The Montgomery advertiser., 1908-10-31
JOHNSON UNDER FIRE
HEAD OF INSURANCE COMPANY
 QUESTIONED.
President of the National Life SE the United states Admits Extra ordinary Financial Trans
 ncffonn

Chicago, Oct. 30--Aibert M. John son, head of tho National Life Insur- .ance Company of the United States, in hearing before Mastcr in Chanccry zeisler. told how s1,000.oo0 check was manipulated by him and his as- sociates at the time they acquired the charter of the company.
 Mir. Johnson revealed the facts while undergoing examination by Attorney Tone In the action which has been brought to restrain Gustave Myers. life insurance underwater from cir- culating a pamphlet attacking the campony's financial standing.
 The deal, whereby A. c Frost. pro- moter of the bankrupt Chicago and Milwaukee Electric Railroad. obtained 3sSs.000 of the insurance company's funds on security alleged to be inade- quate for the protection of the stock holders and policy holders was the subject of further inquiry.
 How much did tho present coEla- charter from the State of Illinois. pay in 1903 or at any time for the as- sets and business of the National Life Insurance Company of the United States of America the corporation chartered by Congress for Jay Cooke in 1868? asked Mir Tone.
 sJust $1.000,000 was the price, . 4u8WGTGQ jOnu6Ons
 was the payment made by check or cash? ]"
 "By check on the Federal Trust and Savings Bank"
 .Is 1t not a fact that you. az an of- flcer of one insurance company drew check for $1.o00,0o0 to be paid to yourself and that the payment of SI O00, 900 was made by the ruse of ar- ranging with the Federal Trust and Savings Bank for the nominal use of this q, ,000.0 900 for q few hours? asked Attorney Tone. "welI, the check was signed probably by me and by one other officer of each company" Mir. Johnson answered.
 "But, as a matter of fact. no money ever passed In the ao-called payment. the lawyer persisted,
 ''The plan was to buy up the old company with this $1.0OO. 900 pay ment, which Sl.000,000 was to be turned over to the old company as a dividend"
 ..was that dOner
 "Yes."
 "Did not the so-caIled payment of sI. 1000. 900 instantly find its way back into the hands of you and your assis- tsnts through this arrangement with the banksT
 "Everything that was done was ac- eording to the prearranged plan for the purchase.
 How much money did you or the purchasing company have on deposit in this bank at the time the payment was made7"
 The question was objected by At torney L. A. Stebbin for Johnson and sustained on the ground that the pri- vate business was not under investi- gation.
 The National Life Insurance Com vsyoa F- ized under the act of Congress for the beneft of Jay Cooke, the civil war f- nancier in 1863 He operated 1t until 1872 when his failure forced him to dispose of it. The next owner was the late Henry Furber. of Chicago q, well known real estate man In the early nineties Furber sold the charter and business to o. D. Wethrell, former city controller of Chicago. Wethrell EoId 1t to the present owners Albert M. Johnson and E. A. Shedd, and as-
 @Did you ever invest money in any of the specifications in which Death Valley Scott was interested"
 Mot that know of. had known Scott for long time, having met him on my trips through that State
 .'You deny any financial relations with hin2"
 .T deny any speculations with him Tt was brought out that tho insur- anoe company had collected more than S1, ,O00.0 900 in participating poll cies. but has paid out profits to the poIicyholders of stockholders of on' | iy s16,000. ..-.. =. tb3s Al. GOO, 900 collected on participat' tnsS noIieiesY" Mir. Johnson was asked
 About $1oO.OOO I believe" he an | syyefed