The Washington times., 1915-08-19
URGE new HEAD FOR
NATIONAL CAPITAL
LIFE INSURANCE CO.
investigators Decide, However,
That It Is Stockholders Who
Must Act.

Company was received today by stock
holders who recently assembled and
named a committee to investigate the
company's condition that the stock
holders may determine for themselves
the best course to pursue as to the
future"
The rspSft after reviewing tns ,Ss
| finances Of the life insurance company.
suggests that money Is to be made In
the life insurance business. but recon-
mends II the company. il to be con-
should be elected to conduct the institu-
ton and that local capital ought to be
obtained Ito make up the 100000 that
would give the stockholders good:
espa s,oeR rhe wte
hearing freely from the stockholders.
Commissioner Commanded.
The office of the Insurance Commits
sioner of the District is commended for
taking prompt action In the National
Capital Company's case. The commit
tee was named in pursuance to a meet
ing Of stock subscribers held in the Of
fee OF Commissioner Nesbit.
The committees report. which inferen-
TALLY criticises the method OF organi-
y
is signed by J. Frank Alice. w. NJ.
Cooper, H. L. Smith. Clarence A.
Weaver. and w. Gwynn Gardiner.
Stockholders are requested to advise
tee. what steps they desire taken. and
the committee will be governed by the
majority views.
The report Of the committee says:
THE committee has made a thorough
examination into the affairs Of tho COM
hnOkr nd M hou
find the following:
During the fall Of 1914, Mr.. Groom
W. Walker came to Washington, en-
ployed counsel and incorporated the
pany. Its original capital was IS, 900.
OF this amount. ono share each was
subscribed and paid for by each Of the
original board Of directors. and the
subscribed for BY 4. 4. ohIin. upon
which there was an initial payment Of
81 per share. Mr.. Walker Immediately
made contract with the company.
trading under the name Of c: w. Walk
sell the entire capital stock at so per
share. and was to be paid Is per cent Of
tho gross selling price OF each share as
compensation for promoting the COM
pany. Under this arrangement. 1881
shares were sold and there was COLLECTED
on account Of the subscriptions. So
Just prior to April %. 1918. there was
incorporated what was known as the
National Capital Life Agency Company.
Groom W. Walker. A. D. McKenney,
and George G. Hynson. It appears that
this company was incorporated for the
purpose OF succeeding the c. W. Walker
toosi GG spIts 6 RIt5omTotnF Tin sssns Of the Ma
On April 23. 1915. there was a new CON
tract entered into between the new
company and the National Capitol Life
wa. to ss x. renDy the
Of the company and to be paid % per
cent Of the gross selling price. and un-
der this arrangement there were 2,04s
shares sold and slb. $50 actually paid on
however. that all the stock sold since
April %, 1915. was stock which was orig
inally subscribed by A. A. Ohlin, who,
upon investigation. proved to be the
Who had resx no Of " W.
and purchased It only for Groom "
Walkers benefit. and as the agent for
Groom w. Walker. Groom W. Walker
paving the II Per share. or $500. which
was paid on the stock. Mr.. Walker adj
mitted this when he was called upon
at tho stockholders' meeting to epiain
this condition.
No Real Interest.
"The committee find also that tha
officers Of the National Capital Ltfo
Insurance Company, with the exception
Of one. had no real interest In the COM
pany: that they held in their power
one share each Of the capital stock.
and which: 1t appears, was the stock
originally Issued to the original board
Of directors.
OF money to the stockholders Of a life
insurance company properly conducted
and operated, as there are large prof1ts .
made out Of this business. At this
time there Is in the treasury Of the
company 1886; Is. The balance Of the
money was taken by Mr.. Walker and
his associates as their interests for pro-
noting the company. and II their con-
tracts with the company are good they
would not owe the company anything
further. The company now has a sub
$40. there being now overdue and pay
able on the same the sum Of SD. sis.
but there has been no attempt to COL
lect this overdue installment because
or this unfortunate condition. and tho
should understand the situation before
any attempt was made to collect
further from them.
The committee took up with Mr..
m st1rney yna the ms.sr of having
money retained by him. and his at
torney is filling to return to the com
pany the portion of the money received
BY him over and above the rs per cent !;
but this amount is small sum. not
totalling $1,000. and 1t is conditioned
to renew his contract for selling the
stock at 26 per cent to himself: but
this. We cannot recommend. and there
fore advise that the proposition be not
accepted. The committee believe that
they, can recover judgment against Mr..
Walker for a considerable sum.
Should the majority of the stock
holders express a desire to proceed
with the company. we recommend
that a good practical insurance man
be selected. and be paid a reasonable
salary to operate the company; that
he be bonded in a sufficient amount
to protect all money coming into his
hands; AMI that all other officers who
may handle any funds OF the company.
be also bonded; that the company
collect the subscriptions of stock al
ready subscribed for and procure local
capital for sufficient to make up the
100000 that would give the stock
holders a good, clean company. with
the required capital stock: and II the
company can procure. as we believe
1T can, local men of financial standing
and integrity to put in sufficient
money to bring the capital up to the
required amount, under the law, we
would have no difficulty in Obtainjp O