The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-04-25
nITTHE BANKERS LIFE
UNEXPECTED BLOW AGAINST THE
LOCAL ASSOCIATION BY FED
ERAL GRAND JURY
SURPRISE TO THE OFFICERS

SURPRISE TO THE OFFICERS
Echo of Some Trouble the COMPANY
Had With "a Milwaukee Man
Credit and Reputation Of Local
Concern Too Firmly EstabIished
to he Injured by the Action of
the Court I'm Milwaukee,.
An Associated Press telegram from Mil
waukce. received yesterday, said:
The federal grand jury returned in
! aictments against the officers and trus
tees OF the Bankers Life Insurance As
| dement, associations in America Tha
charges contained in the Indictment are
adieged use of the mails for alleged pur-
| pose or urtherlng scheme to defraud
-, The names of the officers returned in
the Indictment are: C. M. Taylor. Doug
| las P;sd p,utnam. John B. sanborn. Charles f.
| h!geiow and Maurice Auerbach
United States District Attorney Phillips
says 1t IS the greatest Indictment re-
turned by the federal grand jury in
| Inc Bankers Life Insurance associa-
Sion nave been doing business In twenty
seven state and the last statement is
| to be S905. 900. ''' ''Se''
TALK WITH THE OFFICERS.
The receipt of the telegram caused con-
| siderable establishment in insurance cir
| cles In the city, as the men against whom
| indictments have been returned have long
| been prominent in business circles and
| are among the best known financially in
| the city. Courtlandt M. Taylor, presi-
! dent of the Bankers Life, was seen yes
! terday afternoon at his Office In COM
pany with T. r. Palmer. attorney for the
association: Douglas Putnam, secretary,
and C. E. Secor. superintendent of
agencies. He said during a discussion
| of the message:
81 have not received official notifica-
ton that indictments have been returned
against the officers and trustees of this
company. but from its source I should
be of the opinion that the contents Of the
| message are true. I cannot tell exactly
| what the grounds for the indictments
| are, as we were not called before the
| federal grand jury, but l am of the opin-
| ion that their action grows out Of an old
| trouble which we had about three years
| ago with A. G. Bodden, Of Milwaukee, as
principal, and an insurance man by the
| name of Carter. Bodden took out two
| policies in our association and paid his
premiums. He then claimed that he did
not know at the time that. we were an
assessment company and wanted his pre-
MUM money back. 1t developed that
| the man Carter was responsible for his
| action and had gone to him and repre-
| scented that he was agent for a better
| company and had caused Bodden to be-
| come dissatisfied The case was taken
before William A. Fricke insurance COM
missioner of the state of Wisconsin, and
| he entered the following OPINION and
Mr. Taylor produced the following:
RECORD OF THE COURT.
This matter came before the depart
den, of Milwaukee, who alleges that on
or about the 18th day OF November, 1895,
he received three policies of insurance,
each of $1,000. from the Bankers Life as
ISOLATION of Minnesota, upon which he
paid, as premium, to the agent of said
association the sum of $64. 35, and that
the premium paid thereon Were obtained
from the said Bodden by misrepresenta-
ton in that he was led to believe that
the said association was liked premium
company, whereas, after the delivery of
the policies. he discovered that the asso-
citation w2c IN assessment association.
The complain also alleges that the asSo-
/ citation is not complying with the pro-
visions Of Its articles of incorporation
| and that 1T has violated several of its
| provisions. ,
Upon the filing of. this complaint the
association was cited to appear and show
| cause, July 20, why its license should not
plant filed and the answer submitted
by the association were given careful
consideration, and. after the fullest in
VeStigauon, | find that the policies de-
livered were in strict accordance with
those applied for in the application for
insurance. There could have been no
Misrepresentation as to the character of
| the company, as upon the estimate Of
| cost blank furnished there appears print
cd ed in red In full face type. the following:
Our company Is today, by actual sta
| tistics. the strongest assessment company
| in America
1t was upon this blank, mailed to the
association, that the complainant request
| ed statement of the cost of insurance
| The literature Of the association does
not nlde the TACT that the association Is
an assessment company. and for years
| the Bankers Life Association of Mime
sofa has been licensed and authorized to
| transact an assessment life Insurance.
| business in Wisconsin,, and during that
time mas promptly met the payment Of
| It's claims.
the charge Of violation Of the articles of
incorporation, the error being due, no
doubt, to his being misinformed as to
amendments to the original articles. No
misrepresentation or violation of the
| law having been proven, the complaint
against the Bankers Life Association of
William A. Fricke
Commissioner Of Insurance.
| Dater July 20, 1897.
| WHAT IT LOOKS LIKE
| Inc WnOle action, In my mind, Is an
! attempt to damage our business in Mil
| waukee, where we have many policy
holders. Carter, in behalf of Bodden.
has been causing us trouble ever since
the decision of the insurance commits
sloner, and from as much as I know Of
the present action resulting in indict-
ments L should say that he has endeav-
orded to bring us before the federal jury
on the ground that the company has sent
| matter through the mails, Advertising
| the association as an insurance company.
with the intention of defrauding, not stat
| Ing that 1t Is an assessment association.
This, it Is unnecessary to say, is entirely
| false, as the decision of Mr.. Fricke indi-
| Gates"
| Mr.. Palmer, attorney for the Bankers.
Life, in speaking of the indictments, said:
| I'VE have little information regarding
| the action, but are of the opinion that
| Attorney Phillips is seeking to make a
| name for himself by securing action
against US. He is very foolish, as the
| associations credit and reputation is
| firmly established and the indictments.
If returned in good faith, have been is
| sued under a most deplorable misinforma-
| ton of the true condition of things We
| will appear promptly and demand immc-
| date trial. I am thoroughly familiar
| with the facts Of the Bodden CONTROVERSY
| and am sure that this rs the only ground
| on which he could possible have been at
| tackled
| C. e. Secor, superintendent Of agencies.
| said: There has never been complaint
| on our methods of operation in Wiscon-