Evening capital news. (Boise, Idaho) 1901-1927, 1912-10-02

were kept BY them at that time. but
he says: 1.-THE amounts obtained
through stock manipulation were un-
doubtedly large. but cannot be fixed
because OF the indefinite records per-
tanning to the subscription and trans
fer OF the original stock"
He does say. however. that the plan
Of sale and the contract purchasers OF
stock, 100000, Of which 326o.00O was
to be full par value Of the stock at $40
and $250,000 was to be paid surplus.
1.-The result" however. no says. '1s
disclosed by a careful checking Of the
accounts available, shows q condition
far different from the figures set forth
above" A little later on he again
says:
THE early stock records Of the COM
pany are in very poor shape with not
much data to work from. but, by using
good deal Of time and the help OF
the company's present cashier, tho fol-
lowing result was ascertained which is
believed to correctly represent the act
ual condition Of the stock feature"
He then gives the result by each SER
les showing the amount from capital
stock at $175,506.0S. whereas 1t should
have been $250.00O. and as paid sur
plus $143.012.c1, whereas that amount
should also nave been $260,00o. This
gives total Of only $31s,41s.2e. where
as 1t should have been 100000.
Again. 1t should be borne in mind
that IL this shows a loss to the Idaho
State Life Insurance company, such
loss has been made good by the sub
stantial men who have since taken
charge Of the company and routed
Haines and his associates from con-
troll, 80 that the financial standing of
the company now is absolutely secure,
its resources are unimpaired and no
reflection Is made against the pres
ent management which is understood
to be absolutely upright, honest and
reliable. The public is warned against
bias against the company which has
shouldered the burdens imposed by the
conditions discovered and has come
out as safe and as secure as any sim
liar company.
. High Flyer Salaries. .
. Attention 10 called in the
. joint report Of tho state officials .
. Of Washington, Utah and Idaho
that the officers Of the COM
p1'yS 0INVOV8U Inexperienced y
and incompetent to handle that
. kind Of business, voted thorn .
selves immense salaries. "Be. .
. fore tho company had one cent
Of income" the report Gays they .
. voted the following salaries: .
president, $1,000 per year;
. secretary, $500 per year; .
agency director, $4,000 per .
. year; general counsel, $500 per
year; medical director, $4,000 .
per year. .
Concerning the abilities Of the Off
GERS who were receiving these hand
some salaries voted to themselves, the
report says:
THE actual management of the
was left in the hands and I'M
der the control of men unfamiliar with
the insurance business and its pri-
nary requirements, and consequently
incompetent to handle its affairs
Tho Haley Bank Comes In.
According to the report. the sales
men Of the stock would go out and
make sales upon almost any kind of
erms. the only requisite being that
hey should receive in cash or in some
he s. per share that they and the
promotion company were to receive as
commission. But wherever cash could |
Tot be received for the balance, notes
we're taken and arrangements were
made with some bank or other to re-
GIVE them, the bank issuing time GER
ificates. 1t was in this way that the
HALEY bank became loaded down.
In speaking of this method OF sale
he joint report of the three state Of
Icials says:
In selling the stoch good many
totes were taken in payment The
Promoters secured cash where posi-
lie, but where a sale could be made
" taking notes, they would make ar
angements with some banker to dis
cunt the paper and issue his certifi-
ate of deposit for year or so, in all
asses the promoter securing enough
ash to pay him his commission"
Later on the report continues in this
saying:
Through the influence Of the oom-
any officers, who also controlled the
daho State Bank Of Haley, Idaho. 4
arge amount Of certificates of deposit
we're carried in that institution"
This was after Leo Cramer came in
0 the insurance company. 1t is wor-
by of note that at or about the same
line, W. G. Cruise and w. s. CLANCY,
9th state bank examiners at about
his time, were directors in this COM
any. The report continues:
about July, 1910, the affairs Of the
ank were getting in bad condition
nd settlement was demanded, the
primer officers in the life insurance
ompany having been replaced. July
1910, definite action for q settlement
'as had. At that time the Insurance.