Embezzlement Scandal Rocks Spokane Insurance Firm
The secretary of the Washington Farmers’ Industrial Insurance Company is accused of missing funds and chaotic bookkeeping.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
SPOKANE, June 22.—Fred B. Marvin, secretary of the Washington Farmers' Industrial Insurance Company, began suit to enjoin James Hopkins, who had been elected president of the company, from accepting the position. This led to an investigation of the affairs of the company. Secretary of State Allen Weir arrived and began experting the books on June 14. His report made today shows that Secretary Marvin's affairs have been run in a very loose manner, and show great irregularities. No system of books has been kept. The report shows that there is no account of bills receivable in the ledger. The ledger account of cash from the stocks shows only debts, the credits being blank. The private financial affairs of the secretary have been mixed with the company's business and money borrowed has been but partially accounted for. The approximate shortage on securities is $9,000, and on cash about $5,000. Marvin was today enjoined from acting longer as secretary, and criminal proceedings will be instituted against him. His bonds cover all the shortage, his father having gone his security.
“No system of books has been kept... The private financial affairs of the secretary have been mixed with the company's business.”
Financial oversight of mutual insurance organizations remains a contentious civic issue today. This incident reflects the early, often shaky institutional maturity of Washington's burgeoning corporate sector during the state's infancy.
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