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THE TIMK8 founded Mn rnr n ..TT, , _ TH-B, DIBPATCH FOUNDiId !N )SM, WHOLE DUMBER 18,538. RICHMOND, VA, WEDNESDAY, FEBRUARY 22, 1911. THE \VBATIIBII TO-I,AY-Pa,r. PRICE TWO CENTS LEAGUE MM ASK 1 FOR REFERENDUM OH STATE-WIDE President's Address Ac? cepted as Keynote of Its Policy, LITTLE SENTIMENT FOR LOCAL OPTION Criticism of Governor for Not Stoutly Supporting Strode Act Heartily Applauded. Legislative Committee, at Late Hour, Still Wres? tling With Its Report. nv ALEXAxiiiait forward. Newport News. Va.. February 21.? i Voicing what is universally accepted ! by the delegates to the tenth annual convention of the Anti-Saloon League of Virginia as the keynote of tlie policy of the league for tiie coming year. Pres !?tilit Henry Pearcc Atkins, in his an ntial address to-nlghl, advocated a re? newed deniand for a referendaih oh the question of .State-wide prohibition. He \ asked for new determination, for morel linen and more money to carry out this program before the General Assembly of 1CH2. Mr. Atkins's address was listened to With profound attention and was heart? ily applauded. Especially general was the apphiuse when lie expressed his "keen disappointment that our Gover? nor's voice was not heard loud and Etrong when the Strode enabling act was before the .Senate of Virginia." The legislative committee was not ready to report at to-night's meeting, and that portion of the program was | dispensed with. The committee went I into session at the conclusion of the address of John el. Woblley, and at a lute hour was still wrestling with the details of the report; in some quarters It Is believed that this committee, in reporting on its efforts to secure the passag?! of the enabling act, will indulge in some < ilt 1< Ism of members of tho General As? sembly who voted against it, while others say that the report will be en? tirely mild in form and will merely re? late the circumstances of the tight. Will Declare for Refcrendiiiii. The nature of the report however, is the merest surmise So far as I can learn, there Is no dissent from the opinion that the league ?.?/ill again de? clare for a referendum On State op? tion. There Is little talk el' a return to the local option method of dealing with the situation, and there Is no sug? gestion that the league should ask the Legislature for direct statutory prohibition, without reference to a pop? ular v o t e. Action by the convention may, how? ever, take the form of a demand for a call for an election by the Legisla? ture Itself, or It may propose, as was the case in the St lode bill, that the voters of the .State shall call tho elec? tion. An argument for State prohibition as agalntt local option was presented at to-night's meeting by Lev. .1. 11. Light, of Front Royal, in his response to the address of welcome. Referring to the motto of the Convention, "Virginia dry, ' Mr. Light said the league' would proceed to accomplish tills end in its j own way and in its uw n time, unmoved by partisan criticism. If the principle of majority rule, he argued, us ap? plied to local option, was a sound one. It should apply to the State at large. Mr. Light recalled the preparations for the local option election in Freder ickshurg three years ago, when some of those who now argue for local op? tion were trying to prevent an expres elun of the will of the people of that city, He also talked of Maryland, where, he said, the enemies of the Anti-Saloun League are trying to pre? vent the enactment of a local option law. His argument was that the league was driven to a tight for prohibition 3Ie used British disregard of the neu? trality laws, which led to the AVar of' 1S12, as an illustration, saying that the liquor Interests would not observe neutrality, but shipped their product into communities which had elected to vote out tho saloon. "The other answer." he concluded, "is war?war against the saloon In Vir- } ginla." III! nt Local Option. A hit at the local option.talk was' ftiso made by Rev. ?- T. Wollford, pas- j tor of the First Presbytorian Church Of Newport News, In which the meet- ; ing was held. He said that when he j was a boy In Richmond "the time- i honored policy of Hie Democratic | party" was anything but local option, ? which was then advocated only by a , few preachers and fanatics. Mr. Well ford predicted that'within five years "the time-honored policy" of the Demo? cratic party In Virginia would be pro? hibition. But all local option sentiment has not been abandoned. Some of it may bo heard In the meeting. Governor Mann is to preside at Thursday night's meeting, and it is possible he may have something to say. President At? kins recalled. In his address, that the Governor at last year's meeting of the league referred to the financial con? dition of the State In this connection, and It* the executive makes an address his utterances. In view of the present condition of tho State Treasury, will be a matter of great interest. The attendance at the league meet? ing is perhaps the largest in its his? tory. The. First Presbyterian Church was well filled at the opening session. Dr. W. G. Starr conducted the opening Tellglous exercises, and Maryus Jones. Mayor of Newport News, welcomed the convention to this city. Mr. Atkins predicted that tho Legis? lature of 1012 would grant the enabling act, which It defeated In 1910. He snld it would be hlfetory in 1913. No? body In his senses, he aald. even thought prohibition can prohibit, hut he holiovcd that a prohibition statute, with the manhood of ft Stubbs behind 1t, could do, as much for Virginia as it has done for Kansas, lie referred to the resignations of Rev. J. A. Taylor nnd Rev. James Cannon from the lenguo'a work, speaking of the latter ns having borne, the burden and boat of tho day, and leaving the task In (Continued on Sooond Page.) Senator Carter Confi? dent Measure Will Pass. IN CONFERENCE WITH PRESIDENT Personally Opposed to Agree- i ment, but Believes It Will Be Ratified?Measure May Be Reported Without Recom? mendation by Commit? tee To-Day. DEMOCRATS WILL REVISE TARIFF Washington, 11. C, Februnry St.? j It nil extra session of Congress Is <-?Mfollowing the adjournment of ilii- present session March 4 next, ! I lie IJemncrnt* of the House >\lll we I nlioul at once lo revise several scheilulrn or the Pnync-AIUrleu tnr- ! I ir net. An authoritative statement lo tills j effect wn? given out to-day l?j Iteti- j reneutntlvc I udrnvood, of Alabama, who already >iiih been seleeteil um j the elinlrinnu of the new Commit tee i on Wnys and Mean*. It imik made j to correct an erroneous report which li an gained circulation during (tic past few ?Inj?. Mr. I lldcrwood said: ??The statement Hint If an extra session In called the Democrats iu the House Mill not begin the work of revising the tariff In absolutely unfounded. The Democrat*! are pledged to revlne the tariff, nnd If ivc go Into an extra session the [louse unquestionably ?will pass sonic tariff bills revising *?>mc of the schedules of the Payne act down? turn before it adjourns." Washington. D. C, February 21.? I The reciprocity agreement with Cana? da will pass the Senat?-. This was a declaration made to-day by Senator Carter, of Montana, as he was leaving the White House after conference with President Taft. Personally Sen 1 tire. Representative McCall, of Mas? sachusetts, who introduced the bill in the Houec. aJf?o dli-cusaed the situa? tion with the President and is hope? ful of the measure's success. President Taft is making few en? gagements for next week, that being the last week of this session of Con? gress and the one in which the great light for the Canadian reciprocity bill will have its termination, unless there i.- t.> be an extra session. In Touch With Senator. A number of invitations have been declined that the President may have his whole time for conferences with Senate leaders If the situation should demand.' The President is keeping up his In? terest in the reciprocity tight by talks wit!: Senators. The two Senators most ftared tn the reciprocity tight are Sen- , ators. Hale, of Maine, and Heyburn, of Idaho: It was stated to-day that Sen? ator Heyb?rn is working overtime to j accumulate facts and llgures for a big filibuster. He Is prepared to talk for many hours, even days, if he can get some help. The people of his State are said to be with him. The fact that Senator Aldrlch has expressed his opinion that the Cana? dian reciprocity bill -should be passed, and an extra session of Congress avoided, is being used by the friends of the bill as an asset in its behalt. The reasons which led Senator Aldrlch to this opinion are familiar to all Sen? ators, and it remains for them to ex? ercise their own judgment in concur? rence or not. May He Hcported To-I>ny. The belief was stronger to-day than yesterday even, that the reciprocity bill will pass, and that there will be no extra session. However, it is very much of a hair-trigger proposition at this time, and there are still oppor? tunities for the bungler who "didn't know it was loaded" to waste the charge. It is thought that the bill will be brought in by the Finance Committee to-morrow or next day. possibly with? out recommendation. The belief is gen? eral that if the bill can be brought to a vole it will pass, and there is good reason to expect a vote in the Senate. In fact, the backbone of opposition to the bill was thought to have been broken when the Finance Committee announced that it would not delay re? porting the bill to the Senate. The hopes of the opponents rested with that committee, with the possibility of withholding action there, since it was known that a majority of the com? mittee was unfavorably disposed to the hill. Put the same pressure which will bring the bill out of the committee is expected to bring the majority vote in the Senate, and the advocates of the legislation are in a very comfort? able frame of mind as to their ability to secure a vote. Attack on .lames J. Hill. A letter charging that .lames .1. Hill, of the Great Northern Railway, was Interested In the Canadian reciprocity agreement because the railway would profit greatly from reciprocity with Canada was read in the Henate to-day. Mr. Oronna. the new Insurgent Son ator from North Dakota, sent the let? ter to the secretary's desk and had It read. The letter was from R. T. Klngman, of Hlllsboro. N. D. It sharp? ly criticized Mr. Hill because of a recent speech by that gentleman. Mr. Klngman charged In effect that1 the railroad man had been In Washing? ton when the treaty was negotiated. The letter was full of startling stale ments, among them one to the effect that "the old man is getting childish," another that his statements in support of the treaty were "an Insult to the I Tc^Onuod on Second Page.) GALLERIES HISS SENATOR BAILEY First Demonstration of Its Kind Ever Made in Senate. DAY GIVEN OVER TO LORIMER CASE Rebuke for Applause Given to Crawford by Spectators Causes Expression Toward Texas Senator?Beveridge Will Conclude To-Day After Lorimer Is Heard. Washington, D. C, February 21.? j I Shrilly rising above the expiring an- ? j plause with which the galleries had greeted a comment reflecting upon the i intelligence of those occupying them,, a long, sibilant hiss floated over the ; chamber of the United States .Senate i to-day. So far as many who have' long been connected with it could re-! call, never before had a hiss been! heard in that dignified body. The incident followed a remark by Senator Bailey, of Texas. Senator ; Crawford, of South Dakota, had made! a statement bearing upon the Lorimer j case that brought forth an expression i of approval from on-looking opponents ' of the Illinois Senator, who eat in the gallery. "No applause will be permitted from those In the galleries," said the Vicc Prdsjdent severely. "The applause,'" said the Texas Sen? ator, who was in controversy with Crawford, "is a fair measure of the intelligence of the audience." From that portion of the audience that had not joined in the previous applause came a Elight outburst, despite the presiding officer's caution, but as It trailed, out came, the hiss. No notice was taken of the inci? dent by Senators or ofhec-rs of the body. BeveridKC Doc? Not Finish. The day In the Senate largely was given over to Mr. Beveridge. who dls cussed the Lorimer case, lie did not conclude, and suspended with the un? derstanding that he would continue to-morrow afternoon, after the conclu? sion of Mr. Lorimer's speech in his own behalf. Senator Burrows, in charge of the question In behalf of the Committee on Privileges and Elec? tions, had previously given notice that after the conclusion of Mr. Lorimer's .speech, he would ask that a vote bt: taken. There was general acquiescence in this plan until It was found that Mr. Beveridge could not well conclude to? night. The most spirited part of to-day's discussion came ttnvard the close of the Beveridge speech, and was begun by Mr .Gallinger. lie interrogated Mr. Beveridge as to the source of the money which the latter had freely charged had been used in the Lorimer j election. Mr. Beveridge replied that it | had been received from Brown; Brod erick and Wilson. "But where did Brown. Broderick and Wilson get It'.'" persisted Mr. Gal linger. Mr- Beveridge confessed that he did not know, and to assist him somewhat, the New Hampshire Sena? tor suggested that as the men who had confessed to receiving the money were "a band of liars," no one could tell whether there was any foundation for their charges In this instance. In this connection Mr. Bailey un? dertook to show that nothing had de- | veloped to connect Mr. Lorimer with | the use of money In the election. He i mentioned it as a curious fact that ' this was the first ease In the Senate of the kind, in which there had been no effort to find the source front which the money alleged to have been used had been derived. Mr. Crawford then entered the con? troversy. "It makes no difference where the money came from," he said, "if it was used for corrupt purposes and an election resulted from Its use." A burst of applause resounded from the galleries. The chair admonished the visitors that demonstrations of the kind are not permitted by the Senate. Hist In Ilenrd. "Oh." exclaimed Mr. Bailey, who accepted the manifestation as against his position; "it is a fair measure of the. intelligence of the audience." Then the hiss was heard. Declaring that there was not a scintilla of evidence connecting Mr. Lorimer with the charge of bribery, Mr. Bailey asked Mr. Beveridge. if he believed that Brown, Broderlok and Wilson had supplied the money, and the Indiana Senator replied In the no i gatlve, expressing tho opinion that it had been furnished to them. The Texns Senator then declared that if there had actually been money In the possession of Holstlaw. Beckemeyer. Link and White, its source easily could have been traced. No effort bad been made, he said, to show that 5 cents had been drawn from Lorimer's bank, and he argued that if money had been used for Mr. Lorimer, the hank books would have shown this fact. "That position Is against every rule of common sense," declared Mr. Craw? ford, interrupting the Texan. "Tho bur? den of proof is not on those making the charge; tho presumption Is that those who profited by the transaction furnished the money." Mr. Bailey was just as compliment? ary in his response. "When the Sena? tor suggests a resort to tho rules of common sense he should not violate such rules himself." lie said. Tho trouble he urged was it was assumed Hint money had been used as the. wit? nesses had charged, which he did not believo lo have been the case. "Then," snld Mr. Beveridge. "it was all a dream." "No, not a dream; It was all a Ho," responded Mr. Bailey. "Does not tho Senator- believe that Holstlaw deposited the $2,5*00, as ap? pears in evidence?" Mr. Bailey was asked by Mr. Beveridge. and he promptly replied thnt he did not. "What motive could have prompted the testimony?" the Indianian demand? ed. "The same motive, that caused oth? ers to want to destroy Mr. Lorimer's character," was Mr. Bailey's explana? tion. CITY OFFERS BECK MORE PAY TO KEEP HIM IN PRESENT JOB Railway Company Wants Inspector as Its Chief Engineer. POLLARD URGES COUNCIL TO ACT Two Committees Agree to Raise Salary to $3,600 in Order to Retain Services of This Official Who Has Made Excellent Record as Building Inspector. Building Inspector Henry P. Beck was yesterday offered the position as chief engineer for the Virginia Rail? way and Power Company, made vacant by the resignation of Calvin Whiteley, Jr. who has accepted a similar posi? tion In Baltimore. Mr. Beck has tho matter under advisement, and had no statement to make last night as to his action. Realizing the great loss to the city, were he to retire from tho Building Department, especially at this time, when there is much important con? struction work in progress In all parts of the city, prompt action was taken last night by the Council Committees on Finance and on Ordinance, Charter and Reform with a view of increasing the salary paid by the city. The street railway company offers $3,0')0 per year, and the committees recommended that the city meet the price, increasing the Building Inspector from his present salary of $2,500 per year. Was Xot .Solicited. The action of the Virginia Railway and Power ^Company came as a sur? prise to the Building Inspector, and was not solicited by him. He was first approached on the subject by Vie-e President Fritz Sitterding on Monday, and a formal offer was made to him yesterday morning. Mr. Beck Is an engineer of long and practical ex? perience. He was for several years an assistant engineer In the office of former City Knginec-r Cutshaw. Later he opened an office for general en? gineering, doing work for the Rich? mond and Henrico Railway In connec? tion with the foundations and prelim? inary surveys for the Marshall Street viaduct. Hfc has been employed at various times by the Virginia Railway and I'ower Company and Its predeces? sors, b?Tldi t s 'veral of the dams In James River, and supervising construc? tion of the Twelfth Street power house, built by the Virginia Electrical Railway and Development Company, now the chief power house for the Virginia Railway and Power Com? pany's system, and in some regards a piece of unique construction. It was the first all reinforced conorete build? ing to be erected in Richmond, and be? cause of its location and manner of construction, is probably more abso? lutely fire-proof than any other building in the city. Wan In Hoard of Aldermen. Many years ago Mr. Beck served in the Common Council from old Jack? son Ward, and in later years he was a member of the Board of Aldermen from the same section, serving until under the rearrangement of ward lines, that ward was abolished. Ho was a member of the Water Committee during the construction of the cKy settling basins. He was elected by the Council to the office of Building In? spector when it was created In 1907. At that time the city had no build? ing code, and only the most lax me? thods of regulating building c onstruc? tion. Under the leadership of Mr. Beck a special commission was ap- J pointed, composed of architects, build- j ers and citizens, which drew up the present building code of the city, adopted in 100S. Mr. Beck has steadily worked out a' definite organization for his office until It Is one of the best maintained In the city government. Issues .Monthly Iteiiort Since Its organization it has never once failed to balance on the hist day of tho month, and Issue for publica? tion an accurate report of the volume of building operations in the city, and for the corresponding month of the previous year. The office force now consists of one clerk and three deputy !nspectors, and tho methods of keep? ing the records and division of tho work are regarded as models. Mr. Beck has worked hard, early and late, keeping his office open in busy seasons far Into the night, cheeking over plans, and has won general approbation by his impartial action In many Instances. Without favor to Councilman or citizen he has adhered to the rules, reporting viola? tions to the Police Court and condemn? ing faulty work and unsafe buildings without fear or favor. Building opera? tions In the city have more than dou? bled since tho offlco was organized, last year's report having greatly ex? ceeded the year before, while January and February this year from the totals on exhibit In Mr. Beck's office, are far in advance Of the same months last year. Pollnrd Takes Initntlve. So realizing what It would mean to lose such an officer, and that It would take many months to break In any new man, however well trained. Chair? man IT. R. Pollard. Jr., of the Coun? cil Committee on Finance, who for the past three or four years has led the. fight In the Council against "salary j grabbing." and has been known as I the "watch-dog of the. treasury," op? posing bond Issues and unnecessary ex? penditures, took tho lnltatlvc In se? curing Immediate action that would assure Mr Beck of tho city's appre? ciation of his work, and If possible to keep him In the post in which he has proved so .successful. Mr. Pollard brought the matter to the attention of the Committee on Fi? nance last night. Under the rules that committee can originate no action not authorized by the Council, but every member save one was of the opinion that Mr. Beck was worth aa much oi more to I he city as he Is to a corpora tlon. Without committing thomselvc. ,,p (Continued on Second Paso.) HRXRT r. IiBCK. Action by Grand Jury Against Cincinnati Republican "Boss." GIVES BAIL IN SUM OF $1?000 He Declares It a Political Move, and Asks Public to Withhold Judgment. Cincinnati, Ohio, February 21.?Geo. B. Cox, for years head of the Republi? can organization In Cincinnati, a prom? inent factor in State and national poli? tics, president of the Cincinnati Trust Company, and known widely us an owner of theatrical property, to-day was indicted by the Hamilton county grand Jury on a charge of perjury. The basis of the charge Is that Co.v, allegedly, testified falsely before the grand jury on March 21, 1906, in deny? ing that lie received any of the iirrer est money which several banks, ac? cording to the disclosures before tha Drake investigating committee, paid to county treasurers as recompense for the deposit of county funds. The specific case on which the- Jury acted occurred in the administration of John II. Gibson, who served two! terms as county treasurer, from 1300 to 1904. Gibson testified before tho j grand Jury yesterday that Cox re- | ceived ?4S,500 of the 597,00 1, which the banks gave Gibson as "gratuities" dur? ing the latter's service. Gibson paid ?S7,0f>i into the county treasury in 190*5, following tin investi? gation by the grand jury of the Drake disclosures Two other treasurers, Tilden R. French and Rudolph II. Ily nick, respectively. paid $59,450 and $5S,440 to the county.* Hull Fixed at $1,000. Prosecuting Attorney Henry T. Hunt recommended to Judge Gorman that bull be fixed at $1,000. The re? quired bond was given by Cox, with Abraham F?rst as surety. No date for Cox's appearance in court was set Mr. Cox in speaking of the indict? ment said: "I do not regard this as an Indict? ment in tho true sense of such action. It was purely a poUHenl move, and was brought about by political condi? tions. "The jury which brought the indict? ment was selected by a Democratic judgo who drow tho names of the grand Jurors from his Inside pocket, instead of from the Jury wheel, as tho law requires. "The people, Irrespective of politics, know, I believe, that never in my "career have t been accused of telling u falsehood. I regard the action of the grand Jury as one of the most serious attacks and one of the most outrageous procedures emanating from a body connected with a court. 1 will leave my side of this affair to the facts, as brought out In the trial In the meantime, I ask the public to sus? pend judgment." The law under which tho grand jury returned tho Indictment provides that in case of conviction for perjury, the penalty shall be Imprisonment for not more than ten years, nor less than th roc. TENDERED TO DAWS0N President AnUm fovtn Iteiiresentiitlve io Become III? private Secretary. Washington. 11. C, February 21.?The President has tendered to Representa? tive Alberl F. Dawson, o_f Iowa, the of? fice of aeicretary to the President, but Mr. Dawson has not yet commuhicuted I to the President whether he would ac? cept tlie Office. It is understood that Mr. Dawson Is still considering the teri I der and that the indications arc that he will not find it feasible to accept [ the olllce. ESE TREATY ES TO SENATE Restrictions Upon Immigration,] Heretofore Existing, Eliminated. TRADE AND COMMERCE PACT, Western Senators Expected to Make Fight Against Ratification. Washington, D, C, February 21.? j The text of a new treaty with Japan, designed to replace that pf 1S91, and drawn with the special design of elimi? nating the restrictions upon immigra? tion contained In that treaty, was laid before the Senate by President Taft. The essential difference between the proposed treaty and the existing con-j ventlon is said to be in the fact that H omits all reference to such restric? tions, and leaves to the national honor' of Japan the enforcement at her own ports of the limitations upon emlgra-1 tlon from Japan now expressly placed upon immigration into the United' States. The document Is to provide that either country may denounce the treaty at the end of six months if it falls to operate as expected. Because It will be such a radical departure from the existing treaty, and touches the question of the deep-1 est importance and interest to the. Pacific slope, the Injection of this con-1 ventlon into the closing hours of the! Sixty-first Congress created a sensa- i tlon to-day. That the new treaty will encounter opposition soems certain, for even if It should be speedily reported to the Son ale from the committee without seri? ous controversy within the committee room, tiie Western Senators am ex? pected to insist upon opportunity for debate, which will develop to the full] the extent of their opposition to the treaty. This new treaty Is ono ot trade and commerce, Intended to re? place the treaty of 1891, which Is an? tiquated. It was drawn simultaneous? ly with a number of other Japanese treaties, of similar scope, negotiated with all of the great powers. But, un? like the others, this treaty was not promptly ratltied, and did not go into effect until about a year after others were in force. Japan has already ne? gotiated treaties to replaco those of the nineties, witli nearly all of the other powers, except the United States. If our government were to In? sist on its rights, the existing treaty could bo continued in force until Jutiy I 17. 1912. j This littlo Incident?the difference of a year In the expiration of the old 'treaties?Is proving very embarrass j ing to the Japanese in developing a tlscal policy. A3 all of the new treaties contained favored nation clauses, the Japaneso would be obliged to ion cede to the nations other than tin United States all of the privileges which Americans now enjoy under the treaties of 1891. The practical result would be delay for a full year, n America refused to enter upon a new] treaty relation at once, the readjust-, ment of tariff rates and other forms of j tnxation vital to the sound financing of the Japaneso Empire. .No Heferern-c to Immigration, The radical difference between this new treaty and the one now in force and the one which may prove obnoxious; to the Western Senators is understood j to bo the omission of any reference to the immigration question. In Article 2 of the treaty of 189-J.j following provisions declaring the rignt: j of the two countries to full liberty of [travel and resilience mid trade in both] I countries, is this qualification: | "It Is, however, understood th.it I ho{ stipulations contained In this ami the preceding article do not in any way affect the laws, ordinances and regu? lations with regard to trade, the Im? migration of laborers, pol lei and pub? lic security which are it; force or which may hereafter bo enacted in either of Uta two countries." LECKT WILL IT Den ies Responsibility f oz Condition of Insur? ance Company. - HIS RESIGNATION . WAS VOLUNTARY Points Out That Directors Have Not Put Up $133,000 Additional Capital, but Have Repaid Themselves $91,000 and Added Only $42,000 to Assets. Robert. Lecky, Jr.. gave out yester. day a statement In reply to an article about the reorganization of the Vir ginla State Fire Insurance Company, which The Times-Dispatch printed on Sunday on information furnished It by the State Insurance Bureau and ar. authorized officer of the company. In that article It was slated that directors had put up $133.000 in cash to carry out the plan of reorganiza? tion. Mr. Lecky says in his statement, however, that '"the reorganization ol the company repays $01.000 to the directors, nnd adds $12,000 to the as? sets of tho company." It Is explained that this $01,000 in question Is to be paid back to the directors, or changed front it contribution to a stock pur? chase?evidently with the approval pi.'. Insurance Commissioner Button, who] worked with the directors and In? dorsed the reorganization plan. In his letter to the stockholders, un? der date of February IS last, in which he offered his resignation as vice president?his resignation as secretary and manager going to tho board of directors?Mr. Lecky said: "At the meeting of the board of di? rectors held Immediately following your annual meeting, January 26 last, all of the ofllcers and directors volun? tarily offered to place their resigna? tions before this special meeting, with a view of facilitating a reorganiza? tion of tho company, and thus relieve the. stockholders of all embarrassment, If such action was deemed advisable." But nobody except Mr. Lecky reT" signed, the reorganization having beer, effected with Frltit Sitterding as vice president and Archie II. Harris secre? tary and manager. Mr. Lccky's statement in full is ai ' follows: Lecky'x Statement. The publication In Sunday's Times Dispatch by Insinuation has so reflect? ed upon me that 1 feel it my duty tt state to the public of Richmond, at concisely as possible, all of tho facts as I know them, and which are sup? ported. In 190 1 the directors of the Virginia State Insurance Company contributed $72,000, as a result of the Baltimore and other conflagrations occurring that year. Later on $26,000 of this money was repaid as special dividends,^ leaving a balance duo to these direc? tors of $46,000. In December, 1010, for reason* Htnted to the stockholders of the cojn- ' pnny. In n letter of December 31 by tlie director*, the Increase of the prem? iums during the year wan mo treat nn to euune an Increase#in the reserve Cumin of more than $100,000, and that Increase, together ivltb the losses by tire, which ?vere not abnormal, invade,! (lie .surplus, anu eneli director, myself included, contributed $5,000 to the fund. The reorganization of the company repays $91,000 to the directors and adds $12,000 to the assets of the company. Regarding the Insinuations as to tho errors made, I beg to say that nona of these errors were discovered, as a re? sult of any examination, except such as was conducted by myself, and on November 30, 1909, this condition was reported, In writing, in a general let? ter treating of the needs of the com? pany. In the following language: "It was only on last Friday that the balance sheet to October 31 could be prepared, and immediately thereafter I undertook the preparation of the annexed statement; the losses were listed and the reserve books added and calculated personally with tho aid of the clerks. The reserve figures shown are but of balance with the premium account on the ledger, being greater than all premiums written for the year. To arrive accurately at the re? serve figures. It will require an in? ventory of all risks in force, but this work will take more than two weeks to complete, and the errors found will go to the credit of this calculation. "All of the items shown on tho an? nexed sheet will have to be charged off ?s non-admitted assets, although . they have considerable value?tins amounts to $19,907.25.'! The company was examined by the State of Illinois after the payment of the Baltimore toss; it was examined by the Virginia department In 1907; later by the Virginia department In Jan? uary 1910, and in January. 1011'. Th-5 results of the January, 1910. examina? tion were published broadcast b"> t\t? insurance papers of this country. Hii.si neu? Preserved. Tho business of the company has been preserved, and wo have only,, retired from States that were unprofit? able, with the single exception of th* s;tato of New York, in which we could not continue, because of the laws of that State forbidding a company of our condition' from 'doing so. The re? tirement from New York was as of December 31. 1909. All of the busi, ?oss in New York and Texas was re- ; insured and one-half of tiie btislne*; cls.where In the . country, and over, ,isk posslbie for us to reinsure, u ,j, j* contract was included. V'-'' business of the . ompan; l been maintained, and under d*v January ' 31. I?i0. the director*^