, 1877-07-16
TIVE UNIVERSAL.
SUPERINTENDENT smylh Reports This Life
Insurance Company Insolvent.
7,es.ltpt, oser $1,000, ,0oo..-A Rtritw of 1ts
FlnaatiaE Management snd Its inai1ia.
nal Contracts

val S9HtIlfbs
Ht,e Ynsk Htsd,dJMpf3-
Mr.. John F. stnytI, State Superintendent OF
Insurance, has made report Of his recent OK
animation OF tho Universal 1dfe-lnsuranco Com
pony, which Is anything but agreeable to tho
nollcY.ho!lcre, and far from complimentary to
the management. The examination '7as begun
upon the 10th day Of March last, and ttero has
ever sincn been variety Of opinion as to what
would be its result. The general tendency Of
insurance people was 10 bcIioyo In the Compa-
nr,s prcscnt solyency, although there had been
,nrrials In It's career when It's soundncss WINS a
snattcr Of much solicitation and doubt. THIS
snport Of tho Superintendent viii occasion no
1Itt]c surprac among even rome OF those who
wcrc suppopcd to bc familiar with the Conlpa-
nY's affairs. ..........
THO report Is exhaustive, and embrnccs a res
u1uc Of The ConpnnY's business experience, with
comics OF destructive contracts, dc. From tho
statement II appears that tho Universal Life
Insuranco Company was organized Fcb. 2,
lSG5, M 4 stock concern, with $20,0uo
cnpttnl paid in. As Inducements to insurers,
Il. is saIl that rates below tho standard Of ruil-
tual companies and tht issuing Of policies to
prrsbns of Impaired health we're among the au-
vcrtiscd spcclalttcs. On March H. 1874, II re-
insured 80 per cent Of the risks Of The Guardian
Mutual LIfc-1nslranco Company, uuu the uni-
vcrsal statement for tho year cndtMg Dcc olt
thls tiato tho Guardian Mutual had deficiency
Of SG5U,00n. As tho surplus nf tho Universal
was not largo enough to cover this dchclcncy "
thc Guardian Mutual, contracts were cstGfcu
vcrsal, Mr. Henry j. Furber. mud thc compa',y.
The ilrst Of these gave to Mr.. Furbcr co1nms,
stons Of 10 per cent upon premiums rccesvcd
from the 0arian and ~ tcr cent npon .t,, Io1,
5eftea ,rs%1rs Isssrys q shst of tGo 1' s should
couai s3SSo0o. Thts contract was on
tlio same day .as mails assigned to the
Mercantile Trust GomMpany M n consideration ', o.
was or similar basis as tho above, and gas1at'-
tccd to Mr. Furbcr the t,aYn'cnt 81 $S,NN by
April 80, 1871. md $7,ooo per month aftcrwafe.
THIS second coutEact wns let over to j. emith
tion Of the assignment BY him Of several mort
CAGES to tho Guardian Company.
ABBOTT f1sANcfnn1Na.
The Superintendent says at the time OF inc
gentleman Borrowed ss3o oOo from tle Mcrean.
Inc Inc American Exchange Bahsk. receiving there
1or certified ctlccls, which Has indorscd by him
occurrence tho check was rcEntlorsed over TO
tho Universal, tho latter tcpusiting II with the
Mercantile Trust Company. which Ind IN tho
first instance made tho loan, the entry on the
Company debtor to cash." On Feb. 8, 1875,
thls CREDIT wss cancelled by q journal entry Of
tSurrcn,iercl policies debtor to Mercantile
Trust company S@o@" Ine bonds .1 =, nna ana
manner alter they haI been transferred BY The
"Guardian" to the :" Universal, "that 10. bY d
journal entry VI IL Surrendered .politics debtor
to bonds and tnortgugcs.' It s not believed
tics In tho looks repaired ito impairment Of
the "luardian." II was pot q Transaction
tnade In good faith, intended to- benefit tho
pottcy-ho1ders Of tho Company. II 1t was, tho
"funasn would not naTe becn H. returned a. until y
Company admitted such return. Tic truth ap-
pears to b. that tho impairment waa not made
i'm, and that tic pottcy-ludcrs were tlelutlctl 80
III. thsy might continue to pay tsr RrteSmiqms En-
had hecn bepuglit TO light then.
Tho credit given by the Mercantile Trust COM
pany, was probably, my, undoubtedly, under.
stool between tho officers Of TINT Company anl
Mr. Furbcr. Tho mortgages Of Mr.. lloHlans
were, the Superintendent - informed, never
placed on record, md those given by him In the
trst lnetatce wore Of atteh questionable c'arac-
ter anu value that the securities which ho sub
held by tho Unlyersal as collntcrul Oil q 10000
. loan n.ado to llomuns, This collateral loan WAS
nude On nortgaEcs representing to be TOR s207,-
DG0 which had been transferred 70 the Guardian
lelcirncy, ,a,M additional mortgages o! $s25, ,U00
making *ia3!, ,UO0 tn all whlrli had been given to
tho Universal on Dec. 81, 1874. BY journal en-
TX. This Journal entry, IN TUG Judgment 81 the
It's statement for tb74, to return t:25 900 Of
available asscts Instead Of like amount Of in
admissible Items. In the month VI dune fol!ow-
lug $Es0. QUO was given back by nn entry Of "Sur.
gagcs, aud s95, 600 transferred to call loans rs
additional security for tho 10000 advanced to
uomans.
vEHr LIBERAL COMMISSIONS.
Tho motives or purposes Of the Universal
officials, says tho Superintendent, in having
their insttutou sa41tllcd With tho risks and do
hcicncy Of bankrupt company It may be diff
cult to fancy; but tho following entry Of tho
transaction. The comtn!sslon account Ut tho
Ntce-Prcsidcnt, Henry j. Further: The Secretary,
John II. Bewloy, and ArtuarY, 9. L.. Montague,
from March, 1874, to Dec. IL, 1870, shows:
Paid II. J. Fusber on acconnt com.
raid j. Il. iiowioy oa .ecoant COM
paia So. e. Montague Oh account con-, oo''ooo'
st0h1 1...-.,......+....... tU. buu, Uu
Total. s44a. o75. II
Thcsc commissions were paid to Mr. furbct
lndcr two contracts. copieG Ut which arc hero
Itcr giych, aud to Mcssrs. bewley aud Monta.
luo under resolution vi tho Board Of Directors,
copy VI whic!. Is not given, as tho. Supefln'
lehdcllt wa8 1hi0fnle4t tat2t the DOCK oI mlnulca
Of thu Company was lost during the removal Of
tho Universal from broadway to Warren strcct.
{, The commission paid Mcssrs. Bcwlcy anil
Montague wxA ut tho rate Of two-thirds 0f pcl
cent OF net premium receipts; anu tho cunsmis'
slon to Dir. Furher In accordance With all agree.
meat WAS ~ per cent on the not premium rc-
cetpts, tn ul1itton to q salary vi 5000 per an.
mum, II shDHld bc remembered Tint tho con.'
r1ssluns publ air. Furber according to this cof-
tEayt atu III nldttlo, % the t:,3), Gu "paid "
under tho stcsraLttlu Trust Company transac-
profit IN this matter, the latter sun
being simply recciptcl Tor to cxt!ngu!sh Il
bunk credit that had no existence In reality. 1t
was discovered In the course Of tho examination
that III addition to the roscryc On tho Guard
tan's policies, which was turucd oyrr to tliy
Universal as "prcmiusn,n and constituted 4
latre nnrtfon NJ t1tn teceInts ttn,n which wu,