Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-12-20
Shown in Washington In
suranCe Co.'S. Business.
Although Pres. Tatlock Has In
troduced Many Reforms.
Pres. ToSnsIey Of |. A. A. Also Receives
Attention Of Insurance Committee.

New York, Dec 19.-An inquiry in
to the affairs of the Washington Life
Insurance Co, was begun today by
the Legislative insurance investigating
committee when John TatlOck, presl-
dent OF the company, was called to
the witness stand. MIR. Tatlock was
elected in December 1904, after an
examination of the company by the
state insurance department which re
suited i'll a reorganization of the
management Mr. Tatlock receives L
salary of $4,000.
Mr. TatlOck detailed a number of
reforms that had been instituted since
this reorganization, among them the
abolishinS of a cash surrender value
in policies and the elimination of the
loan feature. He expresses somewhat
OF different sentiment than other
life insurance officers, in that his eX-
perience had been that only about five
per cent of loans We're ever paid up.
and that a loan was but u deferred
surrender of a policy.
According to the witness 100000 IN
advances to agents had been placed
upon the books Of the company thus
for this year. These he explained
were a legacy from the former man
agement.
No contributions for political pur-
poses had ever been made by the
Washington Life as far as the wit
ness had been able to learn and the
only thing in the nature of legislative
work was a retainer to W. S. Walker.
who, the witness thought, was a Chi
cago newspaper man.
This retainer was paid from 1891
until Mr.. Tatlock took the presidency
when il was cut off. Walker wrote
special stories on insurance and upon
insurance measures that would be
pending in western Legislatures.
Immediately after the first of the
present year at the instigatiOn of the
finance committee, a great deal of the
company's holdings in bonds and mort
cages on real estate were closed out
and the funds invested in negotiable
securities. In a great many of these
transactions the securities We're pur-
chased through \. A. Ryan & Brother,
who are sons of Thomas F. Ryan.
About 100000 has been invested in
securities since Jan. l, last In the
list of securities furnished the COM
mittee appeared 100000 Of American
Tobacco, purchased Jan. 10. This was
subsequently sold out at q profit Of
$3992. The witness explained that
while the auditing committee did not
look with favor upon the holding of
this stock, it was not sold out for
that reason but because it was pur-
chased as a temporary holding and it
, was a good time to sell it.
The company had not gone into a
syndicate until this year. Since Jan.
| it has been in six.
Previous to calling Mr.. Tatlock,
President II. F. ToWnslcy Of the Life
Association of America was called to
complete his testimony which was in
terrupted by adjournment yesterday.
He receives Il salary of ST. 900 Il year.
lie said that the $4,000 voted to him
and Eugene Van Setback Tor organic
ing the company had come under the
observation of the insurance depart
ment, and that the attorney general
had notified them that it would have
to be paid back.
Mr.. Townsley detailed how the Life
Association controls the Bankers Life
Insurance. Co, which is under !; yot-
ing trust. The knickerbocker Invest
ment Co. owns a ma jority of the trust
voting certificates of the Bankers Life,
which are pledged to the Manhattan
Bonding & Underwriting Co, which
TOWnaley and Van Schaick organized
and Of which they are directors. The
sessions will be resumed tomorrow.