Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1869-10-19
ALLEMoNG & POOL General Agents,
CIRCULAR.

To.TnE AoE rs AND PoLroy HolDERs e" THE
PIEDMONT LIFE Insurance COMPANY" ASD THE
"ARLISoTOs MUTUAL LIFE lSsUR nee COMP'Y"
The combina tion of the aboye two pop. lar and
progressive Companies int" as = The PIEDMoST
AND ARLINGTON LIFE Insurance tohPANS," Wil
naturally lead to enquiry it, cause hence
have deemed it proper to publish the factr of the
case, that it may be fairly undersiuOd
The apid organization of various Companies in
many localities, OF Necessity. was reducing the area
of active operations more remote Companies,
while the heavy aud increasing burden OF collateral
deposits, taxes and expenses was weighing heavily
on all Companies.
combination would. of necessity, give the new
Company all the experience and advantage pos-
sessed Icy the old; renuce expenses aud in every
way MATERIALLY advance the future interest of the
POLICY HoLDERs-nt the same time It would give the
new Company broader base. surer av"rag", ard
the larger pairons ge and INCREASED a-sets, and at
once place it in the vantage ground "i ali ne" or
CARNATIONS. The only material question then to
consider, whether the Companies stood near
enough equality to make the combination
work no detrinIent in that regard /" the policy hold
of either Company.
To solve this question a committee of the most
practical business men were appointed 20 inv'sti-
gate the status of each Company while the services
of learned aud skliitul Actu"Ty was added to the
committee to make ample reserve tor outstandi g
policies. and III actual. well as financial sense
to test the re lative condition OF each Company
A. Y. Stokes, OF a. Stokes & Co., Wholesale
grocers-a merchant of over twenty years business
experience John C. Williams, of VIM. Isaacs
& Co.. Ba nkers of much financial skIil and years
exper ence; David J. Burr. President of Cham
Wings Company noted for his len rnin and rurny
in finance; Gel II G. CabeII, legal adviser of TIE
Arlington, and n learned attorney of MIA judg-
ment, toe ether with Prot + b. Smith, a graduate
of the University Of Virginia, Hnd for years Pro-
fe,sor of Mathematics in Richmond College, and
Actuary of Life Insurance Company, were ap-
pointed a committee for the purpose. From the
port of that committee the following extracts are
made:
Your committee, appointed to meet a like com
mittee from the Piedmont Real Estate CLIe) Insu-
Company, with view to investigate fully The
financial condition of each Company and ascer-
tain whether a union of the two companies would
be advantageous to the respective members of the
same-both Policy holders and Stock holdes-rc-
spectfuliy report that they met according to ap-
psintment and patiently and fully Investigated the
5ffaIrs of the two companies.
Balance sheets oil each company. of recent date,
were fully examined and brought down to the 18Th
THE balance sheet of the Piedmont was found to
be as follows:
Estimated Reserve Fund, ...... 433 $50 81
'ssurp!us as to Policy holders, S276,s56 rs
The balance sheet of Arlington stands ms follows:
Reserve Fund, ............. 4O7 1913 II
Surplus to Policy holders. S27O,279 Il
Surplus OF combined Companies
from above statements, ....... S546, GIG SO
Total liabilities Of both Compa-
nies not matured, ..............- "a 500 90
Nett surplus of combined Com
panics, Observation-Disclosures. S5I2,I Jig 50
" Your committee thus find the two companies
very nearly upon equality as to assets and eur
plus, and advice that the union OF the two be per-
feCted- it being undcrstOoo and provided that the
caritaI stock of 900 of ch company be placed
iii not now) in identicaIly the came condition
- On this basic the two companies come to-
gether terms of complete equality nd With equi
table reference to the claims OF the of
each, whose rights will be, in no degree, impaired,
nor, the other hand, will they enlarged the
detrimcnt of Policy holders.
The union lie fraught with nothing but advan-
tage to the Policy holders of the compa nies Per
manent patrona ge and a regular influx new bu-
siness best be secured by Iarg, companies a
great Company, moreover, experiences the advan-
tage CT just in risks, and pes the prob
abilities OF any alteration from the normal line OF
losses, which often cripples a email Company
Being able to carry greater suHs upon individual
Policy holders, a large company can command a
superior class of risks without re nsuring. A nigh
Engiish authority Gays: IAN anna GO nation (of
two c"HpaDes) 10 sometimes objected to by the
Policy holders but rarely on good grounds for by
most amalgamations they obtain the security of
increased share constituency and of larger busi-
Then again, they have a right tx pee, that
trih less expenditures and cih less yeIGfrs Tisk the
future dIuiderlds lriH be and grsnfT ~
amount, and that bette, Fund ,rR be GRATED
than would hav" been the il the Company tn
which they had originally attached the elves had
continued to carry ON business alone
''Your committee believe that with the devotion
OF duty cvinced by the oficers hon, will he
nIitted the interests of the united companies, and
with that constant, careful and thorough oversight
and investigation of the conduct. expenditure
the hands of the Directors. their solemn duty to
themselves, TO the sacred trust committed to their
lees these high ends and satisfactory results will
be attained.
a i. STOKES. Chairman,
John c. WILL ANS,
edward b SMITH,
DAVID J. BURR.
HENRY e.. CABELL"
The question of the relative condition of the sep
arate Companies and the strength OF the combined
Companies was not only settled. but it left the
Company with the enviatle basis and large surplus
over u Liabilities of more thaE half million dol
lArs With this record. CAP any doubt the
mighty power acquired by the com bInation? i it
not bound to beneft policy holders when are
DOUBLED experience combined and expenses
duced: There can surely doubt exist that
point. And the combination was made. and the
two Companies start ou' with basis before
acquired In like period as has been done by ts for
mer re-insuring Companies
The combination was brought about TO advance
the interests OF all concerned and to give pres
weight TO new Company which would rank with
The old Companies in number of risks and amount
The following will show the progress of this Com
Pany from work of two former Companies = COM
tha 0ld mia