The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-15
THE UNIVERSAL LIFE.

Mr.. FCRBERS OPINION OF SUPERINTENDENT
SMITHS REPORT AND MS VERSION or THE
FAcrs--AcrIoS OF THE BOARD OF DIRECTORS
HERALD rep rter called yesterday upon Mr. n. J.
Fur0er the We President Of tue Universal Lie Insur
ancc Company, TO learn what he Ind say concerrng
the report Of superintendent Smyth on the companys
affairs. Mr. Furber referred 10 the reinsurance Of
eighty per cent OF te RISKS o. tho GUARDIAN Lie In
Company IN March, 1874 He stated that at
that time ihe Guardian was IN worse condition than
was represented to the extent Of hall million Of
collars The false estimate OF position due he
said, 10 two causes; one that The reserved liab-
tics the policy obligations OF that company were
considerably greater than was stated tho other arose
from heavy depreciation IN the value OF It's assets.
MAKING UP THE DEFICIT.
When this transaction toox place Dir. Furbcr says
he ised 1891, 600 oy IRON The Mercantile Trust
Company on his own personal security, and advanced
this sum to tho Guardian Company IN order that II
mgnl be paid 10 the Universal us u portion OF tue
assets OF the company. The method adopted 10
repay this ths. no should be regarded as an
ordinary canvassinR ag nj OF the Universal; that tho
policies OF the Guardian should DO regarded now
policies gained BY him he being The neRouator in tho
whole affair, and that he should IN tins capacity re-
ceve commission OF ten per cent on all premiums
which might thereafter be received from the GUARDIAN
anu twenty per ent OF the reserve III all
policies covered by The terms Of inc contract with tho
GUARDIAN Company, aud which Liight become forfeit
through on-payment OF premium or interest II was
further guaran that be sum paid should equal
SIS, 900 per month till such peroa the whole amount
nigh, be refundci. AT Inc same time MI. J. s. Ho-
mans, Jr. OF Ensewood be says, ais, assigned 10 tho
Guardian securities exteut OF $3.50 900, b.
part oil It's assets and such pad to tho
UNIVERSAL IL Tor some time believed that these
adyauc we're sufficient u cover tho GUARDIANS deficit
iinru Ia,
hui Mr. Furuer states thar IN spite OF all this The re-
insurance proved AN inimcnsc loss To tho Universal
TIE CAUSE or TIE DEFICIT.
Mr. Furber L0lnts GU, ihai tue apparent derc,t Ia
wholly caused o. the iact that The apprn engaged
by NJ Suyth inc superintendent, IN making his x
am nation placed the value OF the real owned by
the Universal at over my per ccc less than that which
The Office Of the company set on II. Over three
iourths vi real estate from the North
America Lie Insurance Company IN he 3eg.nnlns OF
This year When taxing It Mr Fnrber says ne caused
II to be vaiueu by the then appraiser Tho ns
Department lie says That he then a-ked him to con
sider ,uat It being taken by Inc Universal IN
pcn>atlon OF debt and that It was intended insure
claims would not come due Tor years, IL ZIug
an incutc four aud onc-hali per us value
Tue officers OF the Universal then took II at Tho APP
prascrs ngurc
MR.. vunBEg's OPINION.
Mr. Furper admits that II tue question were OF a
bank the present condition Vi the Unve sal would 0e
one OF insolvency lie argues thus:-A bank may At
any moment be compelled 10 reaize all us assets IN
order meet euvy run. Therefore It's funds should
be invested Of property easily converti.
bic INTO ready money and possessing fixed value All
appraiser coulu III INC oil bank 10
consider the actual present saablc value OF It's
Nuw, the Case oil an insurance company is entirely
different. They nave no such thing As Il run. They
are never obigd to suddenly convert their property
money. Therefore the general average value OF
property or what It might sell for under moder
ately Iavora0,c circumstances Is what ought 10 DO
taken cons dtrall0u
wmERE THE MISTAKE LIES
A great mislake, Mr. Furber believes, was made by
Mr. Smylh's appraiser, who val ed tue real
estate al what would now sell or ips teud OF taking
account what II would probably fetch any future
time when the company might want to sell IT, 'You
see !" said he, ''w, uUu't what wouu sell tor
now. We don't want 10 sci, IT, IL Is bringing
income OF four and half per cent ON what we paid for
IT, II is sure 10 come up TO its cost price. or even
higher long bsore We VIII want 10 rcaiize anything on
IT, II Is very hue properly; tbere are sixteen line
houses and lois Sixtleh street, between Fourth
Madison avenues. All The rest 10 IN equally good
uborhoods aud all IS well let. Its marker price
lust nov Is not It's real value" Mf. Furbcr says
alter the heavy losses The affair with The
Guard,an Company they would still nave u fur surplus
II Their real estate were properly cstmated.
THE COMPANY PAYS EXPENSES.
The COMPANY, says Mr.. Furbcr, has not TO draw on
It's capai TO support ts yearly expenditures. The
properly are quite suncIent TO pay all expenses ana
d.viucns, wed as the policies annually falling due
to sell ?" he asks Mr. Furber made several personal
staten, about hMsc He says that Of the
credited HIM IN the report, as commission, s12 900
pad by special vote OF tho directors,
pensac him Tor CERTAIN business losses suffered by him
through connection with their affairs he says that he
more than $40 600 per year compensa-
ton from The Universal He also states that in con-
win the Insurance he asked
him II anything had been found rejecting upon his
honor or integrity TO which question he received a
negative answer MS hc also did he question whether
1t was intended 10 be conveyed that any noncyto
when he was entitled had ever found It's way into
his pocket
THE COMPANY WILL FIGHT
Alta meeting Of the Board oil Directors OF the Unver.
SAL held to-day, The following esoution was adopted:
Resolved That this Boar believing that the estimate Of
estate Of this company. male by the
well his est,m te OF the value OF
the mortgages he'd by this company. ARE based upon
erroneous views and Misrepresentation Of lacts. aud
grossly underwear d, therefore Instruct the
and COUNSEL al the company TO resist the application
Attorney To- decree dssoving the COM
p.ny, or Tor the nppuntment OF a receiver.
The company will Apply for The appointment OF
referee, who may go into the whole question Of the
vaiue OF The properly.