New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-23

and show well-selected body Of risks. The rare Oh
interest derived from investments has been over Ia
per cent upon gross assets and nearly
per cent upon reserves. The expenses Of manage
ment are among the lowest, and its dividends are
among the highest OF ANY company reporting 10 thiS
department.
TREATMENT OF THE INSURED.
II has on hand over s11O for every 300 OF liability.
The safety of the company and the honesty anu
economy OF its management are beyond quesuon.
Fair treatment of policy holders Is char%terse" vi
the management The company pays fair surrender
values and has charged itself voluni ariy with Sl4oo42
mart Of So7I 4os of Liabilities above) on account OF
policies which have discontinued and whose o"n"rs
would have lost all right TO surrender by reason vi
lapse of time, except for a RESOLUTION OF tno posru
granting them the same privileges when hSu oeei
extended TO policy holders upon policies issued Oh
It, date Hundreds of thousands of dollays have
hoo, maid ont under this resolution which by strictly
aandng upon the terms OF the contracts might legally
have been covered into profits from foreitures ocV-
cral millions of dollars have been used in anticipation
NJ most mortem dividends on note policies "hIch mo
company might have retained and paraded as surplus
by the terms Of its contracts until they mat"icu.
Owing to tho fact that policies were being issued
without postponement OF dividends, equality between
ins,lrants required that they should be put upon tne
same basis as nearly possible by paying up their
deferred dividends.
For the past years, which was as far as IL was
thought necessary inquire only $41 100 80 has pse
abated from claims by reason of compromise out OF
s1a371 .544 paid This was justified by tho terms
Of the contracts the circumstances of the cases
This remark will likewise apply TO the $4,000 OF
contested cases charged as a liability.
A QUESTION OF POLICY.
Tho management has been severely criticised be-
cause a largo amount OF new business has not been
secured because of the large amount Of real estate
carried at a comparatively low rate Of interest ana
because Of the defacaon Of nearly half hiloh
n dollars by It's late financial correspondent, Joseph
A. Moore at indianapolis. Upon these points every
one will Judge for himself. Tho commissioner can
only state the facts as he finds them with such
uertlncnt observations seem necessary to explain
them or aid in a fair conclusion About 1870 the od
note plan upon which the company hah oD'aInea an
nf its business. was discontinued for the all cash
method In common with other Connecticut companies
The agency force educated 10 diherent system
became more or less demOrallzed and the company
lost the Roadway which 1t had attained shotuy allT
1873 competition between companies causei i
and continuing in the rates OF commission pau
to agents Many companies adopted specuiase p Sus
OF insurance based upon eXdggeralou csl Va
and several went abroad for new Business az srs1b
augmented cost. Into this competition inc Noi'
meet cut Mutual declined to enter. ~, a.. ~,
II has therefore, remained content with It's Ola
agents at its old rates OF commission anu sn,nIssdd
Sufficient size obtain all that was valuable III IIat
respect and that the Interest OF It's Pvsen Tho com
missioner does not pretend 10 DO an expert I'D me
management of insurance office these reasons see
| IN, I'm
~ thn companv has substantially held It's own, never
Soinc had over 1873 600 600 of Insurance at any time
UPON i 10 unff it, critics can demonstrate that its
dividends and surplus would have Deei sNd'ef a.
each insurer by another course, the chars1 vi eOr
i'm prefeIring quality to quantity may we'll 10 oo"-
sidercl not proven -, -, A.. .,r,norv urbile
AS 10 '1 I Dresent appraisal and taking into con
deration the balance of profits derived from SAFES IG
the past ten years uneT SH' in view Of the small
amount of rents derived therefrom since IL was a.
qured the account will stand at loss Is r Sa
fair however, to state that the portions Vi r do
estate which are responsible for THIS loss VIZ ~
rived from loans. purchase and ouldlngS IaJ NV nv
forcosrI,, of mortgages made since the end OF tae
deIressOns and since 1871 SHOWS n"hN' E
The now hand largely made since
1877 and under the present oincers. hn1S en- az
rcn"tition Of loss such as before experienced
car be reasonably entertained In the event or az w
these outstanding mortgages upon farm properly at
6 and per cent which seems TO nave Deen ad
seIected The interest has been paid promptly ana
recosres have been few and those bought In by the
company have whole shown hannsomo - -
centage of profit subsequent sales These Iarn ~
the board weekly meetings and are nseD loca
representatives OF the company IN uhe So'oA"i i"
ties and not through loan associations
THE MOORE AFFAIR.
II was TO one of these representatives or financial
correspoudents Joseph A. Moore, that the recent
defalcation at Indianapolis was owing. Before tnlS
examination and included In the business OF 1888. inc
company had marked of from It's assets Oh t'ls ao
count the sum Of S4s3,448 OF, of which S44o''o' ..
stood for the principal OF loans collected ana eoeheu
By said Moore The balance was for interest rehts
and taxes collected and not turned over to the COM
many one Of tho remarkable pocullarities OF these
transactions the singular confluence usPlaycu
bv those paving of loans in not demanding either
the return of their notes release ID recoru loin
their mortg gage obligations. ,,-. roo.bod
Tho n
knowing that the loans wcre lquidated anu Iel1 no
evidences Of Indebtedness still in the company's pos
session at Hartford 1t has been the custom OF the
company for many years 10 require bonds OF us sov
examine the books and accounts annualy at Ihels
agencies. There being no contracts between thes NJ,
financial correspondents and INC company, snr Who
used them a mere convenience IN uan , 1i
payments to be made at Hartford only, and these
correspondents having business relations win othes
beside Itself tho company dlu NOT tos oh ,neoection
If relied upon the possession of the evidences Of
Indebtedness and receipts Of interest (Which IN these
cases Moore paid from his own pocket as PROOF that
! amounts tahon were partly from current collections
and partly from overdue interest, which, the company
was led 10 believe bv Moore had not been collected
on account of some temporary embarrassment of the
borrower such as frequently occurs IN the usuai course
OF business. Since the closing OF the books for 1881
few additional items of small amounts have been dis
covered o add IN this loss These are more than offset
by sums realized from the sales OF property turned
Were discovered. There are considerable sums which
may vet be realized from this SOURCE but they are
| rot vet in hand and NAV become complicated by
litigation and belong rather to the profits Of 1880 than
r. the yerlfcaion of The condition for December 81
1883 il Is unnecessary to cucumber the present
mort with guess at the amount of the probable out
come.
commssi that absolute knowledge Of the llma-
tons Of this defalcaton, or of the possibility Of
| similar state OF affairs existing I'm other localities
could had short Of direct communication with each
borrower Tie has therefore caused to be sent. under
! he department. circular
mortgagor. stating the amount Of his loan and IN
terest duo. found upon the cOmpany's books and
| papers Answers have been returned from most Of
these acknowledging tho correctness OF the statement
As 10 those which have not answered, second notice
is being sent out asking for a reply. Owing 10 death
change OF address sales OF the mOrtgagcd property
third parties etc, II would he unreasonable to await
rnrlr f..,1n oil a Ion delaV