Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-02-13
Special to Times Republican.

Special to Times Republican.
Des Moines, Feb. 13.-Four of the
well known financial Institutions of the
city OF Des Moines. or rather three that
are in existence and one that lately re-
tired. have been neatly caught in trap
which places them in very bad light
before the public, to say the least, and
leaves open a question as to whether
or not their leading officials have not
been guilty of a serious infraction OF
the laws of the state. These are the
well known insurance companies or
ganized under the laws of the state, but
issuing what are<1mown as .sten-year-
gold bonds" on which immense profits
are promised. They are the National
Life and Trust, the Northwestern Life
and Savings, the Mutual Life and 'Trus.
and the late Security Life and Sa'sings.
These four Companies were organized /,
few years ago when the building and
loan laws We're becoming too stringent
for good business to carry on a similar
investment enterprise. The promoters
drew into them a number of state off
cials and prominent business men of
the state, and these lave been quietly
drawing out for some time, since the
insurance departments of other states
have been making too close investiga-
tions, When State Auditor Carroll
came into his office the first of the year
he made careful investigation of the
0fY dc nd ba 40
while these companies had been during
most of their existence good customers
of the state, paying into the state treas
urs regularly many dollars in fees for
certain class of work, they had almost
ceased this some time ago. He set on
foot little Investigation into the cause
OF the loss of business. He soon found
out, and therein he has done not only
the state a good service, but has done
! q good service to many in other states
who were being deceived by clever
forgery of the official seal of his Office.
80
For number of years it has been
customary for the insurance companies
to procure from the state auditor certi-
fcates for their use in certain cases.
These consist of quotation of that
part of the law which requires that all
& companies organized under the Iowa
law shall deposit with the state audi
tor securities TO cover the face or re-
deemable value of the policy obligation
out. This is the mainstay of Iowa in
surance companies. In addition the
state auditor has certified that the COM
pany sending out the certificate. nam
ing 1t. has In fact complied with the
law and has these securities on deposit
This Is signed by the state auditor and
his official seal placed thereon, SO that
customers everywhere may know that
the business Is In accordance with law.
The state has been realizing from S1,500
to $4,000 year out of this business.
The companies send them to their
agents to show to doubling persons, ami
OF late they have been sending tham out
enclosed In every policy, that the re-
cipient may be treasured. But this de-
mand for the certificates from this class
of companies had suddenly ceased. The
state got so cents for each and every
one for affixing the official seal. The
loss was quite noticeable. Mr.. Carroll
set out to discover the cause, and by
little detective work soon had in his
possession some of the certificates now
being used. They were in the usual
form, but with a printed facsimile of
the former state auditors name or sig
nature and an imitation of the state
auditors seal. He consulted with the
attorney general and with other stale
officials in regard to the legality of this
and having satisfied himself that the
whole scheme was barefaced fraud
= N, in,nncifinn IN nn "a
people, he proceeded to put stop to 1t.
He called before him Secretary
Flynn, OF the Mutual, and asked an ex-
rlanation. Mr.. Flynn excused himself
by saying he did 1t because the others
were doing so and he had been in
formed by the printers that it was all
right and legal. He called President
Etarnes. of the National, before him
and put the same questions. Mr..
Starnes contended that 1t had been au-
thorized by Mr.. Merriam, the former
state auditor, whose signatures We're
being used. Mr.. Carroll pointed out that
II was clearly illegal to make use of an
imitation of the seal of a state official.
He Insisted that the custom be dropped
at once and secured the name of the
printer. This was Gtorge "A. Miller, one
Of the oldest job printers of the city,
and it appeared that he had been doing
business for all the companies in this
way He was sent FOR and said that
che order had been n'aced with him bS'
the Representatives of one of the COM
oanies to fill and he had been assured
that it was entirely legal. But to make
cure that he was not transcending the
otate laws he had also sent his solici-
tor to State Auditor Merriam and had
been assured that there was no objec-
ton to his proceeding to make the cer-
tificates in this way. All the parties
professed immediate penitence to the
state auditor. He demanded the re-
turn of the materials with which the
forgery had been corlmitted. Mr.. Miller