NOW IN
HANDS OF RECEIVER AFTER
CARRYING ON HEAVY VOL
UME OF BUSINESS.

The Pacific Coast Livestock asso-
citation, founded two years ago on
capital of possibly $400, went to
the wall yesterday, and Charles A.
Murray, it's attorney, was appoint
ed receiver by Judge Whitson, of
the federal court. The affairs of
the company are involved for mere
than 100000 owing to unpaid insur-
ance on stock lost during the re-
cent bad weather, but the real
cause of the failure is said to be
the enormous salaries which the
company paid to its trustees and
officers. During the two years the
company has operated it is judged
that more than 100000 in prem
iums, and 30 per cent of this wen,
to trustees, who received from
81 900 to $1,000 per month. It's
rates were exceedingly low and for
that reason the company gained
popularity. Rates on farm stock,
horses, cattle and sheep, were 10
per cent, city stock IL per cent, and
logging camps IL per cent. The
highest rate was 16 per cent on
railroad stock.
Agents of the company averaged
business on percentage which re-
turned salaries Of 500 a week and
sometimes more. The company
would accept premiums in either
cash or notes and in this manner
many wealthy stockmen took adj
vantage of the insurance.
J. E. Mason took charge Of the
association a few weeks ago and
at first intended to reorganize the
company, but after thorough in
vestigation decided to ask for re-
ceiver.
Although Mr.. Mason brings no di-
rect charge of misappropriation OF
funds against anyone connected
with the concern, he has intimated
that things are not all right ana
certain amounts must be accounted
for.
Although State Insurance Com.
missioner Shively has been here
and investigated the company he
did not revoke its license or ask
that the business be discontinued
until he endorsed Mr.. Mason's &C
ton in declining to issue any more
policies.
The organizers of the company
were. H. l.. Hilliker, now of Oak
land, CAL; w. J. Walker, news
paperman, vice president; W. M
Hunter, secretary; F. G. Mathison
treasurer: J. E. Mason, manager.
Hilliker is no longer connected
with the company, the president
now being j. B. Shock.
John A. Murray in an interview
today said:
81 have just been advised that
Judge Whitson has appointed me
receiver for Pacific Live Stock AS
ISOLATION. The associations diff
ficulties are to be Immediately at
tributed to the conditions that have
prevailed, preventing farmers from
marketing their grain and paying
notes for premiums. 1t has notes
in excess of its liabilities and II
the proceeds of the notes were
available, it could discharge its
contracts. The officers recently or
ganized a corporation that was tc
have a paid-up capital of 100000
and it was intended to have the
new corporation take over the as
sets and assume the liabilities OF
the old, but ]. f. Mason, who a
few weeks ago undertook the man
agement of the association and
who was to take a part in the new
corporation, decided that the liabil
tiles were too great and that the
plan could not be carried out.
THAT plan had the appreciation
OF the insurance commissioner and
when he found that 1t was not &c
be consummated, he requested that
the company do no more business
until he should give his permission
1t had stopped issuing policies. Mr.
Mason made the hest of effort tC