Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-08-25

claims. They modified their claim ana
in handbook for insurance agents
published in Boston, an edition Issued
this year, the claim is there made for
orly $500 yield on a $500 certificate.
That deception is inherent in the busl-
ness is shown when the Northwestern
Life and Savings last February puo-
lished a column advertisement In Des
Moines containing a letter from Com
missioner Dearth, of Minnesota, IN
which he estimated trlat on their 10
year certificates 1T may not be un-
reasonable to assume that dividend
Of from 10 6 per cent may be real
iZed," but which appeared under start
ling headlines to the effect that the
commissioner comedies profits OF 3
per cent interest" The difference be-
tween the two is plain, for it amounts
to about so per cent, but the manifest
trickery runs thru all the literature If
the business. AS for the funds which
were transferred on the books of one II
the companies and given the stockhold-
ers it is but fair to say that the insur-
-.'ea commissioner succeeded in having
o. 1t back where they belonged.
OtfNa.. sc the company would have
and subject to a receivership.
This restatement OF some of the
things which have been printed before
in the Times Republican is pertinent
to the recent hubbub created by VIM.
E. Curtis. The mistake Curtis made
was in not striking his blows directly
at the wrong instead of striking wild
ly in the air to the injury of businesses
against which there has never been
any complaint. But before Mr.. Curtis
had written line on the subject four
OF the five companies had been driven
out of the business in this state, and
readers of the Times Republican We're
much better informed on the facts of
the whole subject than is Mr.. Curtis
even today.
When the new business was organ
lied few years ago. efforts were made
TO induce state officials, state politi-
clans, newspaper men and others of In
fluence to go into the business. Sew
eral did go in. Some of the best busi-
ness men of Des Moines and some of
the fairest and cleanest of the political
leaders of the state went into the busi-
hess. Like in the case of nearly all
large corporations, their names were
loaned to the piAnoters and they were
put on the directory boards. Most of
these men would scorn to do a wrong
act or allow their names to be used
| TO deceive anyone. 1t is certain that
some of them are blistfully ignorant
to this day that they have been mis-
used. Others have got out as quickly
as they could do so. with self respect.
~ h,, Tod tn hnv la
right But there are those who did not
go in. 1t Is we'll known that strong
efforts We're made to induce Governor
Cummins, when he was a rising man in
| politics but not in office, to become
president Of one of the companies. He
declined. One favorite theory of the
promoters of these companies was that
| the school ma'ams of the state would
| invest readily, and strong efforts were
! nls,de to get State Sur srintendent Par
| rett to lend his name for the express
purpose of helping the agents solicit
among the teachers. 1t was pictured
to him as to others. that there We're
enormous profits to be made for the
stockholders; but he put away temp
| tation And so with others who might
be mentioned.
| 1t was in relation to these companies
that the scandal came UP in regard to
| the use OF spurious state auditors s
seal on certificates sent cut. This was
cutting the state out of fees amounting
! to about $3.50 month, but the counter
ifeiting was discovered and stopped.
An amusing incident occurred In this
connection. The president of the North
western Life and Savings was highly
| indignant that his company should
have been referred to in this connec-
tion and he declared they had never
used them He started out to demand
a retraction from newspapers that had
printed the facts. But information
was furnished to the effect that his
company had been using them within
a few weeks and he subsidized
| Two other matters have come up
more recently in regard to the business,
| that may or may not have had TO do
with the movement to close out the
business in Iowa. 1t has been repeated
lily rumored that a grand jury in Min
nesota was making an investigation OF
certain alleged false sworn statements
on file officially there to see If an in
dictment for perjury would not stand.
Another is a statement sent out from
Washington to the effect that the pos
tai authorities are considering the
advisabillty of refusing the mails to
insurance concerns using the mails to
defraud, especially in Iowa and the
west How much truth there was In
these two stories is not known here.
At different times suits have been
brought to recover money paid these
companies. Generally the companies
have settled rather than go into court.
The suit of George jenkins, OF Dubu-
que was settled by cash payment OF the
amount claimed. Suits are pending
now and others are coming.
The attitude of the standard old line
insurance companies of Iowa has been
somewhat embarrassing. They have re-
allied that the insurance laws of the
state we're being used for a business
entirely different from the straight IN
surance business. They have hoped
that it would be broken up. But they
have also been forced to become de-
tenders of the evils of the system In
order to protect themselves. All the
regular insurance men of the city ana
state hope that the end is near and that
the legislature soon to meet VIII take
IN the matter and dispose of the loops
holes thru which irregular methods
are made possible.
STEAMlR SINKS.
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