St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-10
FLEECING THE POOR.
Endowment Society Sharks
Fearlessly Exposed by
Commissioner Deapth.
Secretary ola Small Company
Scoops in the Salary Of a
Railroad President.
State Prosecuting Depart
ment Might Reasonably
Display More Vigor,
And Have a Few OF These
Rogues Placed in the
Penitentiary.

Dlluth Insurance Commissioner
Dearth has completed an investigation
of the methods of the Federal Invest
ment company. of Minneapolis. which, as
stated in the GLOBE yesterday morn
ing, is an outgrOwth OF the fraudulent
concern formerly known as the North
western Mutual Endowment aSsocia-
ton The suspicious entertained by
the department as TO the iIlegality of
the concern and the iTregularity of its
methods, are found to be very fully veri-
fed in the report submitted by Mr..
Dearth anent his research of recent
date. Mr. DeaTth stated yesterday that
on looking over the records he found
the name of Z. 3. Walker as secretary
during that period in the history of the
Northwestern Mutual, which was char
acteriZed by gross stealing from the en-
GOWment fund. The statement formerly
made that I. {. Lawrence was secretary
at that time is incorrect. 1t arose
from the fact that no notice was
fled at the insurance commissioners
Office of Walkers succession TO the
Office. Walker robbed the policy hold
erS in the shady concern through thick
and thin. When exposure became i'm
minent he decamped. MI. Dearth'S
report, which also embOdieS the greater
part of the former report, discloses
diSgraceful state of affairs:
& Deputy Commissioner Dearth, in his
report to the chief commissioner. says:
Il have this day visited the Office of
the Northwestern Mutual Endowment
Society. of Minneapolis, for the puT-
pose of ascertaining what the secretary,
Mr.. TOmkin. had accomplished in the
way Of closing up the business and af
fairs Of said society.
An examination of said society made
in November last under direction of
this department, disclosed gross fraud
in the management, the most fragrant
OF which was the actual stealing of
money from the Endowment fund. dur
ing tie period included from May to
Decembe 31st. 1859. That you may be
thoroughly cOnverSant with the cOndi-
ton OF said society as shown by the re-
port of said examination, l append
copy"
A Hinge Fraud.
The report on the Northwestern So
cietO, flied Nov. 90. 1890, was made by
Actuary Aug. f. Harvey, never pub
ished. 1t states:
have examined the affairs and condition
Of the Northwestern Mutual Endowment
society at its home Office in Minneapolis, to
Nov. 1st, 1890
From the beginning of its marriage
endowment system in March. 1850.
10 Oct 31st, 1890, there have been
collected by assessments on en-
dowment account. S219 915 40
For semi-annual dues. 1896 90
Total. ........ 236, 4s1 20
There has been paid out:
On account of matured endow-
ments .......................1 72.24O II
On account Of expenses. ......... 63,S63 20
On account of advances for No
VemDer- INSTRUMENTATION. 2OO W
Cash in bank. 1T 63
Total. 236, 4SI 40
ASSET.
The resources are.
Cash. 49,. III CO
November assessment, endowment
portion $50 per cent............. 1900 90
1877 %
Advanced cash. Observation-Disclosures. 200 90
------
1,577 60