Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-02-15
COMMISSIONER HOST EXPOSES
LOOT OF A COMPANY.
REFUSES NEW LICENSE
Officers of Old Company Made Them
selves Present of 1000 in the
Process of Selling to New Company
of Which Also They Were the
Officers.
Madison. Feb. 9

two insurance company officers who,
as officers of one company, transferred
the assets and business of that com
pany to themselves, as officers of
newly formed company, and inciden
tally made themselves a present OF
$40, 900, practically all the money
owned by the old company. The Wis.
consin insurance commissioner de-
scribes the transaction as a species
of robbery of the policy holders, in
which the proxy" has been substitut-
ed for the burglars Jimmy" He de-
mics the application of the new COM
pany for a license to operate in Wis
consin and makes public decision in
which he explains the transaction.
His reason for giving the matter pub
licity is that the people may be warned
Of such insurance concerns and refuse
to become members in companies
where their interests are sold out.
The National Protective society OF
Detroit, Mich, was the old company.
1t had 964 policy olders in Wisconsin.
most of them living in Milwaukee, APP
pleton, Sheboygan, Plymouth and Eli
roy. David L. Thomas was president
and Franklin S. Dewey was secretary.
The company had $1,000 on deposit
with the state treasurer and the ofil.
GERS asked that this be credited to the
new company, the National Casualty
company of Detroit. The commission
er refuses to do this and holds the
81 900 fox such action as the Wisconsin
] tofr
ion of the commissioner is as follows
Commissioner Hosts Decision,
THE National Casualty company is
an outgrowth of the National Protec-
tive society of Detroit. organized at
the expense of the membership of the
latter organization. The National
Protective society was a mutual accI,
dent and health association organized
and conducted on the assessment
plan, and was admitted to transact
business in this state September II,
1896 and by the 18th day of August,
1904, had secured a membership of 964
in Wisconsin, at which time, one
David E. Thomas was president and
one Franklin S. Dewey was secretary
of the society.
ION this date-August Is, 1901
the gross assets Of the National Pro
tective society amounted to s71, 760.94,
with liabilities for outstanding claims,
advance assessments, and bills due OF
$21,500, leaving balance of net assets
of 50.260.94 contribute by and be-
longing to the members of the society.
. hc - ,pf
cate of deposit for 81 900 is deposited
with the state treasurer of Wisconsin
as security for the payment of claims
against the said corporation in case OF
voluntary dissolution or the winding
up of its affairs.
ION the 9Th of July. 1904, the OH
GERS of the National Protective society
mailed notice of call for speciai
meeting of the society to be held at
Detroit, August 10, 1904, for the pur,
pose of considering the advisability
of entering into, ratifying and con-
frming a contract for the sale and re-
insurance of the business and request
ing the proxies of the members. AS
the proxies of the members of the Ma
tional Protective society, according to
the desires of the officers, we're not
forthcoming in a satisfactory manner,
the agents of the society were engaged
~ the officers to secure such proxies,
at so much per proxy, to be paid out
of the funds of the society. upon just
what statements these proxies were
obtained could not be determined.
Meanwhile, the officers incorporat-
ed under the laws of the state OF
( Michigan. a stock company, provid-
ing for a capital of 100000. under
the name of The National Casualty
company with David f. Thomas, presI-
dent and Franklin S. Dewey, secretary.
After several adjournments, the spe,
cial meeting of the National Protec.
! tive society-David f. Thomas, presI.
dent, and Franklin S. Dewey, secre,
/ tary--was held December 81, 1904, and
. 1000 proxies being voted. II was de-
termined to reimburse the business OF
the National Protective society
/ David f, Thomas, president and
Franklin S. Dewey. secretary
in the National Casualty com
pany David f Thomas, presi
dent. and Franklin s. Dewey. secre-
tary-and without consideration OF
! any Kind 10 the membership, that the
assets, furniture fixtures, records. etc.
Of the National Protective society be
turned over to the National Casualty
company.
Made Themselves a Present