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

tnere appeared to be a lot OF easy
money lying around and held by the
people who had secured 1t through the
natural industries and development of
the state" organized themselves into
promotion company: that they Sc
lected one of their number, John M.
Haines. to act as trustee Of the Idaho
state Life Insurance company, Linn
tied. not vet organized but to be or
ganized by themselves, and which was
organized later by due Incorporation
Under the laws Of the state and Of
which organization the same John M.
Haines was made the first president
and the same Robert Lansdon was
made the first vice president; that
John M. Haines, as a member Of this
promotion company, entered into con-
tract with John NJ Haines, as trustee Of
the insurance company not yet born,
whereby John M. Haines and the other
associates of the promotion company
were to receive $125,000 for the sale OF
the stock of the new $250,0O0 insurance
company to be born later. and that, or
ganizing this insurance company them
selves, they made themselves its d.
rectors, elected John NJ. Haines presi-
dent and Robert Lansdon as vice pres
ident and that they thereupon ap-
proved and ratified the agreement they
had made with themselves to nav
themselves $125,oOO for organizing and
selling to the people of Idaho the stock
Of the corporation.
F. T. Houghton, actuary and exam
iner in the insurance department of
the state OF Washington, reporting
upon this phase of the transaction in
his first or preliminary report, says:
Aoushton's Report.
From information at hand and
careful inspection of the various trans.
actions had at, before and subsequent
to the filing Of the articles Of ineorpor-
alton, it would appear that the organ
ization OF this company was promoted,
incorporated and launched upon the
public, not ~ q nesdfuI institution or.
ganizsd with good business judgment
and for the benefit Of those who pur.
chased its stock or secured insurance
in the company, but was organized by
bunch Of professional promoters for
the sole purpose Of securing the extra
large commissions for the subscriptio
and sale Of the stock.
"Ths proposition was handled in
about the following manner. The pro.
moters were attracted to the field Of
operations by the fact that there an.
psarsd to bs . lot Of easy money ,y.
ing around and held by the people
who had secured il through the natural
industries and development Of the
stats and which, through the wonder
fvi stories Of profits to bs obtained,
and the high pressure methods Of the
sslssnen, could bs secured for stock in
the Insurance company. Prior to the
incorporation Of the company the pro.
fsssional promoters got together and
organized themselves into what was
known a. Galloway 4 Company, or.
ganizsd for the purpose Of engaging in
the business Of selling stock in life in.
,urancs eompaniss.. Galloway 4 Com.
'any then selected one Of its members
= act ~ trustee for the Idaho state
lifs Insurance company, limited, q
orporation thereafter to b. organized
ad entered into IN agreement with |
50 trustss for the subscription and
80 Of the sntirs block Of said insur.
snS company ct . commission sears.
ea9s $1260oo. The said premotsrs
thse got together and filed articles
OF Incorporation for the insurance
eomAny.
- High Finance Asrssmsnt. .
n carrying out the transae- .
No. Il would appsar that the .
tcptinued on Page Thres.)