Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1902-08-13
STORY OF AN INSURANCE GRAFT.
How Men Have Made Them selves Rich
"e by Alleged Insurance =,
Companies.

BY request of some of our SUBJ
scribers we reproduce the following
article, which appeared in the Griggs
County IN. d. Sentinel, Thursday,
July 81, 1902:
"Iu 1900 there was organized at
Hankinson, Richland county, this
state, a domestic mutual (insurance(N J
company known as the State Mutual
Insurance Company of North Dakota.
The officers were given out as Water
Pelham, president; VIM. Schuett, vice
president; T. L. Morland, secretary;
H. E. Wiedman, treasurer; and A. NJ.
Glider, manager.
"The annual statement filed with the
commissioner of insurance for the
year ending Dec. 81, 1900, shows the
amount collected, $6, 1862; losses sus-
tanned by hail, So. 1854. with uncol-
lected notes on hand acquired during
the year SO, 800 "a, or in other words,
to pay losses Of 81, 858 81, the company
levied an assessment of over SIG, 10000,
the balance going to expense. This
statement looks bad on the face of it,
but when it is compared with the state
ment of this same company for the
year ending Dec. 81, 1901, it looks
good; this was just starter. Crops
were poor that year and it was a poor
year for grating even with a graft.
SIN the early spring of 1901 they
started in to do things to the North
Dakota farmer, who is not willing to
trust to Divine Providence to take
care of his crops. aud hardly ever
W ling to trust men in his own town
to take care of his business. In short,
they went after the farmers who want
something for nothing, and they gave
it to them in big lunches; they used
the wonderful record of their success
full business for the year 1900, making
point of the fact that with an assess.
ment of only SIG, 900, through careful
and judicious management, they we're
enabled to meet losses of So, 800, and
pay all of them in full. This they ad.
vertised in most all of the papers in
the state, not using the exact illustra-
tions used above They employed a
good bunch of the best of experienced
"sharks, many of them men whom
they had used for several years in the
same deals, and they were past mas
ters in the art.
1.-THE statement of 1901, which by the
way, never came to the public view,
shows that they wrote insurance dur
ing the year of So, 1876, 1856, that they
levied an assessment amounting to
$ll3, 030. 30: they claim cash received
during the year S76, 064.44; total
amount OF losses by hail is given $780,
688 36, of this amount $l6, 493 was can.
celled by return premium notes to par
ties having losses, leaving 1924, 1876. 36
to be paid out of collections of $76,
O64. "a, besides the expense of manage
ment, and leaving in the hands of the
company 1898 81 in uncollected
premium notes acquired. This does
not look like very hard proposition,
but all that was paid was S5,S75 63, or
out of about $4,000 received, the
grafters took $4,000, besides getting
away with a part of the notes that re-
NAMED, as only about $4,000 worth
OF them can be found, out of about
$44 900 on hand December 3lst. The
office fixtures and furniture was also
taken to Kepsal, N. D., to do service
in the new undertaking. The building
in which they had their Office is still
at Hankinson, for which the owner
may be thankful.
SIN November and December, 1901,
Attorney J. A. Dryer of Hankinson
furnished the commissioner of insur-
ance q statement of the affairs of the
State Mutual Insurance Company, and
called his attention to the past I'M
savory record of the promoters of this
company. Mr.. Dryer wrote a number
of letters, explaining that the matters
were in dangerous shape, and urged
that some action be taken. Mr.. Gal
braith, deputy commissioner of 1nsur-
ance, made q trip to Hankinson, and
checked up the affairs of this company
in December last, but did nothing fur
Their; he still left them in charge to
complete their work of wrecking,
which they did to "queen's taste. !"
Why he did not take some action at
that time to prevent further stealing,
or why, in fact, he should not have
taken some action to prevent it as
soon as it was brought to his notice is
not known to the writer. I do know
that I made several attempts to get
him to do something during the winter
to wind up the affairs and save what
was left of the wreck, but was unsuc-
cessful. [ made several attempts to
get him to commence some action; I
also petitioned the attorney general, as
provided by law, asking him to start
an action to annul the corporation
and appoint receiver, but he failed
to do so, and I brought the action a.
my own expense and had a receiver
appointed.
1.-THE hooters of this company, A
M. Glider, who was their genera
manager and one of the prime movers
is now engaged in the real estate bus
mess at Lidgerwood, this state; P. w
Miller and A. G. Randall bought thu
town site of Kensal, started bank
furniture store, lumber yard, news
paper, and together with W. G.. Tubbs
formed what is known as the M. T. r
Cattle Company. A large part of thu
$4,000 to 100000 stolen from theil
fake insurance company is being usei
to give them start in this new ven
tare. Miller and Randall did not ap
pear on the paper as part of tn
company; they were the men behind
the "scenes." The plan in this cas'
was to get board of directors who
were "puttymen, and were willing tt
have their names used for consider
alton, and who we're merely tools fol-
the sharks, doing as they were tolt
and knowing very little about VIVA
was being done. They were called to
gether when the manager, Parg Glider
desired and did such business as the!
were told. The general manager en-
tiers into contract with the company
of which he composed 8 part and wa!