The New York herald., 1876-12-27
LIFE INSURANCE.
THE PROSPECT OF MORE FAIIUREs-DEcEPTIoNs
IN THE sFcTRITy

THE PROSPECT OF MORE FAILURES-DEcEPTIONs
IN THE SECURITY.
The present situation OF life insurance affairs is OF
critical Interest both policy holders and pnder
wrtera Circumstances hold further develop
ments little in cheek, but tho immediate future Is
full OF anxiety and distrusL The only one check upon
fraudulent management is the Insurance Department
Of tho State, and II Is mainly dependent
for Information upon the annual statements rendered
by the companies. Within the past two months two
OF these Statements have been proved be gross
fabrications If figures do not lIe they havo at least
been shown by the Continental and Security 10 be
sadly deceptive. Their documents which at the be-
ginning OF this year looked full OF good faith and
safety are discovered to have been replcie with
faIsicatons and perurics II hardly be wondered,
In view OF these facts, that the nsuring public is
alarmed
REVELATIONS TO CONE
The prcmonton OF danger In the minds OF the IN
suring pubics settled conviction among insurance
men, In their circle II Is generally admitted that the
recent exposures arc but the beginning OF the end.
To many OF them the fact carries papabe fear whilc
10 the remainder brings only momeutary sohcitude,
with bright hopes OF ultimate benefit. The class who
in danger lend themselves 10 every means
wnis may as e onos %Io
notions o. panic IN their companies are pursued,
would post .'dangern over glycerine mine
But the other class of insurance men, tho who rep
resent institutions known to DO solvent and honestly
managed to regard tho present developments IN
time but will rcsrlt in nnal good. According TO tho
testimony of such we'll informed persons II Is no use
trying TO conceal tito longer that there class
companies In this city which cannot stand the test
Of examination and must follow the line OF their pro-
totypcs, the Continental and Security.
THE SECURITY FAILuRR.
The labor OF aScertaning the assets OF the Security
will be extended for perhaps week longer, but u IS
said that the report win be astonishing In It's character
The actarys found to be badly detective,
and woluly conrastivc in fact to tho sworn statement
made to the authorities at Albany year ago II Is
thought by those best informed the subject that the
company assets Will not pay twenty-five cents on the
dollar of its liabilities Yet their last annual state
ment showed a surplus OF over 100000.
The company reported on The 3lst OF December,
1875 the value OF real estate owned by them at
s460S'5 II now appears that this class OF thoir as
sets is made up OF two iteins--vz. the building oc
cup.cd their Office, No. 81 Pine street, and some
land adjoining Woodlawn Cemetery. Tho first named
property could perhaps realize S40 co., and there is
mortgage upon IT OF $50 0oO The land IN the second
item consists OF iortylour acres and Is part OF plot
OF lo4 acres originally owned by the company. Sixty
acres were sold TO tho cemetery company, and Tho
remainder Is estimated to ba worth about $500 per
acre. $50, 200 in all There is also mortgage on
this of that the net real estate assets OF the
Security perhaps s70000 instead Of over $3.50 600
as reported by them.
The amount or admitted assets claimed by the COM
pany December 81, 1875, 81, 2,059344 43. or this
amount 81, ,633 205 40 consisted OF premium notes,
which, 1t is believed only bo used offset to
the policies on which they gwen III they not
colectabe may readily be seen that 1t Will 90 hard
with those who paid all cash for their policies
This same Interesting statement showed that upon
December 81, 1875 the company had premiums out
standing uncollected and deferred, amounting TO
$6lb, ,096 This, too, On total premium income for
1875 OF ST. 222 35S %. Competent persons who have
examined this annual report in comparison with the
alsacatons that has been pcrpctrated IN the In
surance business