The Saint Paul globe., 1903-04-03
INSURANCE CONCERN
ACCUSED OF QUEER
METHODS
D. P. Gray, Local Agent Of
Kansas City Home Coop
eratiye Company, Is Ap-
pretended Doing Life II
surance Business Without
a License.

D. P. Gray, local agent of the Home
COOPERATIVE company, a Kansas City
concern, was arrested yesterday after
noon at his Office in the Chamber OF
Commerce building, charged with do.
ing a life insurance business without
license. Mr.. Gray is the successor of
Earl D. Beardsley, who was arrested
upon a similar charge some months
ago and who recently paid the fine as
sessed against him, the supreme court
affirming the decision of the lower
court which found Beardsley guilty.
County Attorney Kane refused to
consent to Mr.. Gray being allowed his
liberty on his own recognizance, and
bail was fixed at $500, which Mr.. Gray
was unable to secure until after he
had been in Jail for some time. Late
last night he secured bonGsnlen and
was released from custody.
According to County Attorney Kane
the concern represented by Mr.. Gray
has collected thousands Of dollars from
the poorer class of people of ST. Paul
and vicinity, and it is stated that there
is little opportunity for these investors
to realize one cent on the money which
they have been paying into the con-
Germ for months past, with the expecta-
ton Of finally securing a home of their
own.
County Attorney Explains.
'T have Investigated the workings of
this company and no legitimate busi-
ness could possibly be conducted the
way these people pretend to do bust
ness" said Mr.. Kane last night. "They
ha1 ind 10 T6
norant people that could never be full
filled. Of late numerous complaints
have been made to this office by pa
irons Of the institution who have been
placing all of their spare money into
the scheme and now begin to realize
that they are to get nothing out of it.
1.-The charge of doing life insur-
ance business without a Ttense, is
simply technical charge" said Mr..
Kane, "and if the case ever comes to
trial we will make some startling ex-
posures.
81. P. Lenard is one Of the many
hundreds of st. Paul people who in
vested in the company's contracts. He
bought three contracts and paid $120
for them. When he became suspicious
he tried to dispose of his holdings, and.
pany for $40, but could not do so. We
will show that the company has no as
sets and that the business it is trans
acting. is nothing more than a wilcat
business" , .s 7-sS
The company's scheme was to sell
contracts to poor people who desired
to own homes. The patrons were re-
quired to pay $3.50 per month for a
certain length of time. after which they
were to be given home. In the event
of the death of the purchaser before
the contract had matured, his heirs
were to be given the home without
any more payments.
Company's Queer Methods.
The company's methods of doing
business were recently investigated in
the federal court at Kansas City, and
some queer financing was brought to
light. 1t was proved by the company's
own cores spondence and by admissions
made by it's officers that the Home Co
operative company was organized
without capital It's twelve officers had
not put dollar into 1t, yet three of
these officers drew a salary of $1,000
year each. An interest in the business
was recently sold to st. Louis parties
for $4,000.
It was admitted by George A. Neil,
president of the concern, that the COM
pany had drawn from the nome Iunu
to meet current expenses, and that
when the company sold out an inter
est in the business last December, it
was insolvent and would have failed
had not a purchaser been found in st.
Louis who agreed to put $4,000 in the
business.
The investigation by the federal au-
thorities at Kansas City showed that
the methods of doing business were
very irregular, and that, While con-
tracts were numbered UP in the thou
sands, there were always low number
ed contracts to be had, which were Of
fered to purchasers who desired con-
tracts which would mature early.
Mr.. Kane stated last night that the
ST. Paul branch of the company had
done thriving business, and that
thousands of dollars had been paid
into the concern.
The assets of the company in this
state are said to consist of a desk and
some office furniture at the company's
headquarters in the Chamber of Com
nerce building.
The Biggest Thing In the World
Is not bigger than the chance offered tha