The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-30

B. F. Nelson, Luclan Swift and L. 3.
Mr.. O 'Brien had secured the resigna-
tions of W. F. Bechtel, president, A. F.
Timme, first vice president, and Fred J.
Sackett, secretary and treasurer. These
officers were also directors and the plan
is to have new officers recommended by
the advisory committee and accepted by
the remaining directors. ~ ~
This committee is in session today. If
necessary for legal reasons, the whole
procedure will be submitted for appro-
val to meeting Of the polcyholders.
Commissioner o'Brien's Report
Commissioner o 'Brien 8 report to the
governor is as follows: 80 :.-.'..
For the purpose of advising those inter-
ested, I desire at this time to make a re-
port to you as to the steps this depart
ment has taken In reference to the af-
fairs of the Northwestern National Life
Insurance company Of Minneapolis, MINI.
You are aware that for some months
past serious charges have been made
against the management Of that company
and that its solvency has been seriously
questioned; so grave was the situation, I
determined that, in spite of the fact that
an examination had been made Of the
company last June by S. H. Wolfe, a
under the direction of my predecessor
that it was my duty to institute another
examination Immediately following the
filing Of the annual report of the COM
pany, March /, 1906. Considering that
this examination could be more speedily
made by Mr.. Wolfe than by a person less
familiar with the company and having
satisfied myself as to- Mr.. Wolfe's ability
and integrity, directed him to makes
examination, requesting him at the same
time to direct his efforts with the especial
view Of answering two questions which
desired to solve: w. ...-l 49,. ...
First-Is the financial condition of the
company such that it could survive under
proper and economical management? .
Seconds the present management ca
pable Of placing the company upon a
sound financial basic and OF retaining the
confidence Of the policyholders and the
public? u IFS: .r.~~ RI .-% .-..
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, I requested the personal as
| sistance Of the Hon. r. T.. Young, attor-
ney general, In the investigation. His
aid was freely given, and if the final re-
suit of this matter proves, as hope it
! will, that the rights Of the policyholders
Of the Northwestern National Life Insur
ance company have been conserved, it will
be largely because of his efforts.
have also had the benefit Of the valu-
able advice and assistance Of Hon. B. B.
| Carroll, state auditor and ex-officio insur-
ance commissioner of the state of Iowa,
j with whom a large proportion Of the as
sets Of the Northwestern National Life
Insurance company Is on deposit.
| The Findings.
| My judgment Is that the financial con-
dition of the Northwestern National Life
Insurance company at this time is such
| that by a strictly honest and economical
management Of it's affairs, the actual
rights Of all Of its, policyholders, under
each particular contract, can be secured
| The answer to the second question, how
ever, must be that under tho present man
i aGement the company cannot survive.
do not think it advisable or proper that
should In this report attempt to give par
] ticular Instances Of wrongdoing, mis-
management or incompetency. It is suf-
i fcient to say that the actuary Of the
company, in his sworn examination, con-
coded that the financial condition Of the
company had deteriorated during the year
1904 by an amount at least sufficient tc
wipe out any surplus that existed at the
beginning Of that year. The particular
Individual responsibility for this condi.
ton of affairs is a matter to be considered
by the future officers Of the company ir
their efforts to reinstate 1t as properly
managed insurance company.
| At a conference held today in the office
Of the attorney general, participated il
by yourself, the attorney general, Hon
B. F. Carroll, S. H. Wolfe, the board oil
directors with one exception) of the
Northwestern National Life Insuranc,
company, Messrs. Brown & Kerr, counse
Of the company, and myself the cond1.
| ton Of the company was canvassed anC
| the impossibility of its continuation under
| the present management was undisputed.
The following program was agreed upon
| First-The members of the executive
committee of the board Of directors Of the
company to resign as officers and direc.
tors. This includes the president, sec.
rotary and vice president and actuary.
Second-A committee of citizens of Min
neapolis, consisting Of Hon. David P
Jones, mayor; Ex-Governor John Lind and
Messrs. Lucian Swift and B. F. Nelson,
was selected, whose duty it should be t.
suggest to the remaining directors Of the
company persons suitable, in their judg.
mont, to fill the vacancies thus created.
Third-The action Of the committee tt
be in the future ratified by the po1icyhold.
ers Of the company at a special meeting
called for that purpose if such action i!
found necessary.
am fully aware that this mode Of pro
cedure is unusual and places upon thu
officers of the state a responsibility which
they could have avoided by the institu
ton Of legal proceedings in some form
| Believing, how ever, that the policyho
alone should be. considered, and that b,
no other means could the valuable rights
which they have in this company be main
tanned, the above method was pursued.
Il +, SIS Es Y & ii
/ O'Brien's Work Commended.
In a statement to The Journal
Governor johnson said
81 desire especially to commend tn.
work of Mr.. O'Brien in this case. Evel
since accepting the insurance commits
sionership, he has been actively en-
gagged in trying to. settle this North
: western National life company case TO-
!. the best interests of the policyhold
ers. He has been rational and cain
in his action thruout the entire mat
, ter, which is great deal more thar