The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-06-25
Olving $4,000 Diverted
From the State, Case
Was Bad One.
GAN TN 1900 AT
ROGERS ELECTION
Man CONDEMNED by Commit
tee Was Educated for
the Ministry.

OLYMPIA. June 2a.-(Special to the
man.)-InvolVing perhaps $40,-
coo as the amount of money illegally
collected, extending over period of
nine years, dragging into its meshes
scores of insurance companies, the
Schiveley scandal in the state insur-
ance department seems to be about at
an end.
The grating of money through in
vestigations of insurance companies
has a history extending back to the
state campaign of 1900, when John r.
Rogers was elected governor over j.
M. Frnk the steel king of Seattle.
Early in the campaign Schiveley who
lived in Seattle, became active as a
ward worker in the fifth precinct of
the Second Ward, the home of E. II.
Guie, opponent of Frink for the nom
ination before the state convention.
Guie had been speaker of the house of
representatives and had a splendid
opportunity to defeat Frink. The con-
ditions alarmed Frink and Schively
then practically stranded in Seattle
one of its honored citizens
Schively delivered the ward to Frink,
he was nominated and made the cam
paign only to be defeated by Rogers,
of barefoot schoolboy" fame. But
Shivelv was rewarded with the posi-
ton of chairman of the state republi-
can committee During the campaign
the committee funds were juggled; it
was charged, but the scandal was kept
under cover, and the people of the
state were never advised of the facts
whatever they were.
Shivley was in position to demand
Of the republican part of the state as
ministration a berth with but little Ia
Dor and a good salary attached This
was given him in the Office Of the Sec
retary of state, where a department or
insurance had been created From thh
dav Schively entered upon the office
the excessive collection Of fees was
| assumed to be one of the perquisites
of the place. il is charged. and not
denied by Schively Since that time the
/ position has been entrenched from
/ every possible source and the revenues
collected have grown rapidly as the
months and years passed.
John II. Schively was educated for
tho ministry and for number of years
preached successfully. The experience
fitted him to become a political speak
er of force and an orator of some
ability. Throughout his experience IN
the insurance department he has been
able to use his early training to the
greatest advantage, and his previous
connection with the church was a
stenning stone to peoples condolences
/ in many cases.
/ Deliberately planning a campaign oi
money-making, Schively wrote let
ters to insurance companies advising
them of impending examinations ana
OF the regulations which were BENG
mt into effect Then the crooked con-
/ Germs were only too anxious to pay
any nrice asked and gain the privilege
of doing business. On the strength OF
the letters written by Schively, on
the sbovings made by some of the Wlid
cat companies. large amounts of busi-
ness were secured and the losses sus-
tanned to customers cannot be even es-
+ timated.
In 1906 the first exposure occurred
The Mutual Reserve Life Insurance
COMPANY. intended as a counterfeit OF
q well-known company, was adnil'eu
TO do business in this state, on pay
ment of $500 and the provision OF an
elaborate dinner for Schivefy Thls
/ story was printed by a. Seattle news
paper at the time, glaring headlines
telling the story of the state depart
ment giving a clean bill of health to a