Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-05-13
Des Moines Insurance Company
Merges-Will Abandon In
yestment Insurance
SOME OPPOSITION TO MERGER
National Life and Trust, Gold Bond
Insurance Company of Des Moines
Sells Out to National Life Insurance
Company of chicaso--starnes Given
a New Job at $4,000 Per Year.
Special to Times-Repuplican.

| Special to Times Republican.
| Des Motnes. May 13.-Announcement
was made last evening that the Nation
al Life and Trust company, of this city,
surance company of the United States,
a Chicago corporation doing life in
surance business, and that the entire
business will go to Chicago at once.
President Starnes, of the local COM
pany, who owned controlling inter-
est, is under engagement to go to Chi
cago with the new company at a salary
of $4,000 a year. Secretary Bowmaa
and others of the stockholders, will also
be given good positions in Chicago.
The National Life & Trust Company
has been one of the leading companies
in Iowa doing what is called gold
bond business. When it was organ
lied there was much criticism of GER
tain state officers because of the lend
Ing of their names 10 the company to
give it standing and the legislature
caused an in vestigation to be made.
Governor Shaw was a stakeholder and
one of the directors, and Secretary of
State Dobson was president of the COM
pany. Last year Shaw and Dobson and
several others withdrew from the COM
pany, and about the same TIME the in
surance department of Minnesota sent
S. H. Wolfe, of New York, here to
make an investigation. He made
;at, y,
the management of the company and
the field force for making representa-
tons to the purchasers of the bonds
which it was shown could not be real
lied. He also criticised the company
for extravaganza in management. HIS
accusation that the bonds were being
sold under false representations, IN
that the purchasers were given to I'M
derstand that they would be able to
double their money, brought on some
law suits and threats of many more,
and soon thereafter negotiations were
commenced for the sale of the business.
A suit was commenced here short
time ago to recover money paid In, on
the ground that the customer had been
deceived in reference to the connection
of Governor Shaw with the company,
But at the same time the company had
extended its business into many states
and has money loaned 10 the amount
of about 100000. There is some ques-
ton whether the sale of the company
or the transfer of the mortgages from
the state auditors vaults TO Chicago
will be approved, as 1t is understood
some effort will be made to have an IN
yestigation made. The company has
recently made move in the direction
of abandoning the gold bond feature,
by proposal TO the holders OF the
bonds who are able to pass an exam
nation to issue TO them insurance pol
icies, and some of the persons holding
gold bonds are Qbjecting to this ON the
ground that 1t would decrease the
chances of large profits on their pres
en-; holdings. They claim that to trans
fer the business would be to make a
change IN the contracts which would
be harmful to their interests.
The National Life Insurance Com
pany, of Chicago, is one of the Oldest of
insurance companies. 1t was originally
chartered by congress in Washington
and afterwards purchased by Chicago
people and moved there. a number OF
Iowa people have been connected with
it, the most recent one being Stewart
Goodrich, many years in the insurance
department of the state auditors Of
flee in this city. There is general re-
gret that the company should leave
Des Nioines, as it was one of the most
generous advertisers in the state.