The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-07-20
'NESbT HALTS
STOCK SELLERS
Wants New Methods in Ma
tional Capital Life lnsur-
ance Company:
STOCKHOLDERS CONVENE
Committee of Five Named to Consider
Demands Made by District
Official.

| Stock holders of the National Capt.
tai Life Insurance Company yester-
day afternoon were told by Superin-
tendent of Insurance, Charles F. Mes
bit. at a turbulent meeting In the
board room at the District Building
that the affairs of the corporation are
being conducted on an unbusiness-
like basis, and that there would have
| to be an immediate change.
Supt. Nesbit asserted that forty
per cent of the funds received from
the recent sale of stock have been
used for promotion purposes. that a
! number of persons were induced to
buy stock by the promise that they
would. be appointed officers or d.
rectors of the corporation. and that
| contracts for the purchase of stock
signed since April % are of an unfair
nature and should be cancelled.
Stockho lders Hear Report.
! The meeting of stockholders was
| called at the instance of the officers
! of thc company to listen to the re-
! port of Superintendent Nesbit, who
! had made an investigation of the
! affairs of the company.
| According to facts presented by various
speakers, the case is as follows: The
company was incorporated November :.
/ 1914. 1t was the understa nding that there
were to be no promotion expenses. The
apital stock was to be 81 100000 with a
surplus of $4,000. Following formation of
the company. exclusive agency for sale
of stock was given to the C. w. Walker
Company. c. w. Walker himself at the
time was president of the insurance COM
pany Ii is admitted that . per cent of
! the receipts from sales OF stock was used
for promotion purposes.
In order to finance the insurance COM
pany more rapidly, reorganization was eff
fected April q last Mr.. Walker resigned
as president of the insurance company
and became president of the National
Capital Life Agency. which was to have
exclusive control of the sale of all stock.
Forty per cent of the receipts from sales
of stock was to be used for promotion
purposes. Up to April % only 1897 shares
of stock had been sold. Since then the
number has mounted to s.372 shares.
w. Gwynn Gardner. attorney for a
number of the stockholders. asked Mr.. !
Walker to explain how apparently slO5. 900
worth of stock had been sold and how
the accounts of the treasurer showed !
only SS1C0 in hand. A. E. L. Leckie, at |
torney for the agency, declared that he !!
had in his possession the report of a |
registered auditor who had been employed |
to examine the books, that this report |
accounted for every cent, and that it |
would be presented were il not for the |
lack of adequate time to prepare it.
Committee Is Appointed.
E. NJ Forman. who seemed to be |
champion of the officers, moved that the |
report of Supt Nesbit be considered by |
a committee of five named by himself !
It was finally decided to place Mr.. Mes |
bits report in the hands of the following |
committee for consideration and recon- |
mendation: Senator ]. Frank Alice, Of |
Dover. Del; W. n. Cooper, OF Salisbury. |
Md: H. L. Smith. of Warrenton, Va; |
w. Gwynn Gardner and Clarence A. |
Weaver, of this city.
Officers of the company explained that
the sale of stock was discontinued June
10 by order of the board of directors. fol-
lowing the formal announcement by Mr..
Nesbit of his disapproval of the methods
of the corporation.
After Mr.. Walker resigned from the
presidency of the insurance company
Charles A. Stillings became head. He re-
signed and was succeeded by former
Gov William r. Miriam, OF Minnesota.
who soon resigned. He was followed by
c. W. Warden, who likewise resigned
Mr.. Stillings then accepted the presi-
dency again. He is now at the head He
made lengthy statement yesterday. ex-
pressing the opinion that matters could
be Strengthened out with the exercise of
a little patience and industry.