The daily morning journal and courier., 1905-12-20
WASHINGTON LIFE'S AFFAIRS
COMPANY COMPELLED TO RE-
 ORGANIZE 4 YEAR AGO.

Number of Reforms Since that Time
 No Contributions for Political Pur-
 poses-Retainer Paid Chicago News
 paper Man Who Wrote on Insurance
 Afatters-Tifty Thousand for orsanI-
 zatIon of Life Association of America
 Ordered Paid Back.
 New York, Dec. 19.-An inquiry into the affairs of the Washington Life In surance company was begun to-day by the legislative insurance Investigating committee, when John Tatlock, presi- dent of the company, was called to the witness stand. MT. Tatlock was elected in December, 1904, after an examination of the company by the state insurance which resulted in a reorganization oi the management. Mir. Tatlock receives a salary of $20,0O0. :
 MT. Tatlock detailed a number of re- forms that had been Instituted sinca the reorganization, among them the abolishing of a cash surrender value in policies and the elimination of the loan feature. He expressed somewhat of ! different sentiment from other life in- surarce officers, in that his experience had been that only about five per cent of loans were ever paid up, and that a loan was but Q deferred surrender of a policy.
 According to- the witness, $60,000 in advances to agents had been placed up- on the books of the company thus far this year. These, he explained, were a legacy from the former management.
 No contributions for political pur- poses had ever been made by the Wash ington Life, as far as the witness had been able to learn, and the only thing in the nature of legislative work was a retainer to W. s. Walker, who, the wit ness thought, was Chicago newspaper man. This retainer was paid from 1891 until MT. Tatlock took the presidency, when it 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 gages on real estate were closed out and the funds invested in negotiable securities. In a great many of these transactions the securities were pur- chased through A, A. Ryan & Brother, who are sons of Thomas F.. Ryan. About $4 JOG, 900 has been invested in se- curities since January 1 last, In the list of securities furnished the commit tee appeared $100,000 of American To- bacco, purchased January IS. This was subsequently, sold out at profit of $S,- 992. 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 rea- son, but because 1t was purchased as a temporary holding and 1t was a good time to sell 1t.
 The company had never gone into a syndicate until this year. Since Janu- ary it has been in six.
 Previous to calling MT. Tatlock, Pres ident H. P. Townsley, of the Life Asso- citation of America, was called to con- plete his testimony which was inter- rupted by adjournment yesterday. He receives a salary of $12,0O0 a year. He said that the $50,OO0 voted to him and Eugene Van Schaick for organizing the company had come under the observa- tion of the insurance department, and that the attorney-general had notified them that it would have to be paid back.
 Mir. Townsley detailed how the Life Association of America controls the Bankers Life Insurance company, which is under a voting trust. The Knickerbocker Investment company owns a majority of the trust voting certificates of the Bankers Life, which are pledged to the Manhattan Bonding and Underwriting company, which Townsley and Van Schaick organized, and of which they are dtrecaors. The sessions will be resumed tomorrow.