The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-14
THE UNIvERSAI's CONDITION.


WHAT THE MANAGEMENT OF THIS INSURANCE
COMPANY HAS TO SAT- ABOUT THE supERiN-
TENpENr's REPoRT--LxrrERs FROM INTER-
EsrED INDIVIDUALS.
The publication Of the report Of the intendent
OF Insurance procalming tho Insolvency OF the Uni
versal Lie Insurance Company created little sur
prise circles yesterday Oicers Of other
companies and well actuares expressed their
astonshment at the result Of the examination. aud
though OF the Unvcrsai's transactions may have
appeared questionable, had been the general opinion
that the balance least the right side Of the
ledger
STATEMENT OF VICE PRESIDENT BEw,.gY
Mr.. j. H. Bcwley, the Secretary oil tho Univer-
sal, said yesterday to HERALD representative that
the ofcers Of the company hardly knew what TO make
OF affairs The report had come upon them unexpcct-
eddy and while thcy did not wish to cast any asper
sion the Insurance Department they iet that they
had not been fairly treated. The difference be-
tween tho Official statement OF their condition and the
companys own estimate. Mr. Bcwley said, lay in the
valuation oil real estate. The Liabilities about the
same IN each estimate Hc did not know
by what the superintendent coua deduct
500 coo from the value Of their real estate and he
did not think tho depreciation was lair They had
tar percentage on that basis. 1t consisted large
extent OF sixteen brown stone houses on Sixticth
street, each one OF which rented good terms
Mr.. Bewley sad the department had let alone their
real estate valuation, allowing all other delciencies
the company would still have 4 surplus OF s3G0, COO
YORK could stand The test Of such valuation OF their
real estate. II lair 10 suppose, no sad,
that the unlversai's property was abon, sood
as any other conpanys, ans be thought all
life insurance companies would have TO mako this
common question, aud resist any such treatment OF
TIER assets he referred last annual report OF
the Universal where IL appeared that amount ul
sssets admitted " but possessed bytnc company,
was over $500 0Uo aud that they CLAIMED surplus n,
that time oil $500, 600 mCrc Mr. B1wlny said the
affairs Of the company had been gradually improving
for two years past and he had no doubt whatever II
could 20 aud meet all It's obligations when due lie
manifested some surprise that The examination ut the
Universal had occupied much greater time Than that of
the Mutual Life, with IT'S $4,000 oC0 Of assets He
stated that the company would endeavor to have u
referee appointed when the case comes up In Schenec-
tady on Tuesday next
AN EXPLANATION FROM Mr. ROMANS,
To THE EDITOR OF THE HERALD:-
The extracts published by you this morning from
the report OF the Superntendent OF the Insurance De-
artmcnt relating TO Mr. ]. Smith Romans and myself
in connection with the Guardian and tho Universal
Lire Insurance companies calls Tor some explanation.
Tne following are the lin the year 1872 be-
came connected with tho Guardian Mutual Lilo Inst-
rance Company consulting aciusry, and, relying
upon the correctness OF It's official state ments pur-
chased some OF its stock Soon afterward It was
found that It's ctlical statements were rot true, and
that, by reason OF including large amount of pre-
MUM policies which were no longer in iorce
It's reserve had become impaired. At the close Of the
year 1878 this impairment amounted to about
5000 COO Unless this could in some way be made good
tho appointment oil receiver and the consequent ruin
OF The company seemed inevitable. An oter from tne
and arrangement by when tue impairment would bc
made good ut least temporarily was submitted 10 the
directors aud was by them formally approved and ral
led The Universal had then an excellent reputation
and was believed TO be IN sound condition. II was
though that by caro- and economy VI management the
deficiency In the OF the Guardian could be
removed aud that its liabilities would he paid in full
10 make M portion OF this deficiency and thus
enable the company 10 recover in the course OF time
Mr.. j. Smith Humans, formerly one OF tho directors,
assigned and transferred to the Guardian certain mort
cages which had long been in his possession winch
bona tide securrcs-tho conditions being that
per upon the premiums, they wcro paid,
should be set aside as credit on account OF
these MORTGAGES and that as last IS these credits
be reassghed and returned TO Mr. homana No COM
mission or bonus OF any kind was paid 10 Mr. Ho-
10 any one for him. Is not charged by the
that no made received dollar
in the Transaction nor did he do So His object was
to prevent the necessity Tor the appointment OF re-
ccivcr and thus project the interests OF the policy
holders. II may be thought that an undue risk was
thus assumed by an indvidra but the risk was not so
justified the appropriation without hiring
log upon the insurance portion. The transfer the
Universal was made In coed faith, by tho formal votc
OF the directors OF both companies and upoa tho ap
prevail OF their counsel and, was informed al the
time, with full knowledge and sanction Of the In
surance Department
With the management OF the Universal since the
transfer neither Mr. j. S. Romans myself bad any
thing 10 do, and my only knowledge OF Its contracts
with Mr. Furosr that obtained the public press.
stated by the Super,n tendent hat some $780, 900
was PAID two actuaries, MIR. Sheppard Homans and
Acl dam Gal npiAR n
cred from the books that the first named gentleman
performed any work Tor HIS pay" This statement rs
wholly gratuitous. Mr.. McAdaln had Tor years been
The regularly appointed actuary OF the Guardian, and
no doubt drew The salary voted TO him such. l was
employed at different times by the same company
consulting aciuary, rendered OF my
aDinty whether Inc same appears tho books not
Is immatera presented my bills therefor ana received
my pay to which considered myself fully entitled and
Tor which gave the proper receipts.
SHEPPARD HOMANS
New YORK, July Is, 1871