The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-28
THINKS IT'S LAVISH In PAYING
TWO OF THE OFFICERS WHO
HAVE BEEN MANAGING ITS
AFFAIRS.
LONG PETITIONS PRESENTED.
and Prevent Further Continu-
ance of Existing Practices.

to make an examination into the affairs
of the State Mutual Hail association.
He has instructed the officers Of this
| and the Amboy concern of similar char
acter that they must refund to the
treasury sums paid as commissions
before they can be relicensed. The
Winnebago City company has paid 60
/ per cent of it's losses, and $4,000 Of it's
! income went to pay the salaries of four
| officers. Two of these have been frozen
out, and headed the fight against a new
license. The president and secretary,
who remain, claim that they received
| but $4,000 of the funds for their serv-
| ices, and, unless the other two officers
| can be made to disgorge also. they do
not think it fair they should be called
upon to give up a part of their salaries.
The president of the company was
allowed IL mills and the secretary
mills on the gross receipts of the COM
! pany, and this gave them handsome
incomes last year. for the company did
big business.
A dispatch to the C o b from Win
nebago City says:
Farmers and business men generally
In this community are very much
wrought up over recent developments
In connection with the business meth
DDS of certain hail and cyclone inSur-
ance companies located in this vicinity
| and doing business throughout the
state. Suits brought by the AmbOy
company to compel a policy holder to
pay his assessment started the ball
rolling and recently the war has been
carried into Egypt and the State
Mutual Hail Insurance company. OF
Faribault county, is now under the ban.
and the indignation of incorpOrat0r-,
stockholders, policyhOlders and others
interested runs high.
The correspondence given below be-
tween parties in this vicinity and In
Surance Commissioner Dearth viii ex-
plain Itself. The first is a communica-
ton maize to MIR. Dearth Jan. s last
1t bore the signatures of about thirty
of the leading and most responsible
farmers in this section. The communi-
cation reads
To the Hon. Elmer II. Dearth Insurance
Commissioner St Paul, Mimi:
We the undersigned incorporates. policy
holders and citizens. residing in Or near the
village of Wnnebago City. Mimi, resepct-
fully represent and petition: That the officers
having in charge the business OF the State
Mutual Hail Insurance company of this
place. have managed and conducted the bust
ness and affairs of said company in an ex-
travagant and wasteful manner; that the
pTSSluSnt ana secretary thereof took the
OF 1890 for their services. a sum far in ex-
cess of the value of such services; that the
president of said concern is youth of ten
der years, and we believe lacks discretion
and business ability requisite for such posi-
ton; that said president. by virtue Of proxies
taken by agents for him. voted out all direc
tors except officers and general agents OF the.
company, at a late annual meeting of said
company, which meeting was held and closed
at an early hour in the day; that by reason
OF mismanagement of the affairs Of said COM
c,Io nc
company has become insolvent and unable 10
pay its members sustaining losses. and that
It's condition is such as to render it's further
proceedings hazardous to the public and it's
policy holders, and especially it's incorpo-
rators.
That the business of sad company has been
conducted more for the benefit of the officers
and their relatives than for the policy holders
and will continue so to be conducted and
that the company is a blot upon the good
name of the people of this vicinity and should
no longer be permitted to impose upon ard
wrong the farmers of this state.
therefore. we respectfully ask that you re-
tuse to renew said companys certificate of
authority, revoke the one they now have,
and that you take such further measures as
the law provides to close up the affairs of
sala company and project the public from
This was followed Tuesday night by
the following:
To Elmer II. Death, Insurance Commissioner
st. Paul, Mimi:
State Mutua! Hail Insurance company. Of
Farlbault county, Minnesota" hereby saw
that We or any of us. have nothing to do
whatsoever with the election Of the directors
or officers CIR the management of the affairs
OF SAID company, and we all feel that we
were dupes when we signed the articles
or incorporation for said company We de-
nounce said company. its bylaws cherne and
management. 1t can pay, and is paying large
and e! excessive salaries to its officers and pay
ing It's losses pro rata By reason of proxies
taken from its unsuspecting members the
management has passed into the hands of
any one but farmers; we might saw into tSe
hands Of farmers of the farmers" and by
their bylaws they vote their own salaries
and elect their own officers and create offices
nual meeting. And it is alleged that the
last years secretary sold his prospect To a
reelection to the treasurer for 81, OO0 and the
| treasurer's father-in-law was elected as sec
rotary for $685. and the old secretary was
given the Office of vice president and a fat
salary besides; all this being done in the
widow women who insured in this company
thereby placing confidence in them and not
getting paltry pro rata payment of their
honest losses, and the officers getting fat
salaries in full, and scheming for more bv
having lately created a sinking fund evil
IDENTIFY for its yet uncollected assessments,
bers having unpaid losses. We feel that if
all the members Of this company knew of the
condition of its affairs and the acts OF its
officers Of late, of their salaries voted and
of the true meaning and effect Of It's bylaws
they would If given the opportunity, vote as
one man to close up the affairs of the COM
pany, and to that end we hereby petition
you that you cause said company to give its
members such privilege at once
This last document is signed by
eleven of the leading incorporators Of
the insurance company under consid-
Grafton, several of them men of wide
acquaintance and influence socially
and financially. There is no uncertain
sound in the manner in which they de-
ounce the operations of a concern of
which they have been made dupes.
These hail insurance companies down
this way which have been gathering
| in thousands of dollars in fat salaries
and only partially paying their loses,
are at present in hard lines, owing to
the Indignation felt by citizens toward
them.
Commissioner Dearth since receiving
the document from the farmers, the
one first given above, has taken pains
to investigate and, in consequence, has
written to several of the parties whose
names were affixed to the document
and the result is that he is getting all
sorts of information on the subject Of
insurance. To counteract the effect Of
these documents upon the mind of the
insurance commissioner, the officers of
the State Hail Insurance company yes-
terday circulated and obtained some
signers to paper purporting to be a.
recommendation Of themselves and the
companys business methods The
treasurer of the company, bearing this
paper. went to st. Paul Wednesday
evening.