The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-07-26

the borrower, such as frequently occurs in
the usual course of business Since the
closing of the books for 1888. few addi-
tlOnal items of small amounts have been
discovered to add to this loss. These are
more than offset by sums realized from the
sales of property turned over to the CON-
pany by Moore when his irregularities were
discovered. There are considerable sums
which may yet be realized from this source,
but as they are not yet in hand and may be-
come complicated by litigation and belong
rather to the profits of 1889 than to the YER
itication OF the condition for Dec. 81, 1883, 1t
is unnecessary to cucumber the present re-
port with guess at the amount of the
probable outcome.
A study of the situation made it evident
to the Commissioner that no absolute
cation or of the possibility of similar
state of affairs existing in other localities
could be had short of direct communica-
ton with each borrower. he has there
fore caused to be sent under the super
vision OF the department, circular to each
mOrtgageOr, stating the amount of his loan
and interest due, as found upon the COM
pany's books and papers. Answers have
been returned from most of these, acknowl-
edging the correctness of the statement
As TO those which have not answered, a
second notice is being sent out. asking for
reply. Owing to death, change of ad-
dress. sales of the mOrtgaged property to
third parties, ETC., 1t would be unreaSon-
dDlc W dNdft u IcpiN llOfu WlbnOut
curing longer delay in publishing this
report than the circumstances warrant.
The replies which have been received are
from all sections and kinds OF borrowers,
and may be taken as fair sample OF the
condition of the whole 200 loans; Only
one discrepancy of 500 has appeared there
in. and that relates to the said Joseph A.
Moore. The inquiry will be pushed to a
close, and until all the statements are ack-
nOwledged. Should any further, discrep-
he AiaclnaaA If will he ma6a nnhlip
hereafter.
In this connection it is proper to remark
that the company has adopted such new
methods of handling its loans as are calcu-
lated, in the opinion of the Commissioner,
to render impossible such another episode
in its history as the Moore defalcation. OF
course this requires additional expense. 1t
has been pointed out that had the expense
in the past been incurred which would have
been necessary to have prevented such an
episode the cost up to the present time
would have exceeded the entire Moore loss
and that thepolicy -holdees, from dividend
point of view, have no just complaint
against the management.
If this be true as to the past, still it
would be an unjustifiable risk to assume
that such would always be the case The
convenlences of an examination require
that a certain period, in this case Deem
pose.
CONCLUSION.
The length of time necessarily involved
makes this period somewhat remote from
the date of the report. An examination of
the books since the beginning of the year
does not disclose, however, any material
change in the financial condition of the
company, beyond those incident to the or
binary course of business. The usual divi-
dend of the year has been declared. and the
amount of new insurance done and of poll
cles discontinued does not show that the
unusual excitement of the last six months
| has impaired the confidence of the insuring
| public in the company. or seriously affected
| its affairs.
The examination has been thorough and
| exacting. The Commissioner believes that
| no life insurance company has been sub
| jected to a more exhaustive scrutiny into
| every branch of its affairs.
To accomplish this large force has been
| necessary for over four mouths. and the ex-
| pense has been considerable The Commits
| sioner is gratfied that the results vindicate
the complete sOlvency of the institution.
and the honesty and ability of its manage
| ment. ORSAMUS X. FLYER,
Insurance Commissioner.