davidaulloa/AmericanStories huggingface dataset:
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
tors Of the Continental Life Insursl

tors of the Continental Life Insursne'
Investment company:
Hiram Tyree.> Frank Pierce. w. 8 =
nick. Cameron G. Wylle, Thomas h
John Dcrn- ]. D Wood. w. v. RICE.
Mayo. Salt Loko City. Utah: F. c. Jens2
+ Amcs, Ernest Denicke. Charles w nc
C c. Carey. san Francisco. Cal;
Waters H J. Woollacott. Los Apgeles
r. d Steele. W. w Wylio. BoZoman.
a. l. Babcock. Billings, Mont Jonn
Butte. Mont; A. l.. Stone. J. P. aurSct
Ion. Mont; James Reid. MONTREAL. -
F, II. Cooling Shoohone. Ida
Executive COMMITTEES.
Frank Pierce, w, s, Mccormick, John
V. T. McGillycuddy, c. C, Carpey, ChAfh
Howard. Hiram Tyree- n
Criminal Proceedings.
During the progress OF our examination
inal proceedings were Instituted asain*>
president and secretary OF the company
County Attorney OF Salt Lake county ot'
davit Of P, ]. Harding the former oooxs
Of tho company. WHO prepared tno
statement for 1904 The charge brougnt -
these officers was of falsifying stateme1'
with the Secretary of state showing .uc
dition of tho company ct the close OK -
December 81. 1901 The case was propst
foro Judge Dlehl In Salt Lake city, ana
the progress of the trial tho conplaint oi
tho secretary OF the company WIS Win
by tho prosecution. The special eAnn
were summoned by tho prosecution 10 ~.
dcncc for the State. Tho case mas ~
been decided as 10 President 1yrec' ~
efTec: OF the prosecution has been ~
to the welfare OF the compen
Sound Financially.
II Is to be dcplored that COMPANY
financial condition 10 on so solid oasls
have been brought into eompiications
errors OF judgment or wilful mismannet
pf its chief officers. The company ~
business with an impaired capital y
about 10 per cent OF all tho moneys -
for its capital stock In payment OF %.
sicns and bonuses and as neccssaiy
.ta capital was seriously impaired at tnt
II 1901: but tho fact that, In optic on ~
verso condition, the company was aplo "a
he year 1905 to make up that dcncienc;s,s<i
GC. IL pay S32. $40 " In Losses ana hnnu,H
or cont dividend on tho amount OF its ~
,npltnl stock up to March II. 1903. nrio,
% $40. G2S. 53 md come out at the cloee
-ear with Its capital unimpajrcd ana
prpluS OF 27,S401o is evidence that ~
icople Will gladly pntronlzc a WesteIn
,oratIon. The Continental Life Insuran.{it
Investment company. although IL nus s..
eriously by loss OF confidence In the ce'i,r
les OF nvc states which arr eoveIcu IN
porntions owing To recent discioSu,e i,
Z rvcs bottcr fatc than TO DO wreSkeu ~.
OF lts affairs kSEr<;
admitted. GEORGE. Is ~ ga I
Deputy Secretary OK %
G A GLAZIER.
state Bank Exam
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Vouchers Are Furnished.

Accompanying this statement was Furnished
vouchers covering the entire expenditure OF
SlO one check Of 800 having been drawn at
the home Office OF the company on June IL, and
which would make n tOtnl or checks for which
vouchers had not been furnished OF $40. At
this time. finding that Mr.. Tyrce had gone 10
san Francisco thls condition was wired him
and he Immediately ordered that tho amount
stated, AI5. 80 expended a. above stated by
him, should bc charged to the Western Agency
company, In whose interest especially the trip
10 New York wus made. The balance OF the
$40, amounting 20 SZ75. has been properly e1-
pended in tho business OF the Continental Life
InnIrnUcN and Investment comppny
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Bills Not Approved.

During the year 1874 II the custom, OF the
s"crctnry OF the company To present 10 cach
meeting ot the executive committee tho bills
which had accumulated since the last session,
In order 10 obtain the approval OF the commit
toe. During the year 1905. under tho man
sgemcnt, this custom ccaS-J, and after that
limo no approval or the executive committee
was required and no auditing committee had
been provided TO audit the accounts until tho
directors meeting held in san Francisco on
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06

SURPLUS ,..,...,.. .......s.a.,.....,.S 1870. II
\ portion OF the cash reported nbovo de-
posted In Mccormick < Co.'S bank consists Of
certificate OF deposit amounting to SIS, 600,
bearing interest nj tn" ratio OF per cent II
held for four months which represents money
advanced on premium notes OF the company.
which notes held by tho company for col
lection. This arrangement was entered into In
December, l@r5, but tho certificate OF deposit
was not Issued until the 18th day OF January
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
I. CUNNINGHAM. Secretary.
Contract Is Criticised.

II Will be noted In section : or the contrac,
that Mcssrs Werner and Kimball agree 10
place not less thnn 81 CO0.0OO OF Insurance the
HIHt Seur and not less than 81. 500 900 each year
thereafter. and guarantee to havo a total Of
at least 10000. 60 written through their ef-
forts under this contract within period of
hNe years from date thereof: md I'm section
I they further stipulatc and agree thai IL they
fail To produce In any year the amount
OF business as above specified they shall for
felt this contract upon thirty days notice
and oil right and interest therein This con-
tract has been subjected to considerable CEN
sure and criticism because OF tho form OF con-
tract issued by the company under this agree
ment. through Mcssrs Werner and KImball
n copy of which Mo nlsn nttnch
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Payment of Salaries,

O. Tho party o. tho hrst part agrees and as
sutncs 10 pay the tnloricS OF is own officials
anl ltS homo ono" expenses. including post
ngo on tho delivery OF policies. other home
olhco supplies necessary for tho conduct OF It's
own buslncss, and further agrees to furnish
10 tho party OF the second part the aalnpI.
pullclen, medical examination and application
blaaks and tho usual soliciting literature. IL
Is horehS agreed th0t tho party OF the second
part must submit 20 tho party OF tho nr>t
part for Its approval. any literature or state
or IDaIpgc.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06

II IL IL agreed that In case said special
aupcrintcndents, second parties herein shall
pay. or knowingly allow To be paid any rebate
OF premium, In any manner whatsoever d.
rcctly or indirectly. said first party may can
eel this contract ht once anything hcroin
contained 10 the contrary Notwithstanding
Is This contract Is confidential and said
second parties agree that thoy viii not at
any umc diTulGo tho terms OF the same
In witness whereof tho parties hereto have
hcr'unto set their hands and 9cals. In tr,oli-
cate. the day and ycac fret above written
CONTINENTAL LIFE INSURANCE AND
INVESTMENT COMPANY
By HEBIR NJ WELLS
President.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Risks for the Year,

The amount Of risks written by tho
rany during the year 1905, paid for business.
was N.3O0IlO
The total amount at risk December 81, 1905,
WAS ss.7sl $40.
1926, 600
The amount at risk in Utah at the close OF
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Should Be Audited.

While realize the difficulty OF securing
executive approval OF bills contracted without
special authority by the hoard we suggest that
no system cnn ba perfect that docs not in
Volve careful auditing. not only TO the
details OF the bills, but the ultimate au-
thority for their being contracted Tho system
now in use by the company IL n check voucher
system. and II no checks allowed TO be
drawn against any deposit OF the company cx-
ccpt through this form. close check can be
kept on the expenses OF the company. Tho
company has also adopted expense voucher
specially intended for those who are disburslng
money for travelling expenses. on which daily
occount ls kept, and upon tho receipt OF which
l,gl
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Commissions Allowed.

> The commissions to be allowed on said
special contracts are gF follows:
tn). Ordinary lie. twcnty-payment lifo and
twcnty-year endowment, scvcnty-nNo per cent.
do. Flftccn-ycor endowment md fifteen pay
mcnt life. Ecvcnty-two and onc-han tI2I7) per
cent.
Cc). Tcn-paymcat life and tcn-yesr endow-
mcnt, slNty-Ecycn and onc-half 67iO per
cent
,. And II Is also agreed between the par
tics hereto that said second parties mny pay
themselves the above commissions out OF
each premium collected upon each policy, as
the FIRST premium nnd shall be In fun Tor
all c,rvlccs or second parties In placing In
suranco ntorcFnid
s. Said party OF tho nrst part shall pay All
current uniCc expenses and promptly write up
and deliver 10 said second parties the policies
Tor nil business written by SECOND parties
which Is acceptable 10 said nrst party. But
said nrst party docs hereby reserve the rlght
TO reject any and all policies or applications
which may be made to Il for insurance undtr
and through said second parties which are
not acceptable to aail hrst party IN accord.
ancc with its rules regulating the Issuance OF
H.,FHg
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Schooner Safe in Port.

SAN FRANCISCO, March q
schooner Sadie. which has been hoS
between safety and destruction OF
northern coast near Umpdua, wher
recently became waterlogged In q =
Is finally safe, having been towed
Umpqua The work OF dischargin1
cargo of lumber is now under way
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06

Premium notes lrtt years business. =. .as5. IS
Accrued interest, mort
EsGos ........... .......-...S 2.lo21S
Accrued interest, bonds
and stocks ..........-...... 1, ,Ss3 6S
Accrued interest, col
lateral loans .....a......, aJ0. 90
Accrued interest on other
assets ......, ............ 1891
I,I5a. OF
Net amount OF uncolccted premiums
not moro than three months due.
follows:
New
Business. Renewals
cross premiums
due and
ported poli-
Cies in forco Dec.
81, 1885,. .,....SS.ii3. ~ $50 1871
Gross cforrcd
prem. policies in
force Dec. 81. 1906 2s79.S
Totals ,.. AS 90 So. .cl3. rs
Deduct loading .., 3. 265. 35 !. .l5l 10
S2,l77. IS s2l SO. .
-- - 2AO2o IS
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Werner-Kimball Agreement.

No submit herewith a copy OF the contract
between the Continental Life Insurance md
Investment company and Werner and Kim
ball
Contract between Continental Lifo Insurance
ana Investment company md Werner an1
kmball: This agreement, mado this Ith
day ot Fcbruury. 1904. between the Continen-
tai Life Insurance and Investment company.
a corporation organized and existing under the
laws or tho State OF Utah with its principal
Office In salt Lake city. nrst purity and
Frank n. Werner and George =. Kmhnl OF
Los Angeles Cal. second parties witnsssrth:
That In consideration OF the covenants and
agreements hereinafter mentioned. said par
ties agree with each other follows. to-wlt:
l. Said frst party hereby appoints said seo-
ond parties Its special supcrintcndents. With
the exclusive right OF placing In tho United
states all special contracts Issued by the
nrst party. Tho forms OF the special con-
trncts shall be at oil times subject to tho
control and disposition Of tho fret party. and
the estimates OF results TO be used is hereto
attached and made part hereof. as exhibit
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06

We suggest that copy OF this contract
should DO filed with some competent Gctunry
20 that a reliable report may be secured as
10 it's effect upon the policy holders.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Grave Question.

II Ia n grave question and ono which We be
ncNc should be submitted TO a competent
octuary 10 dcClIc whether or not this con-
uoct II beneficial 20 the Continental Life In
hurnncc and Investment company. If the en-
tire expense loading OF all tho premiums on
Policies TO b. hereafter issued Is taken by the
Weat"rn Agency company. the Continental LifC
INSURANCE and Investment company must pro-
vide for It's portion Of the expense OF manage
nent out OF the profits OF the bond Investment
business. lapses, and Income from investments.
That you may have understanding OF tho
operation Of the contract hand you here
with statement showing nt the age OF q the
net premium the loading and the gross prcml-
um for tho nrst year, the net premium, tho
loading and tho gross premium Tor all subso-
qucnt years during the life OF the policy.
which cNplRina Itself
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
m -
Secretary.
Purpose of Contract.

The purpose for which this contract wos
entered INTO WAS that In states "h"Fr Nn
company doing business. Werner und
kim6all should hrst enter thc ncld and ~rlte
100 100 20D selected risks. giving 10 ench
policy holder local advisor contract Ths
prominent business and professional men ana
public officials we're selected, which gave a
high character 10 tho class Of the policy !.
holders and tended 10 gain the conndcnc" OF
the community After the number OF CON
tracts assigned 10 each State had been VIII
ten. the field was thereafter to be covered
by other ngenta OF the company. In some ol
the States the company Is not permitted I"
wTSlc this class OF cOntrncts, but In our own
Stnte, thorc being no law 10 prohibit It. IL mas
been Permitted and tho fun number OF poh-
cIcs assigned to this State have already been
written. We advised that during the year
1875 there pnid out to each holder OF
local adviser contract In this State $50. Mon
tnnn s. 10 and Idaho t5.iS. Tho one dollar on
each thousand dollars worth OF insurance upon
which tbs above distribution wes made. IL
viii be noticed has been reserved from the
assignment Undc by tho company or the pre-
mium loading 10 tho Western Agency com
rany. so that this amount is not Included In
tho amount paid to tho Western Agency com
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Western Agency Company.

We now call you attention To Section Of
tho contract, follows:
I II is hereby agreed. that the party OF
the second part CThe Western Agency Coz shall
have the privilege and authority TO mort
gage, sell. trnnsposo or otherwise dispose OF
a part oil OF the said expense element OF
premiums received under this contract to any
person or persons whomsoever aud that said
party of the nTFt part tContincntal Life lns-
& Investment Coz, shall agree TO acknowl-
edge the validity OF any assignment, mort
gage or other instrument or conveyance which
the party OF the second part may execute
In It's capacity OF general agent OF the party
OF the first part. under this contract
II would sccm from tho reading or this sec
ton that provision was already being made
for the assignment OF n portion OF tho load
ing to another company which was not or
gonlzcd until Aug 2, 1905. the Western Securi-
tics company. the Continental Life Insurance
and Ingrstment company agreeing In advance
ito acknowledge the validity OF any assign
mcnt. mortgage other instrument of oon-
veyance which tho party OF the second part
may execute In It's capacity Of general agent
or tho party of tho nrst part. under this con-
tact"
Section requires tho company to qualify
to do business in any State upon tho request
OF the Agency Company.
Section 9-''Thc party Of tho second Dnrt
TO pay or knowingly allow TO be paid
rebate Of premium In any manner whatsoever
directly or Indirectly
Protection Assured.
Section 10 The party Of the second part
employ agents and solicitors for insurance
upon such terms II may desire hereby
s6soyng the party OF the ars' IT cc nSI fTG ,E
party of the hrst part from any liability un-
dor sah contract
Section II. The party OF the second part
Tho Western Agency Coz hereby agrees and
docs assume 10 carry into effect all contracts
entered into and existing with the rcgu-
lor agents ond managers. bv the party n the
nrst part (Thc Continental Life Ins. q Invest
mcrt Coz, md nll the business produced b.
such n~cnts from and after this dntc shall
be subject TO the agreements and conditions
OF this contract The party ot the second pnrt
sErncs To nssumc and nay the rent md other
cxnenses connected with tho branch
onncs AZ Butte Montana. and Scn Francisco
California. ond relieve the party OF the "rst
mart trom any liabilities connected therewlth.
Nothing hnrcin nenfInnoa shall bc construed
as cTnc'ipc tho contractR entered into aarl
NOW existing with Frank 4. Werner md q.
G Kmonl Special Supnrint en- Acnts md
" Locker msnaGor Of tho Ton Year Saw
inCs rnd Inysstmcnt Bond Department,
Limited above, this contract shall extend |
for period NJ twentv-rve years from date
As the contract provided that The expense |
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Expenses Assumed.

i Tho party n the second part In consId-
GRAFTON OF tho compensation above spccmcd,
osroes and assuncs tho obligations to pny all
ncId expenses OF procuring business for tho
party OF the first part Including rent Tor
branch Offices, employees OF such offices. and
all incidental expenses thereto. and all sub
agents commissions. and other allowances,
state teN"s on prcmiu'ns, and state licences
ana NIL agents licenses, medical examination
ices. ana nll office expenses necessary for con
ductng the business OF the party OF tho second
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Form Of Contract.

Continental L!fo Insurance md Investment
company Of Salt Lake City. Utah Contrast
OF local ndviser. Limited TO two hundred
ment company OF Salt Lake CITY Utah in
consideration or the duplication for this an
pointment, which application Is made pnrt
hereof does hereby appoint and commission
'ss.'s-s'...-s..srn OF ..sr...,,..,.4--.. local
adviser OF said company. subject to the In
conditions
l. Tho number of said local advisers an
pointed In the state OF Utah shnll not ex-
coed two hundred
.. On -hc first day Of March ot each year
during the continuance of this contract tn.
company Shnll compute tho number of thou
nan1s OF insurance IN force written fo- q
prroA OF ten years from and nfte- March
1904. In tho State OF Utah. upon which there
shall hayo been paid I'm Gosh during the pre-
ccdinG vcar one full annual premium two
sem-annGOl or four quarter annual premiums
For Local Adviser.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Agreement on PAYMENT.

T. said party OF tho second part agrees 10
pay on or before tho 10Th day OF enoh calcn-
oar month To tho uartS OF tho first pHrt the
net premium trcnorvc and liability ~ nll
lpnclct lSsue1 and delivered through the in
struncntalty OF the party OF the second part.
ana on which premiums have been collected In
chNh. Tho party OF the second part ngTocs 10
lctufn 10 ths party OF tho first part for con-
ctIIaton all policies Issued mot taken"
on which settlomcnts cannot be collected with
IN sixty ttp) days after tho default OF said
settlements. Tho party OF the second part
hereby agrees 10 pay 10 the party OF the nrst
lnrt the net premium. for tho tlmc the policy
Is III force. on all policies returned for can
ccIoti"n after six months from the date OF
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Going 1t Alone.

s. said second parties agree 10 use their beet
cndesvors to place oil possible Insurance upon
the books Of the nrst party and hereby agree
not TO become associated with any other lfc
insurance company either directly or lndi-
rcctIy. hut tl devote themselves to tho In
tcrcst of the nrst party exclusively, and To
place not less than million dollars IN
aurnncc tho hrst year, and not less than ono
million hvc hundred thousand dollars each
year thereafter, and guarantee hereby TO have
n total or At least tor million dollars insur-
nnce written through their crorts. under this
contract within period OF ivc ycnrs from tho
date hereof
C. Said second parties agree to pay in full
TO the nrSJ party the amount due TO said nrst
rartv upon the delivery. II eoch policy to snld
second parties. or either OF them, or their
agents. but such payment 10 be refunded 10
said second parties In such policy IL re-
turned Tor cancellation.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06

assigned includes tho nrst ycnr on tho pre-
nnlnnrg term bosis. and the regular loading
thereafter cuch year long the policy is In
iurcc. The net premium and the expense load
,nG sheil be nscertnincd from the actuary's
toblts that may be furnished by competent
ncIuhr1 10 the party of tho flrst part, and
Gf tho first pnrt Tho not premium and ex-
pense loading and the reserve Of all policies
HaIl nc Calculated on the basis OF the Ameri
Soh S1 per cont and tho nctunry'H por cent
lherc IN exempt from this assignment the od-
Eleory h1ard compensation, OF 81 per thousand.
ms per tho stpulotlons I'm said advisory board
contracts in nll territory where tho said local
adEiscr contracts hnyc or may be writtCn.
Hnusr tho present contract entered into hy tho
En'a party OF tho nrst part with Frank A.
werner and G S. klmball special auporn-
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
What Result Shows.

Tho result shows that on ordinary lifc poll
cios, at the age OF u years, taking the eS-
pcctnncy at 90 years, N per cent OF the prcml-
ums collected VIII go 10 tho Continental Life
Insurance and Investment company and - per
cent TO the Western Agency company, and this
y per cent covers all the cost OF securing the
business and OF keeping II on the books. on
q tcn-payment lifc policy OF the same age.
at tho cnd ot ten payments che company VIII
have received 10 per cent and tho Western
Agency company 2l7 per cent. on O nftccn-
payment life, after fifteen payments tho COM
pany viii have received Il per cent and tho
Agency company 2 per cent. on twenty
payment llf", nftsr twenty payments the com
pany viii have received - per cent and tho
Agency company ~ p9r cent. on ten-year
endowment. after ten payments the company
viii hnvN received s. per cent and the West
crn Agency company Is per cent on a nftecn-
year endowment after hftcen payments the
company would receive 81 per cent and the
Agency company 10 per cent. Tho percentages
used above arr approximately correct and tho
figures used taken from the table on which
settlements arc uadc between tho Agency COM
rsny md the Continental Life Insurance and
Investment company.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Forfeiture Clause,

= II Is further stipulated and agreed that
n said second parties foil TO procure and pro-
ducc tho amount Of business in any ono year
as nbovc spccihcd they shall forfeit this con-
tract upon dirty days notice, ond all rights
and interest therein at the option OF nrst
party.
Limited M aforesaid. this contract shall
continue for a period Of Ave years, or until
ten million dollars OF insurance shall have
been -l'ccd.
surance and TO policies Issued before the LIST
day OF March. 1904.
10. Said FIRST party may limit the amount
OF special Insurance 10 be written In any one
S.-.te
H. No insurance shall bo written in any
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-06
Checks Not Reported.

The9c checks had been paid by the bank and
not reported u the company, and reduced the
amount on deposit from 1900 To $3.50 This
condition was not discovered until after the
books had been closed for 1875. and tho trans
uC ton VIII appear In the business OF 1895. Dur
Ing all the Time that had elapsed between
May a. 1875, and December 81. 1905. report
Of these transactions had been made by Mr..
1Srce 10 the home office and vouchers fur
nished for the expenses. All OF the above
checks wcrc signed by Mr.. Tyrcc only.
By resolution of tho executive committee
passed at its first meeting checks or the com
pany can only hc legally signed By tho secre-
tary and countcrsigned by the president or
vice -DTpsidtnr