, 1877-07-15

it was consolidated into certain notes, which
we're secured after fashion By the pledge OF
800 shares OF the stock Of the National, care
being taken. however, in making the notes. to
| so word them that Mr.. Nickerson could not dis
pose Of those shares, in case the notes were un~
paid e5scpr sE, through long legal proceed
that the Republic would be ordered into
liquidation, and they greatly feared That tho
| stock OF the National, which was part Of the as
sets Of the Republic, might become the prey OF
wreekers, who would buy it up and then at
tempt to pay for it out Of tue assets of the Ma
tional- Hence the precautionary measure Of
tying uI majority of tho stock OF the National.
This was not set-up job. It was preyaution.
| ABOUT THE MIDDLE or MAY
the Auditor turned up, pursuant to the request
| Of the officers OF the National, examined the
| Republic, declared it insolvent, and ordered n
| bill to be filed for the purpose OF having Re
| cciyer appointed to wind It up.
On the Goth OF June, Mr.. Nickerson made n
demand for payment OF his notes, which were
past due and the Court directed the Receiver to
look around during ten days to see if he cul1ld
find anybody who was anxious to advance the
money to satisfy the notes, Or who would buy
up the stock. No action has yet been taken On
tile matter. Mr.. Nickcrson's notes are unpaid,
and the 300 shares arc hung up.
Now, the bulk Ut the assets Of the Republics
policyholdcrs consists Of this $1,U00, 900 stock
Of the National. It is desirable that that stock
Wera It subdividcd, thst is 500 shares sold at
one timc, aud 500 at another, the 1850 would
produce nothing, or next tonotilng, tnasmuch as
trOl OF the Company, md control means great
deal when one is making an Investment. 1t is
ctnincntty desirable, therefore, that tie Court
should order the stock to be sold as whole.
Mr.. Nickcrson, Of course, wants his money
back but as one Of the Directors of the Nation
n III. \ IN Ef,3I IN f{1fs
best possible advantage, amt he does not want
to have it go iuto Irresponsible hands.
We're it put up as WHOLE, there are, it
is claimed, persons in this cty who
men vino arc now managing the National, and
who certainly Ilaye money enough to pay for
the stock in cash. It would be ruinous both to
tho Republic and the National if insurance
Wrcckers should get hold OF the Nationals
stock, for it would mean the destruction OF
both companies. Happily, the directors OF the
National and the Receiver Of tho Republic are
alive to the dangers of the situation, md will
take sufficient measures to avert any such
calamity. It Is impossible to State, therefore,
In view Of this conflicting state OF Affairs,
what the stock of the National will
bring, and, consequently, what the
polcy-holucrs Of the Republic will get. II it
sells for ST. O00 900 their prospects are ilatterinr
and their dividends decrease in proportion to
the decreased amount for which the stock is dis
posed of.
OTHER Assets.
The next heayy item is $2l9, 900, being loans
on bOnds aud mortgages. The face value Of
these is s26,, 600, but tie Examiner has scaled
them down to ,000 What are these securi-
ties! Among them nre notes By john Watson,
secured By s. $. Calkius, and trust-deed on
lots In Cornell, ln this county, for S51 900. There
arc also other notes, secured By si1nilar mort
cages on Cornell property, to the amount OF
S5,O0o This sSG,000 worth Of property in
Cornell would sell, in the present
condition OF the realestate market, for
about s5,00o, perhaps, There are other
the Grapaic Company, shares OF the Lakeside
Printing and Publishing Company, lands in
Tennessee, Alabama, Iowa City. Ft. Wayne,
Georgia, Providence, r. l., the Republic Life
which would sell for about $4,000. There are
about $1,000 In unsecured promissory notes,
which are worth about $50; and there is also
real estate conveyed By deed to the Receiver,
put down on the ledger Us worth s3j, 600, which
might be disposed Of for about 5000. Or, to
sum it up, that which the examiner values ut
$2l0,0D tan be disposed of ut present for per
laps $4,000 The only satisfactory item in the
assets is taat Of S33 600 cashin office and in bank;
and out Of that the expenses Of the Receiver
md the lawyers EN- ployed by him have first to
be paid. When they arc through with it, i'll the
course of year or SO. there will be less cash, |
but many rccciptcd bills. There also figures |
among the assets the item Of $4,000 for de- !
lEEIC0 ALlu alCCACCLcl UICIllulAS. 1HESE WILL
not bc collected; but while thus reducing the |
assets, the liabilities will also be reduced to |
greater extent. So, In short, instead OF there
being assets to tue amount of 81, 333, ,000 there
arc in reality, leaving Out the National stock,
about SIS, ,0W.
THE RErCDLIo
sold Its policies at from 20 to IS per cent below
the mutual plan, aud made the fatal mistake of |
paying too much for its business. It neye. de-
rlarcd dividend. Each year its business was
done at an immense loss. Its capital gradually !
1windied away, aud it is now in utter and hope
less bankruptcy.
To give the reader an idea Of what was cx-
pended by the Republic in building up ssolid
and permanent business, u which resulted in
bankruptcy. the following approximate figures
arc given: