The Washington herald., 1913-02-28
was sent from Syracuse. N. Y. to a man
in Kentucky:

Investment Bonds &
Edward Lee Emmons,
Pest Standard Building.
Syracuse. n. Y.
Concerning your
Commercial Fire Insurance Stock.
About two years ago. the New York
State Department of Insurance made an
investigation of the Protective Corpora
ton. Later, the Supreme Court ordered
Its affairs liquidated. In this liquidation
you were given stock in the Commercial
Fire Insurance Company instead Of cash.
The referees report shows that the
Commercial stock cost the Protective
about $500 per share. The face value of
Commercial stock is 500 per share. and
on the Washington Stock Exchange II
had sold previously at or below its face
value OF 500 On this basis SEQ per
share, you received only BIZ per cent Of
your investment, or $40 for what cost
you s:Jp.
" This Commercial Fire Insurance
Company is now being investigated, to-
Gether with Tuttle, Wightman l. Dudley,
Inc, by special investigating committee
of the United States House OF Repre-
sentatives, and with what result no one
can foresee. But 1t is a significant fact
that Tuttle. Wightman e. Dudley, who
were so active in the sale Of protective
stock. are promoters of Commercial
stock and are the men who have been
telling you that it is worth sl1 per share.
You have doubtless received many Of
their booklets and letters sent out in
an effort TO bolster up their stock.
The following excerpt is from the
Washington Posts report OF the COM
| mlttee's session of Friday January J.
1913. and is reply by 4. N. Best a New
York insurance expert. to question
from Representative RedfieId:
rs il not true" asked Mr.. Red
| field. that If this stock had been sold
al par, and the building been. for any
reason, not quickly convertible into
| money, this company, TO meet its actual
disbursements in those ten months.
would have had to 20 into the hands OF
a TeCeiver?''
The figures which have just given
show the actual disbursements exceeded
the incDne. with the exception OF the
premium on the stock and the increase
by adjustment Of the book value OF real
estate, by over $4,000" was the re-
ply"
'''What value this stock will have, as
. result OF this investigation. no one can
tell. II you desire To sell your CONNER
c!al shares. | can handle limited num-
ber on the basis OF 20 per share. You
can send properly indorsed certificate
with draft to the City Bank. Syracuse,
y. Y. on this basis. | reserve the right
10 cancel this offer Immediately, without
notice. and return your certificates If
do not use it.
- Yours very truly.
EDWARD L. EMMONS.
January 10, 1873"
This letter was sent out for the evi-
dent purpose OF dissatisfying that stock
holder. and then buying his stock at one
fifth OF the par value OF the stock and
surplus paid in. II will be seen that this
letter. written for the purpose of dissatis-
flying stockholders, was based upon only
one question and answer selected from
all Of the two thousand pages of testi-
mOny. II should further be noticed that
this question was strictly n Hypothetical
one, and the answer was in kind It
should also be noticed that this hypothet-
ical question and answer We're never made
applicable 10 any condition existing in
ance companies. because both companies
are admitted by their worst enemies not
to be bankrupt. but 10 he perfectly SOL
vent instead.
I'VE take this means of unh esi d n ting
Iy saying to the stock holders In these
two companies that they had better
keep their stock rather than let IL go
for trihe. or even Mt signihca ant
sum. n not 10 the allies, certainly to
the aidcrs and abettors of the persons
who instfgnted the warfare against
these companies for the purpose of de-
stroyfnS them