Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-05-11
LOOT Of INSURANCE
Astounding Revelations Made
in the Investigation of w.
f. Bechtcl
FUNDS OF COMPANY STOLEN

Enormous Sum Paid to Or. j. r. Force
to Resign = No Accounting OF Sums
Paid to Bride State Officials by the
Northwestern National Life at Min
neapolis.
Minneapolis, May 11.-Under the
persistent cross examination of clev-
err attorney, w. +. Bechtel. former
president of the Northwestern Nation
al Life Insurance Company yesterday
ibecame caught In tangle and frankly
legged colossal scheme to loot an insur-
ance company of thousands Of dollars
Mr.. Bechtel is on trial charged with
grand larceny in appropriating to him
self So, 500 of the funds of the company
Thursday, In answer to the questions
of Attorney DAHL he told how he had
gained control of the National Life AS
ISOLATION by paying its president. Dr.
j. +. Force, an aggregate Of $ll3,500 to
resign, and directors and other officers
smaller sums. All of this money, Mr..
Bechtel frankly confessed, was taken
from the treasury of the National Life
after Bechtel had gained control of that
concern. No account was made of such
expenditures in the books of the COM
pany
The attorneys will begin their sum
ming UP in the case today. The cross
examination of Mr.. Bechtel was COM
pleted at such late hour yesterday
afternoon that the court ordered an ad-
journment until today before permit
ting the attorneys to begin their ar
guments.
Testimony Is Sensational.
The testimony given by Mr.. Bechtel
in his direct examination and the in
cross examination by Attorney Dahl.
was sensational in the extreme. The
charge Mr.. Bechtel made that former
insurance commissioner of Minnesota
had accepted a bride of $4,000 for u
favorable report on the proposed
consolidation Of the Northwestern Mu-
tual and the National Life Association
had been considered by the grand jury
which brought the indictment against
Mr.. Bechtel, and in its report the grand
jury severely reprobated the alleged
conduct of the insurance commissioner
but said that he was exempt from
prosecution because Of the statute OF
limitations.
The amounts paid thru Mr.. Bechtel,
for the reimbursement" of DR.. j. F.
Force, former president of the National
Life Association, according to the tes-
timony brought out, aggregated $113,-
500, Of which no record is found In
the Northwestern Nationals books
The items as detailed by Mr. Bechtel
were:
Paid in cash from the company's
funds $3O,UoU
In notes given by Bechtel on the
company's account :. ....... 10000
Transferred by the new COM
pany in it's own stock ........ 1850
Transferred by the new COM
pany in stock of the North
western National bank Omar
ket valued :. .......... $1,000
Paid in cash in 1901 ........... 10000
Paid in cash IN 1902 ...... 10000
Paid in cash In 1903 ..... 10000
Paid in cash in 1904 ........ 5000
Turns Profit to Himself.
Other sensational statements made
by Bechtel while on the stand related
to personal profits made by transac-
lions supposedly carried on for the
benefit of the company. The company
contracted to reinsure an Iowa COM
pany, but instead of doing so Bechtel
turned the contract over to Califor-
MIA company at a profit Of $4,000.
The Minneapolis Auditorium build
ing, which the Northwestern National
Life erected, also was gone into and
it was shown that Bechtel owned the
site selected for the building, and that
it was sold to the company at a profit
to Bechtel of $4,000.
Bechtel also testified that he had
paid 100000 to Superintendent Of
Agencies Campbell for the surrender
Of his contract.
a use of money in total disregard of
the rights or knowledge of policy hold
ers Assets of the company We're de-
livered over bodily to DR.. Force, kept
in the name of the company. and bank
checks sent by the banks in payment
Of stock dividends, made payable to
the company, were Endorsed over
to DR.. Force by President Bechtel.
One by one former officers were
to resign in favor of friends
Of Bechtel and paid enormous sums
Of nancy for so doing. The witness
was allowed $4,000 a year contingent
fund aside from his salary and no
questions asked as to what he did
with it. No records were kept of the
deals with former officers and none of
the transactions with DR.. Force appear
on the books. All this the witness
admitted on the stand with the calm
assertion that he was doing right in
all such matters and not only had
right to, but was acting in the in
Lerest of the policy holders
alItown to ST. Paul and Return
$8.75, via Chicago Great Western
Railway.
Tickets on sale May % and 81, in
elusive. account biennial meeting
General Federation of Women's Clubs.
Return limit June 8 with extension
privileges. For further informa lion
apply to j. r. Harding, agent. Ma
Towa