The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-01-05


and did not intend to submit to the authority
OF the State, confronted the plain question:
Shall foreign insurance company, whose sol
vency or honest management / doubt, and
whose affairs / am forbid to examine with ex-
petition to prove If my doubt be well founded
or not, be permitted to continue business in
Massachusetts? The conclusion acted on was
the only one possible to my sense of what was
due to the public, the law and the dignity of
the State.
This transaction, and kindred acts of the de-
partment have furnished the occasion of such
injurious false statements and inference, to
the attempted discredit of tho public admins
tration of the State, that refer to the legisla-
ture the propFiety of a formal investigation of
these matters, in order that the truth may au-
thoritatively appear, and justice be done to
the State and its servants, and to any COM
plainant. Should such inquest embrace in its
scope all the affairs of the department in its
relation to the public Interests in its charge,
the information obtained, / am sure, would be
OF value to the law-making power and to the
people.
President DeWitt's ssejoinder.
UNION MUTUAL LIFE INSURANCE COMPANY
January 4, 1884.
To the Public:
Referring to the report of the Insurance
Commissioner of Massachusetts to the Legisa-
ture OF that State, just made, and in reply to
that part of it respecting the diminunition of
the assets ands surplus of this company we beg
partment, reviewing that subject, which is as
follows:
OFFICIAL EXAMINATION OF THE UNION MUTUAL
LIFE INSURANCE COMPANY.
BOSTON March 8, 1877
JOHN E. DEWITT, ESQ.,, President.
Dear Sir:-The representatives of the Insurance
Department of Maine and Massachusetts having
thoroughly and critically investigated the financial
condition OF the Union Mutual Life Insurance Com
pany deem 1t their duty to submit to its managers
and polcy-holders brief statement of the results
OF their examination
They pleased to say that che books and papers
of the Company have been fresly submitted to them
and every possible facility courteously afforded for
complete investigation of all matters appertain-
ing to its business and finances. In this connection
the revised system of bookkeeping, and the strict
enforcement of personal accoun liability in all Its de-
partments; the reduction of working expenditure,
and the prompt collection of accruing income,
whether on interest or premium account; together
with the sitting out and transfer of doubtful assets
as also OF deteroratons in values to profit and loss
and expense accounts, were found among the ele-
ments OF progress notably apparent in the new
regime inaugurated BY the present administration;
will be pre-emnently in the interest of the Compa
ny and its patrons.
Every item enumerated in its statement of assets
and liabilities has been carefully investigated, with
the exception of its premium reserve which is rem
dereo upon its own valuation. This lastnamed
ue constituting, OF course, its chief liability will
dlHer put slightly from the valuation now nearly
completed by the two departments. The exarnin-
atlon o. assets has been made with unusual parti-
cages and other securities in that connection to-
gether with the interest and premium note ac
counts, premiums deferred and in of collec-
tlon, and every other description of values have
been carefully scrutnized, and found in every in
stance complete yerification of the cemnanvs ex
hibit.
In making this statement however it is proper to
add that perhaps instance has heretofore occur
red in which mGGinauns oaLates ALWAYS allowable by
law, have been deliberately and wholly discarded
by life insurance company in this exhibit of in
yestments Their reduction to maximum estimates,
lKofr
ca values, with corresponding diminution of sur
plus as regards policy holders, may and probably
VIII provoke inquiry and criticism but it should be
remembered that the former and higher values re-
Year 5 M the statements from year to
standing the great financial depression of the coun-
values.
Under this condition of things and in view of the
TACT that bottom prices'' have in all probability
been reached, it eminently fitting that re-ya
u sa should be made upon new apprasement of
real estate and mortgages held by the Company and
scattered over more than half the States of the Un
ion, in many of which unusual causes had produced
serious depreciation. This revaluation has been
made with the results already indicated
Upon careful review of the statement before us,
ana OF the present and prospective condition of the
company's assets, including real estate and mort
gage loans, we are strongly impressed with the con-
vctlon that the estimated shrnkage will ultimately
recover gerry considerable margin after fully pro-
vding for all probable Losses and expenses in other
words. with its efficient and watchful adminstra-
ton successfully perpetuated we think such mar
tanned In the reported assets and surplus of the
Company.
confidence in the ability of the Company to meet
fully and honorably all its liabilities and policy-con
Very respectfully yours
JOSHUA NYE.
ms. Commissioner of Maine
STEPHEN II. RHODES.
ms. Commissioner of Nc sss,assSsetts.
We reiterate ylhiss ..-...s "a in our former
card -tE8 the public, namely:
"That the Union Mutual Life Insurance
Company OF Maine is sound to the core, and
able TO pay all its obliga tions, as it has never
failed to do during the thirty-fve years of its
existence; that it has been successfully and
honestly managed; and that all statements de-
rogatory to its character are untrue and base
less
The directors of the Union Mutual Life In.
surance Company have not refused to allow it
to be examined by any insurance department,
aided by any men it may select.
The revocation OF our license by the Insur-
ance Commissioner of Massachusetts to do
business in that State, will, when the whole
truth appears, do US no injury"
While all public discussion of this kind is
unpleasant, yet we are pleased that it comes
now, SO that the charges and insinuations in
Commissioner Tarbox's report can Re examined
into and reported on, not by the officers and
directors OF the company, but by Independent
authority, whose standing and character none
can question.
The company is under examination by the
Departments of Insurance of Maine, New
Hampshire, New York, Ohio and Illinois, as
sisted in the valuations by the Departments of
Indiana,a Missouri, @Pennsylyania, Nebraska
0se E@~otatss wherein the COM
as real estate or has mortgage assets
In all probability the examination of tho Com
misssoners will be completed in few weeks,
and as soon as completed will be made public
JOHN E. DEWITT,
President.