The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-30
Report Avoids Details


Commissioner O'Brien says that 1t is
not deemed advisable at this time to
give more than a general report of the
condition of the company's affairs,
which is construed to mean that they
are not in as good condition as might
be supposed from the reading of the
report. Nothing definite is set forth,
but general statements are bad enough.
Serious charges have been made
against the management of the COM
pany, and the fact that they are re-
quested to resign after an investiga-
ton by the commissioner, leads to the
belief that more truth has been found
in this charge than will be made known
for the present.
The commissioner says plainly that
In his judgment the company cannot
survive under the present management.
He does think, however, that with
proper management the company will
be able to protect the interests of the
stockholders. and it is for them alone
that the committee of safety is named.
The examination of the company
was made by S. III. Wolfe, an actuary
of New York. Action was decided upon
as soon as the annual report was filed,
March 1, 1905. Two questions in par
ticular were sought to be answered by
the commissioner:
rs the financial condition of the COM
pany such that it could survive under
proper and economical management?
rs the present management capable
of placing the company upon a sound
financial basis and of retaining the con-
fidence of the policy holders and the
public?"
Commissioner O'Brien says that in
his judgment the financial condition OF
the company is such that under proper
management the actual rights of all
the policy holders can be secured,
which answers the first question; the
answer to the second question is the
appointment of the safety committee
and the resignation of the officers.
Whatever the committee of safety
may do. their action must be ratified
by the policy holders of the company
at a special meeting called for that
purpose, if such action is found neces-
sary. This is part of the plan agreed
on by officers, directors and state Off
Gals.
Directors Agree to Plan
All members of the board OF direct
ors except one were present at the
meeting yesterday. together with the
state officers, and counsel for the COM
pany, when the plan was agreed on.
When the report of S. III. Wolfe was
made Atty. Gen. E. T. Young, Gov.
Johnson, Commissioner O'Brien and
Auditor Carroll met with the board of
directors in Minneapolis. They looked
the matter over carefully and the d.
rectors concurred in the belief that un-
less the management was changed the
company would be in bad shape.
The present Northwestern National
Life insurance company is the CONSOLE
dation of about fifteen different COM
panies. 1t was Incorporated in Sep
lr-A srrsa~ srxw1
was in 1901, under the stipulated pre-
MUM law.
The total policies of the company
amount to about 0,000, 900, according
TO last reports. There are $4,000 policy
holders. The assets of the company are
given as nearly $4,000,000, and it is
thought that the liabilities will be about
the same amount.
In the assets of the company is the
100000 auditorium of Minneapolis.
which was built by the company on the
promise of the citizens to raise $4,000
900 worth of business for the company.
That the citizens of the city failed to
make good is the fact that last year
the total business of the company in
the state was less than 100000.
The report of the commissioner reads
very mild unless read between the
lines. The charges of mismanagement
are only implied, and Commissioners
O'Brien refused 10 make any further
statement than was made in his report
TO the governor. Excessive salaries,
the building of the Minneapolis audito-
rum and other financial projects are
said to have caused the investigation
Il wish to say that much credit is
! due to Commissioner O'Brien,' said
| Gov. Johnson yesterday afternoon He
| has taken upon himself responsibility
that he might have put on the court.
but which would not have protected
| the policy holders of the company He
| saw the need of an investigation and
went at il fearlessly. He is entitled to
much credit, for l think we will be
! able TO protect the rights OF the policy
holders
The Northwestern National life in