The Washington times., 1915-08-06
COMMITTEE REPORTS
ON CAPITAL LIFE Co.
Continued from First Pase.)

Continued from First Page.)
price Of each share as compensation for
promoting the company. Under this ar
rnngement 1891 shares were sold and
there was collected on account Of these
subscriptions. SeC0S1.
Subscriber Walkers Secretary.
IL. Just prior to April q. 1915. there
was incorporated what is known as the
National Capital Life Agency Company
This company was incorporated by
Groom w. Walker. A. d. McKenney.
and George G. Hynson. 1t appears that
this company was incorporated for the
purpose of succeeding the c. W. Walker
& Co. as promoting agents Of the Ma
tional Capital Life Insurance Company.
On April %. 1915. there was new con-
tract entered into between the new COM
pany and the National Capital Lite In
surance Company. whereby the agency
Of the company. and be paid 40 per cent
Of the gross selling price. and under
this arrangement there was 2.c46 shares
sold. and $15.seo actually paid on sub
scriptions.
all Of the stock sold since April %. 1915.
was stock which was originally sub
scribed to by A. A. Ohlin. who. upon in
vestigation. proved to be the private
secretary Of Groom W. Walker. who
had really no interest In the stock. and
purchased 1t only for Groom W. Wal
ker's benert. and as the agent for
Groom W. Walker Groom W. Walker
paying the 81 per share. or 81 500. which
was paid on the stock. Walker ad.
mltted this when he was caed upon at
the atockhoders' meeting to expa'n this
condition.
No Real Interest In Company.
THE committee find. also. that the Of
ficers Of the National Capital Life In.
surance Company. with the exception OF
pany: that they held in their name one
share each Of Its capital stock. which.
1t appears. was the stock originally Is
sued to the original board Of directors.
of a.. 'ess eompsny pane 'Heas the s"e s.ance q
the money being taken by Walker and
his associates as their interest 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 has now sub
scription Of a total face value Of $1,000.
there being overdue and paya BILE on
same the sum Of s1o,S75. but there has
instaliment because Of this unfortunate
condition. and the committee felt that
the stockholders should understand the
situation befope any attempt was made
to collect further from them.
Willing To Reimburse.
Tho committee took up with Walk
er's attorney the matter Of having him
reimburse the company for the money
retained by him. and his attorney Is
willing to return to the company the
portion Of the money received by him
over and above the Is per cent but this
81, ,0oO, and is conditioned upon our
81 eeing to permit Walker to continue
his contract for selling the stock at Is
per cent to himself, but this we cannot
recommend and. therefore advise that
that proposition not be accepted The
committee believe II at they can recover
Judgment against Walker for con-
siderable sum. whether Judgment can
be collected or not are unable to advise
the stockholders at this time,
ers the facts as we found them, We ask
that the stockholders kindly advise US
individually Of their wishes In the mat
ter, that is: Whether the committee
should collect the subscriptions or dis
solve the company. If the company Is
dissolved the stockholders will receive
about N per cent Of the face Of their
subscriptions.
Ask Stockholders Opinion.
Therefore. the committee would like
to have an opinion from each stock
holder as to their wishes with regard
to the matter without delay. since they
feel that they should act in accordance
with the wishes Of the majority.
Should the majority of the stock
holders express a desire to proceed with
the company, we recommend that a
good practical insurance man be Sc
lected. to be paid a reasonable salary.
to operate the company; that We col
lect the subscriptions of stock already
subscribed. and procure local capita u
for sufficient to make up the 100000
that would give the stockholders a
good. clean company with the required
capital stock. and II we can procure:
as we believe we can. local men Of
financial standing and integrity to put
up sufficient money to bring the capital
up to the required amount under the
law. we would have no difficulty In OBJ
taining a license to do business. and
the company could, We feel. operate on
a successful basis. but We decline to
recommend this unless the majority of
the stockholders desire this be done.
THE committee feel that the insur-
ance commissioner Of the District of
Columbia should be heartily com
mended for the prompt and efficient
manner in which he handled this sit
uation. for without prompt action on
his part. the stockholders would have
undoubtedly lost their entire subscrip-
ton"