Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1884-02-04
UNION MUTUAL INSURANCE co.
Report Of the Result Of the Exsmi-
nation-a Complete and Exhaus-
tive Work.
PORTLAND. Feb. l

PORTLAND. Feb l.
We the undersignsd. commissioners and
superintendents of insurance having, made an
exhaustive examination in iato the condition
and affairs of the Union Mutual Life insur-
ance Company Of Maine, cerufy as follows
That in and after 1873, the company wa
in possession of large amount of loans upon
real estate situated in various States A very
considerable part Of this II was
Obliged foreclose and buy in for
the protection of its interests In 1876
il was found necessary TO REFUGE the former
apprsisements upon lis real estate. in order
70 conform to the then values Of property
and to throw out worthlts assets, which had
long been carried upon ii. books. On Dec.
3lst, 1875 Hon. Joshua Nye, insurance COM
missioner of Maine, and Hon Stephen ID.
Rhodes, insurance commissioner OF Massa-
chusetts, made an examination Of said COM
pany, and found it to b. solvent upon the
seyerest basis Of mortality and in
terest assumed by any State laws
as per their report dated March
Sd. 1877. At the end of 1877, the assets were
still further marked down upon the books of
company by order of the board Of directors.
From that time the property Of the company
has increased speedily in value and produc-
tiveness Much of this real estate has been
sold at advantageous prices and turned iu,o
marketable securities. In the report for
December 3lst, 1876, the company was pos
sessed of real estate amounting to S566, $685.
80. In 1877. this had increased to 81 ,221, =
9sI.77. In 1873, to 1884 ,s06.70. In 1879,
to g., 2Gs, 5.53, and in $780, to 81 ,4.0, 0O3.-
Al. BY reason Of the foreclosure of mort
cages made prior to July 1876, to which the
company obtained title TO the company. After
this, this item decreased to the amount found
by us in the statement herewith submitted,
by reason of the sales of said property. In
making our examination. We have selected
December 3lst, 1883, for the purpose of a
financial statement, as being the most con-
venient on account of its corresponding
with the close OF the fiscal year of the COM
made to insurance departments. We have
caused a re-appraisemeLt of all the real
estate owned or loaned upon by the company,
by,independentp persons thoroughly acquainted
lected as far as practicable by the insurance
departments of the several States in which
the property is located. The abstract of
titles have been examined by attorneys ap-
pointed by the departments of Maine, New
York and Ohio severally and by attorneys in
Chicago. The greater part of outstanding
mortgages are upon real estate sold by the
company for part cash and annual and semi
annual installments for the balance. The
payment of these installments increases
the security from year to year. The
overdue interest and rents of the company are
small, with the exception of sum accrued
upon a single mortgage which has been in
litigation for several years. Agents balances
are very small, showing that the company
has its agency system well in hand. Bonds
are exacted for the faithful performances of
duty, and agents are required to deposit their
collections daily to the order of the company
in banks designated for that purpose. The
amount of liens upon future premiums as
for commission on outstanding business, is
quite moderate. The bonds and stock owned
and loaned upon have been inspected and
found to be in possession of the company,
with the exception of bonds to the amount of
$3.50, 900 deposited with the government of
Canada, $1,000 deposited With the treasurer
of the State of Maine, and $4,000 with the
treasurer of the State of Virginia. certificates
several officers having custody of the same
In every instance it was found that the COM
pany had paid for said bonds and had abso-
lutte ownership thereof. 1t is worthy of re-
in the entire list. The cash claimed to be in
the company's Office and deposited in banks.
was found as. represented. The registers of
policies issued by the company and policies
claimed to have ceased, have been carefully in
quired into and checked from its organization
to date. and found to be correct. The poll
icies outstanding have been valued seriatim,
both upon the basis of the four per cent act
uaries' table of mortality and the four and
one-half per cent. American table. The COM
pany commenced business in 1919. From
that time to date it has paid to policy holders
every legal obligation incumbent upon it to
the amount of $40, 49, ,60l, and received
from policy holders s22, 59l ,0l7, and
received and has now on hand
for policy holders 1925, 6StiO. The
the total expenses of management of the COM
pany in 1876 we're 1854. 40s.45. and in the
year 1888 they were s266, 667.O7. We find
that the gross salaries TO officers and Office
employees paid in 1876 were S72. 30o.S5, and
for 1883 l,97l 6l. Prior to August Ist,
1876. the yearly sslories paid to officers alone
were SIS, 200. In 1888 they were S2l, 500.
A large part of the expenses has been in
CARED by reason of the care of the extensive
real estate owned. upon which considerable
improvements have been made The gross
interest and rent receipts are in excess of the
amount required upon the reinsurance re-
serves according to the legal standards of the
several States. The mortality experienced
is less than that provided for by the tables
upon which the premiums have been calcu-
L. III, 81. al l.