Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-03-31
Special Committee to lnvesti-
gate Company Says Manage
ment Was Too Ambitious
THE sYNDIcArEs ARE TABooED
Real Purpose of the Company to Fur-
nish Safe Insurance at Lowest Pos
sibIe Cost Forgotten in Ambition for
Power and Influence in the Finan-
cial World. L

/ ANSW YIN, IIdiGl OI.-IHe SDeCldLs
committee Of trustees of the Mutual
Life Insurance Company, appointed to
examine into the company's affairs.
made public it's fifth report today The
committee finds It's investigation thus
far leads 1t to believes: TROUBLES
which have befallen the Mutual can
all be more or less directly traced to-
the ambition Of its management to
equal or exceed all others IL, the
amount Of insurance it should write
and maintain, furthered by its other
and possibly controlling desire to be-
one OF the great financial powers of
thls country. The real purpose OF the
company's organization, viz: to furnish
to Its members absolutely safe insur-
ance at the lowest possible cost, seems
to have given place to this ambition
for power and influence In the busi-
ness and financial world
The company's foreign business, the
report sets forth, has been conducted
with the same ambition and view, and
the general management of foreign
agencies is criticised. The COMMITTEES
believes steps should be taken by the
officials to discontinue solicitation of
new business in foreign countries. ex-
cepting possibly Great Britain, Hol-,
land, Belgium, Mexico and France The
committee believes the most practical
means Of reducing undue cost Of new
business is by placing a, limit ON such
and to this end 1t endorses the recon-
mendation OF the legislative insurance
investigating committee limiting new
business written to $1i50,OOO,000 per
year. Deferred dividend policies are
characterized as "Mongrel type OF in
surance" and the Truesdale committee
declares itself in entire accord with tho,
recommendation of the legislative CONF
nistee thar tho writing of the deferred
dividend policies be discontinued The
Truesdale committee hesitates to CRIT
icize the investors Of the company in
the stocks Of banks and other finan-
cial institutions '.in view Of the satis-
factory results therefrom," but favors
a limit of the company's holdings OF
such stock ten per cent Of
their outstanding stock. Dissent
is expressed to the conclusions
of the legislative committee prohibiting
life insurance companies from invest-
ing in stocks of any and all kinds, the
Tuesdale committee saying on that sub
ject: "The dividends on the stock Of
bank and trust companies are usually
we'll within the earnings Of the corpora
ton, so that large part Of the benefit
to the investor lies in the increase Of
price from the growth of surplus thru
saving and compounding. On the other
hand, if bond sells at a premium, tho
position is reversed, and gradual loss
takes place as the bond approaches its
due date"
Syndicate participations are disap-
proved by the committee, which holds
that it would be better for q company
not to engage in any operations OF this
nature, and rather to lose profits which
might be obtained from this source.
than to lay itself open to adverse crit1-
cism. No officer or trustee should be
interested in any syndicate. The COM
mtitee says it Is advised that such OF
the company's funds as were donated
for political or campaign purposes, We're
unlawfully disbursed and recovery can
be had in behalf Of the company from
those of its officials or trustees respon-5
sible therefor. The committee UNDER
stands from the president that he has
already consulted counsel with regard
to what legal steps may be taken to
secure recovery Of these moneys and
tbat he will act accordingly. The
committee approved this course OF ac-
tion. In spite. Of all efforts since last
November, no trace has been found OF
Andrew G. Fields, who was in charge
Of the company's stationery depart
nent and thru whom disbursements
for the so-called legal expenses were
do