St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-09
The State Insurance Depart
ment Displays a Commend
able Amount OF Vigor.
Endowment Societies to Be
Searchingly Investigated
by Experts.
The Commissioner Has Got
His Eye on a Minneapo-
lis Society.
People Must Be Protected
From the WileS and
Smiles Of Agents.

The state insurance department has
lnaugurated general examination into
the methods of the so called endowment
insurance companies doing business in
the state. Complaints have been very
frequent of late az the insurance COM
miSSioner's Office of the failure of some
assessment life and endowment compan-
les to carry out the terms Of their poll
cies, and a general investigation is to be
inaugurated. Particular attention has
been directed to a concern doing bust
ness in Minneapolis under the title of
the Federal investment company,
This company is reorganization of
what was once the Northwestern Mu-
tual Endowment association, the con-
duct of which was investigated sOEe
time ago and a fraudulent condition of
affairs disclosed. The report was never
made public for reasons best known to
the department. In fact, the public
was unaware that any investigation had
occurred, except such portion of 1t as
had suffered by the concern. The re-
port is on file in the insurance commits
sioner's office. The company was, 1t
will be remembered. doing ostenSiblY a
marriage endowment business. 1t was
never able to pay more than 80 per cent
of the amounts paid in by policy hold
ers, yet the secretary received as salary
for one year at the rate of SIS, 71l.03.
1t Was Fraud.
Assistant Insurance Commissioner
Dearth said yesterday that when the re-
port showing fraud was submitted to
the department, the company was at
once ordered to wind up its affairs and
go out of business. The secretary was
F. G. Lawrence. He suddenly left the
city. and went to Denver. James Ton
kin, the present secretary of the Fed
eral Investment company. succeeded
him. MI. Tonkin promised, on behalf
of the company, to close up the bust
ness as soon as possible.
1t appears, however, that the affair
of the old company were never wound
up as ordered by the department, but
instead all the policy holders who could
be induced to do so had their policies
transferred to the new company. Re-
Gently information has reached the de-
partment that policies are also being is
sued under the old title. and complaints
have been received of the cOmpany's
failure to stand by its agreements.
These constitute the basis for the
present investigation. The attorney
general has conferred with the county
attorney of Hennepin county as to
means for
Securing the Apprehension
of ex-Secretary Lawrence. 1t is prob
able that measures will be taken to have
him brought back.
A reporter visited the Office of the
Federal Investment company in MIN
neapOliS Yesterday and found MIR. Ton
kin at home. When asked what rela-
ton the Federal bore to the old North
western Mutual Endowment society,
he replied that it bore none whatever.
1t was new company, he said.
81 see your sign reads Northwestern
Mutual Endowment society," Why is
that?"
"Well, we have been going to have it
changed. We shall have TO, guess"
Mr.. Tonkin said the plan of the Fed
eral company was perfectly safe one.
He (Tonkin) denied that the state
| ment regarding the abnormally large
salary of the eX-secretary was true.
There was nothing in it, he said. He
also denied that the Northwestern had
been merged into the Federal, but he
admitted finally that he was a member
of the old concern. he criticised the
state law. 1t was not strict enough, he
said.
1t is intimated that several other COM
| panies doing a similar business will
| come in Tor close scrutiny within a
week or two.
July The Plymouth Clothing
House.