Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-08-21
Attorney General Mullan Begins
An Action Against the
German Mutual
WANTS RECEIVER APPOINTED
1t Is Claimed Their Policies Are of no
Value and That the Company Was
Never in Fact Granted Permission to
Do Business in the State of Iowa
Other News.

Chicago, Aug. Exchanging that the
policy holders in the German Mutual
Insurance company of Des Moines are
| being defrauded of the money they pay
| into 1t, Attorney General Charles W..
! Mullan has. in the name of the state,
commenced an action in the district
! court asking that an injunction be Is
suer restraining the officers and agents
of the concern from continuing the bus
| mess and petitioning that receiver be
| appointed to close up the company's
affairs.
| 1t is claimed that not only has the
state auditor refused TO issue any writ
ten permission to commence, transact
and carry on business, but has frequent
| ly demanded Of the officers that they
cease to issue their policies. For sew
eral weeks Attorney General Mullan has
been at work on the case and in the
petition just filed he makes some open
charges against this company which has
had as its speciality insurance on pro-
perty against damages from fire, light
ming and tornadoes. Judge James A.
Howe heard the case this morning
at 10 o'clock.
This is the second action to be COM
menced against local insurance COM
panies during the present month, one
| suit against the Northwestern Life now
pending in the district court In this
| Rena 3. Cathcart alleges that the life
| insurance company does not conduct
! its affairs honestly and economically.
| About October 23 1901, Charles o..
Black, James r. Wilson. William j..
| Scown, Jacob Rothchild, Leander NJ
| Schubert, Henry G. Wernimont and
James NJ. Kerr, signed, executed and
acknowledged certain articles of in
corporation for the alleged purpose of
! organizing and incorporating a mutual
| insurance company under the laws of
| the state of Iowa. AS set forth in these
articles the principal place OF business
| was TO be in Council Bluffs, Pottawat-
| tamie county, and the purpose of the
organization was to insure property
against loss or damage by fire, lightning.
| tornadoes and other casualties.
| Some time after these articles were
| fled the principal place of business of
! tn company it is claimed, was by the
| officers thru some means or method
| unknown to the state authorities, trans
| ferred from Council Bluffs to Des
| Mofnes. tho such was wholly unau
! thorzed by its articles. About this time
| Leander M. Schubert ceased to be presi-
dent of the concern and b. F.. Loose
claims to have been elected president
of the company.
| No written permission from the au-
ditor of state has ever been issued or
given to this company, 1t is averred, to
commence, transact or carry on the
business of insurance in this state and
| that the company does not now hold
permit and never had any power or
authority to enter into contracts of in
surance or issue policies of insurance
upon any property whatever. Notwith-
standing these facts it is claimed, the
defendants have executed and delivered
policies in the name of the German
Mutual Insurance company OF Des
Moines upon different classes of pro-
perry In this and other states
The petition sets forth that the poll
cies issued by the defendants are of no
value whatever and can not be enforced
by the holders: that the company has
no funds, either in money or property.
out of which to pay any losses which
may accrue and that unless restrained
by an order of court will continue to
carry on unlawful and fraudulent BUSH
ness.
Two other actions have been COM
menced in the district court by COM
panies against B. f. Loose to recover
money which 1t is claimed. he received
as their agent and failed to turn in.
One of these is brought by the Con-
tinentaI Insurance company of New
York to recover $159.75 and the other
by the Fidelity Insurance company to
recover $967.44 for unpaid accounts and
$500 for money the company was forced
to pay on an alleged bad policy made
by Loose.