The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-10
FAR-REACHINC TEST
MANAGER of HOME Co-opERA
TIVE COMPANY is AR
RESTED
COMMISSIONER DEARTd ACTS
Effort to Compel Home-Buildfnn
Contract Concern to Close Opera
tons in NIinnesota-Meth-
DDS of Doing Business.


Aaron D. Beardsley, state manager CT
the Home Cooperative company, with or
fees in the Chamber of Commerce was
arrested at 4:30 yesterday afternoon on
a charge Of engaging in life insurance
business without being duly licensed with
the state insurance department. Inc com
plant was signed by Insurance Comm1s-
sioner e. H. Dearth.
Beardsley was taken before Judge Hine
IN the police court and furnished BOND
for $780, Attorney John Ives gong MS
surety The case will come up in the
police court today
Inc arrest was made by Deputy Sher1ffs
Kroeger and Mead, and Beardsley was in
his office in the Chamber Of Commerce at
the time.
There will be preliminary hearing be-
fore Judge Hine today, and if he con-
slders the evidence sufficient, the de-
fendant will be bound over to the May
grand jury on charge of committing all
ndictable misdemeanor, for which the
statutes provide a fine of not less than
$25 and not to exceed S1OO.
The case is significant one in that 1t
will establish a precedent. If conviction
can be secured in this instance it VIII
practically mean to do away with all OF
country
The contract which the Home assoc1a-
ton enters into with its patrons, among
other things, provides that after the
patron has made two monthly payments
Of $50 each his estate VIII receive. IN
case of his death, a warranty deed to the
homestead for which he is paying
This, the insurance commissioner con-
tends, is where the life insurance part
comes in. He contends that this is just as
plainly a life insurance proposition as il
a man took out 81, 900 policy.
The particular case. which was made the
subject of the case, is one wnere the
Home association entered into contract
with w. E. Williams to furnish him with
home, after he had made a certain num-
Der of payments. This contract also con
tanned the clause that in case Mr.. WIZ
Hams dies, Mrs. Williams shall receive 4
clear title to the homestead
County Attorney Kane has had his eye
on this corporation for some time. ana
has been consulting with Insurance COM
missioner Dearth as to whether there was
no law by which this class of Institutiors
could be put out Of existence.
After giving the matter careful study ne
has found that if the defendant In this
case cannot be convicted on the charge Of
engaging in the life insurance business
which these companies can be compelled
to cease operations.
Some weeks ago Commissioned Deartn
discovered that this company was doing
a land office business in Minnesota. ana
wrote to Mr.. Beardsley notifying him
that as he had no license from the depart
ment he was not legally entitled 10 DO
business in Minnesota. Mr. BeardsIey took
exceptions to Mr.. Dearth's rulings ana
hn
Dearth discovered that the association
was sending out circulars to its patrons
which in a rather sassy way declared
that the insurance department Of Mime
sofa had nothing to say as to now It
should do business. Mr.. Dearth at once
got very busy and communicated with
Mr.. Kane.
1T is the duty of every newspaper in
the country said Mr. Kane yesterday,
ito expose such rank frauds. ii is NOT
the thinking man who will go and invest
his hard-earned cash in an affair of this
kind, but the more ignorant classes are
invariably entrapped."
why, | understand" remarked the
county attorney that those men over
in the Chamber of Commerce who man
age that affair get salary Of IS, 100 per
month. And the company can afford to
pay it, judging from the money they IA ye
taken in during the past few months.
i am Informed, = said he that thew
handled 1000 contracts at their St PauI
office alone during the past month, aHI
you can imagine that calls for some cash,
when you stop to consider that each IA
tract Of 81, 900 schedule, the one most often
employed, calls for 81 .35 per month before
maturity and $5.35 after
The part of this affair which is the
most Objectionable is that specifying that
IN case Of the death Of the applicant for
a home, the homestead reverts to the
wife From business point Of view, the
proposition to turn over home worth
$1,000, when only something ike $40 mas
been paid on it is simply ridiculous.
we propose" said he, ITO tgnt TINS
case through to a finish 1t is an out
rage on the public. Thousands Of dollars
Tor which the working classes have to
toll long and hard are turned into the
coTers Of this company, and the benefits
10 be derived are of a most uncertain
quality"
The plan on which the company operates
IS very simple one. Anyone desirous OF
securing homestead has only to put in
an application and accompany it with a
membership fee of So for each thouea IA
dollars subscribed for.
He must pay at the rate Of Sl.35 per
month per thousand subscribed until ms
turn is reached, or until it is time for
him to share in the benefits
Then he must commence to return the
borrowed money at the rate Of SIS. 35 per
month for each thousand invested.
The monthly payments received are
divided between the home fund, the re-
serve fund and the expense fund. Cen
eral offices of the company are maintain
ed at Kansas City.
Attorney General Douglas has beer. con-
suited several times by working men hay-
ing money invested in the company.
Divorce for Mrs. Moran.
Judge Jaggard yesterday granted Mrs.