Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-20

r..
above exhibit will enable you to 1udge
of the heavy expenses under Wnlcn
the company is, for the obtainment OF
its business" It will be observed IN
this examination that to the $S2S.Ob5
used by the management, there should
also be added the s210.21O OF unad-
mitted assets, VIII would make the
entire expenses .ee organization ST.
O3S,265, or nearly 20 per cent OF tfe
total premiums received from the poll
.icy-holders. The assets June S0th, ex-
elusive OF the capital stock. are only
SAT-, ,O43; the gross surplus s27,347.
The unadmitted assets are as fol-
lows: Sundry printed matter, station
cry, furniture, fixtures, safes, etc, $12,-
414.84: agents debit balances not se-
cured, $1o,367.65; Bills receivable, un-
secured, s1,349.2O: Premium notes or
loans in excess of reserve on policies,
s1s6,07s37; total $210.210.06.
The premium income for the first
six months of 1902 on new business was
s29O,5S1.76. The total premium in
come the same time, new and renewal
$445,227.63, while the expenses for the
same six months We're 25s.243.o5,
which is nearly 81 per cent OF the new
premiums received in six months,
or IS per cent Of the total
premium income. According to
the examination there is only $S97,S7t
of accumulated reserve on policies, less
uncollected and deferred premiums.
which Is less than ~ per cent OF the
premiums collected. The examiner
states that the policy-holders OF this
company derive no benefit from the
lapses which occur at the end OF the
first year. when they are heaviest, and
also shows that the lapse after the
first year is very fight, and the profits
by the officers and agents
of the company from this source, can
not be relied upon. He states also
that there is no profit from the myth
cal savings in mortality" which shows
that the grossest misstatements and es-
Inmates are being used by the agents
of the company, with the knowledge
OF the officers, to secure business
The examiner states that the gross
surplus smust not be considered as the
amount standing to the credit Of the
policy holders for the payment of pro-
fits upon their contracts" The clos
est estimate that can be made is that
less than $4,000 of surplus has been
earned that can at all in any way be
said to belong to the policy holders.
Criticizing the action of the officers
Of the National Life and Trust in hold
ing in their own possession, their own
notes for the unpaid portion Of their
stock, Mr.. Wolfe says:
In connection Herewith I also beg
to call your attention to the fact that
under the amended code adopted at the
last session of the legislature, these
capital stock notes must be deposited
with the auditor of state. find that
this company is the only one that has
not complied with this requirement,
it's stock notes being in its own pos
session. You will notice that the COM
pany has in force thirty policies writ
ten upon the whole life plan. I have
these in the discussion Of
the company's methods, owing to the
fact that they constitute such a small
percentage of the total number of pol
icies in force, viz: 11,740, the balance
being on the endowment plan. The
question which arises, however and
one which comes clearly within the
scope of the examiner is, Are these
policies being sold under misrepresen-
tations to the insured, and il so, are
the officers at the home office cogniz-
ant of this fact, and in any way re-
sponsible for the same?' If SO, the pol
thruout the state have
right to learn of such fact thru the
medium of it's insurance department, |
which is charged with the proper su
oervision of the companies operating
n the state, and which by the granting
If it's license leads the citizens of its
state to believe that the corporation is
worthy of every confidence.
"F'rom an inspection of the literature
If the company, and from evidence
submitted to me in the form Of letters
-. fContinuad on Eighth PaEa.l