The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-01-25
MORE LIGHT ON
INSURANCE MATTER
Proxies of Stockholders Sc
cured That Are of a Sweep
ing Character.
CONTRACT AS TO THE
EXPENSE LOADING
Peculiar Provisions in Contract
Empowering Agency
to Do Things.

Here's little more light on the man.
ner in which Hiram Tyree, promoter
and director of tho Continental Life
Insurance and Investment company, tho
Western Securities company and the
Western Agency company handles the
business affairs of the corporations.
President Wells Ousted.
When the Continental company was
organized, Hon. Heber NJ. Wells. then
Governor OF Utah. was made president.
But Mr. Tyree the promoter of the COM
pany evidenced It's aspirations for the
highest office after It had had
prosperous year, by quietly gathering
proxies and voting himself into the
presidency at tho annual meeting held In
this city January, 1905.
Unlimited Proxy Used.
The form of proxy used is peculiar in
the fact that makes, constitutes and
appoints II. Tyree. attorney and proxy
to vote and represent my interests as
a stockholder at any meeting OF the
stockholders of said company, whenever
and wherever held. hereby ratlfying all
that my attorney shall do I'm the prem
ises. | do further make this proxy con-
tinuing until otherwise provided by me
Tyree Has Whip Hand.
In considering this question of the re-
latons between the three companies
above mentioned, II IS necessary TO keep
In mind that while Mr.. 1yrec Is prcsi-
practically dictator of the Western
Agency company, and 1t Is alleged has
made the statement that he controls
majority of the stock In this concern.
Provisions Of Contract.
In tho contract made August 2, 1905. be
tween the Insurance company as first
party and the Agency company as sec
ond party. occurs the following provision:
The party Of the FIRST part agrees to allow
and hereby assigns 10 the party OF the second
part. tho entire expense loading OF the pre-
Jniums for all policies issued under this con-
tract compensation for tho general under
writing expenses. The expense loading mus
fis and the regular loading thereof each year
long as tho policy is in force.
Where Expense Comes In.
1t does not take an insurance expert
to see that this leaves the Continental
OF which TO pay officers salaries,
office expenses. printing, postage and
interest to stockholders. nor does it re-
quire an insurance expert TO see that
these Items should be paid out of the
loading.
Long Term to Run.
This contract. which at the time OF It's
adoption was objected to by some OF the
directors, has twenty-five years from
date to run. 1t contains some other pc
culiar provisions, az for example:
II is hereby agreed that tho party OF the
rccond part shall have the privilege and auth
ority TO mortgage. sell. trnnspose. or other
wise dispose OF part or oil OF the said eN-
pcnsc clement OF premiums received under this
contract. TO any person or persons whomeo-
ever. and thnt snid party Of the first part
shall nSreo TO acknowledge the validity Of
any assignment. mortgage or other instrument
Of conveyance which tho party OF tho first
part may execute In its capacity Of general
agent party Of the first part.
Tho party OF the first part shall qualify to
do business in any Stote Upon the request OF
tho party OF tho second part.
To understand the significance of this.
II Is only necessary 10 keep In mind that
II Hiram Tyree can not entirely control
the Continental Insurance company. he
has complete control over the Western
Agency company