Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-06-27
Legislative Commission Which
Is Investigating Insurance
Makes Pointed Inquiries
ARE THE RATES TOO Low?
Inquiries Of the Commission Directed
Toward Finding Out tho Condition Of
Assessment Life Insurance compan-
les in tho state-some Figures on
Railroad Taxes.
Special % Tlmes-Republicans

| Special 20 Times Republican,
| Des Moines. June 27.-That assess
ment insurance companies are on an
unsound basis as to the rate Of assess
ment seemed to be the point the leg
islative insurance commission was ar
| irving at in Its questions put to Henry
| s. Nollen, secretary of the Bankers
Life, today. Almost the entire morn
| ing was spent In All examination OF
Secretary Nollen, not SO much as to
the facts as to his company, but as To
| the basis of assessment insurance in
general In getting out these facts,
| the condition of the Bankers Life was
| looked into, and at its conclusion
Chairman Jamison, of the commission,
| told Secretary Nollen that he didn't
believe his company would live twenty
years. 1t was brought out in the tes-
| timony that the Bankers has reserve
| fund of nearly $4,000,000, ard assets Of
| about $9,000,000 or over 1t was shown
that the assessments of policy holders
amount to about $40 a year per $1,000
of insurance. Chairman Jamison then
brought out that 1t would take policy
holder 100 years to pay in $1,000. Sec
rotary Nollen claimed that the lapses
of policies must be taken into account
and Chairman Jamison then asked:
IF at the age Of 40 years. which you
say is about the average age of the
policy holders. man takes out poll
icy in your company and should live to
be 100 years old. he will have paid in
about $500 on the $1,000 Now, where
does your company get the other $500
that must be paid on that policy?"
Several attempts were made on the
part Of Secretary Nollen to explain
to the satisfaction of Senator Jamison.
He called attention to the 100000 Of
reserve fund, which, according to the
bylaws, is to be drawn upon as soon
as the yearly assessments ON the menu
bers reach more than l per cent of the
face of their policies.
But some day, unless your rates
are greatly raised, that reserve of 81 =
100000 will be wiped OUT said Sena-
tor Jamison. "Then what?'
We'll, may ask you a question ?"
said Secretary Nollen. What are you
going to do about it?"
II don't know" declared the COM
mission chairman. 1T is a surprise to
me that the officers of this company
have been able to make such a good
showing as they have. I don't see
how you can run more than twenty
years. believe that all assessment
insurance is too low, and that assess
ment Insurance must come up to some
thing near the cost of insurance"
Considerable time was spent by the
commission in the details of the Bank
ers' Life showing as to financial con-
dition, but largely for the purpose of
getting at the condition of assessment
life insurance The officers of the
and possibilities, and showed that the
naming nearly stationary at 42h
years.
AS based on the claims of the rail-
road management of Mr.. Perkins cam
paign there is talk of adding $15.00O,00O
to the railroad assessment this year.
The hearings will be had by the execu-
tive council beginning July 9. The
biggest increase in the assessment in
any one year since Governor Cum
Minis has been q member Of the execu-
tive council was an increase of little
over $5,000,000 in 1903. The first year
Cummins was on the executive council
the assessment was raised little over
S4,000,000. It has been the claim of the
Perkins management who are closely
associated with the railroads that in
reality there has been no relative in
crease in the assessment Of railroads
when the increase in other property is
taken into effect. The last two assess
ments under Cummins there was only
a little over ono million added to the
assessed valuation. An investigation of
the claims Of the railroad supporters
of Perkins has led to the estimate Of
$15,000,000 as the increase for this
year and this figure is now being dis
cussed in political centers in this city.
This increase would bring the assessed
valuation UP to $63,190,1Ss and the ac-
tual value of the railroads up to $685.
760,856. The railroad assessments
have been published number of times
but would bear repetition. Under both
Shaw and Cummins the assessments
have been as follows:
Under Shaw