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THE HAWAIIAN STAR, FRIDAY, JULY 14, 1904.
a. Summer Proposition. Welt, now, there's the CE QUESTION ! Tou know vou'll need loo, you know it U necessity In hot weather. Wo Imlleve you are anxious to get that Ice which will give you satisfaction, and r'u like to supply you. Order from i on mwm co., Mephonc 1151 Blue, rostofflce Box 60S. f , G. Mil & CO., LTD , Wm. a. Irwin.. President and Manager a&hn D. Spreckels.. First Vice-President W. M. QlfCard.... Second Vice-President a. M. Whitney Treasurer fcichaYd Ivers Secretary A, C Lovekin Auditor SUGAR FACTORS, COMMISSION AGENTS Adl'.NTS FOR Ocesnlc Steamship Co., San Francisco, Cat. Western Sugar neflnlng Co., San Fran cteco, Cal. Baldwin Locomotive Works, Philadel phia, Pa. Newall Universal Mill Co., Manufac turers ot National Cane Shredder, New York, N. Y. JPaclflo Oil Transportation Co., San Francisco, CaJ. HART & CO., LTD The Elite Ice Cream Parlors. Chocolates and Confeotloas Ice, Cream and "Water Ices Bakery Lunch. iif 151 IH IN HE CITY u Railroad SUGGESTS ieed atraci Ooraxf oarfc WlffiM trains dally through cars, first HhB second class to all points. Re rtt rates take effect soon. Write S. F. Booth, General Agent, No. 1 Montgomery Street, San Francisco. Travellers Agree THAT IS Quickest, Finest, Best A Train that Supplies All Demands To St. Louis or Chicago IN 3 DAYS from San Francisco. ELECTRIC LIGHT? HEADING LAMPS, CLUB "ARS ALL GOOD ' . TINGS Information Bureau 613 Market Stret, Ban Francisco. I1HU RAILWAY AND LAND CO'S OPXIVI13 TAJ3r,13J OCTOBER G, 1904. OUTWARD. Car Walanae, Walalua, Kahuku &b4 Wy Stations 9: 15 a, m 3:20 p. m. 5Pwr Pearl CItr, Ewa Mill and Way Station 17: 30 a. m., '8:16 a. 31., WM a. m., 2:15 p. m., 3:20 p. bl. p. m 19:30 p m., Ut:15 P. m. INWARD. Slrrtre Honolulu from Kahuku, Wal edna. an" Walanae 8.36 a, m., 6:11 9. sn. ArrlT Honolulu from Kwa Mill and Pearl City 17.4 a. m., S:lt a. m.. 1:I3 a. m., 1:40 p. m., '4:31 p. m., n-.n p. m., 4:S0 - m. OaIJj-. fBunday Excepted. -8day onlr. The ..falelwa Limited, a two hour JalB, 1 vefl Honolulu very Sunday at l:JS &. m. returning arrives tn Hono Hilu at 10:10 p. rru The Limited stops cly at Pearl City a Walanae. Pacific mnn m OwrM Soutliern Pacific . P. DENNISON upt I. C. SMITH, Q. P. A. T. 4". "I had a very sovoro limp trouble and was s weak that I could scarcely walk about or talk. All my friends bolioved I could never get well. I then began to tako Ayor's Cherry Pectoral and immediately felt an Im provement. It took only two bottles to work a coniploto euro. It cortaiuly saved my life." This is ono of thousands of testi monials to t ho wonderful valuo of 9 0 "Chervil 9eetoral in cases of colds, coughs, and lung and throat troubles of all kinds. A Standard and unrivaled romcdy for sixty years. In largo and small bottles. llowaro of imitation so-called "Oenuino Cherry Pectoral." Uosuro to Ret "AYKK'S Cherry Pectoral." Prepared by Dr. J . C. A) cr & Co., Lowell, Musi., U. S. A. Castle & Gooke, Ltd mnmm Agents AGENTS FOF New England Mutual Lift Insurance Co OF B03T01J. iEtna Eire Insurance Co., V- HARTFORD. CONN. & CO, QUEEN STREET, HONOLULU, H. T AGENTS FOR Hawaiian Agricultural Company. Ono- mea Sugar Company, Honomu Sugar Company. nlluku Sugar Comnany. Ookala Sugar Plantation Company, Ilaleakala Ranch Company, Kapapala Ranch. Planters' Line Shipping Company. Charles Brewer & Co's Line of Bos ton Packets. LIST OF OFFICEr.3. Charles M. Cooke.... President Geo. II. Robertson.. V-Pres. & Mgr. E. Faxon Bishop.. ..Treas. & Secy. F. W. Macfarlane Auditor P. C. Jones Director C. II. Cooke Director J. R. Gait Director All of the above named constitute the Board of Director-. When In need of cement tHht will do your work and do It li such manner as will please you do not fall to use GOLDEN GATE CEMENT which Is positively tho most high-grade cement obtainable. It has been used extensively In Government 'work on the mainland and has always given tho beat of satisfaction. When passing look in our window and inspect the photos therein of work wherein this celebrated cement has been used. LEWERS 6 COOKE, LTD,, 177 S. KING STREET DISEASED HEARTS transform the rich, red, gushing blood of health into a sluggish stream of thin, Impoverished fluid of impurities, which carry death and decay to every organ and tissue of the body. Restore the heart action -with Dr. Miles' New Heart Cure. If first bottle fails to ben efit, money back. those we enjoy one nt a time. In Ralnle Beer there are four great virtues. Pur ity, Wholegomeness, Flavor and Strength, these we onjoy all of the time. den Gate bO THE FRICK REPORT The report of the Prick Committee on tlic management of the Equit able Life Assurance Society of the United States, is the key to an un derstanding of the most remarkable controversy that has ever raged within a financial institution of its character. No controversy within such an institution has ever received the widespread interest and dis cussion that this has. The keenest interest in it has been manifested in this community. The Star will therefore publish this report in full, in convenient instalments from day to day. The foregoing has treated tho sub ject from tho standpoint of general principles. Measuring the wisdom of this class of investment by specific results an Illustration may bo taken of tho results to the society, for the yenr 1001, of its relations with Equit able Trust Company. The book vuluo of tho society's hold ings in Equitable Trust, plus its aver ago deposits during 1001, In that In stitution, amount to 117,370,000. Tho society's Income from that Investment consisting of 2 per cent Interest on deposits and 12 per cent dividends on tho par valuo of Its stock holdings, amounted to $309,182.00, or 2.3 per cent on the total Investment. The claim would undoubedly be made that in addition to the direct Income, the society has greatly benefitted through tho appreciation of the stock over Its book value. Profit through the Increase in market valuo of a stock can be made only through the actual sale of the stock. A stock Is worth no more than It can bo liquidat ed for; and a pertinent question In this connection would be, could tho society withdraw its protecting support from these auxiliary concerns and dispose of its stock holdings at present market rates? If it could not, its profits through the appreciation In stock va lues is at least partly fictitious. In our opinion, the society, should place its funds In such a manner that It occupies the position of an Investor solely. It should purchase no bonds or stocks which require manipulation or nursing. It should make no pur chases of securities whore their sub sequent sale could ever be unndvlsable for any other reasons than generul market conditions. In other words, it should be a life Insurance company. UNSYSTEMATIC METHODS. During its process of examination, it has been disclosed to your committee that there does not exist In the olllce of tho society a comprehensive system for the conduct of Its business. Starting with tho fundamental error In the manner in which tho authority of the board is delegated to Its sub ordinate committees, there Is ,found a genernl lack of that system by which responsibility can bo fixed at its pro per place. Tho duties of ono ofllcer cross those of another in such a way that neither one can bo held to perfect account ability. The records of some departments are not kept In ns complote a manner as tho importance of the transactions de mand. Tho records of expenses do not center In ono flnul location, for ready refer ence, but nro divided between various departments. Tho different accounting officers arc all sincere in giving the society their best individual efforts, but thero Is not that unison of direction among thorn required for satisfactory final results. Wo deem it essential that thero be n. general readjustment through which the authority and duty of each gen eral oillcer bo definitely fixed, nnd through which tho society's records shall become consistent and readily avallablo for reference. A GENERAL SUMMING UP. When a careful examination of nn Institution discloses defects of widely different character in many dlfforont departments a still further examination Is quite apt to disclose the additional fact that dissimilar as those defects may be, they can all bo traced back to one underlying cause. Tho various conditions In tho Equit able Society, which have been criti cized In this report, have all had their origin In one fundamental error, and that Is tho departure from tho truo principles and ethics of llfo insurance. This statement could bo mnclo with equnl truth In regard to many other companies, and for that reason your committee feels warranted in going perhaps beyond tho contemplated scope of Its duties, in tho hopo that this re port may thereby have somo inllunce In raising tho conduct of life insurance generally to a higher plane. In its purity, tho ideal life Insurance company has but two objects, 1. o.: (1) To furnish absolutely perfect protection. (2) To furnish that protection at tho lowest possible cost. Tho mero size of a llfo Insurance company has no effect on Its ability to furnish sound nnd economical pro-' lection to its Individual policy holders. It is necessary that a sufficient number of lives bo assured to come within the laws of average mortality nnd that tho volumo of business be great enough to cover what might bo termed the fixed charges or expenses, and to command tho financial position desirable for the advantageous Investment of funds. When theso objects havo been at tained, additional volumo of business is not only unnecessary, but If obtained at greater proportionate cost, is directly detrimental to the Interest of the policy holder. Whether resulting from a misconcep tion of tho Importnnco of growth In size from tho competition of other com panies or from tho human Instinct to cxcell, there has existed a disposition to lose sight of tho truo purposo of life Insurance and dovoto all energies to (attaining bigness. Growth, beyond the normal rate, can be had only tbrouKh unusual exertion and this moans Increased cost. The Equltablo in common with sov oral others of the larger companllos, Is sues tho greater portion of Its policies on the deferred distribution period plan Under this system, the excess portion of tho premium Is not returned to tho policyholder annually, but Is retained by tho society for various stipulated periods ot years (usually twenty years) and tho accumulations then paid In one sum. The advantage which Is held out to the policyholder under this system Is that ho not only eventually receives all tho nnturnl accretions of his own policy but shares In those which were earned by tho policies of those who were un able to continue them to the end of the stipulated term. The question as to tho ethics of extending tho hope to one policy holders that his prosperity will be increased through tho lnlsfortuno of another policyholder, Is purely aca demic, and need not bo discussed here. As each policyholder understood tho conditions, nnd accepted them, with the hope thnt he would bo In tho fortunate class, ho would seemingly be estopped from complaint If events forced him in to the unfortunate class. But entirely aside from this question as between tho Individual policyholders thero can bo no doubt concerning the nt least potentiality of evil which this system of deferred distribution pos sesses. When annual dividends are paid, tho policy-holders has an Immediate and yearly recurring check upon tho opera tions of his company. Ho Is enabled and Is quite apt to compare his results with those of his acquaintances insur ed in other companies. Extravagance in management and errors in Invest ments are at onco reflected In decreas ed dividends or Impaired surplus. On tho other hand tho holder of a twenty years distribution period policy lias no knowledge whatever concerning the earnings of his policy until tho ex piration of tho twenty years. Ho con not make comparisons with the results In other companies because ho docs not know tho results in his own case. Ho entertains hopes for nlnoteen years, and If dissatisfied with the realization at tho end of twenty years, It is futile for him to protest. Tho Incident is closed. Theso conditions are mentioned for this purpose to Illustrate the possibil ity of the deferred distribution policy leading tho society into a generally lax method of handling its business. Tho annual dividend company is held to accountability every year. The de ferred dividend company is never held to accountability by tho whole body of its policy holders; and is so held bv its individual policyholders only when their opportunity for action has pass ed. Tills absence of accountability makes possible tho pursuit of rapidity of growth at unduo cost, because the ef fort of that cost Is not felt by tho policyholders until, as said before, It is too late for his availing protest. Another embarrassing outgrowth froifl the deferred dividend system is the popular misapprehension of the so called "surplus." The society's published report shows a surplus as nt December 31, 1904 of $S0,71,2C9; and popular sentiment de mands that this enormous sum bo di vided among tho policyholders. There Is oven seen a discussion of the owner ship of the surplus ns between policy holders and stockholders. As a matter of fact, tho actual sur plus of the society on December 31, 1901, was JG.750,000 was apportioned" for dividends payable in 1903, and, $03,SOO,000 is merely a reserve against a future contingent liability. That Is, it is the amount which has been earned by the total number of deferred dlvldond po licies nnd which becomes a direct lia bility as each Individual policy ma tures. Tho soliciting ngents of those com panies which wrlto almost exclusively deferred dividend policies habitually state that tho superiority of that form of policy if demonstrated by the fact that tho public Invariably selects it in preferenco to the annual dividend policy. As bearing on this statement, It is of some Interest to know that the Eqult ablo Socloty allows its agents commis sions nnd expenses of DO per cent of tho first premium on deferred dividend policies, while it allows them but 25 per cent on annual dividend policies. Tho Northwestern Mutual for many years wrote almost exclusively deferred dividend policies. A fow years ago it adopted tho system of not requiring the insured to declare tho form of dis tribution desired, when taking out his policy; but of sending him at tho end of tho second pollccy year a statement of his dividends, nnd allowing him to elect at that tlmo whether he would take his dividends annually or at the end of a specified period. In 1901, tho Northwestern wrote 29, 233 policies. In 1903 all but 70S of these chose to take annual dllvldcnds. In 1902, the Northwestern write 30,350 policies. In 1904, all but 579 choso to tako annual dlvldonds. These facts clearly lncldnto that on Its merits ulone the public prefer the annual dividend policy, nnd tho sentl mont In favor of the deferred dlvldond period Is nrtlflclnl, From nil of tho foregoing wo have tho departure from the true principles of life insurnnco by suordlnatlng economy to rapidity of growth; and the possi bility of concealing the offects of this by deferring tho payments of dividends To Be Continued. New Lines of Panama And Ladies' Trimmed Hats, OUR OWN LINE San Francisco to Chicago (WITHOUT CHANGE). STANDARD AND TOURIST SLEEPERS DAILY Trade One way rate for Round Trip Tickets to all Eastern points. Tickets good for three months. Stopovers allowed en route. SEE DATES. June 28, 29, 30, July 4, 5, 6, 24, 25, 26 Passenger Agent, W. A SCOTCH STRAIN. An Indiana judge has decided that even calumny. Somebody says the Sec retary looks like Governor Cleveland. Cincinnati Enquirer. A young man may induce the glrl'3 father to toe the mark by posing is the mark. A Pure, Wholesome tonic has been prescribed by your Doctor. Order a case of Rainier Beer. After the first case It will not be necessary for your DoLtor to prescribe. "IT SAVED MY LIFE" PRAISE FOR A FAMOUS MEDICINE Mrs. Willatlsen Tells How She Tried Lydia E. Pinkham's Vegetable Compound Just in Time. Mrs. T. C. Willadscn, of Manning, Iowa, writes to Mrs. Pinkham: Dear Mrs. Pinkbam : " I can truly say that you have saved my life, and I cannot express my gratitude to you in words. "Before I wrote to you, tolling you how I folt, I had doctored for over two years steady and spont lots of monoy on medicines besides, but it all failed to help me. My monthly pe riods had ceased and I Buffered much pain, with fainting spells, headache, backache and bearing-down pains, and I was so weak I could hardly keep around. As a lost resort I docided to writo you and try Lydia E. l'ink bam's Vegotablo Compound, and I am so thankful that I did, for after following your instructions, which you sent mo free of all charge, my monthly periods started j I am regular and in perfect health. Had it not boon for you I would be in my grave to-day. " I sincerely trust thnt this letter may lead evory suffering woman in the country to writo you for help as I did." When women are troubled with Ir regular or painful menstruation, weak ness, loucorrhoca, displacement or ul ceration of tho womb, that bearing down feeling, Inflammation of tho ova ries, backache, flatulence, general de bility, indigestion and nervous prostra tion, thoy should remember there is ono tried and truo remedy. Lydia E, Pinkham's Vegetable Compound at onco removes such troubles. No other female medicine in the world has received such widespread and un qualified endorsement. Refuse all sub stitutes. Mrs. Pinkham invites all sick women to writo her for advico. She has guided thousands to health. Address, Lynn, Mass. Do not acit the "Just as good," In slit upon tryl. Rainier Deer. You will always order It V. never changes. Wtar Want Ads pay 25 cent-. ISOSHIMA Mark G. Irwin & Co., Office II STEAMERS TO ARRIVE. Date. Name From. July 1 Aorangl Vancouver 4 Sierra Colonies 4 Korea Yokohama, G Ventura San Francisco 5 Doric San Francisco 14 Coptic Yokohama 11 Alameda San Francisco 13 Manchuria San Francisco 21 Nova dan San Francisco 23 Sonoma Colonies 2C Moana Colonies 2C Sierra San Francisco 28 Siberia Yokohama 29 Mlowera Vancouver 20 Korea San Francisco Aug. 4 Alameda San Francisco S Mongolia Yokohama 0 Coptic San Francisco 11 Nebraskan San Francisco 13 Ventura Colonies 1C Sonoma......... San Francisco 15 China Yokohama 23 Siberia San Francisco 23 Aorangl Colonies 23 Alameda San Francisco 20 Moana' Vancouver Sept. 1 Doric Yokohama 2 Mongolia San Francisco 5 Sierra ..' Colonle.3 G Ventura San Francisco S Manchuria Yokohama 13 China San Francisco 1G Alameda San Francisco 20 Mlowera Colonies 22 Korea Yokohama 23 Aorangl Vancouver 2C Sonoma Colonies 27 Sierra San Francisco U. S. A. Transports will leave for San Francisco and Manila, and will arrive from samo ports at Irregular Intervals. STEAMERS TO DEPART. I Date. Name. For. ( July. 1 Aorangl Colonies 4 Sierra San Francisco 4 Korea San Francisco G Ventura Colonies 5 Doric Yokohama 14 Coptic San Francisco 15 Manchuria Yokohama 19 Alameda San Francisco 23 Sonoma San Francisco 2C Moana Vancouver 2C Sierra Colonies 28 Siberia San Francisco 29 Mlowera Colonies 29 Korea ,. Yokohama 29 Nevadan tSan Francisco Aug. 8 Mongolia San Francisco 9 Coptic 'Yokohama 9 Alameda San Francisco 15 Ventura San Francisco 15 Sonoma Colonies 18 China San Francisco 19 Nebraskan tSan Francisco 23 Siberia Yokohama 3 Aorangl Vancouver 26 Moana Colonies 30 Alameda San Francisco Sept. 1 Doric San Francisco 2 Mongolia Yokohama 5 Sierra San Francisco G Ventura Colonics 8 Manchuria San Francisco 13 China 'Yokohama 20 Alameda San Francisco 20 MIowora .....Vancouver 22 Korea San Franciscot 23 Aorangl Colonies 2G Sonoma San Francisco, 27 Sierra Colonies Calling at Manila. tDato of departure from Kahulul. Fine Job Printing, Star Office. v n4 tfi iiii. nW ,1