The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-27
IOWA
WORK FOR LEGISLATURE
investigation Of Relations Of state Off.

Investigation Of Relations OF State Off.
Gals and Financial Companies.
DIES MONIES, IOWA-The recent out
cry against the National Life and Trust
company Of this city, and the criticisms
that have been reused against 1t and
others Of its class because Of the recent
report of Commissioner Dearth of the
Minnesota Insurance department, along
with the reported efforts Of Secretary L.
M. Shaw. to clear himself of all interest
In the National Life and Trust, have
called attention to the Iact that had 1t
not been for the encouragement given
such companies by state officers their
hold upon the state would have been
difficult to obtain The journal Of the
house Of the twenty eighth general as
sembly contains some history that is Of
pertinent interest. There was much semi
official and privaet criticism in the
course of the session because the mem
bers Of the executive council were said
to be interested in companies that had
| just been formed for the purpose Of
doing an insurance and investment bust
ness. In the latter part of February,
1898, resolution was presented by Rep
resentative Mahlon Head Of Jefferson
| county, in which attention was called to
! a report that the governor, secretary OF
state, treasurer Of state and auditor Of
state were holding important offices in
| building. and loan and insurance COM
| panies and these state officers re-
auested to report to the house in what
building companies they were holding Of
flcial positions, and what salary they
were receiving. It was also provided in
| the resolution that the committee on
| compensation Of public officers should
prepare a bill preventing such practices
on the part Of members of the executive
council. .-..
Governor Shaw in rather long letter
replied that he held no official position
| in any building and loan association and
citation. He said he was a stockholder
and director in the National Life and
Trust company. He then went on to up
hold his course in this matter and in
an indirect way to make strong de-
Tense Of such companies. 81 do not un-
I derstand," he said, as the house jour
nal shows, "that anyone has presumed
to criticize any Iowa insurance company
from a legal standpoint, and the whole
sale semiofficial criticism, from per-
sonal point Of view, ought not so much as
| raise presumption that they are pur-
suing methods which are impracticable
reckless or unsound, or that the insur-
ance written by these home institutions
is essentially different from policies sold
by older eastern companies" =
| Secretary DobSOn replied to the resO-
luton admitting he was president of the
National Life and Trust. John Herriott
then treasurer of state, replied that he
was director in the Northwestern Life
and Savings company of Des Moines, q
company doing business on the same gen.
eral plan as the National Life and Trust
and one which the Minnesota insurance
department has also been investigating
The auditor of state denied having con.
nection with any building and loan OF
insurance company then, but he was Later
4 n1{N ~. ~,
/ 1ngs Insurance company of this city, and
was president of it. The Legislature
passed no law prohibiting members Of thu
Icouncil from being connected with build
ing and loan or insurance companies, bu
it is significant that the practice Of hold
I ing official positions and being con-
nected with such companies has beer
abandoned by members of the executive
council. There is talk that when thu
i Legislature meets again the methods O.
such companies as the one criticized BY
the Minnesota department. will be looked
into. If this step is taken there will be
no official hand thrust forth to restrain
the assembly from doing what goot
many people believe is some greatly
needed probing. -... -:.--... ~
I Chairman CoWnfe Of the board Of con
troll has closed contracts for the purchase
of 215 acres of land to be added to the
institution farm at the state hospital a
Mount Pleasant. The average price paie
is $el: The last general assembly appro
priated $4,000 for the purchase Of lant
at Mount Pleasant. Taking out the cos
Iof the new purchase, the board will still
have over $4,000 available for more land
besides the board will have $4,000 which
it expected to expend for farmers cot
tage at Mount Pleasant, but which it will
not need to use for building purposes
Anew dwelling house on one Of the farm.
bought will be converted into farmers
cottage and the board will use the $3.50
and the $4,000 balance In buying another
tract Of ground II .s IT,