Savannah morning news. [volume] (Savannah) 1868-1887, 1886-10-12
GOLD LIES FAILURE.
a MEETING OF POLICY HOLD
ERS In SAVANNAH CALLED.

Ehe Compapy's Assets Not Yet known
Lack of Business, ~ Rapid Accumu-
mutation of Death Claims aud small
Receipts the Immediate Cause OF the
Fsfiure-The Company's Business In
Savannah
The failure OF the Alabama Gold Life
insurance Company, of Mobile, has
caused something of a stir here. The
company was represented here from
shortly after its organization in 1868 until
1SS0. when it withdrew from the state
owing TO its unwillingness TO make the
rleposit required by the State law. Al
The time of its withdrawal Capt. j. ID.
5ohuston was the local agent. There was
also a local board Of directors, who were
ex-offcio members OF the Mobile board.
and between $4,000 and $4,000 of the
company's funds were invested here,
chiefly in loans. Most of these have been
paid up.
The local directors were Col. II. >.
Davaut. Chairman, Capt. d. q. Purse,
Cant. W. W. Gordon, Col. John Screyen,
Cant. John NJ. Guerard. Capt. l.. J. Gull
martin, Capt. J. Il. Johnston, Milo Hatch
Esq., &. J.Lsrcombe, Esq, A. j. Brady.
John G, Rowland, f. d. Bolt and NJ. Il.
Hunno.
The company did heavy business
and at one time a large amount OF stock
was held here. At present, there are
probably not over % or 80 shares. There
is considerably larger NUMBER OF
policy holders.
The report OF the failure was first an
bounced in the MORNING EEwS on sun
day. 1t was then stated that the assets
are nominal. 1t is stated from other
sources that the assignment was made Tor
the purpose of paying OF the eompany's
large Indebtedness. The immediate cause
OF the failure is said to be lack of business,
tue rapid accumulation OF death claims
and small receipts. 1t was not altogether
unlocked for. There Is no blame attached
TO the management, the public believing
The failure an honest one.
According TO the last annual statement,
dated Jan. /, 1886, received by the stock
holders here the total assets were $33i,..
900. OF this amount $4,000 was 10 real
estate, yielding a rental OF nearly $1,000,
equal TO q 6 per cent. investment; $67, 900
was in Alabama State aud other bonds
and scrip, and S174,000 was in mortgage
and other loans. The remainder was cash
in bank, s2,10o; stocks OF Incorporated
companies, $4,000; the conPsny's
e1lce building. $4,000; deferred
and annual premium loans on policies in
$4,000, and other assets amounting to
$4,000. The liabilities are $2O1, 400 10,
leaving a surplus as to policy holders Of
Biz, 900. These amounts are all in round
numbers.
The policy holders in Savannah will
meet at Il O'clock to-day at the office of
Capt. Purse, III Bay street, TO consider
their interests and take such action as
may be deemed advisable.
The Mobile Register, In announcing the
eOmpany's failure, prints an interview
with its President, Mr.. A. p. Bush, in
which he stated that the company has
been In a bad condition for long time,
and that 1t has been steadily losing
money, consuming assets to meet press
Ing liabilities. MIR. Bush tried inetfectu-
ally to have the business wound up some
time ago. but was outvoted on his mo-
ton. Oflate the affairs have not i'm
proved, aud an effort made last week to
have the business settled met with no fur
Their opposition.
Regarding the affairs OF the company,
he said that the Indebtedness upon poll
cies is nominaily very heavy. but that
large number of policies are not yet fully
earned, and will be paid their value at
date. To secure absolute fairness in this
matter the Chancery Court has been ap-
piled to. An expert will be appointed to
decide what is due on each policy, and
the assets will then be divided equally
among the claimants.