Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-12-21

The MOlND OlI1 LII r AND 81. LOU 10
MUTUAL.
The first practical step toward consolidation
Of the life insurance companies Of st. Louis, a
movement that We have heretofore recon-
mended as exped .ent, If not imperative, IN
der existing circums stances. has been taken n
! what is now understood TO be the settled agree
meut between the Mound City and the st.
Louis Mutual, by which the latter becomes
merged in the former, and thereby reScues IT.
] self and its pOlicy-hOlders from further dan
ger and embarrassment Even II the mooted
combination OF our local insurance interests
proceeds no further, II Will have accom- pllshed
in this most salutary work and exert an In
duence OF powerful effectiveness IN the restO-
ration OF public confidence. 1t viii be the
means OF cuieting all epprehensions melted
by the threatened ruin OF an institution that
ranked but recently with the foremost in the
] country it viii give 10 the company assum-
ing the liabilities Of its unfortunate nelghoor
/ a prestige for enterprise and foresight That
! cannot fall to enhance It's popularity and en-
] large the scope OF It's operations; Whlle more
! especially Will il serve to tr2nqulnZe the gen
| orally unsettled condition into which the life
/ business has latterly fallen, and place 1t once
/ again upon a basis OF stability. To those un-
! familiar with the sensluveneSs OF the public
| mind 10 adverse occurrences, involving the
| sOlvency and vitality OF a great insurance cor
/ porstion, the trouble OF the st. Louis Mutual
/ FOR several months past may bear an aspect OF
| inconsiderable Importance, but the real mag
] nitude OF their misc chlevous conSeq uence eau
not well be exaggerated II is not merely the
l dangers impending over the com pany ,Tnenac-
| ing Bankruptcy 10 itself and irreparabie los
to its policy-hOleers that are 10 be considered,
| but the paralyZing effect which these circum-
/ stances have had upon the business OF other
/ companies, and upon western credit, that is
! by RO means the least unpleasant considera-
ton. Ii was justly held to De a great public
calamity Tor The st. Louis Mutual TO go by
the board; II was no less calamity that IL
should carry with it in the fan, at least for the
time being, the prosperity Of lis contempOrs-
rtes, thereby dlveriing away from 81. Louis
into the Golfers OF eastern Institutions the 10
cal patronage which local enterprise was be-
ginning so largely to control. Happily these
Iangers, though they have already worked no
little injury. are now likely TO be averted, and
a new era Of vigorous progress 1naUgurated.
By the proposed consolidation, as We under
stand 70, tue pOltcy-hOlders OF the Mutual are
10 be safely reinsCred, the proceedings insti-
tuted against the company by the State super
intendent Of Insurance be Withdrawn, and its
business TO be continued under auspices OF
the most reliable and encouraging character.
Whatever errors may have hitherto charac-
teriZed It's management, tney are TO be con-
sidered as errors OF the past, and only 10 De re
membered as warnings by which all eompa-
MES may profit, against the repetition OF
any similar errors in the future. That the |
Mound City has undertaken q heavy contract |
is to be admitted, but with her present sur /
plus to p5licy-hOlcers OF over SfOO,OU0, and the
Increase OF her capital stock from SJ00,Og0 to
81 100000, netting with the assumed impair
ment OF the st Louis Mutual clear surp u
beyond reserve OF nearly $4,000, also bearing
in mind the new Impetus aud enlargement
which the business OF the Mound City Is GER
tain TO receive, the success Of the enterprise is
placed beyond question. The same energy
and sagacity thai have marked the progress
of this company heretofore, and built up its
prosperity upon secure foundation, cannot
fail 10 accomplish Stiu more brilliant results
with its added resources and extended Geld OF
operations; and at the same time contribute
indirectly 70 the renewed activity and recu-
peratiOn OF the insurance interest in the west.
While upon this point, moreover, II may be
remarked that nothing so strinkingly Illus
trates the confidence that is felt in the safety
and wisdom OF this movement, as the readi-
ness already exhibited on the part Of mOneyed
citizens 10 make M the half million dollars
by which II Is proposed TO Increase the
Mound City capital stock. In the retirement
Of Mr.. BrittOu from the presidency, an act
that will be entirely voluntary and with
view 81 nply 10 further the best interest o; the
company, we are gratihed to learn that his
efficient services are not to be wholly dis |
pensed with, but that he will continue to give |
the institution, which has so greatly pros
pered under his supervision, a considerable |
share Of his personal attention. while the Sc |
lection of Captain James b. Eads for the posi- |
tOl which Mr.. BrittOn has so worthtly Occu-
pied, is certainly a most fortunate one. This |
distinguished gentleman Z OF only has prac |
teal experience in life insurance, but enjoys, /
moreover. a reputation for business accom- |
pllshments that is really national in It's /
character, and destined to be or correspond |
ing value TO the company in entering upon j
what there is every reason to believe will |
prove career Of brilliant usefulness and |
success
From the st. Louis Globe.l
Rumor, after busying itself for q week with |
expected changes IN the st. Louis Mutual /
Life Insurance Company, has at last settled i
down to the assertion that the business, good /
will and fixtures Of the unfortunate company
are 10 be handed over 70 new management. /
The directors Of the Mound City Mutual are L
stated to have made arrangements tor in 4
creasing their capital stock TO a million of 4
dollars, and on this basis the liabilities OF the
st. Louis Mutual are 70 be assumed and as /
sured. II is also stated that Captain Eads has
consented 10 tsfe iiIC ilr -cy OF the re- 1
organized company urG foo deVOte TO It's /
management thai eusTsy aud ability which |
have raised him % success in life and to high /
Is devOutly 10 be hoped that the movement |
Will be crowned with success. The Globe has /
watched carefully and labOred faithfully for /
the protection Of the only interests which |
have right to be heard in this matter-the
interests Of the policy holders whose coutri- 1
buttons are the basis of the company. While /
we gladly welcome any honest effort at plac- /
ing these interests beyond the reach OF dan
ger, we viii reserve the privilege Of critics. /
ing the methods by which it may be at /
tempted, and of judging Of their sufficiency. |
But pald-up caDitai stock of a million Of 1
dollars is something substantial in the way Of /
a guarantee, and we hope that the prospectus 1
Of the new company wall give us every rea- 1
son 10 expect from il a satisfactory solution /
Of the difficulties.
From the st. Louis Republican,
We learn that the consolidation Of the st. /
Louis Mutual ana the Mound City Life In
surance company is virtually accomplished, 4
the latter company increasing its capital /
st. Louis has saved 70 IL one Of its most I'M
pOrtant and valuable institutions, and under \
ine hllellg mug anu conservative luuueuCe /
OF a strong stock company we will now have
one Of the strongest companies IN the coun-
try as home Institution. James B. Eads is
10 be the president OF the Mound City Life, /
which is Of itself a guarantee OF success.
A MUTUAL STATEMENT.
From the ST. Louis Democratl
Il is stated on what is believed TO be COED 4
authority, that arrangements were yester-
day made to reinsuTe the risks OF
in the Mound City Life, and that /
the contract 10 that effect was signed YES
terday. The only thing thai Is now necessary
70 complete the arrangement ~ the sanction OF
the court, and this viii probably be received.
{ he Mound CITY Life is a stock company, and
however, be Increased 70 el,gO0,O00 under the
new arrangement, and $50 900 of the increase.
y is understood IS already made up. General
Blair Will withdraw lis sult against the St
a Ouis Mutual, should the courts allow him 10
do 80, and, by mutual agreement, the other
suits now pending against the company will
be Withdrawn. General Blair will probably
make his petition for the Withdrawal OF his
suit as superintendent Of insurance to-mor-
the Mound City over 1900 policy holders, and
make it lhe-larPest insurance company west
OF New York. 1t viii also, through the in
crease OF capital, give the company reserve
Of $4,000 over the ~ Der cent. reserve re-
quired by .he State law. The pOlicy-holders,
II ls understood, are TO have the privilege OF
hOldlag their policies en- the mutual or stock
plan, a. they may prefer, and the question
" III doubtless e decided by ballot. In case
they adopt the stock plan the company will
be the largest stock insurance mpany in the
world. since the troubles OF the Mutual be-
gan a number OF policy-holders have not
paid their premiums, owing 70 a want OF con-
ndepce In The company. Under the rules of
he Mutual these policies have lapsed or been
but on The reinsurance in the
AlOand city, these policies may be resumed
On payment OF back premiums.
-~sS---
There was great rejoicing at Madrid
YESTERDAY over a rumcr that the United states
I'D