, 1877-07-15

Although the income OF the Company exceed
ed the expenditures by S21,s34 yet the first year
closed on an impairment OF S7,33, showing thar
tue business llau been done at loss OF $Ja 37
IN 1SGS THE DE soTo L1FE-1ssuRASCE con-
PANY
had been incorporated by the Missouri Legisla-
tuTe- Its head office was in st. Louis, and it
devoted its energies to the securing OF q South
and tried to work up connection in Southern
Illinois. The Republic management becamt.
impressed with the idea that l,y gfttnc the con-
troll Of the De Soto they would form q valuable
carry the war into Africa, and compete with the
st. Louis Lite Association, To think SO was
equivalent to doing go. The Dc Soto, with
liabilities Ut 81, 496, 900, and reserve OH !
1t was purchased on the basis OF 6 per cent re-
serve, which inflicted another loss. The gain
was the formation Of ''local boards' in st.
Louis and Memphis.
In the autumn of 1871 the managers of
THE nAuSEMASN LIFE
discovered that owing to the immense cornpeti-
ton business could not be done by small COM
pan1cs aud live. They were anxious to rcinsurc
and retire The Republic mana gers were in
formed Of the desire Of the Halrcmaun to Get
ensucd. aud Oct. 10 was decided upon by the
parties as the day upon which the trade should
be closed. The policy liability Of the Hah.,.-
man was over s.. .ooo, ,9oo, calling for per cent
chased on the basis Of 6 per cent, and
received for assuming tho risks about
$ssoon-a 4 h: loss z,,' Of absat $4,000.
Owing to sdn the no Gs a
| not stand the shock, were anxious to withdraw
from the bargain, but A. W. Kellogg, the Vice
President and General Manager OF the Republic,
held them to their agreement, and the trade was
consummated. The Republic took its pay in
Government bonds. money, and mortgages.
The business OF the Republic at tue end Of 1871
is shown by tue following figures:
tatal. ......S 500
Assets: 3:s5, 122
Impairment Of capital. ............. .o., SIS
income: ..'--.-.-..- ........----.... 625. 900
Expenditures. .-..-........... 1000
| Although tue income Of the Company for the
year 1871 was S31l ,00J more than its cxpcndi-
lures, yet there is an Impairment OF capital Of
s:at., SIS, which shows that the years business
was done at q loss Of $573, 600.
AT THE ANNUAL MEETING HELD IAN r. 1870
Orrin +. Moore, the Secretary, rendered Ills res
1Enation, having been requested to do so cousr-
qneut upon the coming to light OF several Ycry
| crooked transactions on his part. HI was
charged With having sold stock certificates, anti
deyotlng the proceeds to his own use, without
entry upon tile books Of the Company, anu with
Issuing policies risks which had beci. rejected
by the Medical Board. The Insurance Commit
tee reported that there were in force 6,33l poll
cses, covering risks to thc amount OF SI4 t41
Qf these policies 1883 were rcinsurcd from the
Halinemann, OF Cincinnati, and III from the Dc
Soto, of St. Louis. The net assets are reported
At ,ss5 lstockLoldcrs' rcportE, and thc.lia-
oiillcs' less the paid up captal, ,560.-and
reserve 1und, were reported at $l3l,000 This
statement, though o., its face very gratifying
was sheer whitewasl, Of very gauzy consist.
ency An investigation 4 few days later deycl-
opea the TACT that, while the gross re-
on new business, and $44,593.3l on renewals
in all, f135, ,065.16 .16,-thc expenses OF doing that
much business were s1s3, 456.Sy In other words.
the concern spent 81. to secure ST worth OF
business. Great stress was laid on the mapni0-
cent qualities OF the asset known q the Rcpub-
lie Life building, which was valued at $3u.41S.
Its gross income in 1871 was $l5;605, so, and the
interest and expenses thereon were $11,ST.l4.
~ per cent on the Investment. At this annual
meeting resolution WAS offered to reduce the
capital stock from s., ,0O, co.. to *1,N0, ,0O0, but
It vas laid oycr for further consideration. This