New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-07-14
THE GUARDIAN AND THE UNIVERSAL.

TIE CONNECTION OF SHEPARD ROMANS AND J. s.
HoMANs WITH THE FORMER COllPANY AND WITH
AN AMALGAMATION.
TO the EditOr Of me Irt6Une.
SIR: The extracts from the reports of the
superintendent Of the Insurance Department relating
10 Nj j. Smith Homans aud myself, in connection with
the Guardian and Universal Lie Insurance Companies,
published in your paper OF THIS morning might convey
an impression which is utterly unwarTanted The fol-
lowing the facts:
In the year 1872 became connected with the Guar
dian Mutual Life Insurance Company consulting
actuary. Relying upon the correctness of its Official
Ieporis to partmeut purchased OF IT. stock,
but il appeared upon Investigation that these official
reports were not rIect and that large amount
OF worthless premium noes OF policies which
were 10 longer In force had been included
as good assets. At the close of the year 1873,
It was ascerancd that the deficiency in the reserve
oured by the laws Of the State about six hundred
thousand dollars Unless this deficiency could IN some
way b. good the appointment Of receiver and The
Consequent Of the company seemed 10 b. inevitable
An offer from lie Universal Lie Insurance Company TO
rep,ufe is risk, ant al mana by which the def
ce ICY could De made good 1T least Tempo
rariy was submitted 10 the directors and by them
formally approved aud ratified The Universal had then
an excellent reputation, ud supposed to be perfectly
sound II b0us ht that BY care and economy OF man
acement tho def cy in The assets OF tue Guardian
cOu removed and that It's Liabilities cOud DC pad ia
fu IL maturity. .
% .hc 4 a
bic he Guardian ia the course OF time, Mr. j.
smith Homtn- formerly one Of the directors consented
10 assign and transfer that Company certain mortgages
which had long IN his possession, and which were
bona fde securities; ne conditions being nat seven
ne cent of d.. premium receipts should Dr ret ASIDE
credit ON account Of these mortgages, dnd as last as
these credits amounted 10 their face-Yaue the mort
cages should be rcaSsigued ana returned 10
hr Iomans. No bonus % COMMISSION or any klnd was
paid To MI HOmans or to any one Tor NM II Is not
charged by the superintendent that hr. HOinans
made or received dollar IN TINS transaction,
nor did he do His object was u prevent
fhe necessity OF placing che Company III the bands
OF receiver aud % prOe the interests OF the policy
Ioiere IL NAV be thought that undue FISK was thus
assumed by an Individuals but tie rsk Vas not 80 great
a. M CHI be- supposed, The mar gus JpOn the premiums
were u iceDt warrant tne appropriation o. seven per
cent TO the OOill alto The iemtnNer OF the
deficiency the assets OF the Guardian Was " nave been
made up in cash By AtT. fui Der. ,..,
Tn..trau-frr 10 the Universal made III gOOd Iath
H. formal vote Of the Directors Of bOt Companies upO
snuroya Of their counsel, and, as wac informed at
The time with the full knowledge AID sanction OF tue M
Irance Department II certainly appeared al the tune
TIE best course 10 pursue =, ,, tho. NJ r
With the management Of the Universal neither nj o.
q uomaus nor myself had any tblng 70 40 ana my
only OF contracts with Mt fuIDei nas Deen
gathered from the public papers 49,. non ooo
Il s stated BY tue Superintendent lhs@ some F"0'ooo