The San Francisco Call. Newspaper, November 20, 1905, Page 3

HE SAN FRANCISCO CALL MONDAY, NOVEMBER 20, 1905 "URGES NEW LIFE INSURANGE: LAWS E. Myron Wolf, State Insurance Commissioner, antnounced yesterday he would recommend legisiation to meet disclosures of the life insurance investigation. Former Commissioner Andrew J. Clunie has not recerved a reply io his telegram offering to go before the New Y ork committee. Former Governor Budd explained thar he had served as an arbitrator o P WOLF State Commissioner to Recommend Legislation. Cluniel%waitsReply to His Telegram to Hughes. AR " ey Budd Talks About His Work as an Arbaitrator. ex-Co! the de- ceased brother, and eys of this panies to abate ded ders in this fe insurance and operated. plied charges of 8. s. e Equi- rporati missioner orney of igation ring to Insur- suc- atten- York. tion with ent of life in- a general dministration irs. Wolf has Legislature aws e compa ided tha the fes in Ca there shou ets of these > do business in this State if are more than $500,000,000. believes there should be e States of the on might be to restriction and however, e of Cha to the ex- : rman Armstrong Vew York investigating commit- If says he will awalt the report < et committee before making a statement the subject. ng the matter, Wolf said yester- nder a policy of interstate com- ee it has been the custom of in- ce commissions throughout the ted States to accept the report of e Commissioner in the home State of e company as to that company's solv- ency Commissioners, of coutse, right to Investigate any company business or applying for the to do business in a State. But in number of cases, and I know exception, accepted on ay policies COMPANIES ARE SOLVENT. t the recent convention of Insur- Commissioners of the United held in New Hampshire, which ded, 2 special committee on life ance submitted an exhaustive re- It was agreed that all of the the score of ability hown that the companies t and had maintained their is is the vital thing to usas There was a sentiment by the convention to wait e New York committee had com- t y and had reported be- ce official action look State legislation. It was d that uniformity in State regu- desirable to avoid confusion he business throughout on surer basis. of general schemes of im- in this regard. Greater the busingss, the prevent- cate deals with policy hold- the ans s which have Been exposed estigation were favored. S £ 1 am concerned I shall to go before the State Legis: several recommendations control of life soon as the committee's publie, important bill I would to place a limit on s made e uld be et State. I faver a law to pro- company from operating in with more thah $500,000,000 rhis figure is' taken because large Eastern companies of the under fire are carrying more than $400,000,000, and they should be given BOme now fair notice of such a limitation. With $500,000,000 assets a company would have plenty to do to take care of the business on its books. It's the new ness which costs so much for prem- , commissions, advertising and the There is a limit'to the amount of ike. money one group of men should be per- mitted to handle. To limit the assets ©f these giant companies would be in ghe policy holders’ favor, for it would $end to cut down the of un- Me- | effect | awaits | a result | n | through have | the home report has | ents of the New York Investi- | Notice | preventing of all such | insurance | of a company doing business | 1n disputes between Clunie and the life insurance companies. WOULD LIMIT THE ASSE —— TS [ 1 STATE INSURANCE COMMISSION VELOPMENTS IN THE | FORNIA STATUTE VER, WHO FAYS THAT IN VIEW OF DE- N YORK ARE URGENTLY N — INVESTIGATION DED. ANGES IN CALI- lawful use of their money by the com- panies’ officials. “There is no doubt in my mind that the syndicate use of the life insurance companies’ money as has been disclosed | is criminal and can be reached by the law as it now stands. “The abuses attaching to the placing of favored relatives in fancy positions, sinecures, at large salaries, without | reference to qualifications or ability, is an evil that needs to be eradicated. | "1 am of the opinion that Federal su- pervision of life insurance companies could not be enforced. The Supreme | Court has decided that life insurance is not a matter of interstate commerce. It seems therefore that the States { their Legislatures could be brought to act In unison and narmony | as to regulations, which will result un- doubtedly from the New York investi- | gations. The subject of Federal super- vision was very carefully handled at the Commissioners’ convention by Dep- | uty Attorney General Nash of Mas chusetts. He took a stand against it and presented an elaborate argument. “In my investigations of life Insur- ance companies which have applied for | permission to conduct business in Cali- | fornia I have demanded examinations | of their books in three cases. My pur- pose, frankly stated to their represen- tatives, was to induce them to with- | draw their applications, because I did not belfeve they were strong enough to | 8o business here. The effect of de- | manding examinations was what I ex- | pected. Rather than to submit ‘to the heavy expense involved they with- drew.” NO CONFERENCE WITH OLUNIE. ‘Wolf said he had not consulted with his predecessor, Clunie, either at the time he took office or since, touching insurance matters. “So far as I am concerned,” Wolf con- cluded, “I am ready at all times to en- force the Jaw and shall continue to en- force any acts of the Legislature that may g0 on the statute books. The main point, so far as the protection of policy- holders Is concerned, is to determine whether a company is solvent. If I considered there were need of investi- gation of any company on that score I should not hesitate to start one.” Former Commissioner Clunie was a bit impatient yesterday as to the 'im- plication that his offictal acts had been controlled by thé employment of his brother as counsel for the life insur- ance companies. He chafed under the pressure, but insisted that his duty { was to give Hughes at New York first call upon him. “I feel that in view of the fact that these matters have been given publicity through Attorney Hughes' inquiry that he, first of all, is entitled to have all of the information I can give him. So | far as my work as Insurance Commis- | sioner 18 concerned, I tried to do for the policy-holders of California what Hughes himself is doing. My effort was to learn what the companies were doing with their deferred -dividends, what they were doing in the payment f salaries. 1 wanted them books'in California showing tHeir divi- dend accounts, their lapses and accu- mulations for the benefit of policy- holders. My work in that regard will show for itself. And I desire to say right here that no one could or did con- trol me in that work. So far as the insinuations concerning myself and my dead brother are concerned, 1 have nothing to add to my denlals here and to my telegram to Mr. Hughes.” BUDD MAKES STATEMENT. Ex-Governor Budd yesterday gave a general review. of his connection with | the matter. He scid he had appeared as | an arbitrator of differences between the ! {ife insurance companies and Commis- | stoner Clunie. He said: 4 “Clunie had made a demand upon the life insurance companies for Information %3 decided to retain counsel to make a re- port upon the legal phases of the situa- tion that could be accepted by Clunie as trustworthy. “It was no doubt known to the com- panies’ representatives here that I was very close to Clunie. I had appointed him | Insurance Commissioner, had known him | | f_r"m childhood, and he reposed much con- | fidence in me. It was understood, as I | remember, that my appointment must be . satisfactory to Clunie. I was to examine the law, to examine the records of the companies in New York, to make a very exhaustive inquiry concerning the rights of the company in this State, and to make a report in writing. “That work covering many months was done. I was satlsfled after complet- ing my Investigations that Clunie in some instances had overstepped the law, and I so advised him. I remember we had | several differences of opinion on the sub- Ject. One of the points brought up was | whether a foreign corporation could be irnmx\t‘lled to keep its recomds in this | State. Another auestion was as to the | valuati®n of policies. I came to the con- clusion that a foreign corporation could not be compelled to reproduce its records here. As to valuation of polictes, which was one of the elements in discovering |thc financial standing of a company, I determined that the fee then allowed of three per cent on each 1000 of valuation was entirely too high. Under the ap- | pointment I held from Clunie at the time I could have forced a total fee of more than $100,000 for that work. No such ia.muunt was ever pald to me. In fact I received only compensation - for legal services rendered. The law touching pay- ment for valuation has been changed, one pen cent being the amount fixed now. REPORTS TO CLUNIE. “In my report to Clunie I gave him a complete statement of my views and went over the situation as I saw it from the standpoint of a lawyer. The insurance companies were given to understand that my opinions would be received by Clunie as trustworthy, in that because of our long personal rela- | tions he would have confidence in me. At this time, four or five years after my service terminated, it would be Impossi- ble for me to say in detail what was done. I know that Mr. Chickering, the attorney for the Mutual Life Insurance { Company, who retained me, and myself had conferences concerning amendments to the insurance laws of this State, and 1 would say now that the matter of re- serve surplus and such items were con- sidered. Th general trend of the amendments d the work as a whole that I did was to determine more closely what the Insurance laws of the State meant. “When 1 accepted the employment it was with the understanding that I should have full power to make every inquiry I desired to pursue, unhampered either here or in New York. “I knew that Clunie and the insurance companies were in a tangle over his de- mands, some of which touching the bringing of records to this State were, in my opinion, not within his power to enforce. To straighten out these matters was, T understood, the purpose for which I was retained. “I had no knowledge of Mr. Thomas Clunie’s alleged employment as special counsel for the insurance companies. If he were thus employed it seems strange that I should have been called in, as 1 was long after the time when, accord- ing to McCurdy, Thomas Clunie was brought into the matter. “I had been out of the Governor’s chair for two years before taking this legal work. Clunfe had beem appointed In- surance Commissioner in 1897, and had continued to keep after the co; es right along, so that in 1800 and 1801, when 1 was called, he was still after them. So far as my opinion goes; I believe Andy Clunie to be as straight and hon- orable a man as ever held public posi- tion in California. That he was very aggressive there can be no doubt. Any- and for records which thelr officlals con-| thing that I did.in the service of the sidered was not warranted by law. He been very persistent in pursuing an that he belleved was for the of the policy holders. Matters such & stage that the companies had inquiry benefit reached companies was to fix definitely the legal lines . upon which he might conduct his work. That he accepted any of my views i was a matter of his own judgment, after all, for I could only advise with him.” . “| ern California. WATER RICHTS CAUSE TROUBLE Two Big Corporations Want Site for Power Plant Few Miles of Morgans Springs LEGAL FIGHT EXPECTED Combination of Big Com- panies Is Accused of Claim Jumping by First Owners RED BLUFF, Nov. 19.—From the no- tice of the appropriation of water from Mill Creek filed in the Recorder’'s of- fice In this county to-day it is evident that a bitter legal fight between San Francisco capitalists anfl local people will soon occupy the attention of the courts of this county. The California Gas and Electric Corporation, which is a combination of the Pay Cities Power Company, the Sacramento Gas Company and the Oakland Gas Company, acting through its engineers, James H. Wise, to-day filed two notices of appropria- tion of water from Mill Creek, cover- ing about 18,000 inches of water, osten- sibly for the purpose of erecting an electric power plant. This location, which is about six miles from Morgans Springs, has already been located by the Tehama Transportation Company, composed of local and San ancilc% capitalists, who have already done con siderable work building roads and sur- veying ditches. The action of the San Franecisco com- pany virtually amounts- to a matter of claim jumping, and Mr. Watbridge, who is interested with the local peo- ple, stated to-day that his people would fight the matter in the courts. Wise declares that the Tehama Transporta- tion Company’s rights have lapsed, as it has not done the amount of work re- quired by law. The power site is considered by ex- perts to be one of the best in North- | The building of an elec- | tric road from Chico to this point and an electric line from Red Bluff to Red- | ding as proposed by L. ... Rankin, who is/mow working in this city, makes this pafticular location a valuable one. TWO BOYS NOW DENY THEY {RE_FIREBUGS (laim Confession Was Foreed | From Them by Threats of Police. Special Dispatch to The Call. SAN JOSE, Nov. 19.—The preliminary examination of Leslie Russell and Ray Cline, aged 10 and 12 years, respectiye- ly, on charges of arson, was held be- fore Justice Benson yesterday. The boys are accused of setting fire to the home | of Ambrose Bassett, Fourteenth and Washington streets. After their arrest the lads confessed the crime, saying they had fired the place because Bas- sett had scolded them for Halloween pranks. To-day. however, they denied they were guilty of arson, and said they confessed because of threats of the policé that If they did mot they would be burned with redhot irons. | It is now claimed that the fire started from cigarettes the boys had careless- |1y dropped. The examination was held | behind closed doors. Justice Benson | took the case under advisenent until| Monday in order that a closer exam- | ination into the confessions could be | madie. MILLIONAIRE WARS UPON GAMBLERS Crusade to Extend Through Territory of New Mexico. Bpecial Dmnn Cal. ROSWELL, N. M., Nov. 19.—8everal days ago J. J. Hagerman, the millionaire fruit raiser of the Pecos Valley, began a crusade against open gambling here and conducted it with such success that last night the Board of Aldermen passed an ordinance prohibiting gambling after the expiration of the licenses now held. The crusade is to extend throughout the Ter- ritory and probably licensed gambling in New Mexico is doomed. . The city has been collecting $251 an-| nually from each resort. As there are thirty, the city has had an annual rev- enue from this source of $§7630. It'is claimed that 100 gamblers have been re- quired to run the games, all of which were on the ground floors of the varlous saloons in Roswell. The games included craps, Klondike, chuck-a-luck, faro, rou- lette, monte, wheel of fortune, etc., hnd were under police supervision. SEARCH FOR A YOUTH ENDS IN THE SOUTH: Millionaire’s Son, Missing for Three Years, Found in Los Angeles. Special Dispatch to The Call. LOS8 ANGELES, Nov. 19.—Neil B. Sin- clair Jr., aged 23, son of a milllonaire cotton gin owner at Memphis, Tenn., who has been missing for three years, was found late to-night in & room on North Broadway, admitted his ldentity and agreed to return home. The young man's father has searched this and other coun- tries for his son, has had detectives work- ing almost constantly on the case and has offered rewards, but' the son, until now, has succeeded in eluding the search- ers. A prank which he played at college caused a quarrel which forced him to leave home. He has been working here as a salesman under an assumed name. He was recognized by a Memphis man, who Informed a newspaper man, to whom young Sinclair admitted his identity. —————————— GOVERNMENT IS TO BUILD NEW SHOPS AT BREMERTON Cblef of Buream of Yards and Docks Calls for Bids for Work to Cost $110,000. SEATTLE, Nov. 19.—M. L. Endicott, Chief of the Bureau of Yards and Docks, has authorized W. T. Burwell, commanding the Bremerton navy yard, to call for bids on the construction of blacksmith and boiler shops to cost $100,000, and steam heating for quar- ters to cost $10,000. He will also es- tablish a wireless telegraph station at the yard. - 4 " The New Safety Statiom Brected by the city opposite our store renders the crossing of Market street an easy matter for ladies coming down either O'Farrell street or Grant avenue. Try new crossing and | BOLD ROBBER CAMBLER WILL MAKES ESCAPE] ~FICHT THE LAW William Sprout, Notorious|Wealthy Oregon Gamester Ex-Conviet, Secures Liberty With Aid of Fire Shovel| test Against Police Raid ARE PURSUING|RAISES NOVEL POINT POSSES Pl ¥ S Marysville Prison Is Not|Claims That Portland Offi- Strong Enough to Hold a! cers Have No Right to Go| Desperate Thief and Rascal MARYSVILLE, Nov. 19.—William H. Sprout, awaiting trial for blowing open the vault of the Yuba City Bank ten days ago, escaped from the county jall this morning and has not been recaptured. Although known to be a desperate crim- inal Sprout was allowed the freedom of | city of Milwaukle, Clackamas County, a the entire jail, there being no other pris- oners. He was there for breakfast but at dinner time the jail was empty and a broken skylight above the steel cages showed his means of exit. Sprout had climbed on top of the cages and used a fire shovel to loosen bricks enough to enable him to remove the steel bars. He then climbed to the roof and slid down a drain pipe and disappeared. It being Sunday few people were around the court house and jail and no one knows what direction he took. Sprout has served five terms in State penitentiaries and has several aliases, one of them being Connors. When ar- rested at Sacramento a week ago he was | planning' to rob a Japanese bank in that | city. His boy confederate, Edward ‘Whelan of San Francisco, confessed the Yuba City crime and several others after | their arrest and an outfit of safe cracking appliances was recovered. Sher.ff Wilscn has rosses out scouring the country for the escape. The Yuba | City Bank originally ¢ffered $100 reward | for the canture of the robbers and a clear case was established against Sprout. |TWO CLASS LEADERS e KIDN PED BY BOYR Carried Into Country and Left by Students of University. Spectal Dispatch fo The Call McMINNVILLE, Ore, Nov. 19.—Six scphomores of the Baptist College here kidnapped Ray Derby, president, and Roy Hill, vice president, of the Commercial Class, on the main street on McMinn- ville Thursday evening, drove with them into the country about ten miles, com- pelled them to get.out of the rig and pre- vented them from getting back into it by using the horsewhip. The boys were left by the sophomores to walk back, but some of their classmates hearing of the escapade drove out and met them with a buggy. The matter has aroused the college faculty to an investigation and parents of the boys are threatening crim- inal action in the courts against the in- | stigators of the hazing. Derby received several lashes with the whip before he was beaten off the sophomore rig. The fact that the commercials were giving a clasg party Thursday evening led to the sophomores Interference. — e MEXICO CITY, Nov. 1 he Superior Board of Health announced yesterday that not a single case of yellow fever exists in thfs country. This is due to the persistent appli- cation of improved sanitary measures. | i i | incorporating Milwaukie did not repeal | | and also as to whether the State can vest | | in a municipal corporation the power to Preparing to Make Pro- Into a Neighboring Town ! PORTLAND, Nov. 19.—A peculiar legal entanglement is llkely, it is said, to re- sult from a raid made last night by Port- land police on the Milwaukie Country Club, a gambling resort operated in the town lying on the Willamefte River a couple of miles south of the city limits | of Portland. According to the charter of | the city of Portland, which is in| Multnomah County, granted by the State Legislature, the police power of Portland | to suppress gambling extends a distance | of four miles outside the boundaries Of{ the city. At the time the charter was passed | there was no incorporated tqwn within | four miles of Portland’s lmits. Subse- | quently, however, the Legislature passed | an act Incorporating the city of Mil- | waukle, conferring upon it the usual police powers enjoyed by incorporated | cities. | Shortly after Sheriff Word of this| county concluded a- successful campaign against gambling In Portland, Isaac (“Frenchy”) Grattan established the Mii- waukie Country Club. This institution has been a thorn in the side of Mayor | Harry Lane’s administration and after | months of threats, the local detectives | finally raided the place. Grattan, who is a man of large means, | claims to have expended $20,000 in his re- sort and it is said will contest in the courts the question as to whether the act ; the police pewer of Portland so far as the territory within Milwaukie is concerned invade the ‘confines of another county of the State for any purposes whatever. Legal authorities in this city disagree on the legality of the act. NURSE WINS HEART OF PETALUMA DOCTOR | Engagerient of Popular So-| noma County Couple Is Announced. Epecial Dispatch to The Call PETALUMA, Nov. 19.—The engage- | ment of Miss Helen M. Anderson and Dr. Stuart Z. Peoples has been an- | nounced by the bride’s mother, Mrs. L | Anderson. Miss Anderson Is a gradu- ate of the Woman's Hospital of San Francisco. She is a handsome blonde | and is highly accomplished. Miss An- derson is a niece of City Trustee Jacob Nisson and is popular in soclety ecir- cles. Dr. Peoples belongs to one of Sonoma | County’s wealthy pioneer familles and | is a practicing physician in Petalumal The wedding will take place In the early spring. | of relatives. LIAL TO RENEW LEGAL BATTLE Fiancee of Romantie Irish- man Announces Intention to Fight for Big Estate HEIRS ARE NUMEROUS Contestant Claims John Sul- livan Declared He Wished Her to Get His Wealth Special Dispatch to The Call SEATTLE, Nov. 19.—Mary Carrau, flancee of the late John Sullivan, will re- new her fight for the estate left by the romantic Irishman four years ago. She claims that Sullivan announced in the presence of witnesses, shortly before his death, that he wanted the girl to have his wealth. Sullivan was an Irishman who came hers in the early days, amassed a for- tune and dled without leaving any trace He died at the home of Miss Carrau’s sister. The physician who attended him subsequently died in an in- sane asylum, and one of the alleged heirs, afterward “found, is dead. She is still represented in the fight by an ad- ministrator of her estate. An alleged brother and several nieces have been found and the State has asserted a shadow of a claim on behalf of the per- manent scheool fund, alleging Sullivan died without heirs. The Carrau will was once probated, but recently knocked out in the Supreme Court because of irregularities. It was an application for a rehearing made by Senator John Mitchell of Oregon that provoked Miss Carrau's declaration that he Aaid not represent her. 0DOR OF LIMBURGER CONVICTS A THIEF Strong Evidence of Guilt in the Case of a Nebraska Culprit. Spectal Dispatch to The Call. FREMONT, Neb., Nov. 19.—James Ur- ley’s attempt to prove an alibi when charged with burglary was frustrated by the odor of limburger cheese, which he had stowed away in his Inside pocket. Urley was charged with two others with having broken nto the storage house of a brewery and stolen, among other things, a fine and ripe old limburg- er. When arraigned in court he pleaded “not guilty,” and strenuously denied hav- ing been near the place. While he was diligently attempting to prove his alibi, the Judge detected the odor of the lim- burger and ordered the prisoner searched. ‘When the cheese was found in his pocket the prisoner broke down, declaring the evidence was too strong and the cheese was a “dead cinch” on him. He pleaded guilty and will be sentenced next week. —_—e——————— Fige Destroys Fresno Home. FRESNO, Nov. 19.—Fire destroyed the home of R. London ia the finest residence portion of the city to-might. The flames broke out on the roof of the house. The house was owned by Dr. J. D. Davidson. The loss is $3000, partially covered by Insurance. . Al materlals made up into suits here come direct from the mills. Other tailors buy from jobbers, who in turn buy from manufacturers. Our direct method of purchasing ‘enables us to produce at a lower cost for the same quality, than any other tailor. particular garment. blank and samples. |Get Your Winter Suit Made To Order Here - $10 to $35 @ There is not a popular new effect in vogue to-day in men’s clothing but that we can furnish to you at from $3 to $3 less on a suit than other tailors would ask. This is how we do it. (I, Furthermore, we sell ten suits to any other tailor’s one, and our great volume of business necessarily brings down the cost on each @@ Thus, with thesc advantages, we arein a position to save you from $3 to $35 on any suit or overcoat you order here. (. Consider this ‘lso. @ There is a range ot prices which is sure to include whatever you care to pay—$10 to $35. 79 . Surts satisfactorily made to order for out-of-town customers—write for | Manufacturers Wholesalers and Retailers of Clothing. Two Large Stores 740 Market Street and Corner Powell and Ellis We are careful in the taking of your mea- sure, also in the making and fitting of your garments. Our interests are mutual in this respect—we want you to be perfectly pleased, because if the garments are unsatisfactory we will either make-you others, or refund your money. -