Pine Bluff daily graphic., 1910-03-25
MANY POLICY
 HOLDERS HERE
(Continued From Page 1.)

before that of the state authorities, but so far it has not come to head. William Ketcham, who formerly had charge of postal fraud cases in my office, took up the case first on com plaints that the company had been organized and was operating pure ly for the purpose of unloading stock on the public. When MT. Ketcham resigned his. position in the postal service I turned the case over to Postoffice Inspector Isaac Mullen, who now has it under investigation.
 Inspector Ketcham took up the investigation of the Consolidated Casualty company after he had worked for some time on the cases of the Rhodus brothers. Thomas, Birch, and Edward, promoters Of long string of alleged fraudulent in- surance companies. The Rhoduses now are under indictment by a fed eral grand jury, and it was alleged by those complaining against the Consolidated company that this con- cern was operated purely for the purpose of selling stock.
 Says Condition is Serious.
 Deputy Commissioner Scherr, when seen in the evening at the La
 Salle hotel, disclosed that he has been in Chicago for two weeks look ing into the affairs of the Consoli- dated company.
 Though the condition of the con- pany is serious,' said Mir. scherr. i've are doing everything possible to save the corporation, and believe we can. There is in it the foundation for a strong insurance company, and we hope to put it on it's feet and save the stockholders and policy holders from loss. We, in the West Vir- ginia inquiry, found false state ment had been made and signed by the president.
 "The company's statement showed surplus of about $29,000. This was found to be untrue. We decided some thing had to be done. The di- rectors of the company were called upon for an explanation and we found they had left much to the off, cers, but after inquiring into the sit uation joined with the authorities in the inquiry. Our department, they decided, should be given full charge.
 Would Avoid Receivership.
 "This was done by resolution, and a committee of five, with MT. Me Chord, one of the directors, as chair man, gave Mr. Darst the manage ment in West Virginia Mr. Me Chord was made general manager of the companys business in Chicago and we are cooperating with him.
 We are endeavoring to get new fi- nancial life into the concern. If that is not possible, liquidation will be the result. We are trying to avoid a receivership, for such things ruin company that may have the best of prospects otherwise.
 Stockholders in the company it is said, number something like soc They have paid in $315,0G0 of the capital stock and are scattered throughout the country. The com- pany was incorporalel in July, 1903, under the laws of West Virginia, and it's charter made extremely broad too broad to permit business in many states, it is said. F. W. Potter. in- surance commissioner for Illinois, refused a license for the company to do an insurance business in 1lli- nois because, it is said, tho charter embodied in it the right to do 8 real estate business a right not allowed insurance companies in Illinois.
 Blame Armstrong's Rivals.
 Attaches of the company and friends of MT. Armstrong during the day placed the whole trouble at the doors of eastern casualty compan- ies, whose officials, they said, had made malicious and false reports concerning the corporations affairs.
 A statement issued from the Chi cago office of the company follows: ] MT. Armstrong has nothing to fear from, any investigations. federal or state, into the affairs of the Con- solidated Casualty company. When