New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-11
INSURANCE AT HARTFORD.

IMPORTANCE OF REPORT oN A"H 'H
COMPANIES
IrRoM 4 STAFF CORRESPONDENT OF TIE TRIBUNE
HARTFORD, Feb. Son Tuesday apd "Wednesday
of this week there was great rush OF business o!
Al. sorts in both branches of the Legislature, Wedncs
dav being the day fixed upon the last for the IN
PRODUCTION of new business Among the bills and
resolutions were several relating to insurance mat
ters the insurance business being just now the op
iectiye point Of the average legislator lhere
is. of course very little wheat in all TINS
mass of chaf. Most of tho bills upon wh1ch
The ambitious lawmakers have expended
their energy aud talent will go into tie waste oas
ket and be swept ont INTO the limbo; very le"-tnc
fewer the better--wl find their way to the statnte
book Out of the score OF more OF DIS on 'he SUI
ect of insurance il is quite likely that one general
law NAV be framed which shall either meet OF
seem 70 meet the demand for closer supervision OF
the companies better safeguards for the interests
of the pocy-holders, and safer and more conserVa'
tive management. Up to this time the COMMITTEE
on Insurance has been chiefly occupied with inves-
figations Of the affairs OF tho two compames-tDe
Charter Oak aud COntinental-and mas had no
time to consider any of tho proposed general laws.
The hearing in the case Of the petition of the Charter
Oak policy holders for reorganization under inc
mutual plan. was concluded yesterday with tie ex-
present board of directors. The hearing has elected
10 new facts of any moment i'll addition to what mas
already been published in THE TRIBUNE. Little
doubt is entertained of a favorable report from the
committee on the proposed reorganization, and the
massage of the charter by the Legislature There is
some opposition to it the part of few holders OF
the stock who are unwilling to resign the chance OF
getting something for it eventually. and VINO con-
seauently resist the proposition to surrender inc
whole concern TO tho polcy-holders. There Is such
n variety of interests involved, and they are 50
strangely mixed. that it is difficult to sift them
out, and find who the parties are. and precisely
what they are driving at At every turn III the
case a new lawyer springs up, who may represent
stockholders policy the Furber Board the
Jewell Board, the Insurance Commissioner, inc
Special Commission the general public, or himself
indivdually-nobOdy seems to know OF care which;
ten chances to one, the lawyer doesn't know himself
ADVANTAGES OF REORGANIzATIoN.
Governor JEWELS behavior with reference to the
proposed change has won the confidence of those
who at first were disposed to blame him for the pur-
chase of the Furber stock. In making the change
he not only surrenders the stock for which he pad
$4,000. but retires absolutely from tho company
management as in the reorganization only policy
holders can become officers of the company, and he
is not and cannot become u policy holder,
having been enoined thercrOm. 1t is by
no means certain that the company ~can be
saved even under new organization, though the
present officers and many of the most intelligent
insurance men Ill this city are confident that with
proper management, it can. There is not now, nor
will there be for long time to come, any new busl-
ness and after the sealing process has been COM
pleted the concern will be weakened by thc-with-
drawal of Its best and the survival of its poorest
risks This must happen in the natural order of
things. Policy-holders with good expectation OF
life will naturally withdraw from a COM
pany of doubtful standing, such os this
must be admitted to be; but policy-holders
whose physical condition or expectation of life
make it very doubtful if they could get insured
elsewhere. will keep along and take their chances.
The company will accordingly retain its most I'M
profitable and lose it's most profitable business.
Then too there is an element of uncertainty in
many of the assets that must be taken into account
in estimating the chances for pulling through.
Among them is the Allen mortga which is now in
litigation at the West The original document in
this transaction is refreshngly informal and uncon
ventonal. 1t, was drawn on q leter-sheet, headed
with the name and address of the firm of Allen,
Stephens & Co., and it runs thus:
NEw-YoRK Nov. 1s, 1874.
Thereby acknowledge the receipt Of s4G5,l76 SO CT
advance 10 tic Cook County National Bark OF Chicago,
for my account same having been made by Allen,
Stephens & Co., in money, paper and Endorsements. /
have arranged with them for additional advances. In
consideration thereof hereby grant and convey TO
curty for such advances all my real estate. every
kind and description, and wheresoever situated; 9,
This is what is called blanket mortgage" 1t
was subsequently transferred by Allen. Stephens &
Co. to the Charter Oak Life Company, for advances
made to the former. The deed by which this trans
fer was made, however was much more elaborate
and detailed reciting descriptions of the several
tracts of land owned by Allen in Iowa and other
States. As between the parties to the transaction
/ am informed there is no doubt of the
validity and force of the mortgage; as
against the creditors OF Mr., Aliens bankrupt estate
ii is by no means so clear The company has already
expended $50, 600 in litigation in this matter, and
the end of it is not yet in sight. With regard to
other assets the real estate, etc., presume the APP
praisals have been made low enough, under the
supervision of the present direction TO the pos
sibiliy of further depreciation. in this state of af
fairs, which you win see is not very full
of encouragement, it may be asked. Why not
at once turn the concern over into the hands Of
receiver for liquidation so that the policy-holders
may divide the little that is left 7 The answer is
that to close mp the its present condition
would be simply to destroy what there is left of its
assets which would all be consumed in the expenses
Of a rcceivership. And il must he remembered that
not one receiver only, but possibly dozen or if
teen, might have to be appointed to settle its affairs
in the several States where the company owns prop
erty. Were this fact more generally understood by
the policy-holdcrs, it might perhaps induce those
who have not get done so to consent to the scaling
process upon which the future Of the company 50
largely depends.
sENsITIvENrSs OF INSURANCE CAPITAL.
The Insurance Committee has the Continental
Life now in hand and the examination Of tho Off
GERS Of the company is proceeding Very little pro-
gress was made yesterday the afternoon being