The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-08-16
CHARGES UNTRUE.
Mr.. Curtis Criticisms Denied, and the
Real Motive Behind Them Distinctly
Shown by the Northwestern Life and
Savings Co. of Des Moines.

Real Motive Behind Them Distinctly
Shown by the Northwestern Life and
Savings Co. of Des Moines.
TO THE PUBLIC:
1t has been the policy OF the North
western Life and Savings Company 10
avoid controversies through the news
papers, because, as rule, we peheVe
that no good can come from such con-
troversies, but it is apparent that the
recent attack made by Mr.. Curtis In
the Chicago Record-Herald is Of such
gross and libelous character that the
company cannot longer desist from
giving to the public the real facts.
The company believes that Mr.. Cur
tbs was hired by the Eastern lnsur-
ance companies to attack the NORTH
western Life and Savings Company.
We believe that Mr.. Curtis attack
upon all life companies in the state OF
Iowa and the state officials, and the
CITY of Des Moines, had no other pur-
nose than to cover up his attack, Wh1eh
was intended against this company.
We believe that Mr.. Curtis was en-
ployed by combination OF eastern
Insurance cornpanies, who feel that the
principle adopted by this company, tnat
of limited expense and guarantee OF
the distribution Of surplus at the enc
of stated periods, will mitigate largely
against moneys being spent by these
con,nanies in the transaction of a life
insurance business which this COM
pany believes should not be spent at all
and belongs absolutely to the policy
holders.
The public. generally does not know
that life insurance companies. as a
rule, have no limited expense, that the
total surplus received from the busl-
ness may be used for expenses, and
that the poicyhoider is at the mercy
of the company, and only receives sucn
proportion of the profits as the COM
pany 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 $S4, 377.43 in salaries and
distributed over 100000 to its stock
holders, who had either paid in Or had
given their notes for $4,000 in stock
while only s29, 5S7.S9 was deposited fol-
the benefit of the policyholders VINO
have paid $3,067,772 in premiums. Now,
this statement is unqualif1ed1y untrue,
as Mr.. Curtis we'll knew. A very large
part of these premiums is now on de-
post with the state auditor in flrst
farm mortgages in the shape OF re-
serves to take care of the policy con-
tracts.
Mr.. Curtis states that Commissioner
Dearth stated to him that the secre-
tary said that the company could throw
the premiums into the Mississippi river
if they chose. Now. this is an absolute
falsehood. Mr. Deafth plainly says
that he never made any such state
inent. The only foundation Mr.. Curtis
has for any of his attacks is the fact
that the Northwestern Life and Saw
ings Company has made some money,
and the further fact that this com
pany did create fund which they call
ed an Agency Allowance Fund, and
out of which they paid various ex-
penses connected with the business
and that they did, after all these ex-
penses were paid, distribute to their
stockholders such part OF this luna as
had not been used, which they had
perfect right to do as the fund belong
ed entirely to the stockholders and not
to the pelieyholders at all. Every
penny of premium, interest, lapse profit
and every other source of income set
out in the policy contract and guaran-
teed to the policyholders has been i'm
mediately placed to their credit on the
books of the company and sacredly in
vested ana kept Tor Ine PURPOSE lOA
which the contract provides.
Mr. Curtis speaks OF the ten-yeaF
gold bond contract and lays great
stress upon the Misrepresentation in
selling the ten-year gold bonds. NOW,
we want to say that this Company has
never issued a ten-yeaf gold bond "
has never issued anything but straight
ten-year endowment investment. poll
cies, ordinary life policies, twenty pay.
fifteen pay, ten pay, twenty-year en-
downent and ffteen-year endowment
polieies. Its policy on its ten-year en-
dowment plan does not differ from any
other ten-year endowment policy in
any of the standard companies, except
i'm these particulars; first, the 1nSur-
ance benefit given for the hrSt nve
years. before very much has been paid
in by the policyho1der, is made one
half of the face of the policy The
full insurance benefit after the ffth
year is given the same as any other
company gives on a ten-year endeW-
ment in the event Of death. TO Off
set this small insurance the first FIVE
wears. the rate is made less, for exam
pie: the Mutual Life of New York col
leets g109J6e premium per annllm On
81 600 at age 40. 1t will give $1,000
immediate insurance. It will guar
antee 81 ,0g0. At the end of ten years
it will have collected from the policy
holder s1,Os6.6e. This Company will
collect from the policyhelder, a man 40
years of age, $1e0 a year and it will
carry $500 immediate insurance, and
after five years, $1,000, and Will guar
antee at the end of ten years $1,000 in
cash the same as the Mutual Life of
New York 1T has received in pre-
naiurns $3.50 less. This extra Pre-
Ylfum of 1860 would carry double the
insurance for a fiveyear term that the
Mutual Life of New York had granted
the first five years in excess of the
policy of the Northwestern Life and
Savings. Second, the policy varies in
this particular The Mutual Life of
New York will not say in their policy
contracts that all the profits derived
from certain sources named in the cob
tract shall be guaranteed to the policy
holder at the end of ten years in adj
dftien to the face of the policy cor
tract. They will simply say that such
profits as the Board of Trustees may
See fit to declare at the end Of the
period shall be given to the policy
49, &,,f