New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-12-31
TIE HOHE INSURANCE COuP4Sr.
THE vICE-PREsIDENr's REPORT.

1HE NlE-fHEolDENl EtIOEi.
At the stockholders meeting in Hartford, ON
Thursday, Vice President Merwin reported follows:
He said while every member of the Board looked upon
the situation one in which we must suffer quite loss
from the fact that the receipts cu down, aud
had outstanding risks that had been taken when the in
of the Company nearly double, yet all felt that
could stand at least s25OO0O loss receipts
the first year. and then be equally as vel on Of the end
from large gain upon reinsurance The july state
ment showed a slight impairment OF *l7,God &c. while
Others claimed that there was stu more, on account OF
the value placed upon the real estate That however
would be varied much and honestly by different ap-
praisers; but serious trouble did not from that
source for leaving the real estate as appraised 10y the
committee. We find that the day the statement was
made, the actual impairment was SiG2jC0 10, mud
if you add the loss on real estate sold, say
s36,95o It shows that instead of having capi
tai Of s5OO0O, your entire capital S49n and yOu
$3.50 70 worse of than nothing. The amount
amount will not exceed $4,000 showing lose of $4,000
Agents balances reported at $6i55 75 little over
wage claims reported at $4,000 after duly investigating,
we nave no gt 10 expeG over s9g ho one
reported at $4,000 We have been enabled 10 collect thus
tain 1854 80 considered good, showing deficiency
in this item OF about $4,000
which found ourselves short Now, take our liabil
les and fndhat 1t sreporteG that we owed on the
Sus sr shows that they were s2lO986 g. And there is
every reason TO believe that from $4,000 to $4,000 more
testing CT the old claims and other items upward
of $4,000. In the July statement ~ was reported
that the gross premiums on WllCh 10 base our
Reinsurance fund were sl,20o0OO AT four per cent
it would cost $4,000 TO re-insure. This was ques-
toned at the time. Not the amount, but the per cent
age, claiming that II should he ~ per cent,
instead OF 40 per cent, Finding that our supposed
resources falling short OF what we had right TO
c Gpect and that our liabilities were promising much
more, felt il my duty TO make statement to the
Board at the regular December meeting OF onr con.
ditiOn After seeing much depreciation we still felt
We had made large GAIN by running of our old risks,
and that could show a handsome deduction
in reinsurance fund.- hut to the establishment Of all
found reinsurance fund about the shown
by the July statement How To solve this question
mystery at first, but after reviewing the July figures
was found that the premtsa at that date should
nave been I'll coo instead OF t20O0O, showing another
Item OF reinsurance $4,000 not reported liza
bty VI NG000OO Thus you will see in the few items
mentioned deficiency OF about 100000 The gross
premiums received from July II 10 Dec amounted 10
s36i26 &c. The LOSSES return premiums and expenses
from July To Dee. ], amount 10 $59,40j n The gain
upon our fenrurance would amount To s1f,99G which
would show net loss to the LIST OF December OF Ss4l2
during me nNe mouths have closed about 800 agen-
cles ana nave cut down the number Of special agents
One-haf, and also made quite a reduction In office
penses and the business done 10 the Ist Of December
shows profit after allowing for reinsurance OF $4,000
MI. Harrison offered resolution 10 reduce the capital
took 10 10000 and thereafter TO increase the stock
$4,000.
Nh Trowbfdge said II was most unfortunate state OF
affairs. He knew Of widow who had sgOOOo IN mi.
stock IL was her ALL and II great hardship lie
asked II the agents had been directed To stop writing p0
icies, when was shown that the company was Opl
worse on than nothing. lie thought the President on
ccfs, ana Directors would be liable.
Mr. Harrison said that ne that the company couId
not go on aud asked draft should now be presented
could II be hOuOTpdI
Mr. Merwn replied that the draft would have 70 20 10
protect