Arizona republican., 1909-05-27
INSURANCE COMBINE
BITTERLY ARRA|GNED
A VAIN WAR ON THE CONSOLE
DATED.
Independent Concern of Popular Own
ership Opposed at Every Point.

Chicago, May 23.-. Special Core
spondence of the Republican, -
Against Wall streets combination of
insurance millions all controlled by
a handful of millionaires, the launch
ing of an Independent company is
full of snags, mines and pitfalls,
according to Robert B. Armstrong,
formerly assistant secretary of the
treasury and now president of the
Consolidated Casualty company, who
has publicly charged the insurance
combine with desperate measures to
put out of the field any big COM
pany which is created by popular
subscription. Having just successful
ly and VIGOROUSLY emerged from
the battle he describes some of the
obstacles thrown in his way and his
narration is from first hand and
absolute knowledge of dangers over
come.
No insurance company outside of
fire nowadays is allowed to survive
the gauntlet if it can be done by
fair means or foul" is the tenor of
his remarks, and is confirmed by the
statements of the directors of his
company, representative men of
financial prominence throughout the
country. Less than one thousand
stockholders control and own the COM
panies of the eastern combine and
complete control of these numerous
combinations, including the huge as
sets of all the companies, lie in the
Of x-iaur Of
these facts" said Mr. Armstrong, lis
it unreasonable to suppose that such
a company as mine, which will have
thousands of stockholders and already
has considerably over five hundred
stockholders, will be permitted to live
if financial assassination can be sue
cessfully accomplished not merely to
shut out competition in the business.
but also in every way to retain the
billions of insurance assets for use
of the inside ring.
when the organization of this
company was contemplated 1 was
confident that the American public
could be counted upon to directly
finance a big company without feel
ing obliged to let the ring in on it.
The results have indicated me in
this, but the fight necessarily has
been furious and costly. No effort
has been spared by the eastern in
terests TO throw obstacles in the way
of this company of national scope,
nor to discredit the entire plan of
organization. 1t has cost more to
secure the first s15O,OOQ of capital
than it ought to cost, but that was
lrtn 70 xrrhaf the
insurance combine could and did do.
We secured our license to do Dust
ness by the strongest kind of a fight
and the report up to and including
March 31st, which we filed with the
insurance department, is an indica-
ton of what the combined insurance
interests made it cost to get even
enough capital to start business"
In sending out a general letter to
his stockholders Mr.. Armstrong calls
their attention to the fact that enc
mics of this western insurance organ
ization of national scope have circu-
lated anonymously among many peo-
pie every possible bit of information
which could be construed as deroga-
tory to the organization of the com
pany, not daring, however, to come
out in the open and show their hand.
He calls particular attention to the
fact that Immediately upon the issu-
ing of the charter and the publication
of the plans of the company, opposi-
ton sprang up in the east which has
continued with grea vigOr uD to the
present time. TIL eastern interests, he
states, understood Immediately that
A. tinn n a
such as the Consolidated in the west
would mean a DETECTION of thousands
of dollars each year from the east to
the west and the connections OF these
eastern financial interests in the west
were strong and their aid has been
givn in every way retarding the pro-
gress of the. company and putting as
many obstacles in its path as they
possibly could.
He saws further that this Opposi-
ton in many cases takes the form OF
personal attacks, not only upon the
president and officers, but upon the
plans of the company, and the inst1-
gators saw to it that these reports
reached the Insurance department of
West Virginia with the result that the
department became skeptical of the
good intention of the company even
before it applied for a license. The
determined opposition on the part of
these eastern interests has had its
effect upon the organization of the
company and has made its expenses
higher than was contemplated when
the company was organized. Before
we had reached the TOD Of the hill,
however" Mr. Armstrong said further,
land had successfully surmounted ev-
cry obstacle which could possibly be
put in our way, and the insurance de-
partment granted us our license, we
were fought at every turn. 1t is sim
DIV another case of the loquacity of
money. Incidentally it got newspaper