Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-19
PROBING INSURANCE
President Of Life Association
Of America Testified
AT THE INQUIRY TODAY
COMPANY STARTED BUSINESS
WITH $2es, 900 IN TREASURY.
Methods in Organization Fully Ex-
ploited-Payment Of $50, 900 Voted
by Directory Held Up.

NEW YORK, December 10.-Henry p.
Iownsley, president Of the Life Association
VI america, resumed his testimony before
the Armstrong insurance committee today
ne SAID that when his company started
business as stock company 1t had $26S. 900
In Its treasury, which was all obtained
from the sale of stock.
PRESIDENT Townsley receives a salary of
$1,000, the treasurer 5000 the medical
director 5000 and the general counse,
S6,O0V. c. w. Townsley, son of the presi-
dent Is the secretary and acts as general
agent. He receives no salary, but receives
commissions, which amounted last year to
A,4O0
Inc medical director Is George G. Van
Schaick, brother of the general counsel
who, with the witness. organized the COM
pany.
Half Dozen. Policies Drew Dividends.
MI Townsley said his company had about
loo annual dividend policies of which
ABOUT half dozen had drawn dividends
or 10 per cent. The average premium coll
ieeted on $1,000 policy is about $40. The
average reserve is GO per cent of the pre-
MUM after the first year. The first year
IL Is ~ or 80 thousand. The average cost
OF medical examination is So or 81 n thou-
sand. About half the business written
lapses.
Witness said that the payment of $4,000
~ ~ iunselI ana eugene Van Schaick voted
organizing the company came under the
uouce OF the insurance department and
1iiS department referred 1T to the attorney
et sehenal. VINO demanded that the money be
returned TO the company. The Life Asso-
clatlon OF America, witness said, does busi-
ness IN New York, Pennsylvania, Mary
iand, Illinois, Alabama, California and
Rhode Island. The associat tion was DO
barred from doing business in New Jersey
last year.
The Knickerbocker Company.
Iaking up the connections of the witness
"ien Inc hmckerbocker Investment Com
pany 1t was brought out that Townsley and
van Schaick were directors of the invest
ment company, which holds the majority
of the trust voting certificates OF the Bank
ers' Life Insurance Company These cer-
tifcates have been pledged to the Manbat-
tan Bond and Underwriting Company.
which witness and Van Schaick organized.
by the Kndckerbocker Company. The Life
Association of America thus practically
controls the Bankers Life Insurance Com
pany, which is controlled by a board of
voting trustees, which expires in 1907.
John Tatlock, president of the Washing
ant actuary of the Mutual Life previous To
his connection with the Washington Life
Thls company is the one in which Thomas
+. Ryan became interested some time ago
at the tnstigation of his business partner.
former Vice President Levi p. Morton. Mr.
Tatlock was elected president of the Wash
Ington Life on December 80 1904 Charles
II. Allen, vice president of the Washington
Life, is also vice president of the Morton
Trust Company.
Ryan on Finance Committee.
The members of the finance committee
are Levi eP. Morton, Thomas F. Ryan.
Charles H. Allen, G. G. Haven and Win
throp Rutherford.
Mr.. Allen, as vice president, received no
salary. The president receives a salary of
,O0O, the second vice president S., IA and
secretary s., 144. The odd amount Mr. Tat
lock said, was the result of an old custom
of allowing s12 a month to employees for
luncheons.
The reorganization of the company in
December. 1904, was taken up with Mr.
Tatlock, and the report of the state insur-
ance department on the condition of the
company at that time was read. The ex-
animation upon which the report was
based was made by Isaac Vanderpool.