THE HAWAIIAN STAR, FRIDAY, JULY 14, 1904.
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
Ocesnlc Steamship Co., San Francisco,
Western Sugar neflnlng Co., San Fran
Baldwin Locomotive Works, Philadel
Newall Universal Mill Co., Manufac
turers ot National Cane Shredder,
New York, N. Y.
JPaclflo Oil Transportation Co., San
HART & CO., LTD
The Elite Ice Cream Parlors.
Chocolates and Confeotloas
Ice, Cream and "Water Ices
iif 151 IH IN HE CITY
WlffiM trains dally through cars, first
HhB second class to all points. Re
rtt rates take effect soon. Write
S. F. Booth,
No. 1 Montgomery Street,
Quickest, Finest, Best
A Train that Supplies
To St. Louis or Chicago
IN 3 DAYS
from San Francisco.
ALL GOOD ' . TINGS
613 Market Stret,
I1HU RAILWAY AND LAND CO'S
OCTOBER G, 1904.
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.
Slrrtre Honolulu from Kahuku, Wal
edna. an" Walanae 8.36 a, m., 6:11
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.
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.
. P. DENNISON
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
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
V- HARTFORD. CONN.
HONOLULU, H. T
Hawaiian Agricultural Company. Ono-
mea Sugar Company, Honomu Sugar
Company. nlluku Sugar Comnany.
Ookala Sugar Plantation Company,
Ilaleakala Ranch Company, Kapapala
Planters' Line Shipping Company.
Charles Brewer & Co's Line of Bos
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
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
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.
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
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
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
(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
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
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
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
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
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
OUR OWN LINE
San Francisco to Chicago
STANDARD AND TOURIST SLEEPERS DAILY
One way rate for Round Trip Tickets to all Eastern points.
Tickets good for three months. Stopovers allowed en route.
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.
A young man may induce the glrl'3
father to toe the mark by posing is
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
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,
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-.
G. Irwin & Co., Office
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
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.
n4 tfi iiii. nW ,1
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