Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-09-01
1AE gold BOND (RAF|
That 1t Was a Good One Is
Shown By the Stockhold-
ers' Profits
FACTS COMING TO THE SURFACE
Since the Companies Have eBen Driven
From Iowa Some Interesting Things
Have Developed in Connection With
Their saIe-ouarreI Among Them.
selves-vaIue Of the Stock.
Special to Times Republican.

/ Des Moines, Sept. 1.-Now that the
gold bond investment companies have
been driven from Iowa by means of a
/ determined crusade extending over u
year and it has become possible to
| speak plainly about the matter here In
I Des Moines, where the companies were
spending immense sums to keep pub
lie sentiment" headed their way, and
1t is now in good form to discuss the
matter without whispering, some addi-
tional interesting information is bub-
ored now that the stock of the last
of the companies to engage in this bus
| mess, the Northwestern Life and Saw
inSs. was sod at about $500 share.
/ 1t is known that some OF the share
holders had held their stock at $500 a
share. But at s4o0 share the profit
was fairly good, and this fact makes it
certain that if the state officials would
permit it other companies would be or
ganized to follow in the track of the
( couCeTiiS iOW ucIuIlCt. ACcOTuluS 10
the report of the Minnesota department
the stockholders originally paid in but
$4,000 on their stock and the remainder
| of the 100000 stock was issued as
surplus capitalized" II they then re-
ceiyed $400 a share they got 100000 on
an investment of $4,000, and the divi-
dends declared besides 1t is stated that
there is no legitimate life insurance
company in the state that has been
quite SO profitable to the stockholders
as this. The editors of insurance jour-
mails, having access to some information
that is closed to the ordinary newspa-
per reports have been getting at some
interesting things in this connection.
For instance the Western Underwrit-
er." published in Cincinnati and Chi
cago, tells why the Northwestern Life
an 2 s'avlrgs quit business as follows:
1rha Immediate cause OF the rein
surance was the revocation of the CONF
pany's license by the Minnesota de-
partnaent. This was brought about by
| the publication of a very indiscreet op-
en- letter signed by the officers and di-
rectors, published in st. Paul and Min
Eneapolis papers, attacking the recent
I
| in the Chicago Record Herald, wherein
| he hammered the ten year bond prop
osition to a finish. This letter INDUCED
freely in bitter personalities. charging
/ Mr.. Curtis Of being In the employ OF
eastern rivals. 1t will be remembered
that Mr.. Curtis had an interview with
| Commissioner Dearth, of Minnesota,
and quoted him on the issue. While in
some respects Mr.. Dearth repudiated
the interview as misrepresenting him,
I vet he stated that he felt the company
and agents were guilty of misrepresen-
tation and the stockholders had been
lcompensated too literally at the ex-
pense of the policy holders. After the
lletter was published it reflected some
4 what on Mr.. Dearth, and he promptly
took action. Some Of the directors
feared this would be a body blow and
| that other departments might take sim
iilar action. Some of the direct
ors desired to continue, but others be-
came panic stricken and were deter
mined to unload, especially as they had
an opportunity to sell their stock at be-
tween 800 and 400 per cent. The
Northwestern had 100000 capital, 50
the stockholders made splendid
profit
Here is news for the insurance men,
even, for 1t was not generally known
here that Commissioner Dearth had
decided upon drastic action to bring
matters to a head 1t is true that IN
order to bolster UP the business ne nae
been misrepresented and abused anu
deceived, but he had allowed the COM
many to continue in Minnesota under
repeated promise of reforms. And II
the facts are as stated in regard to the
Immediate cause of the sale. then the
Curtis attack. ill-directed ana puhgle-
some as 1t was, was the means OF
bringing a lingering CRISIS 10 mead
But the "Western Underwater tells
more secrets of inner insurance circles:
'.The great mistake the Northwest
1 tern made was during the enort OF
Manager Starnes OF the Natlonal Ll1e
and Trust to raid the coInpany's man
agerial and agency force He came
in contact with Secretary Crowell OF
the Northwestern in Denver ana Salt
i Lake City. Secretary CroweH was
fired up to the fighting point. He
wrote letters to insurance papers at
tacking the National Life and trust
claiming it was insolvent. He also
wrote to some insurance departments
making similar charges Among these
was the Minnesota department Com
missioner Dearth on receiving MI
/ CrowelHs letter, determined to make an
examination OF the National, but at the
same time argued that the Northwest
ern was writing the same class OF
| business and he would also make an
examination OF that company. Actuary
| Wolfe. Of New York, first examined the
National and later the Northwestern.
The report on the latter company did
not appear for some time. The Of
ficers were greatly taken back at the
severe structures. There was backing
and filling for an extended period dur
ing which a supplemental examination
was made The report was finally ss-
sued and exposed the methods and
4 condition OF the company at several
/ points. This report was at once used
4 with telling effect by rivals and pelicy-
4 holders became much disturbed.
This statement and explanation