New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-07-13

uuv, rlfr er,lDi.N M;-rUAIAND THE NORTH
AMERICAN WERE ACKNOWLEDGEMENTS AS
SIT, AND rNorNOCs CoMNIssIoNs-TuE UNI
VEss,L INsoLNENT
ALBANY July l2.-Superiutcndcut Smyth, oil the
Insurance Department. after an examination "l 'ie
Universal Life Insurance Company OF NeW-lorN
CIV. extendine over a period of four months, has
finally issued long and comprehensive report tue
conclusion Of which is. that the Company has been
conducted i'm reckless. il not in criminal manner;
that lis accounts show deficiency as regards policy
holders of over one million dollars, and its assets are
insufficient 10 reinsurc its outstanding uSks-wmch
facts have been communicated to the Mtorney-Veh-
er.l as REQUIRED 10y law. 4 history of the Company
4 given los Nil Smyth substantially as follows
TIE REPORT
TIE Universal Life Insurance Company was orsahzeu
Fchuarv o 500 as stock. proprietary company VII"
5000 600 capl raid u Rates below those charged by
mutual companies With dividends 10 the insured ana
Tho Issuing of policies 10 persons 81 impaired hch'
were spccaitics advertised 10 secure business In 'ne
var 1871 circulars sent 20 tine insured ASKING ~
consent 20 change the contract whereo! inc p''S
fusmed ssoud agree 90 have charged against tn''l W.
ices sum equal TO one annual premium, on cohd'on
that n and after the change they would participate VII"
the stockholders In the profits OF the company
THE GUARDIAN REINSURANCE.
~ ,t,rcb IA 1s74 the Universal entered into con
,,af with the Guardian Mutual Life Insurance Company
,of York in which IL agreed 70 reinsure 80 per cent
OF the usks OF the latter company in'
annual statement Of the Universal I1e Ihsnra9Ie
Tmnpany for the year ending December o.
1s-3 on lie In the Department eNn KIN , ~ d
surplus As regards policy holders OF S-iouo} 80, Wiz ~,
~ tiis date the deficiency the GUARDIAN Mutual Lhc
Ispanee COMPANY was $500 900, ard as the surplus oi
=, IN .,er the dcaciency Of the Guardian, contract
Was made between Henry d tuuber, Nlct-I Ies'ucn
the Universal Life Insurance COMPANY an; BY BY NV wP h
Frl,ci i'm consideration OF the services uS
.HffHf 10
10 receive FROM the Universal commission OF Icont
on an premiuAs received rom ' - ~, S O., ~" All
roce. covered hy tine terms OF sad contract WIN sd
Guardian Mutual Life Insurance COMPANY %iHCn may
f-tet ar b,come void b} reason OF n0n"yMem oil lle
MUM or interest prem um, or Interest on pre-
notes OF loan The unys'" COO per month until
the Gums So paid should equal TIE sum vi .''oV,
ooo with intcrets from the date of tue agreement.
~, ofer contract was made. bearing the same da c
Otlch Il. 1874, under which tnpef was 10 ieg 81,
tis s'fyicrs In eiIcctug the amaigamatOn-lO per
.,t on Iii premiums received from the guardian ana
20 per cent. OF thc reserve on Ioioi.oi b I I,i,r
space of three years 10 being S.,rcvu ~ "a, G o,i
al Iife Insurance Company that the sum so 10 ne pau
TO the said Henry Inrner OF nSb dan of Anr,I A. d.
is7I and the Of so per month on the last u"' o.
The nj OF these contracts assigned by Furher to
thc Mercantile Trust CohpHiy' ~ CoSi, I t.ion VI
sisued 10 l. smith Romans, Jr.' o. ElsieMooI'
y j.. IN consideration 81 eet,aI mo- G9Ei,sp Mn
fual at FurbeIs request Ihese asSl-hihtuls NoIe
approved hy tho 1lteIs % a., sS9 ,f9 ~ + A.
tle s'Vo.u o i c rir,ct shall he paid Do cash to said
S,ib uDm1ns IT,. Us the same accrucs. and alter sud
,, s,ii ha,,. be-, 10 pad, tine proceeds OF SAID
coItrae shall hc credited to l. smith H0i9ih-' JT' on
The books of said company unui sucl p.oce d. So credit
d mall .oual the several amounts 81 the sald mon
cages aui from time 10 tue as S'd cteIs ca a. 'no
ssi, s,ia tes - sail Is.uth iomaus lr chars
III 'i % iionl.t d. as au offset to credits afor.
aid anil H of said ere lt, shall nave b't ItisN g-
sv1.IUi,' rt. d receipt fom smith IowUIius, date,
Ma, n STi iurthe Suuot G3, S10J'u Oelhg te aio'
n}t .'l, Ser. atervrd substituted by howuans io
tnost iu the seh DUE. Inc superintendent coe''9 "a
FICTITIOUS ASSETS.
twill be seen from these contracts that III the adyan
made by the Mercantile Trust Company aud the ~
sisument Of the mortgages OF !. = Holnans TO th'
,,srl An that the officers Of the latter organization
.,e,tl, deemed themselves justified u reporting th'
Guardian TO nave surplus over and beyond an lmill
~ 10 lol'! ,,, M o the fc, Viii show concusi
tnat such impairment Was not IN reality male ~. A
the time Of thc contracts 'cing maze WIN aI. fu9er
c.,tHe must Company and deposit the saln'
In The American Exchange Bauk' receiving There
~ him over 10 ire guardian" within week aile
III. occurrence this check was relnaoI.u oyer To 9'
nm, company which had ga the inst instance made h
I'm INC cutry the books Of the universal bciul
Mercantile Trust Compass dcbt9r 70 cdsHi I'd ,Di u
any = 1875, this credit was caucded ny Jour-" emu
@ O. s%ii S.6oj" TIE bonds mortgage
Of Mr. Iioutus were released III m Hlt
si''t ' T'iyrt.,I" mat is by a iourual outiy o
Surrendered policies debtor 10 b"hhs ana mort
gage" l. is not believed 1y me SUPER 4t ,-a
inasiuc these entries 300 the books repaired me impair
,rt If th, Guardian u Was not transaction ned
in coed faith. INTENDED 10 enei The pGcy % M
COMPANY. II b. Was. the iuhds W"Wd Iol navy pl,.
returned until 40 al solnteiy known ila' ne cog"
tir nf tle company admitted such return. Ihc tiui
appears 10 DE tbat the apartment was not lnade NJ ,
maj tle tosy-uoicrs re de!udcd 80 tuat tucN msA
continue ta pay their premiums Whch thcN W"uiu no
~ dnr Ii an the facts had Oceu brought 10 isA
then. The credit given by the MeIcahtA9 Iius
C.nptuy was probably, nay uudouotcdl! u d,Iotoo-
1ve trnrfgats of Mr. Romans were, the superintendent
siuorucI. never placed on record ana thosc given 10y
INN, b the fret instance were OF such "a qucsuouipl
value that TIE securities Nhch nc euDs'
t,,d fr them were second liens, ana are now hel1 D
tLe Universal collateral on SlVUOV loth In@Io
~ ,,,'s ,,n,ler "A contract bind ng the Uuiyc sal Lie H.
sn,1nc Company o. pay Humane certain sums OF money
al specified times, until the aCdht 80 ld1 shou cqut
SI95 600 the money eiycd by Homdus 10 Dc Aphc'
louiOn of the prior mortgages uh tnc prOlft!
mentioned m tuc schedule A THESE contracts axe SNei
I'm full IN the Suprrlniendeuts tcpultI
ENORMOUS COMMIo, IONS.
Tho r.,ort continues: This collateral loan mad
nm mortgages representing he for 100000 which ha
bcen transferred te the Guardian by Homaus To maxi
GOOD IN part the $685. 900 deficiency, ana additional
MORTGAGES of S22j,OOO making $4,000 III all whicl
~. neon Given 10 the Universal on December 81, 1874
Iy a iourlal entry. Of which the following is a copJ
nauds and mort gag $ZZoUOO ~
10 Sindre, Dr.
C3 3IIs3ne items paid Homans--charged commits
s,, sIgYs accounts 1880 0;
I;siAnIs ,T Gi so54 .,
Of account ''--------
d hSl9gis no 1921 a
S925 90 az