The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-25
INSURANCE FINANCIERING.

ANOTHER REORGANIZATION OF THE CHARTER
THE CONTINENTAL LIFT.
HARTFORD, Conn, Jan. a. 1878.
The special insurance commission to-day presented
TO The Legislature a supplementary report the
Charter Oak Life Insurance Company which makes
anything but u favorable showing OF It's condition.
Au interesting feature is the statement OF the
enormous profits OF the concern during It's
early days. or tho capital stock OF 100000
only 100000 was paid in cash, the remainder
by stockholders notes bearing no interest. Tho
company soon after Its organization, began paying
eight per cent interest on tho entire capital stock and
in 1865, covered the SlS0,000 OF notes from surplus
earnings From that year to 1874 the dividends gave
the stockholders eighty per cent per annum en- what
they actually paid in and for previous years the div
dends varied from ton to sixty per cent The commits
sion reports that after the present management took
charge oil the company It's affairs were found to DO
than had been supposed II has boon necessary to
borrow $685., 900, OF which $l30 900 has been repaid
The income, except borrowed money, from July / 10
December 81, 1871 WAS s775 000, ana the dlsburse-
ments, except payment Of loans. s9sOo0o Since Tho
expose Ia July last ouly nineteen now policies aud
1000 paid policies have been issued. Tue forty per
cent scaling o. the policies TO date shows L. O33
scaled, covering SIG, S44SOl VI the total risks Of
S44, 600 900. The new managers have been compelled
to sell $50l, 900 OF securities to meet death claims
loans, &c
LARGE PROFITS FOR MR. JEWELL.
IL Is now proposed 10 rcOrgunIze tho company n
mutual basis, and the matter Is before the Legislative
Insurance Committee The proposed charter provides
that tho present directors shall Call meeting OF all
the policy holders, IN Hartford, February 20 ut which
new directors shall DO chosen majority TO be resi-
dents OF Connecticut Eacn policy holder win have
vote, but may vote by proxy, and this proxy system
OF course VIII enable the present directors to continue
themselves in Office. Under the insurance laws of
Connecticut when q Stock mutual company goes
to the wall the capital stock nrst becomes worth.
less but IN this reorganization OF the Charter Oak u
10 proposed thut the directors may arrange for
the conveyance of this stock to the company IL
amounts 10 $500 600, OF which Ex-Governor Jewell,
the president, holds about $60 000 ter which no paid
Henry j. Furber only SlO,0UO on the retirement OF
tho FurOer anu Wiggin management The PROPOSE
to have the ruined company buy this stock OF
ITS assets which at par value would give Mr.. Jewell
$780, 900 clear profit and the 9th stockholders large
amounts, Is regarded as bad feature and will
counter opposition in the Legislature
THE CONTINENTAL LIFE INSURANCE COMPANY.
The affairs Of this company, concerning which seri.
allegations made the report OF the
special Insurance Commission, are now being vcstl-
gated by legislative committee. Thus far the CON-
pany has had the best OF 1t, anu its officers havo
planned away several OF the worst points, making
scapcgoat OF J. Z. Tracy, who managed its finances
with The Farmers and Mechanics Bank, OF which he
president, ind IS now IN State Prison for embez