The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-30
STATE TAKES HAND
In INSURANCE DEAL
Continued From First Page

confidence Of the policy holders and the
public?
In order that no conclusion should be
hastily reached and that this department
should feel satisfied beyond all question
that its conclusions. when arrived at were
correct, requested the personal assist
anee OF E 4. Young: attorney general.
IN the investigation. His aid was freely
given. and IL the final result of this mat
ter proves, as / hope IL viii. that the
rights OF the policy holders of the North
western National Life insurance company
nave been conserved, it will be largely
because of his efforts.
have also had the benefit of the valu
able advice and assistance OF E. +. Car
roll, state auditor and ex officio insurance
commissioner OF the state of Iowa, with
whom large proportion of the assets OF
the Northwestern National Life insurance
company is on deposit.
My judgment is that the financial con-
dition of the Northwestern National Life
insurance company at this time is such
that by strictly honest and economical
management of its affairs the actual rights
of all of its policy holders, under each
particular contract, can be secured.
The answer to the second question
however. must be that under the present
management the company cannot sur
vive. j do not think il advisable or prop
er that L should in this report attempt
to give particular instances of wrong
doing, mismanagement or incompetency. 1t
is sufficient to say that the actuary Of
the company, in his sworn. examination
conceded that the financial condition OF
the company had deteriorated during the
year 1904 by an amount at least SUI
ficient TO wipe out any surplus that eX-
listed at the beginning of that year The
particular individual responsibility for
this condition of affairs is a matter to be
considered by the future officers of the
company in their efforts to reinstate ii as
properly managed insurance company.
AT a conference held today in the Of
hce OF the attorney general participated
In by myself, the attorney general. b. F..
Carroll, $. II. Wolfe. the board of direc-
tors with one eXception) of the North
western National Life insurance company.
Messrs. Brown & Kerr, counsel of the
company. and myself. the condition Of the
company was canvassed and the impos-
sibility of its continuation under the press
ent management was undisputed. The fol-
lowing programme was agreed upon:
First-The members of the executive
committee of the board OF directors of
the company TO resign as officers and di-
rectors. This includes the president. sec
rotary and vice president and actuary.
Second-A committee of citizens of Min
neapolis. consisting of Hon. David p;
Messrs. Lucien Swift. F. A. earle and Il.
F. Nelson, was selected whose duty Ii
should be to suggest 10 the remaining
able. in their judgment, to fill the va
cancies thus created
Third-The action of the committee to
be, in the future ratified by the policy
holders OF the company at special meet
ing called for that purpose, if such action
is found necessary.
1 am fully aware that this mode of pro-
ceduTe is unusual and places upon the Of
hcers of the state responsibility which
they could have avoided by the institu-
ton OF legal proceedings in some form.
Believing, however, that the policy hold
els alone should be considered, and that
by no other means could the valuable
rights which they have in this company
be maintained, the above method was pur-
sued. Thomas d. OBrien,
Insurance Commissioner.
St Paul. March % 1909