Fergus County Democrat., 1906-02-06
continental LIFE PROBED.
Kendall People Are interested to the
Extent of Several Thousand,

Extent of Several Thousand.
Many people in Kendall will be in
terested in the following comment up
on the Continental Life Insurance
company. the western end of which is
now under investigation in Salt Lake
at the hands Of dissatisfied stockhold-
ers. The Salt Lake Tribune says !:
"A bare cold, statement of the facts
in the case, as borne out by the con-
tracts and other documents available
for evidence, leads the disinterested
observer to the conclusion that some
person wanted everything in sight
And this is the conclusion that a unm-
Der of stockholders and directors in
the Continental Life have reached.
Monday night a meeting of OBJ
jecting stockholders and directors Of
the Continental company was held at
which the situation was discussed,
but definite plans for action were not
completed. Following are some of the
prominent facts disclosed by the ex-
animation Of the records and con-
tracts
THE Continental Life Insurance
company was organized Feb. %, 1904,
with headquarters at Salt Lake, pri-
marily through the efforth of P. H.
Locker and Hiram Tyree, the latter
becoming president of the company.
THE directors included w. S. Nc
Cormick, DR.. H. N. Mayo, ]. D. Wood,
w. V. Rice, John Dern, Samuel New
house, L. S. Hills, Frank Pierce, w. H.
Cunningham, T. r. Cutler, all of Salt
Lake; A. L. Stone, Dillon, Mont; A.
L. Babcock, Billings, Mont; James p.
Murray, Dillon, Mont. w. w. Wylir,
Bozeman. Mont; Fred j. Kiesel, Og-
den; Gov. F. r. Gooding, Idaho; H. j..
Wolcott, Los Angeles; c. G. Carney,
San Francisco.
LAS the primary and stated object
of the company was to furnish ample
and conservative insurance with west
ern money and keep that money from
reaching the already gorged treasur-
les of the eastern insurance corpora
| tions, the financiers and capitalists
whose names appear in the director
| ate, men Of integrity and ability, were
| interested without difficulty, and the
company was launched under propit-
| uous circumstances. Some good men
! were put in the field and the insur-
| ance written was soon counted by mil
lions of dollars.
Matters ran along smoothly until the
summer Of 1905 when President and
Promoter Tyree suggested the idea OF
Incorporating the Western Securities
company, to be organized under the
laws of Arizona, with headquarters in
San Francisco, the idea being to have
a bank that would handle its business
deal in stocks and bonds and have
general supervision of the insurance
business.
1.-The plan worked we'll and stock
holders in the life insurance company
We're induced to take stock at so cents
on the dollar.
$50 far, all went well, but Mr.. Ty.
rec was not yet through. He formed
the Western Agency with headquar.
ters at San Francisco, capitalized a,
$4,000 with the following directors: c
D. Bates, bookkeeper for the Cont
mental Life company; P. B. Locker
an agent for the same concern; B. E
Sanders, an attorney of Phoenix
Wyo.; A. L. Stone, a bank cashie: o
Dillon, Mont. Mr.. Tyree admitted
that he owned majority of stock il
the Western Agency company, whil'
he still holds the dual position of pres
ident of the Continental company ant
director in the Securities company
Immediately after the organization
of the Western Agency company, OF
August 2, 1905, the executive commit
tee of the Continental company let
contract by which the Agency com
pany was assigned the expense load
ing, amounting to 20 per cent of tn
gross premiums, and was also mad
the agent for the underwriting of tn
policies of the Continental
with about s6,000,000 in insuranc
on it's books and proceeding on tn
assumption that this volume of bust
ness is maintained there is presented
under this contract the peculiar spec
tacle of the $4,000 Western Agenc,
company receiving from the Cont
mental company about $4,000 yearl
; for doing what the insurance com
pany was itself organized to do.
MANY of the stockholders and som
of the directors have had their sus
!, picions aroused by the peculiar pro
: visions of these contracts, and consid
er the contracts illegal. Samuel New
; house, L. S. Hills and DR.. H. N May
!, are among the directors who have re
signed
FOR SALE-160 acres of land, clos
+o T,ewistOWn, Will go chean saO