Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-10-30
EVERYTHING PREARRANGED.
Under Sharp Questioning Admit
ted That He Knew Death
Valley Scott.
Forced to Acknowledge IIe Made
Evasiye Answer to Newspaper
Man to Question.

$3.50 ~. oV.---alDerti M. johnson s.
mead OF the National Life insurance
company, in a hearing before Master
III Chancery Ieisler yesterday told how
9 Sl,0oOOoo check was manipulated by
nun and his associates at the time they
acquired the charter OF the, company.
Mr.. johnson revealed the facts while
Undergoing cross-eXamination by Atty.
D. X. Tone in the action which has
been brought to restrain Gustav Myers.
life insurance underwrikr from circu-
latinE a pamphlet attad Ing the COM
pany's financial standf The deal
whereby a, G. Frost, pA loter of. the
bankrupt Chicago & MI eukee Elec-
trio company. obtained $4,000 Of the
Insurance company's funds on security
alleged to be inadequate for the pro-
lection of the stockholders and policy
holders. was subject to further inquiry.
THE TRANSACTION.
How much did the present company,
that you are now operating under a
charter from the stale of Illinois, pay in
1902 or at any time for the assets and
business of the National Life Insurance
company of the United States OF Amer
ga, Vic hCIldESereu DIV (sOT1-f
gress for Jay Cooke in 1862" asked Mr..
Tone ~.
Just s1,ooo.ooo was the price, an
swcred Johnson.
! Was the payment made by check or
| cash?"
BY check on the Federal Trust &
| Savings bank
| rs 1t not a fact that YOU. as an off.
Ger Of one insurance company, drew q
check for 81, 100000 to he paid to your
self, and that the payment of $1,000, coo
! was made by the ruse of arranging
| With the Federal Trust & Savings bank
for the nominal use Of this $1,000. GOO
4 for a few hpurs22,. asked Atty. Tone.
Well, the check was signed probab
. by me and by one O Their officer Of each
company" Mr.. Johnson answered.
But, as natter of fact, no money
ever passed in the so-called payment? ~
l the lawyer persisted.
The plan was to buy UP the old
company with this 81. 100000 payment,
which s1,OG0.00o was to be turned over
TO the old company as a dividend.
I Was that done?"
| Yes"
Did not the so-called payment Of
| 100000 instantly. find its way back
| into the hands of YOU and your assoc
ciates through this arrangement with
| the bank?"
Everything that was done was ac-
l u tut pIt-dIItuReu pan
| the purchase
| How much money did you or the
purchasing company have on deposit
| in this bank at the time the payment
! was made"
The question was objected to by Atty.
l.. A. Stebbine for Johnson and sus-
| tanned on the ground that the private
business was not under Investigate ton.
| The National Life Insurance company
! Of the United States was organized
under the act Of Congress for tha
| benefit Of jay Cook. the Civil war
| financier in 1865 He operated it un-
Ill 1872 when his failure forced him to-
dispose of it.
The next owner was the late Henry
Furber Of Chicago. well known real
| estate man. In the early nfneties, Fur
Der sold the charter and business to o.
D. WetheTel, former city comptroller
of Chicago. Wetherell sold 1t to tie
present owners, Albert NJ. Johnson AMI
q. A Shedd and associates. This was
in 1902
DEATH VALLEY SCOTT.
You know Death Valley Scott?"
Il know a man named Walter Scott
of California
Were you and this man Scott of
Death valley. California, ever held up
and robbed ond a trip between Chi
cago and California;"
y never saa.. t35 zi7E rs s'.s5
rs it not fact that you denied to n
Chicago newspaper man that You knew
Scott. when at that very time Scott
was in your house mere In Chicago AS
your guest?"
Il made evasive answers to a. news
paper man.
did you ever invest money in any
of the speculations or enterprises i'll
which Death Valley Scott was inter-
ested?''
mot that know. had known
Scott for long time. having met him
on my trips through that state
You deny any financial relations
with him."
u deny any speculations with him"
At the morning session it was brought
out that the insurance company has
collected more than st.ooo,0Oo in par
ticlpating policies, but has paid ont
participating profits to the policyhold-
ers or stockholders only $4,000
What surplus is now left out Of
this 81 900 collected on participating
policies?" Mr. Johnson was asked.
About 100000. believe he an-