National Republican. (Washington City (D.C.)) 1872-1888, 1879-02-18
THE MUTUAL COMPANY.
How the Funds were Handled by Its
Officers.
The Annual Meeting Yesterday-Report OF
the Examining Committee - Salaries
and Perquisitos Received by Di-
rectors-Thorough Statement
of the Condition of the
Company's Affairs.

ACKNOWLEDGMENT Statement
of the Condition of the
Company's Affairs.
The Management of the Mutual Fire Insur-
ance Company.
The adjourned meeting of the Mutual Fire
Ins urance Company was held at Franklin Le
gion Hall yesterday morning at ten o'clock.
with Mr. S. Norment in tho chair and Mr.. j.
W. Botelcr secretary. The hall was packed
with policy holders, who took deep interest
in the proceedings. Mr.. Mills Dean, chairman
of the examining committee stated that the
committee was ready to report, and, on motion
Mr.. James S. Edwards, secretary of the COM
mittee, read the report The document, which
was very lengthy, occupied about an hour in
its reading. Among the points contained in IL
are the following regarding the finances of the
company
REPORT OF THE EXAMINING COMMITTEE.
Assets or surplus fund, 1872 in bank to credit of
j. W. BOtClcr secretary Of the company, tlSjf1S2
n sac, ONCE OF company s2siSigi reported oy e.
hands, including Interest, computed and charged
to himself to June 80 1873 i272O2t less order on
him for six months rent Of Office, slso; bonds and
| stocks, S2jO26i proInissory notes on collateras,
$4,000; promissory notes on real estate, $4,000;
| Ing q total Of S2O6Si2.2j Premium notes held by
| the company December 30, 1873. reported by the
secretary but not verified ,slS59 500 real estate
|
| twelve years and three months 5000; as manager,
s6i $. Norment as president, AZ $500 for o seven
| years and nine months, aud at Sl,2OD for
three years and nine months equals
| $4,000; $. Norment as manager, at $500 for
two years. 500 for two years 500 for six years $50
for one year $50 for one year and s2 for one year,
| equals S206S; 5. Norment for surveys, at $3.50 per
year for nine, years, equals $780, 5. Norment,
$3.50 j. G. McKelden as treasurer at $500 for fifteen
| years equals 81 500; J. G. McKeden, as manager
two years at 500 two years ct 500, six years at
mr. tpnr ut M 81
at $50. equals 81 ,O7O J. G. McKclden. for revenue
stamps and examining titles Sc. sl56; Charles
and 'i'V extra l'' compensation on receipts, so2i5
| j. Wesley BOteler, as secretary has been paid
S D. Van Esw!SE S,s as w wnnIiager SlS Gs M Man
ager, 81 i3i; 5. ID. Castleman, as manager, Sl,oS1
DIR. +. Howard as manager, S2OlSi 7. Pearson, a.
Barber as manager, $500, and Charles Wilson, for
procuring chartcrand in full of all demands against
the company, $3.50; making total for salaries
alone since the Organization of the company OF
sT5OGO.j5.
A recapitulation then follows, which shows
that the revenues from all sources since the
company was organized were Ii3,7S5.57, and
the disbursements were S238, 1862, leaving a
balance of 1905, 63935. The report further says !:
BY the foregoing It is shown that of the surplus
funds of the company S50On0 was loaned out at g
per cent Mr. McKelden had si272O.2i for which
In examining Mr. McKeldens accounts the com.
mlttee found a discrepancy of s2,S77.0i, part of
which was caused BY his omission to charge him
self with six months interest from December 81
1868 to June 80, 1862 on Si713903, amounting to
slili.l2 Mr.. McKclden Kept no books or accounts
whatever and his duties as treasurer practically
ceased la 1873 although he continued TO draw n
salary of $500 ever since.
The committee also found that Mr.. McKeldcn
was paid 81 400 the 10Th of October 1874 as bonus
to transfer his interest to the company In the pur
chase of the Marble Building" Mr.. McHelden
bought this property for $4,000 and the company
took it off his hands for $4,000, although at the
time the treasurer and one of the board of man
Marble Bud H i about ssS y This ShrnEage
together with the money paid for IT, If invested ut
per cent, would have realized $4,000 to october
pany its loss over its revenues was nearly 81 OOO
From the best information the loans TO Messrs.
Bntelcr Casueman and Howard are inadequately
secured and will eventually result in a consider.
able loss 10 the company. The other loans and
a investments are good unless Mr.. McKelden, as
treasurer, Is liable for promlssory note OF Warren
Choate IL Co., for $500.
S Since 1868 a survey fee of fifty cents has beer
|. charged to and collected from the policy holders
for each risk taken by the company. Prior to 1876
8 the revenue from tins source went into the Golfer
h of the company since 1870 this fee has been paid
about 500 per year.
: The committee further find that the board o
managers In 1870 voted $500 per year TO the prcS
Z dent for a horse for the purpose of resurveys
There are no written reports or memoranda OF any
> description in the archives of the company show
~ ing the actual surveys or rcsurveys and Their
= is nothingto Indicate that any such were In fac
;, ever made
y. committee that he had made these visits, but wa
unable TO state the number or give any definite
i, information in the premises. Ii Is clear, however
!, that no resurveys have been made for the 81,
l. months ending July l, 1879, for which $3.50 ha
:. been paid for livery.
\. risks were 5000, representing about sll0O000O AM
- the aggregate amount of the premium notes wa
u about 81 339SJ but was unable to give correct g
20 urcs at present. When the committee examine
r they found the books of the company five years be
r. hind in posting very indilferentiy kept and who
Y NH Df no
S, record and keep full account of its transaction
III and financial condition. This state Of affairs wa
evidently due to lack of clerical force the seerC
"A tary having all the work to do No interest di,
n idend account has been posted with the polio
able to report the condition of the credits on tn
IS policies, or whether the amount paid on Withdraw
ais has or not been In excess Of the true credit
49, The office expenses of the company during 1851
40 were 50, 1851. OF this amount 5000 went for sa
10 aries TO the officers and managers an increase
s. salaries since the organization of the company,
period of twcnty-four years, was S75060.b5 OF tn
rs amount sl5 45O was paid in 1877 and 1878, equal
70 ons fifth of the whole amount Nothing was pal
for soliciting risks and the managers were econon
II; zeal in strict office expenses. The company stant
@. on firm financial basis.
t The committee, in conclusion, suggest to Ill
IL incoming managers u careful inquiry into I'll
L. propricty of thorough revision of rates so
&C. to reduce the interest on premium notes to tn
W lowest rates possible, so that every polio
B3 holder may receive practical mutual benefi
d, The report was signed by Messrs. Mills Deal
L. j. b. Clagott, j. Il. Wilson, G.. Il. bearing,
+. T. L. Richardson and James S. Edwards.
II ACTION OF THE POLICY HOLDERS.
th Mr. j. b. Wilson moved that the report
IL recommitted to the committee with instru
OG tions to have it printed and distributed to Il
policy holders, and that the meeting adjoul
to next Monday az ten O'clock when an ele
tion would be held for officers Of the compan
of Carried.
m Mr.. Manning moved that the meeting go in
~ committee of the whole with Major Rchar
:" as chairman, which was agreed to.
on Mr.. j. b. Clagctt moved, as an Rmendme
ne to the bylaws, that no funds of the compaI
ut be invested in real estate unless the stoc
~ holders are first consulted.
m Mr.. j. G. Wilson said that the bylaws cou
~. mot be considered in the committee of Il
le whole, and suggested that Mr.. Norment resi-
n his position us chairman of the meeting
,is stockholders.
be Mr.. Nonnont was on the point of of so DOH
IN. when the point was raised that the commits
an on the whole could not accept his resignatio
Jv motion that the committee Nov ris
ed was agreed, and Mr. Eorment, before tenderiI
nS his resignation, made short address, duril
he which he said that when he was chosen pre-
no dent of tho company it had Sc 900 900 insure
M IA