Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-03-04
THE GLOBE MUTUAL LIFE.
ActuaEy Phillips Report Upon
the Condition of the Com.
Pany---It Cannot Resume
Business.

AS goou many persons In this city
hold policies in the New York Globe
life insurance company, which was
placed in the hands of a receiver last
January, we publish the following
from the New York Herald, of the lst
Mr.. Frederick j Phillips, the actu-
ary who has been engaged for some
time past in an investigation of the
affairs Of the Globe Mutual life in
surance company, has just completed
his report, of which the following alb
stract gives the principal facts as to
the condition Of the company:
The total reserve value of the regis
tered policies is $247, ,938, and Of the
non-registered, 1881, 1853, making the
total value of all policies in force,
S2,779,29l. OF this amount 81 ,124, III
is liability incurred on paid up poll
cies, which is considerably more than
three -eights Of the whole reserveliabil-
ity the company. The premiums on
these paid up policies being fully paid
they are no longer a source of revenue
to the company, except to the extent
of interest payable on loans which
have been made on the security of
these policies. These loans aggregate
$l7 All, the annual interest on which
is 81 ,223, which is the entire sum
contributed by this class of policies to
the expense of carrying S2,234, ,213 of
insurance. Bringing all the claims
together, we have total liability of
S3,2l0,l74 The value of the securi-
ties deposited in the insurance depart
ment amounts to $555,545. OF this
sum S425, ,523 is a special deposit for
the protection of registered policies
The remaining assets, comprising
bonds and mortgages, real estate,
miscellaneous securities and cash on
deposit amount to S2,09S9l, making
the total resources of the company
$2, ,648.436.
While it may be outside the pro-
vince and functions OF the actuary 10
offer any criticism on the old manage
ment Of the company, whose miscon
duct and malfeasance have already
been strongly stigmatized by the de-
partment, yet he deems it his duty to
advert to one of the results of this
management which has brought such
disaster to the policy-holders. The
actuary is of the opinion that the com.
pany possesses recuperativc power
sufficient, under careful, intelligent
and economical management, to have
saved it. Under an energetic and Wig.
Orous treatment of its affairs and the
renewed confidence inspired thereby
a favorable progression in the way Of
new business would have followed and
the paid up policies would have been
cancelled or exchanged for premium
paying policies, while, gen.
orally the resources of the
company would have continued tc
Improve to the extent herein already
indicated, thus enabling it in the end
to have made good the deficiency and
saved itself from insolvency, which
has the disastrous effect ofimmedi-
ately maturing claims which. other.
wise, it would only be called upon to
meet gradually during the period oI
years. 1t is understood that the new
board of trustees may have done some
thing toward this end, and without
offering a criticism upon the action of
that board, composed as it was Of gen.
tlemen of high character aud standing
in the community 10 thus giving up
the struggle when the outlook seemed
so propitious, the regret may at least
be allowed that they could not find it
within the line OF their duty and con.
science to have made a more persist
ent effort to avoid the irreparable loss
to policy holders, always inevitable
upon the insolvency Of such institu.
tiOns.