Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1881-07-27
NEW SERIES--V0L. %, NO. 80,
INSURANCE WRECKIYG.
\ DEFICIENCY OF 1884, 900 IN THE BAL,
ANoE-suEET OF THE UNIVERSAL LIFE.

A DEFICIENCY OF $4,000 IN THE BAL
ANoE-suEET OF THE UNIVERSAL LIFE.
The Superintendent Of Insurance o
the State Of New York has issued at
official announcement that the capita
stock of $1,000 of the Universal Life
Insurance Company, of New York, is
entirely exhausted, with an additional
deficiency of assets amounting to 1854,
0l6, making total deficiency of 1884,.
0lG, which tho stockholders are called
upon TO make good within three months.
The report OF an examination made by
the Deputy Superintendent, on which
this order is based, reveals one of the
most extraordinary examples Of mis-
management that even the recent an.
mails Of life insurance show. The com.
pany was organized in 1865 and con.
tnued business until July, 1877, when
an examination by the Insurance De
partment showed it TO be insolvent to
the extent of one million dollars. An
injunction was then obtained through
the Attorney General restraining the
officers from transacting business,
which was continued until April, 1879,
when the injunction was terminated
by Judicial order Since that date,
however, no effort has been made to
procure new insurance, "the officers
contenting themselves with endeavor-
ing to obtain the consent of the policy
holders to the scaling of their claims
to the extent of fifty per cent. OF the
face thereof, being the condition i'm.
posed by the Court for the removal of
the injunction" This scaling process
was so successful that large proper.
tion of the policy.holders were got rid
of altogether. The Universal appears,
in fact, to have been mainly devoted
to wrecking from the start. In 1874
il had absorbed tho business of the
Guardian, receiving its assets and as.
suming It's liabilities, and issued fresh
policies of its own in place OF those of
the Guardian, sharp piece of practice
even apart from the fact presently de-
veloped that its own policies were
worthless At the date of the ininnc.
tion in 1877, there were S,110 policies
in force, the amount Of SO, $50, ,299. Tn.
der the influence of the scaling and the
distrust which all three proceedings
aroused, 4,253 of these, amounting to
s5,5i0, ,069, have been allowed to lapse, |
In other words, more than half the |
policy.holders have been frozen out en-
trely and all that they had paid ab- |
sorbod. There were also 44i policies
surrendered at more or less insufficient |
valuation and few terminated natur.
ally, and altogether the number OF pol. |
icies now in force has been reduced TO
3,7l6 and their amount to S3,406, ,154.
OF course the policy-holders who
have been frightened into letting their
policies lapse have nothing moIo to
lose tho prospect Of those who have
kept up their payments is scarcely
more encouraging, as Il glance at the
"assets" Of this remarkable company
willshow The officers report the pos
session OF real estate Of the value of
SSs9,275. The examiner finds that the
gross rentals OF this property are but
500, $50, and that If the incumbrances
and taxes were paid it might be worth
$3.50, 900 Bonds and mortgages are
set down at s6O5, ,l79. A large portion
Of the mortgages, the examiner reports,
cover speculative, unimproved lands in
New Jersey, most of which are so en-.
by taxes that the company
would probably get nothing for the
if it were sold. "This class
of assets he says, "is the heritage of
the Universal from contracts made by
its old officials, who exercised great
care in getting cash for their commits.
sions thereon, leaving the company the
accounts and Jersey swamps for the
policy. holders benefit" An average
of nearly six years interest on the en-
tire principal of these mortgages is due
and unpaid, and the examiner says that
"nothiDg but the greatest care and
early attention can save to the policy.
holders the sum reported as the esti.
mated value of the entire property,
$3.50, 150."
The minor items Of assets correspond
in character with the major items. For
example, there is "call loan" of &c..
900, made in 1877 to Henry G. Bowen,
of the Independent, on the ostensible
security OF two policies, one issued in
payment for advertising and the other
in place of a policy Of one of the de-
funot concerns absorbed by the Uni.
vcrsal As the policies are worthless
and Bowen declines to pay the loan
having doubtless given an equivalent
in putls in his religious iournal-this
asset is naturally rejected by the ex.
nminer. ltserves, nevertheless, to illus,
trate the manner in which tho Uni.
versal's business was conducted. There
are some $4,000 in United States
bonds and few good mortgages held
by tho Insurance Department and
about $4,000 in cash impounded by
the State of Virginia for the benefit Of
policy. holders, and these, with
A small amount of cash in New York
and $4,000 Of premium notes, mako
mp the aggregate assets Of the concern
-s75s, ,556,l2. This is to meet the
liabilities
lnpaid death claims"..... ,..,.....- SllO,7Oo OJ
Matured endowme euts........ .......... l5sls IS
Reserve fund Ill5l2i 90