Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1869-10-14
NEW ADVERTISEMENTS

| ] POLICY HOLDERS OF THE PIEDMONT
COMPANY AND AIRING |
TON MUTUALLIFEINSUR ANCE COMPANY |
The combination of the above two popular and
companies into one. as the 'sPltD- |
MONT AND ARLINGTON LIFE INSURANCE |
will naturally lead to the inquiry as
to its cause, hence we have deemed t proper to |
publish the facts of the case, that it may be
fairly understood.
The rapid organization of various companies in
many localities, of necessity. was reducing the
area OF active operations to more remote compa-
mics, while the heavy and 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
poss essed by the old: reduce expenses, and in
~ way materially advance the future interest of
policy holders. AT the time it would give
the new company broadei base, surer average,
and the larger patronage and increased assets,
and at cnce place it in the vantage ground of all
new organizations. The only material question
then to consider whether the companies
stood enough an equality to make the
combin alton work no detriment in that regard to
the policy holders of either company.
To solve this question, committee of the most
practical business men were appointed to investi-
gate the status of each company, while the SER
vices of learned and skhul actuary was added
to the committee to make ample reserve for out
standing policies and in actuarial as well as
financial, sense to test the relative condition of
each company.
A. Y. Stokes, of A. Y. Stokes Co., wholesale
grocers-a merchant of over twenty years ex-
perenee; John G. Williams. of William B. Isaacs
4 Co., bankers of much financial! skill and years
experience; David }. burr, President of Chamber
of Commerce and Secretary of Insurance and
Savings Company, noted for bis learning and
scrutiny in finance; Col. H. C. Cabell legal ad
wiser of ''The Arlington, and learned attorney
of mature Judgment; together with Professor f.
b. Smith, agraduate Of the University of Virgil
MIA nd of matt tipSi in
Richmond College, and actuary of life insurance
company, were appointed committee for the
purpose. From the report Of that committee the
following extracts are made:
''Your committee appointed to meet like COM
nttee from the Piedmont Real Estate (Life) In
surance Company with view to investigate fully
the financial condition of each company, and to
ascertai, whether union of the two companies
would be advantageous to the respective members
of the same, both policy holders and stockholders
respectfully report that they met according to ap-
pointment and patiently and fully investigated the
affairs of the two companies.
balance sheets OF each company, of recent
date, were fully examined and brought down to
the 18th instant.
''The balance sheet of The Piedmont was found
to he as follows:
Assets 067 81
Estimated reserved fund ,..:.......... 433 $50 81
Surplus to policy holders. S276, 1886 81
follows:
Assets. S676, 607 IS
reserved 407,jZo IL
Surplus as to policy holders.........-S27C,2 79 Al
Surplus of combined companies from
above statements. S546,6l SO
Total liabilities OF both companies not
34,500 gu
Net surplus Of combined companies .S5l2, Il6 60
'Iour committee thus find the two companies
very nearly upon an equality as to assets and sur
plus, and advise that the union Of the two be per-
fected, it being understood and provided that the
capital stock ,f 100000 of each company be
placed (if not so now IN identicaly the same
condition.
''On this basis the two companies can come to
gether on terms OF complete equality and with
equitable reference to the claims OF the stockhod
ers of each, whose rights will be in no degree i'm
paired, nor, the other hand, will they be en-
larged to the detrment of p ocy-holders
''The union is fraught with nothing but advan-
tage to the poiicy-holders Of the companies. Per-
manent patronage and regular influx Of new
| business can best be secured by large companies
great company, moreover, experiences the adj
vantage OF a juster average in risks, and escapes
the probabilities OF Gny alteration from the nor
NAL line of losses. " hich often crippes small
company. Being able to carry greater sums upon
individual policy holders, large company can
command superior class of risks without rein
surfing. A high English authority says:
- An amaigamation (of two companies) is
sometimes objected to by the policy holders, but
rarely good grounds; for by most amalgama
tions they obtain the security of an increased
share, constituency, and of larger business
Then again, they have right to expect that with
less expenditures and with less relative risk the
future dividends will be more certain and greater
in amount, and better reserve fund will be
created than would have been the case ifthe com
pany to which they, originally alta chcd them
selves had continued to carry on business alone.
your committee believe that with the dcvo-
ton to duty evinced by the officers to whom will
be committed the interests of the united compa
MES, and with that constant, careful, and tho
rough oversight and investigation of the conduct
expenditures, and investments of the new COM
pany to be expected the hands of the Drec-
tors, as their solemn duty to themselves, to the
sacred trust committed to their hands, and to the
God OF the widow and the fatheiiess, these high
ends and satisfactory results will be attained.
''Nery respectfully,
"a. Y. Stokes, Chairman.
"JoHN G. WILLIAMs,
Coward B. SMITH.
"DAVID j. BURR,
''uENEY c. CABELL."
The question CT the relative condition OF the sep
arate companies was not only settled, but 1t lett
the new company with the enviable basis and
large surplus over all liabilities OF more than half
a million dollars. With this record, can any man
doubt the mighty power acquired by the comblna
ton Is it not bound to benefit policy holders
when assets doubled, experience combined,
and expenses reduced? There surely no
doubt exist on that point And the combination
was made, and the two companies start out with
basis never before acquired in bike period as has
been done by its former re insuring companies
The combination was brought about to advance
the interests OF all concerned, and to give pre-
sent weight to new company which would ranA
with the old companies In number OF risks and
amount of assets.
The following will show the progress of this
company from work of two former companies as
compared with the old companies, and will at
once stamp it the most decided and perment sue
cess of the age:
: &
Name Of Company sS &c LSs
Mutual of New York;. 20th $l56 500 1888
Eqitable.. 5th 30s, 060 1901
North American..............4 th 649.579 1865
knckerbock .-.,....,.....12th 229,709 1249
Universal. I'd 22T, 1886 1855
New York Lite......... 10th 2,549 1901