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

was Iounu 10 exceed that published by the
company by S7,024.
AS the object of the examination was to
show the exact condition of the company
on Dec. 81, 1893, by all the information OBJ
tainable. either at that date or since. it was
Thought proper to add the sum of S167. 15S to
the llaolli.les on account of deaths oc-
curing in 1888. but upon which proofs were
not received until 1889 by the company.
These, therefore, did not appear in it's
statement tie men The proofs We're practically all
have elapsed since the end of 1888, it is
hardly probable that there can be anything
further to be added to this item.
The item of 1854 1853 for surrendered val
cies in force, over the per cent. valuation
of said policies, likewise does not appear in
the company's reports. The reason is that
| In this class OF policies the company, for its
own private purpose, reserves upon the
basis OF per cent. interest. and the above
| excess disappears within the still greater
reserve wherewith the company charges it
| self In It's own statement.
most thorough and exacting search
| failed to disclose anything fraudulent or
| dishonest in the acts of the officers or
| clerks, or IN the books of the company. The
| rates OF mortality. notwithstanding the
! small amount of new business obtained,
| have been favorable, and show q well-se-
lected body of risks The rate of interest
derived from investments has been over SD
| per cent. upon gross assets, and nearly per
| cent. upon reserves. The expenses of man
agement are among the lowest, and its divi-
dends are among the highest of any COM
pany reporting to this department..
TREATMENT OF THE INSURED.
1t has on hand over $40 for every 800 of
liability. The safety of the company and
the honesty and economy of its manage
ment are beyond question. Fair treatment
of policy-hOlders is characteristic of the
MANAGEMENT. The company pays fair sur
render values, and has charged itself volun-
tarily with $4,000 part of S271, 42S of lii
| bilIties above) on account of policies which
have discontinued, and whose owners
would have lost all right to sur
render by reason of lapse of time,
except Tor resolution of the board
granting them the same privileges which
had been extended to pOlicy-hOlders upon
| policies issued of later date. Hundreds of
| thousands of dollars have been paid out un-
der this resolution, which by strictly stand
| ing upon the terms of the contracts might
| fOrfeitures. Several millions of dollars
| have been used in anticipation of post
norton dividends on note policies, which
the company might have retained, and pa
/ raded as surplus by the terms of its con-
| tracts until they matured. Owing to the
fact that new policies were being issued
| without postponement of dividends. equal
! ity between lnsurants required that they
| should be put upon the same basis as nearly
as possible by paying up their deferred div
! idends.
For the past five years, which was as far
as it was thought necessary TO inquire, only
S41, 1909 has been abated from claims by
reason of compromise out of SIS, 81 ,544 paid.
| This was justified by the terms of the con-
| tracts, and the circumstances of the cases.
This remark will likewise apply to the SS5,
600 of contested cases charged as a liability.
A QUESTION OF POLICY.
The management has been severely crit
cised because large amount of new bust
ness has not been secured because of the
| large amount of real estate carried at q
comparatively low rate of interest, and be-
cause of the defalcation of nearly half a
| million of dollars by its late financial cor
| respondent, Joseph A. Moore, at Indian
| apolis. Upon these points every one will
judge for himself. The Commissioner can
only state the facts as he finds them with
such pertinent observations as seem neces-
! sary to explain them or aid in fair con-
| clusiOn. About 1870 the old note plan.
| upon which the company had obtained all
of its business, was discontinued for the
all-cash method in common with other Con
| necticut companies.
The agency force educated to q different
| system became more or less demOrallzed
and the company lost the Roadway which
| it had attained. Shortly after 1878 CON-
terial and continuing increase in the rates
| of commission paid to agents Many com
panies adopted speculative plans of insur.
ance based upon exaggerated estimates OF
results, and several went abroad for new
| business at greatly augmented cost. Into
this competition the Connecticut Mutual
declined to enter.
1t has. therefore. remained content with
its old agents at it's old rates of commits
sion and standard plans of insurance be-
1ieving that it had acquired sufficient size
to obtain all that was valuable in that re.
spect, and that the interest of it's present
clients would suffer by the other course
While the Commissioner does not pretend
to be an expert in the management of IN
insurance office, these reasons seem to him
to be entitled to great weight. and so long
as the company has substantially held its
own, never having had over S33, 00O. 900 of in
surance at any time upon its books i'm ex
cess of present holdings, it would seem that
until its critics can demonstrate that its
dividends and surplus would have beer
greater as to each insurer by another
course, the charge of error in preferrine
quality to quantity may we'll be considered
not proven.
AS to the real estate held by the company
while. if sold at the present appraisal, and
taxing into consideration the balance OF
profits derived from sales for the past tel
years, there would be q material gain Ovel
the cost price, nevertheless, in view of
the small amount of rents derived
| tueTeITOm since III was dcQulreu, tnt
account will stand at loss. 1t is but
fair, however. to state that the portions OF
this real estate which are responsible fol
this loss were derived from loans, purchase.
and buildings made in the inflated period
prior to 1874. Property acquired by fore
| closure of mortgages made since the end o.
| the depressions, and since 1877, shows
handsome profit over cost and interest.
The mortgages now on hand were largely
made since 1877, and under the present Off
GERS. They exhibit as whole a healthy
condition, from which no fear of a repeti
ton of loss, such as was before experienced
can be reasonably entertained In the event
of another commercial depression. About
twO-thirds of these outstanding mortgages
are upon farm property ut and per cent.
| which seems to have been carefully selected
The interest has been paid promptly an(
foreclosures have been few, and thOs,
bought in by the company have. as whole
shown handsome percentage OF profit OF
subsequent sales. These farm mortgages
are passed upon by a special committee o
the board at weekly meetings and ar,
made through representatives of the com
pany in the several localities, and no
through loan associations.
| THE MOORE AFFAIR.
1t was to one of these representatives OF
financial correspondents, Joseph A. Moore
that the recent defalcatiOn al indianapolis
was owing. Before this examination, ant
included in the business of 1888, the com
pany had marked off from its assets on this
account the sum of S4S3, 44S.0l. of which
$40, 1858. 70 stood for the principal of loan
collected and embezzled by said Moore
| The balance WAS for interest. rents an(
taxes collected and not turned over to tn,