Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-04-10

1
/ who md the charges OF fayoritism wholly IN
/ founded, and other things being equal, prin-
ctpals are given the referouce over brokers.
/ Z The secretary Of the sociery, who for
merly was in business as q fire insurance
/ agent and general broker, reIinquished she
charge OF the IRE Insurance business Of this
s53eiety when he became contested with 4
three years ago The Secretary has not attend
ed 70 the ire Insurance business of the cOnnra-
ny, and no director or officer is or has been in
terested in such business, nor has the Secnsta-
~ loaned money on policies as charged.
). II Is proved TO our satisfaction that the
directors Of the society have NOT loaned the
money OF the society to themselves upon Sc
curities not allowed by law, and that no loans
have been made through the faV0ritism of its
oineers and Directors on Inadequate security,
ain the opinion OF the undersigned. The
directors, so far from having managed the AZ
fairs OF the society WaStefuiiy on sKrravaannt-
iy, have managed them prIdenliy and slio-
cessfuliy, and have made no false returns 20
the Insurance Departments
TO- Ihe rates OF commission paid to agents,
as charged, are untruly stated No salaries are
paid 20 agents IN addition to commissions.
IL They ind nom the testimony given by
the officers and directors, thai the establish
ment Of an agency IN Great Britain has moi
proved a failure that the agent sent there is
not inexperienced In the insurance business
that ne receives no salary, but that his COM
missions are guaranteed for three years TO an
extent OF ten Thousand dollars per anuum
and That the result OF his labOrs, in introduce
ing the sOciety's business there has been
satisfactory 10 the Board of Directors
". The charge that money has been waste-
Iuiiy spent upon the building Is sufficiently
answered by our opinion of the Investment
-. They further md that the society does
not falsely advertise itself as mutual eompa-
ny The. necessity of capital stock arises
from the fact that before the organization OF
the society, laws were enacted in New York
requiring all companies organized after such
enactment TO have capital stock and to /
make a deposit OF one hundred thousand dol /
lars with the Insurance Department, as guar |
antee 60 policy holders. The annual divi- |
dends upon this stock are limited 10 seven per I
cent. This amount Is nearly earned by the 4
investment of the capital; all OF the profits are
divided amongst the pOlicy-holders; the stock |
bears no st.oh market price as is charged and 1
as no unlawful gains can be nude thereon Il
the ownership OF the stock can only be desira-
Dle Iof tne protection OF the company The /
provision as to stock management is not 4
concealed from pOiicy-hOlders but, on the /
contrary, the directors are of opinion that
IL forms one OF the greatest safeguards Of the
company.
IA. In conclusion, the undersigned desire 70
say, they are unable to find an honest motive
Tor the Presentation of charges so totally
unfounded. This Investigation has shown
only an honest and efficient management of
the society. The Massachusetts Commission
er, with Professors Theodore W. Dwight of
Columbia College Law SCHOOL, and Junius B
Wheeler, of the West Point Military Acade-
my, VIII at once proceed to examine the de-
talls OF the management of the society frOm
Its foundation, and Messrs. Upton. Spaldfng
l.atasa, Kelly, SchWab- and Fogg, win exam
me us assets and Investments, which the un-
derslgned will report upon as soon US the in
Yestlgatlons are concluded. From the wide
Publicity given TO these charges II is Thought
best to make this report upon them at once.
The undersigned desire TO express their un-
qualified approval OF the action of the society
in resisting the attempt to extort money from
1t under color of these charges And finaIly.
the undersigned take great pleasure in bear
ing the1r unanimous testimony to the faithful
and successful management by the trustees
and officers of the society of the great trust
repOsed in them.
JULIUS L. CLARKE,
insurance Commissioner of the Common
wealth of Massachusetts.
HENRY F. SPAULDING.
GUSTAV SCHWAB,
GEORGE B. UPTON,
WILLIAM H. FOGG
FELICIANO LApASA
EUGENE KELLY,
DAVID DOWS, II
MORRIS X. JESUP,
JUNIUS B. WHEELER, Il
THEODORE W. DWIGHT.