Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-06
Reputation of the Solid Iowa
Concerns Being Injured by
Short-Lived Concerns
STATE OFFICIALS HOODWINKED
Many Who Were Taken Into the Com
panies and Later Found Out the Ma
ture of the Concern Fastening to Get
out-A Rigid Investigation is Being
Made.
Special to Times-Republican.

Des Moines, Dec 6.-There are things
ance center of Iowa, or rather in circles
that are masqueraded under the name
of insurance. The insurance interests
of Iowa, largely centered in Des Moines
! and protected by the splendid Iowa law,
have gained great reputation turnout
the country. Those who are engaged
| in the old line insurance business are
| jealous of this well-earned reputation.
or late there have been abundant indi-
cations that the reputation is bearing
some tamish marks, because of the
springing up Of classes of companies,
organized under the insurance law, but
in fact having such a small per cent of
insurance in their business as to take
them out of the class. Some of these
companies of mushroom growth have
had phenomenal growth at the start,
and they have been assiduously BOOM
ed by shrewd advertising managers
with plenty of money at their command
But there are not wanting those who
figure it out that they can not survive.
Lately, these companies, which offer a
gold bond in place Of an insurance
policy, or which are more properly life
and trust companies, have been UNI
dergoing rigid investigation at the
hands of four representatives Of insur-
ance departments of other states, and
as a consequence there has been some
stir among these companies and their
stockholders. Stock has been offered
for sale and is being sold at rates much
less than formerly supposed to be
worth. There are run1ors flying about
that the reports will not be fiattering.
And in the meantime the managers are
hustling for business to keep UP APP
pearances. AT the outset it was the
policy of the organizers of these vari-
Gus semi insurance companies which
hold out hope of rich rewards without
waiting for the hand of death, to get
state officials of influence and high
standing and conservative regulations
into the companies and on the boards OF
directors. In this way Governor l.. M.
Shaw was taken into one of them. also
Secretary of State Dobson, Auditor of
State Merriam, Lieutenant Governor
John Herriott, Speaker Eaton, and
prominent bankers and ffnanciers of
this city and state. 1t Is safe to say
that not one of these public officials
ever had anything to do with the disect
of the companies. This
was in the hands of specialists who
the companies. Now these
state officers are getting out. Secretary
Shaw sold out all his holdings and re-
signed from the directory board of one
of them. Auditor Merriam sold out his
holdings and his company was merged
into another. Mayor Hartenbower got
out with only slight loss on his stock.
Fletcher Howard, OF the pharmacy
commission. is thankful he did not lose
any more. Mr.. Dobson, ex-secertary of
state, is out in a statement which indi-
Gates the way things are going. He
says:
Having recently severed all my con-
nections with the National Life and
Trust Company, and as great many
parties in Iowa and other states have
made inquiry from me in regard to the
why severed my connection
with the company, l have decided that
the best way to answer these inquiries
is thru the public press Of the state. A
great many people believe I am still
connected with this company as one of
the directors, and the public have some
reason for believing this, for, as have
recently learned, the management of
the National Life and Trust Company
have given it out thru the public press
and eastern insurance journals that /
was Still connected with the company
and in hearty sympathy with it's man |
agement. This has placed me in a false
light before the public, for. since the
day I sold my stock and resigned my
position as president Of the National |!
Life and Trust Company I have been
in no way connected with it. / have t
The reason why disposed of my hold
ings in the company and resigned my /
position as president is that I was very I
much dissatisfied with its management,
for, with what I could not but regard |
as the very eXtrayagant manner In
which the company is managed, I do
not believe that it is possible for them
10 pay 2 per cent on their ten-year
bond, and the company has now been
n existence long enough, I believe, to
that am right In this
The question has often been
asked me how much / received for my
stock. This question has undoubtedly
,een asked because certain parties have
'ecently been attempting to dispose of
stock in different parts of the state and
1t very high figure. I sold my stock
o the manager of the National Life
Ind Trust Company at a trifle over 81
,ents on the par value of the stock. So,
or the reason that / do not want any
person to be deceived in regard to the
acts connected with the severing of my
connection with this company, I take
his method of getting it before the
public
A signed statement as above has been
siven the newspapers by Mr.. Dobson,
md it is probable that there will be
urther interesting developments in re-
sard to these various semi-insurance