The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-15
4 CLEAN GUT ANSWER.
THE NORTHWESTERN LIFE AND
SAVINGS COMPANY OF DIES
MONIES ANSWERS MR.. CUR
IT'S.
HIS ATTACK rs NOT WARRAN-
TED BY THE FACTS, SAYS
THE COMPANY

IN fObLlC.
It has been the policy Of the Northwest
ern Life and Savings Company to avoid
controversies through the newspapers, be-
cause, as rule, we believe that no good
can come from such controversies; but 1t
is apparent that the recent attack made
by Mr.. Curtis in the Chicago Record Her
aid Is of such a gross and libelous char
-acters that the Company cannot longer.
desist from giving to the public the real
facts.
The Company believes that Mr.. Curtis
was hired by the eastern insurance COM
panies to attack the Northwestern Life
and Savings Company. We believe that
Mr.. Curtis attack upon all life companies
in the state of Iowa and the state Off
cials and the city of Des Moines had
no. other purpose than to cover up his at
tack, which was intended against this
Company. We believe that Mr.. Curtis
was corrupted by combination of eastern
insurance companies, who feel that the
principle adopted by this Company, that
OF limited expense and guarantee Of the
distribution Of surplus at the end Of stated
periods, will initiate largely against
moneys being spent by these companies
in the transaction of a life insurance bust
ness which this Company believes should
not be spent at all, and belongs absolutely
to the policyholders
The public generally does not know that
life insurance com panies, as a rule, have
no limited expense. that the total surplus
received from the business may be used
| for, expenses, and that the policyholder is
at the mercy Of the Company, and only
receives such a proportion of the profits as
| the Company may see fit to give him
after these enormous expenses have been
paid.
Mr.. Curtis proceeds to say that the
stockholders Of one company paid to
themselves $84377.43 in salaries and dis
tributed over SOB, 900 to it's stockholders,
who had either paid in or had given their
notes for $25, 900 in Stock while only $780,
| 5S7.S9 was deposited for the benefit Of the
pol1cyholders who have paid $3,067,772 in
premiums. Now, this statement Is un-
qualifiedly untrue, as Mr.. Curtis we'll
/ knew. very large part Of these pre-
miums is now on deposit with the state
| auditor in first farm mortgages in the
shape Of reserves to take care of the poll
! cy contracts. .... -.
Mr.. Curtis states that Commissioner
Dearth stated to him that the secretary
| said that the company could throw the
premiums into the Mississippi river II they
chose. Now this is an absolute false
| hood. Mr.. Dearth plainly says that he
never made any such statement. The
only foundation Mr.. Curtis has for any of
/ his attacks Is the fact that the North
western Life and Savings Company has
made some money, and the further fact
that this company did create fund
which they called an agency allowance
fund.-" and out of which they paid various
i expenses connected with the business and
that they did, after all these expenses
were paid, distribute to their stockholders
j such part Of this fund as had not been
used up which they had a perfect right
!, to do as the fund belonged entirely to the
stockholders and not to the policy holders
at all. Every penny Of premium, interest
lapse, profit, and every other source Of in
, come set out in the policy contract anC
guaranteed to the policyholders has beer
Immediately placed to- their credit on the
books of the company and sacredly in.
vested and kept for the purpose for which
the contract provides.
Il Mr.. Curtis speaks of the ten-year golc
bond contract and lays great stres:
upon the misrepresentation In sell
ing the ten-year gold bonds. Now
We want to say that this com
) pany has = never issued anything
! but straight ten-year endowment invest
, ment policies, ordinary life policies; TWEEN
, ty pay, fifteen pay, ten pay, twenty yea
? endowment and fifteen year endowmen
policies. Its policy on it's ten-year en-
: doWment plan does not differ from an.
: other ten-year endowment policy In an!
of the standard companies, except in thes
q particulars; first, the insurance benef
: given for the, first five years, before yer.
much has been paid In by the polilcyhold
a err. is made one-half Of the face Of tn
a policy. The, full insurance benefit afte
i the fifth year is given the same as an,
: other company gives on a ten-year en-
dowment in the event of death. To offse
a this small insurance the first five years
= the rate is made less, for example: tn
Mutual Life of New York collects $109.6
premium per annum on $1,000 at age 4C
It will give $1,000 immediate insurance
1t win guarantee $1,000 At the end o
tor, I hos all o{o1 y,
: polfcyholder 81, 096. so. This company Wi
collect from the policyholder, a man
years Of age, $500 a year. and 1t will carr
$500 irnm ediate insurance, and after fiv
: years, $1,000, and will guarantee at tn
l. end of ten years $1,000 in cash, the sam
il as the Mutual Life Of New York. It ha
!, received in premiums s96.60 less. Thi
t extra premium of $3.50 would carr
J., double the insurance for five-year teri
e that the Mutual Life Of New York ha
n granted the first FIVE years in excess c
d the policy Of the Northwestern Life an
Savings. Second, the policy varies j
this particular The Mutual Life Of NeN
York will not say in their policy contract
that all the profits derived from certai
sources named in the contract shall b
o guaranteed to the policyholder at the en-
of ten years in addition to the face of tn
policy contract They will simply ga
that such profits as the board of trustee
9 period shall be given to the policy holde
IL Now, our company sets out in its polio
A contract just the source Of profit and al
y solutely guarantees them, thus fixing a
absolutely limited expense account. TIL
expense account is smaller than Is use
by the Mutual Life of New York. FL
q, example, last year the gain and loss e1
:. hibit Of the Northwestern Life and Sax
> ings company shows that the conpan
= did not use their expense loading with
Of s133, 145, and that the Mutual Life did us
all of their expense loading and 81, 81
OF more than the total expense loading
n Now, we believe that g. law ought to
= introduced into every state that wou
;. kprohibit any company from using beyor
O. the expense loading.
70 To further injure this company al
9 head OFF this principle, which is absolute
lis righteous and which no man who has Il
2, good Of the policyholder- public at hea
, can deny, !nsidious attacks have be,
y. made upon this company by their riva
not induced by any good will toward t
v. policyholders, but with the idea Of cri
NJ ping this company's business, and tn
~ forcing the company to give up this o.
idea Of limited expense and fall In Ii
". with the great mass Of insurance cor
panies which have wrung millions out
lr1 the neon1a with their anornnol1s expen q,