New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-18
HARTFORD LIFE COMPANIES.
CHARTER OAK AND CONTINENTAL.


PANIEs.
IFRoM A STAFF CORRESPONDENT OF THE rRiBuNE'I
HARTFORD, March 15.-With very few modlhca-
tions and no alteration OF the essential features OF
the original draft the two houses have passed the
bill reorganizng the Charter Oak Life. and by TINS
time suppose it has received the approval of tho
Governor and become law. The main OBJECT III
deed the only one sought to be accomplished by
the BILL was to save the company from receiver
ship or more properly dozen reccyershpsin Tue sew
era States where it has assets and rescue as large
a promotion as possible of what is left, for inc
benefit of the policy holders. The protracted pub
lie discussion of the companys affairs. and the VIDE
notorety given the disclosures concerning It's early
management and the causes of its disasters, nave
had upon the Legislature the good effect to induce
unusual care and elaboration IN all that has oech
done in the matter. There was long ana pa
tient hearing by the insurance committee ID inc
first instance and their report, when submitted,
was subjected III both branches to much more
thorough scrutiny and more intelligent consldera-
ton than is usual in such cases. There was ttie or
no opposition to the amendments adopted as they
seemed TO be intended not to hamper or oOstruct'
bu rather to promote the prime purpose OF the DILL
which, as before stated, is to save for the pohcy-
holders as much as possible from the wreck. III
does not follow, by any means, that the
removed by this legislation. 1t depends now upon
the policy-holders whether the company shall be
prrdently and economically managed and restored
TO PROSPEROUS condition, go into liquidation ana
sner the waste and loss of settlement by receivers
The act lust passed provides that the present DILL
GERS shall call meeting of the policy
holders, who shall decide upon the accept
ance of the amended charter, and, II
the denomination is agreed to- shall elect from
their own number full board of directors Thirty
DAYS notice of this meeting must be given 1t does
not of course need to be pointed ont that TINS plan
of reorganization. although it seemed under
all the circumstances to be the most just
and equitable method attalnable, IS very far
from perfect. 1t throws the whole concern ITS
scattered assets and large property interests with
all its complicated financial affairs and business
transactions, into the hands of a sort OF policy
holders town meeting without organization or head
and there necessarily great risk of its falling into
the hands of dishonest, incompetent or visionary
schemers.
1t is not likely that all, or even majority, OF the
polcy-hoders will be present at the meeting. They
will doubtless be represented by proxies Inc dan
Ger is that spectators may collect enough proxies
10 gain the control. But if the plan is followed
which was suggested some time ago, of sending with
policy-holder to send his proxy 10 the In
surance Commissioner of the State in which
ba resides which would virtually place
the election of officers in the hands of the Insurance
Commissioners of the several States, the chances
for securing an honest and efficient management
would be largely increased. This or some similar
plan will be followed, l presume, in effect
ing an organization of the pollcy-ho deIS.
Should all the arrangements work smoothly,
and the company be placed III charge of an
honest and able management, it may slowly recu-
nerate Such a management will go far to restore
public confidence, but the recovery from the i'm
pairmant of assets and the general effect OF the
occurrences of the past year or TWO VIII De very
slow and weaTSOme. Very little ne" business
can be expected for a long time. The sources Of
recuperation are in careful handling of invest
ments the appreciation of assets now in hand,
ord tho lep-lng of policies In tho last
regard there scems to DO something OF a
flavor of the freezing-Out process 1t looks as
though the men who, from inability to pay or any
other cause, allowed their policies to lapse, were
sacrificed to those who had the money and the per
sistency to hold on, the former losing all they
had put in and the latter taking advantage
of it. But there is another view Of
the matter which sets it in somewhat
different light 1t must be remembered that in
lapse are those which are the best and most profit
able to the company. They are on sound and
healthy men, The poorer risks are more likely 10
be kept UP. The sick and feeble, whose hold on
life is weak, will keep their premiums
paid. and take the chances. So that 1t is
not so clear after all that there IS profit from
lapsed policies in the long run. That will have to
be left to time to show. The State has simply
turned over the cOmpanys property to the manage
ment under reasonable restrictions, Of its owners.
They have now to work out their own salvation.
The gentlemen who were fearful lest Governor
Jewell should make money from his purchase OF the
stock have no further cause for anxiety Under the
new charter he cannot be an officer, not being a
policy-holder, and can get nothing for his stock
which the new company swallows up, until there is
sufficient surplus to buy up and extinguish all the
stock-from present appearances very remote and
Improbable contingency.
II still somewhat a matter of conjecture what
action will be taken with regard to the Continental
Life As was pointed out in this correspondence a
few weeks ago, the present officers Of the company
have the advantage III being able to 60 before the
Legislature with statement answering the require
ment, of the law, and showing considera-
BILE surplus above the legal reserve. Nor does
the report of the Special Commission which
charged upon the company gross irregularities and
fragrant mismanagement question this statement or
impeach the cOu.panys present financial condition.
Whether the commission might not have applied
more rigid tests to the valuation Of some of the
assets comprised i'll the statement is another ques-
ton. As tho case now stands, the commission
have arraigned the company upon charges OF
irregularities which rub the crime of per-
Jury very closely. The officers of the
company defend in the first place by general de-
NAL in the course of which they make Mr.. Tracy.
the defalcatiug President of the Farmers and Me-
chanics' Bank responsible for everything doubtful
HIN and in the cecou1