The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1892-02-05

|
first year of its existence. In this way
Messrs. L. c. Vanuxem & Co., have done
for years larger business than the en-
| tire new business of several of the
smaller life insurance companies, and
the largest business of any single agency
| III the United States. 1t has been done
ut not unreasonable expense, and the
cost of its procurement has been in
cluded each year in the disbursements
of the company. The whole theory of
this organization and the pnrp1se of the
advance is first to produce a large bust
ness, and secondly to create an incentive
for the General Agent or Manager to pro-
cure business at the lowest possible cost.
in order that after period of years he
may begin to realize a return common
surate with the work done. As the cost
of the business is charged off each year
it becomes necessary t. keep with the
manager blotter, or sub-lrdgef, and the
items are all brought forward from time
to time. OF course, this, under the H.
| lustratiOn, would show for an office DONG
$50, 900, 600 of new husin, 81 in year, and
for series of years, large app rent
debt, and the Superintendent uf ln>ur-
ance, instead of viewing the business rs
we have done, as simply business paid
for, decided to go into this sub ledger
aud spread before you the apparent debt.
1t is of first Importance that yuu under
stand clearly that this money is not due
from l.. G. VanuXem e Co., in the urdi.
nary acceptance of the word debt" 1t
| is due under the terms of their contract
at such time Us the commissions earned
on the business done will liquidatc the
money advanced from times to time for
| the conduct of the business 1t has not
been Squandered by them, nor retained
10y them. 1t has not benefited them per-
snnally. and never can until, ms stated,
the earnings of theiI business have liuui-
dated all moneys drawn for every pur-
pose under the contract, including ad-
vances and agency expenses of every
| kind. And here let me call Your atten-
ton to an extremely important Tact,
which applies to all discussion of agency
matters by the Superintendent and which
he forgetS to mention, namely, that
these advances in every case were charg-
ed to expenses in the cOmpany's hooks
when the advances were made, and that
the company has never counted them as
part of its assets or surplus. The Super.
intendent, therefore, instead of unearth-
ing with great difficulty something the
| company desired to conceal, as he states,
oCI SlIIlliIu
of what he thought our business ought
to cost in any given year and charged up
as debt the difference between his
opinion and ours. 1t would be scarcely
less unjust to the company had he al
legged in any given year that the aggre-
gate amount paid for the procurement of
the business of that year was one or two
millions too large, and in his report had
set this up as sum due from the men To
whom it was paid. Right here desire
to state, and state it with all due re.
| spect for the opinion of the official with
whose conclusions differ, that in mat
ters of this character, the conclusions
Ol men who have had thirty years ex-
| perience in this business, us to tie pro-
| priety of paying given sum for given
volume of business(they alone being con-
versant with all the surrounding circum-
stances and contingencies), are as likely
tn be correct, and in the interests of
| pOlicy-holders, as the opinion of Il gen
| tleman who, while eminrntly qualified
for the duties of his office, cannot be
crdited with special knowledge IN the
particular interests now under discus
sion.
SPANISH AMERICAN DEPARTMENT.
The Superintendent naturally treats at
SDme length the affairs Of the Spanish
American Department. The invitation
extended to him by our Board of TruS-
tees to examine the condition of this
company was called out, chiefly by an
Incorrect and misleading statement reld-
| tive to an alleged deialcatinn 10y one of
its managers, for which the company, it
was stated, alone must suffer | shall
refer principally in the matters discus
sed by the Superintendent under this
head to this central ana IT, you most i'm
| pOrtant question. 1t is II fac t that Mr.. j.
MerzOacher, one of the managers at that
time of the Spanish meliCan Depart
ment, became dcfauIter for large
amount. The statement, as originally
| published that Mr.. Mcrzbacher default
| cd direct to the company was AN error.
| Under the contract which we had with
the two managers of the Spanish mcIi-
can Department. each became rrsponsi-
| bic iUr the actions of both, and Mr.. San
chez, the other general manager at that
time, and he manager of the Spanish
Anne rican Department at the present
| c,acccpted under the term of his con.
tract, full responsibility for the Mrrz-
OachGr shortage. TuiS shortage consists
OF two parts; IL direct theft by Mr.. Mrrz-
| Dachcr from Mr.. Sanchez of 81 9.S22. ~.
ana Sll9,O 1853 10, which was an uveipay-
| luGnt 10y Mr.. MeTZOichcr to the former
| gen, raj manager OF the Spanish Amer
edn Department. Since the date on which
the accounts were made up and tine
shortage definitely determined, the item
OF Sll9, Oj0. 10 has been considerably re-
duced on the books of the company by
accrued renewal commissions retained
| 10y Mr.. Sanchez and 10y him turned over
10 The company i'll cash. The larger
| pridted for his personal use by Mr. Mrlz-
Udcher, has been reduced since Dee. 3lst,
1890, by $lGG,G7LS9, leaving il balance
due Jan. LIST, 1872, of 500, l5I.03. The
actual net profits for the yval 1891 to this
department have not yet been fully de
| terInined, but its balance sheet shows
! that they will not fall short Of 500, 900.
| THIS leaves the balance due the company
on this account on this date sum but
little in excess of $ljO.OUO, for which the
company also holds abundant security.
The Superintendent closes his review
of the Spanish American Department
with these words: From the foregoing
facts we must conclude that Sanchez and
Merzbacher were treated WITH Il degree
Ol liUerality inconsistent with the best
interests of the company" That cunclu-
sion Is nOtcOrrect. rhe department has
always been eminently successful, and
its business has been Obtained at nor
NAL cost.