New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-07-16
THE INSURANCE EXPOSURES
RESISTANCE BY THE UNIVERSAL.

/
TIE APPLICATION FOR A RECEIVER To BE OPPOSED
MR.. FURBER REVIEWS THE UNIVERSAL AND
GUARDIAN TRANSACTIONS.
The Board of Directors of the Universal
Life Insurance Company saturday took the following
notice by resolution of the order TO show at Schen
ect,dy on Tuesday why the Company should not pass
| into the hands OF "a receiver:
Rcoired That this Board believing that estimate
OF value Of the real of this Company made by
the superintendent, ~ well rs his estimates OF the val
OF the mortgages held by this Company are based
upon erroneous views anu mlsippenehslon oi .',is
and are grossly undervaued therefore do Instruct the
attorneys and counsel OF the Company TO resist the an
pication OF tho Attorney for decree dssoylng
| the Company, or for the appointment OF receiver
Henry j. Furber, VicePresdcnt of the Company, VINO
has returned Hartford to attend to the affairs OF
Charter Oak, which also in an unfavorabe position
public, said Saturday that the attempt to
force Universal Life into the hands OF receiver
would be contested and frankly met In the Courts. e
and the Board of Directors ready that their
transactions had been open and legitimate and they De-
Ieved that the present condition Of the Company was
that OF perfect soyency. the apparent deficit arose
from the fact that the appraisers appointed by
the Insurance Superintendent had marked down
the Company's real estate so per cent below
what the company believed to be fair valuation Three
fourhs of this real estate transferred 10 the Unyer
sal by the North America January last Being Prcs
dent of the North America and VcePresident Of the
Universal he refused take the responsibility OF APP
prasng property and got the appraiser OF the ns
ance Department do He asked the appraiser not
to fix the value what the property would then sell for
at forced sale. but to bear IN mind that the prop
erty WAS to be exchanged for obligations with
twenty years to run at 4la per cent. Tho es-
innate of the appraiser taken as the value
Of the property as assets Of the Universal. but
now the appraisers say the property is not worth orc
than half as much. They take the sum it might bring
now at forced SALE instead estimating what the
crty would bring future time, when the Company
would be in need The Universal did not wish to sell
the property for it paying an income OF lie per
cent and as property in good localities, 1t would
probably touch price, higher mark before
the Company would be compelled TO realize on it, Mr..
Furber admitted that the Universal would be nsoven
il were bank with liability ut any moment Of being
compelled to realize on in order to meet rum
But the cases were not identical Insurance Companies
were subjected to runs. and were never Obliged
suddenly convert their assets, the average value OF
which, consequently, ought to be determined by the
amount for wncn the property wOud sell under favor
able circumstances.
Mr. Furber stated that when the Universal Teinsured
pe the risks Of the Guardian Mutual IN lSi
the latter Company was not az well OH Dy haI Il"h
dollars as had been estimated owing mainly 10 hcayy
depreciation the value Of the assets. In order to make
good tins deficit part he sed the S33OOOO from the
Mercantile Trust Company, and this he asserted was
de transaction. For nis money lie was 10 receive
commission of 10 cent on all premiums Thereafter
10 he received Guardian and 20 cent OF The
reserve all policies they might be forfeited by me
terms of the ntract with the Guardian Life, l. Slti
Omaus also assigned 10 the Guardian mortgages valued
ut S25OOOO, which turned over to the Universal
Nutwthsa nding this making-up OF the Guardian Life
deficit Mr. Furb,r said the einsurng OF Guardian risks
was losing transaction for the UNIVERSAL