Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-05-15
Merging of Gold Bond Company
With Chicago Concern Rails
es Important Question
WITHDRAWAL OF SECURITIES
National Life and Trust Has s764,ooo
Collateral on Deposit With the State
Auditor and the Right to Retain
These Securities is ,nvoIved-other
Iowa News.

DeS MoineS, May l5.-The merging OF
the National Life and Trust Company
of this city with the National Life In
surance Company will raise the whole
vast question of the worth of the Iowa
law on the depositing OF securities with
the auditor of state.
Jan. l OF this year the National Life
and Trust Company had on deposit with
the auditor of state the sum of $T64, 700
in securities. 1t had practically this
amount on deposit at tie time of the
merger. The question that will now
arise will be whether these securities
can be withdrawn from deposit In eff
feet. the National Life and Trust Com
pany has lost its identity and passed out
of existence, and the business will be
carried on by the National Life Insur-
ance Company, non-Iowa company.
Under the law non-Iowa companies are
rot required to secure r'ieir business in
The state by depositing here, and it is
expected that the National Life Insur-
ance Company will insist on withdraw
ing the securities.
1t is also expected that Auditor OF
State Carroll will not permit the Sc
curities to be withdrawn. but will in
sist on them remaining on deposit in
Ills office as protection to the Iowa
people who have taken out policies in
the National Life and Trust Company.
There is no official announcement yet
what the program of the auditor Of
state will be. He has been out of the
city for few days. and will be at home
today. 1t is expected he will take the
question UP Immediately on his return.
Undoubtedly an opinion will be asked
from Attorney General Mullan, and on
his advice will, of course. largely de-
pend the course taken by Mr.. Carroll.
One of the strong inducements held
out by the National Life and Trust
Company to persons from whom 1t So
licited business was that its policies
were secured by approved securities
deposited with the state of Iowa"
These words appear in conspicuous let
ters on the face of the company's poll
cies. AS state official, who has been
examining the question, said yesterday:
This statement has been repeated not
one thousand but ten thousand times by
the agents and representatives. of the
company. Its business has been secured
largely on the strength of this repre-
sentation. 1t would seem in the nature
of contract with its patrons that these
deposits should be kept here and not
allowed to be removed, and 1t would
look as If the purchasing company
would have to assume the same obliga-
ton"
1t is learned In the Office of the audi
tor of state that the securities of the
National Life and Trust Company. de-
posted with the state, are gilt-edged.
They are largely farm mortgages.
There is no Iowa statute bearing d.
rectly on case of this kind, and it is
this fact that is likely t., make the So
luton of the problem difficult 1t may
end in litigation. Under section 1.774
OF the code. stock companies organized
Under the laws of Iowa are required to
keep on deposit securities equal to the
cash value Of policies In force. Sec
tons LIS, 1,776, LIS. 1.779 and 1906
also deal with various phases of the de-
post of securities. but there is nothing
directly relating to a transaction of this
kind.
Original stockholders in the National
Life and Trust Company, which was
merged this week with the National
Life and Insurance Company of the
United States of America, pocketed two
dollars for every dollar they put into
the company. d. G. Edmundson. Geo
f. Pearsell N. E. Coffin. DeForrest
Bowman, p. M. Starnes and others are
among the men who reaped the 100
per cent profit on their stock. The con-
solidating companies bought in all the
stock at par. For this stock the original
hackers of the National Life and Trust
Company paid into the treasury so
cents per share