Autobiography of Charles Clinton Nourse / Prepared for use of Members of the Family

by Charles Clinton Nourse

In the oldest book of the Book of Books the patient man in his deep affliction asks the question, "If a man dies shall he live again?" This question refers primarily to man's immortality, but we may dwell upon it in its other meaning, this morning, as relating to the silent and unconscious power and influence of the life and example of the one whom we say is dead.

And think what a treasure we have in the memory of this man. Others have challenged the admiration of the world because of their great abilities. Others have been brave in war and wise in counsel. Others have been heroes and statesmen, and we have honored them and done homage to their greatness, but this man was not only great and wise and brave, but a good, true and pure man also, and the nation loved him. We give honor to his greatness, we give the tribute of praise to his great abilities and his great achievements, but we bring tears and heart throbs to the tomb where manly virtue, purity, and faith are to be enshrined. How much there is in the life of this man that we would wish to bring into the everyday life of our homes. Here is the model of a life from which we would have our children mold their own future, no blemishes to record, nothing to apologize for, nothing to cover up—it stands out in its moral perfection and beauty—in its intellectual strength and greatness—in its religious faith and fervor, a fully developed manhood—a complete character—a perfect pattern.

Do you want an inspiration for your child? Repeat to him the story of this man's youth, of his struggle with poverty and adversity, without influential friends or fortune. Do you want to teach the young men of the nation the value of sincerity, honesty, earnestness, and truthfulness in the affairs of life? Here is the demonstration and the proof that even in American politics and American statesmanship, dishonesty, deceit, and duplicity are not necessary to success. Do you want to rebuke the conceit of the would-be learned who teach our young men that the religious faith that their mothers taught them is somehow a reproach to their intellectual progress—we have here a man of the broadest culture, of the strongest intellectual grasp and development, whose religious faith was the very basis and strength of his greatness and intellectual power.

CHAPTER XIV

The Brown Impeachment Case

The discussion of law cases and the questions of fact and of law that they involved may be a little tedious to a non-professional reader, but they constituted so large a part in my life that it is impossible to give much of an account of myself and what I have been doing for so many years past, without at least a brief account of the nature of the suits in which I was engaged as counsel.

Probably the most important case in which I was engaged during my professional career was the celebrated impeachment case against John L. Brown, Auditor of the state of Iowa.

Mr. Brown was first elected to the office of Auditor of State in October, 1882, and took his office the following January. One of the important duties of this office was the duty of having the insurance companies, organized under the laws of Iowa and doing business in the state, examined from time to time to ascertain if they complied strictly with the law, and if their reports made to his office were just and true, and their business conducted in such a manner as to insure their solvency and ability to pay the losses of their policy holders. There had been in the state of Iowa for a number of years a number of failures of companies that were organized without capital and without experience or strict integrity upon the part of those who sought to insure the property of others, some of them having none of their own. I remember one insurance company organized in Des Moines by an enterprising young lawyer, without means, who obtained the names of a number of persons that he claimed had subscribed stock to his company. The law required twenty-five per cent of this stock to be paid up before the company was entitled to do business. The gentleman, of course, elected himself president of the company, and he drew his drafts upon the supposed subscribers to stock for the twenty-five per cent that the law required should be paid up, to constitute the capital of the company. He took these drafts to B. F. Allen, then a prominent banker in western Iowa and doing business in Des Moines, and deposited his drafts and obtained from Allen a certificate of deposit for so much money. This he exhibited to the Auditor of State, and upon the faith of this certificate of deposit obtained authority to transact business. His drafts were all dishonored so that he was proceeding to do business without any capital whatever, and actually issued some policies. It was only necessary to incur a loss to complete the bankruptcy of the concern. Of course the foregoing is an extreme case, but it illustrates how easily the law was evaded and how absolutely necessary it was to have a strict supervision of these companies that could incorporate themselves under the general insurance company laws of the state.

Mr. Brown had been a soldier in the Civil War and had lost an arm in its service, was very upright, and a downright man, and did not depend upon his suavity of manner for his success in life. He was a man of quick temper and abrupt manners, but was sensitive of his honor and at all times conscious of his integrity of purpose. In pursuance of his official duty he felt the necessity of strict supervision and a thorough examination of the insurance companies of the state, that had sprung up in almost every important town and city in the state, and the officers and directors of the different companies were not paying much attention to the detail of the affairs of their companies and would generally entrust the business to the persons who had organized the company and become its president and secretary. In selecting a person who could make these examinations with fidelity and thoroughness he deemed it necessary to engage some one who was not a resident of the state and who would not probably be influenced by local or political consideration in the discharge of his duties. He employed as chief examiner of these companies a gentleman who resided in Chicago, and whose reputation was beyond question as an expert, by the name of H. S. Vail. This gentleman charged for his services twenty-five dollars a day for the time actually engaged, and in addition thereto some five to ten dollars for assistant accountants. The law provided that the expenses of these investigations should be approved by the Auditor, and upon his certificate the several companies examined were required to pay the bill. These examinations proved to be very expensive in some cases, and perhaps in a few cases an unnecessary burden and expense to the companies, but the real cause of complaint was that the expert found many irregularities, and without fear or favor, reported them in writing to the Auditor for his action. In one case the president of an insurance company had been electing his board of directors by stock issued to himself, upon which he had not paid a dollar into his treasury, and was paying himself out of the limited income of the company the handsome sum of ten thousand dollars a year as president, and his son-in-law three thousand dollars a year as attorney of the company. In a number of cases the president of the company was found to have issued to himself stock upon which he had not paid a dollar, and the Auditor required all of these and many other like delinquencies to be corrected.