The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-03-24
INSURANCE CO.
MAKES STATEMENT
Northwestern Mutual Makes q
Public Reply to Charges
Involved in Suit

Milwaukee, Wis, March 24-The
Northwestern Mutual Life Insurance
company of Milwaukee through its
general counsel last night issued a
statement in answer to the appeal
through the United States circuit
court at Cleveland Of three policy
holders who ask for an accounting
Of the disposition of the tontine divi-
dend fund. in which It denies all Of
the allegations of the complainants
which were fled on March 21. The
statement is as follows:
One of the three plaintiffs in the
suit holding $4,000 policy surren-
dered it to the company on May Is,
1908 at the expiration Of the semi
tontine period, accepting the amount
in settlement as shown by the COM
pany's books. One holds a $4,000
semi-tontine policy which completed
its tontine period in October last, the
amount of surplus apportioned to
which policy, although rendered to
him. he has not been willing to ac-
cept. The third holds policy on
the annual dividend plan and not on
the semi-tontine plan.
With reference to the allegations
concerning the payments of commits
sions, it is stated that at no time
has any commission or compensation
been given to agents for any services
which they may have rendered infor-
warding the proxies of policy hold
ers to be used at annual meetings
for the election of trustees. Since
the act of the legislature Of Wiscon-
sin in 1907, by which the method Of
electing trustees was changed, no
proxies have been obtained or used
in their election.
With respect to loans made to the
holders of semi-tontine policies. it
was deemed to their interest, and 1t
was at their request, the company
not being at the time authorized to
make loans on semi-tontine accumu-
lations, that private loans should be
furnished under the supervision Of
the company rather than by class
of brokers engaged in the loaning
business. Not one cent Of advantage
or profit ever was made by an OFF,
Ger, trustee or employe Of the COM
pany on account Of such loans ex-
cept such as may have come from
the current rate of interest upon the
IuOuty lOducus Wu1Ao uO oApOAo0 was
paid or incurred by the company ex-
cept the mere stationery and postage
for correspondence.
As to discrimination in dividends,
any charge Of Intentionally perfer-
ring annual dividend policies at the
expense of semi-tontine policies is
without foundation. Semi-tontine
policies received all in the way of
surplus or dividends that similar an
nual dividend policies received. The
semi-tontine contract provided. for
gains from lapses and deaths with
in the class but was silent upon the
subject Of interest upon accumula
tions. That being the case. it be-
came the duty of the executive COM
mittee of the company to decide
whether any rate and, IL any, what
rate of interest should be allowed,
and it performed that duty fixing a
rate from year to year according to
its judgment and the prevailing con-
ditions of business.
All the essential allegations in the
complaint were denied or fully ex-
planned in a communication to the
policyholders of the company sent
out under date of Dec. II, 1906, by
Judge Palmer, then president of the
company.