The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1914-07-02
SOMETHING OFF SAYS GUM
CASUALTY CoMPANY'S POLICIES
HAD BEEN APPROVED.
Cannot Understand State Auditors
Attitude as Outlined in Interview
Published Yesterday.

Des Moines, July John A. Gum,
of Kellogg, former president of the
Iowa State Manufacturers associa-
ton and president of the Employers
Mutual Casualty association, against
Tuesday, is directed through the
state auditors office, Is convinced
that there is something wrong some
where. Just what it is, Mr.. Gum
hasn't discovered yet, but it involves
the relations of the association and
the state auditors office.
Mr.. Gum read an interview with
State Auditor Bleakly, printed yester'
day, in which Mr.. Bleakly was said to
have inferred that state officials de-
clared the plan of operation OF the
company was not proper; that the
form of policy had been under consld-
Grafton for several months but had
not been approved until yesterday,
when a proposition was submitted
that the company file a surety bond,
and that even the bond, in the audi
tors opinion, did not remedy the de-
feet in the organization.
Mr.. Gum said all this was news to
him. IF there is any misunderstand-
ing between the association and the
state insurance department we know
nothing about it," he said. None OF
the state officials ever has told me
that the plan of operation is Improper,
the form of policy We used was ap-
proved June II, and the surety bond
mentioned was filed June %. We
never have had a dispute with the
state auditors Office, we have accept,
ed all their recommendations, ana
have received the seal of their appro-
val on everything necessary for them
| to approye, in our business.
Mr., Gum showed one of the COM
pany's policy forms, upon which was
written approved June IT," and
which was signed with the name OF
John L. Bleakley, state auditor. Mr.
Gum said that signature was attach-
ed by c. S. Byrkit, chief clerk, VINO
usually attends to insurance matters
las matter of fact this suit Is an
attempt OF the insurance trust to clean
out the Iowa field so it can make a
killing in industrial Insurance., MT
Gum continued. 1T is not new pro,
ceeding; mutuals have been attacked
/ by it in several other states IN whlcn
workmen's compensation laws are III
Ioueration The insurance trust is
composed of the eastern companies
subscribing to the Workmen's Com
pensation Service bureau.
1.-The Employers Mutual Casualty
association, which is closely allleo
with the Iowa State Manufacturers
association, was organized about three
wears ago to write liability insurance
when a threatened big raise in rates
was proposed. AS a result of its op
erations liability insurance premiums
were not raised.
.'Mutuals all over the United States
are the subject of attacks by insur
atlce companies in the business o.
writing industrial risks The reason
for the antipathy to them IS pam
One Mutual has been operating II
Michigan three years, and 1t mas
caused a reduction of industrial IN
surance rates in that state OF about Al
per cent
/ Attorney General Cosson is making
ARRANGEMENTS to defend Audlto
Bleakly against the suit. 1t is prob
able that a change of venue Will o.
sought in order that the case may d
brought to Des Moines and tried a
once