Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-24
Legality of Operation of Gold
Bond Investment Compan-
les Further Tested
NEUTRALITY-SUSPICIOUS. CHARGED
George Jenkins of Dubuque Brings
Suit Against National Life and Trust
Company to Recover Money-state-
ment Of the Cause for His Action
Illinois Central Earnings.
Special to Times Republican.

Special to Times Republican.
Des Moines, April 24.-Anotller move
has been made here in the direction of
testing the question of the legality and
regularity of the management and op-
GRAFTON of the gold bond investment
companies under the insurance laws of
the state, suit having been commenced
here by we'll known Iowa man to re-
cover money paid one of the companies.
This is the suit of George Jenkins, of
Dubuque, against the National Life and
Trust Company to recover money paid
on the broad ground that he was in
duced to go into it on misrepresenta-
tions and that under the present man
agement the company will never be
able to pay back even what is paid in,
to say nothing OF the matter of doub-
ling the investment by profits. The
papers were filed IN the district court
here yesterday by Charles Mackenzie,
as attorney for Jenkins. The petition
on which the action is based is as fol-
lows:
The plaintiff. George Jenkins. claims
of the defendant, the National Life and
Trust Company, the sum of $50 with
interest on the sum of $50 at the rate
of 6 per cent per annum from August
l. 1901, and interest on the sum of $50
at the rate of 6 per cent per annum
from August /, 1902, and for this cause
of action states:
"That the defendant, the National
Life and Trust Company, Is corpor-
alton fully organized and doing busi-
ness In the state OF Iowa. with their
principal place of business in the city
of Des Moines, Polk county, Iowa, that
! the general business of the company
| is the receipt of money for investment
and repayment, and that on or about
the first day of August. 1901, one w. w.
IAinsworth. as the duly authorized agent
of the oesenda;lt company, represented
to this plaintin as follows:
"That one l.. M. Shaw, then the gov
| iernor of Iowa, was one of the principal
stockholders of the defendant company
and had the sum of 100000 invested
therein.
"That the said L. NJ. Shaw was per-
sonally and actively engaged in the
management Of the said defendant
company:
THAT at the time of the said repre-
sentations the plaintiff resided in the
city of Dubuque, and had no knowledge
whatever as to who were the stock
holders Of the said company;
1x,;,, an f1,o cal
tations, the plaintiff made the Defend
defendant the sum Of $50 per year for
ten years, on the first day of August
of each year, commencing on the first
day of August, 1901;
"That the defendant company agreed
/ to. at the expiration of ten years, re-
turn to the plaintiff the said ten in
stallments of $50 each:
"That the said representations so
made by the said w. w. Ainsworth
were false and fraudulent In this that
the said L. M. Shaw never held more
than $1,000 stock with the defendant
company, and he, the said Shaw, was
never interested personally in the man
agement of the said defendant COM
pany;
"That the said representations were
known to be false to the said w. w.
Ainsworth, at the time that he, the
said w. w. Ainsworth, made the said
representations, and that the said rep
reservations were made by the said W..
W. Ainsworth with the intent on the
part of the said Ainsworth to induce
this plaintiff to pay to the said defend
ant company the sum OF $3OO, on the
promise that the said defendant COM
pany would return to this plaintiff the
sum of 5000, ten years from the first
day Of August, A. d., 1901;
THAT by reason of misrepresenta-
tions made as before stated, and rely
ing on the same, the plaintiff paid to the
defendant company the sum of $50 on
the first day of August, 1901, and was
also induced to pay to the defendant
company the sum Of $50 on the first day
of August, 1902, and that for the reason
above stated, the defendant company
will never repay the sad sum Oh SoV'
nor any part of 1T;
Further the plaintiff states that the
affairs of the defendant company are
being conducted in such an extravagant
manner that the said defendant COM
pany VIII not De aDle 10 repay W t4iiS
plaintiff the sum of $500 ten years after
the first day of August, 1901;
THAT by reason of the said false and
fraudulent representations of the said
agent of the defendant company. the
plaintiff has been damaged by the de-
fendant company. in the sum of $50,
with interest at the rate of per cent
per annum on the sum of $50 from Au-
gust ], 1901 and interest at the rate of
per cent per annum from the first day
of August. 1902;
Wherefore, the plaintiff prays for
Judgment against the defendant In the
sum of $50 with interest. and costs.
The Illinois Central Railroad Com
pany in Iowa, or legally the Dubuque
and Sioux City railroad, reports earn
ings of $374,739.S7, last year, or Sol2.S2
{. mile. The gross receipts amounted
to $3,71IS29.14. But the profits on diff
ferent lines and branches varied great
Ily. The main line from Dubuque to
Sioux City earned net profit of $685.
56213 and the Sioux Falls branch So
l7l4.74. The gross receipts with profits