The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1881-09-16


E. B. Briggs, who had held the Office
for several year. AS soon as the new
organization had had time to inves-4
tigate affairs it became convinced that
they required heroic treatment, and
that the corporation must be- COM
pletely reorganized.
They set to work at once on this.
Several plans were suggested for restor-
ing vitality, and each of these were
thoroughly tested. An attempt was
made to issue more stock to mako up
deficiencies, but no one would agree to
accept it. An endeavor was then
made to get the policy holders to take
stock, but this also failed. IAN endeavor
was then made to get the policy holders
to take stock, but this also failed. An
appeal to individual friends for aid and
assistance received an unfavorable
| answer. Convinced that the Loui-
siaua Life Insurance Company could
not continue its existence on this condi-
ton Of affairs, an effort was made to
| transfer its business, policies, ETC., to a
Mobile company. Negotiations were
continued for a long time and promised
at one time to prove successful; but,
after looking over the books of the
Louisiana company, the Mobile one
became convinced that the risk would
/ pIONC .SOO great, U6CiluSll luC EIOpCSl-
ton and the whole affair fell through.
During these negotiations the company
had received several premiums, con-
tinuing to receive them as late as July
18th, one month before the meeting of
the directory that decided upon liqui-
dation. 1t was then determined best
not to receive any more premiums, as
it was anticipated that the company
would suspend. .s
Up to this year the company had
never suspended payment and had
promptly paid all losses that occurred.
Somes heavy blows 1t received through
deathsin the first half of the year COM
pelleq it to postpone payment. Last
year fhe losses were light, $4,000,
while during the first six months OF
1881 they exceed $4,000.
AT a meeting OF the Board of Direc-.
tors, August 9,.1ss1, it was resolved
to liquidate the company, and a Board
of Liquidators, consisting of Messrs. e.
b. Briggs, formerly president of the
company, j. ID, Scott, then vico presi-
dent, and Gen. Jno. Glynn, Jr., secre-
tary, was appointed to liquidate.
Notice of this fact was published in the
newspapers the next day, and policy
holders requested to forward their
policies at once to the board so that il
might be able to find out the condi-
tion of affairs of the company and the
amount il could pay its creditors.
Such is a brief history of tho com
pany since its organization, 13 years
ago. The present failure does not seem
to be the result of any new hap
pepings, unless it be this years heavy
losses, ,.but can be traced back many
years.
The causes that led to the failure
were several. Among the most pro-
minent the following should be named !:
i. Heavy losses-The company pur-
sued the policy of having large sums
on the lives of number of persons,
| instead of re-insuring these persons
| when the risks were too large, custom
generally pursued by the strongest
Northern companies. When therefore,
any of the policy holders died the COM
pany was s'stuck" hard. Thus, for
instance, no less than 16 persons, many
of them dying the same year, had
| policies on their livees TO the amount
of $4,000 each, these 16 deaths taking
no less than $16O,O0O out of the treasury
of the company. There were many
other $4,000 losses, all of whicha~the
company had to bear alone and I'M
assisted. The percentage of deaths
among its policy-holders, moreover,
was very large, and in the space of 12
years more than 5000, 900 were paid on
| losses.
2 Large Commissions to Agents-in.
order to secure business in the country
the very largest commissions known in
tho life insurance business, as much as
from so to 40 per cent of the premiums
received, were paid. This will account
for the disappearance of large sum
received as premiums.
8. Large Salaries-The president of
the company received for many years
an extraordinarily large salary. This
salary, however, has been reduced to
almost nothing under the present TRTls
agement. The ether salaries we.
proportion and the working expeS~
of the company correspondingly lar
4. The general disorganization thfts
has existed in the fife insurance busi-
ness throughout the country, which
has made some of the strongest com
panics succumb.
The following is the present condi-
tion of the company: