Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1906-05-21
RELATIVES OF NORTHWEST
ERN's OFFICERS AskEU.
MAY CALL LEGISLATURE
If Attorney General Declares Surplus
Law insufficient 1t May Be Cor
rected at Once-Commissione
Host Says 1t Will HoId-Patton
Heirs Lose Large Sum.

Milwaukee, May 16.-The charge of
nepot1sm is to be made against the
Northwestern Mutual Life Insurance
company. At the hearing yesterday
Attorney O'Connor asked Second Vice
President Skinner for a complete list
CT all employees of the company who
are related by blood ties to any OF
the officers of the company. 1t has
been shown in the course of the hear
ing that there are a number of en-
ployes wh0 are quite directly related
to the officers.
1t was rumored that a special ses,
sion of the legislature would be calIea
to remedy the defect in the insurance
surplus law if Attorney General Stur.
devant holds that the present statute
is insufficient Insurance Commits
sioner Host is confident, however, thai
Mr.. Sturdevant will rule that it is not
detective, because he was consulted
at every step of the framing of the
law and was fully conversant with all
It's provisions before it's passage
The question of policy loans was
again gone into. 1t was shown that
had the late ]. E. Patton lived six
days longer his heirs would have been
paid $4,000 in addition to the princi-
pal OF the policy in the Northwestern
This represented accumulated divi-
dends.
testimony from the representatives
Of other than the Northwestern
Mutual Life Insurance company was
received to the effect that the prac-
tlce OF inspection of policyholders was
not employed by them.
High Priced Insurance.
Technical questions and answers
were given to show that the cost of
high-priced insurance was excessive in
comparison with that of ordinary life
insurance and that the expense eIe-
ment in making up the cost of high
priced insurance was unfair.
Judge George H. Noyes, counsel for
the Northwestern, evidently did not
regard the introduction of evidence on
the part of other companies, comparing
their methods with that of the North
western, as fair and asked permission
to direct questions to these witnesses.
Permission was granted to ask cues
tions through the committee. When
these came close to the point which
the counsel desired brought out, OBJ
lection was made by Attorney O'Con~
nor and Chairman Frear.
Il understand you to refuse to allow
LIE to bring out this information
Them" asked Judge Moves.
Il do not think it has any bearing
on this investigation, replied Mr..
Frear.
Mr.. Ekern went into the alleged dis
elimination against the tontine policy
holders in that the interest allowed on
the tontine surplus was not at the
same rate as allowed on annual divi-
dend surplus
This is the same point brought OUT
by Actuary Dawson some weeks ago
after an extended technical battle with
Actuary Loveland. 1t was supposed by
the audience of agents and attorneys
who claimed to be able to follow the
bewildering queries and replies that
Mr.. Ekern's idea was to get informa-
ton to sustain an argument that en-
dowment insurance should be sold
cheaper than it is. He evidently in
tends to Introduce hills in tho 1eoic
lature next winter along these lines.