Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-20
Iowa So-called Life and Trust"
Companies Exposed By Min
nesOta Examiners
EXPENSES WERE 70 PER CENT
Insurance Sold Undertake. Representa-
tions From Head Officials = Policy
Holders Get Only 27 Per Cent Of Pre-
MUM Income-Enormou Expenses"
to Stockholders.

Special to Times Republican.
Des Moines, Dec. 20.-It is UNDER
stood here that legal talent from this
city has been called into consultation at
Chicago tonight with Secretary of the
Treasury Shaw regarding the methods
for preventing these "life and trust
companies from using his name. Sec
retary Shaw has withdrawn from one of
the companies, but it continues to use
his name and he is worried about 1t.
Special to Times Republican.
Des Moines, Dec. 20.-Another inter-
esting chapter has been written in con-
nection with the life and trust" plan
Of operating insurance under the Iowa
laws by the publication Of the official
report of the examination Of one of the
companies doing business In Des
Moines. It is learned that a similar re-
port relating to another company has
been prepared but has been held up on
a protest of the company TO see IL the
actuary who made the report can not
be induced to change his figures. II
has come out that Governor Van SAINT,
Of Minnesota, has taken personal IN
terest in this matter and selected Sam
uel II. Wolfe, of New York, one OF the
best known and most competent pro-
fessional actuaries. In the country 70
make the examination of these COM
panies on behalf of the Minnesota de-
partment, and this because the Iowa
companies, claiming protection under
the rigid Iowa laws, were getting such
a foothold in Minnesota. Mr.. Wolfe
came to Des Moines and spent several
weeks making an examination OF tnese
companies. His report to the Minneso-
ia department is regarded as one OF
the severest which has been made re-
garding any business. 1t has created
great interest In insurance circles all
over the country, and state officers IN
Iowa are now being urged to take due
notice of these things and 1t Is prom
Used that SOON after the FIRST OF Janu- :
ary there Will be some examinations
made by representatives OF Iowa. The
report of Mr. Wolfe was made to the
Minnesota department, but there are IN
all over 1000 policy holders of the Ma
tional Life and Trust, with which ex-
Secretary Dobson and Ex-Governor
Shaw were formerly connected, and all
are interested. Commissioner Elmer
H. Dearth, OF the Minnesota Depart
ment, in transmitting the Wolfe re-
port to the company, sent letter in
which he called attention to the fact
that while the company has on deposit
the securities to repay all that is paid
in it has only a little more than $27, 900
more and adds:
.sThe result of this examination does
not, however, indicate that there will
be any very substantial payments from
the various sources Of profit cited by It's
management in the way of surplus
earnings over and above the face
amount guaranteed. This fact is
plaintly set forth by the examiner in
the accompanying report. 1t is fur
thermore clear that the home office
management, as well as the field force
of the company, is subject to severe
criticism for the methods pursued in
obtaining business. The special bond
contracts, which constitute practically
the entire business written to date.
have been secured thru the influence of
extravagant estimates as to the amount
that would be realized at the end of
the endowment period, in fact a sum
of money far in excess of that which
the experience of the company DEM
onstrates is within the bounds of pos
sibility."
Commissioner Dearth gives notice to
the company that if it continues busi-
ness in that state it must be along
lines that will not be misleading to the
policy holders as to the amount of ben
efits to be realized under their con-
tracts"
The examination made by Actuary
Wolfe, of New York, of the National
Life and Trust, covers period from
April 1899 when the company began
business, to June 80, 1902, and shows
the following as the receipts for that
period:
Receipts from policy holders S $1,494,590
Receipts from stockholders. 100000
Receipts from interest and
other sources. 25,S70
Total receipts -. ). ....$ 1,620,460
The following are the disbursements
for the same period:
Paid to policy holders. ....$ 1867
Paid to stockholders, officers
and clerks, agents. and
agency managers, and 9TH
er miscellaneous expenses. S2S,055
Total disbursements :. -. S46,712