Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1906-05-17
RELATIVES OF NORTHWEST
sRN'S OFFICERS Ashev.
MAY | CALL LEGISLATURE
II Attorney General Declares Surplus
Law insufficient II May Be Cor,
rected at once-commissione
Host Says II Will Hold-Patton
Heirs Lose Large Sum.

Milwaukee, May 16.-The charge of
nepotsm is TO be made against the
Northwestern Mutual Life Insurance
company. At the hearing yesterday
Attorney O'Connor asked Second Vice
President Skinner for n complete list
OF all employees of the company who
are related by blood ties to any or
the officers of the company. 1t has
been shown in the course of the hear.
ing that there are a number of EN-.
ployes who are quite directly related
TO the officers.
1t was rumored that a special ses,
sion of the Legislature would be calle,
to remedy the defect in the insurance
surplus law if Attorney General Sun
deyant holds that the present statute
is insufficient. Insurance Commits
sioner Host is confident, however. than
Mr.. Sturdeyant 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
its provisions before its passage.
The question of policy loans was
again gone into. 1t was shown that
had the late J. e. Patton lived six
days longer his heirs would have been
paid $4,000 in addition to the prnol.
pal of the policy in the Northwestern
This represented accumulated diyi.
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 ele.
ment in making up the cost of high.
priced insurance was unfair.
Judge George II. 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
tons 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.
L understand you to refuse to allow
me to bring out this information
then?' asked Judge Noyes.
i do not think it has any bearine
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 divl.
dend surplus.
This is the same point brought OH,
by Actuary Dawson some weeks aqo
after an extended technical battle with
Actuary Loveland 1t was supposed by
the audience of agents and attorneys
VINO claimed TO be able to follow tho
DeWlldering queries and replies that
Mr.. Ekern's idea was to get informa,
ton to sustain an argument that en-.
uowment insurance should be sold
cheaper than it is. He evidently in.
tends to introduce bills in the legis.
lature next winter along these lines,