The morning call., 1893-07-21
The Home Benefit Life Is
Solvent.
ITS LICENSE NOT REVOKED.
For Protection of Members the Asso-
ciation Will Be Merged Into a
New York Organization.

-
management of the association has been
honest; that the books have been kept in
Il clear. busnessllke manner. and that he
can find no evidence that any Of the
funds have been misappr opriated or inn
properly applied.
The Commissioner fully approves Of the
contract that has been entered into with
the Mutual Benefit Life Association of
New York, under the terms of which the
mem bership Of the Home Benefit Associa-
tion will be transferred to the frst-named
association.
1t is believed that the merging OF the
two associations will preve very advanta-
geous to the members of the local asSocia-
tion and furnish adequate protection TO all.
Commissioner Wilson declines to revoke
the license of the association and has sub
mitted the following statement In support
Of his action:
OFFICE OF INSURANCE COMMISSIONER, |
SAN FRANCISCO. July 20, 1893.
In the matter of the examination OF The Home
Benefit Life Association.
notice having been filed in this Office on
June 80, 1898. by Arnold Stahl, Jacob Salz
and Nathan Meyer. in which they state nnd.r
oath that they believe The Home Benefit Life
Association 10 be :nsOlvent, l have made
thorough and painstakng examination of the
affairs OF the company with the view OF deer-
mining whether OF UOL IL is my uuiy dS luSuI-
ance Commissioners TO revoke the license OF the
aforesaid company ta do business In this state.
The only capital which Keeps all companies
of this class alive is the good will OF It's men,
bers. or. in other words, the Willingness and
ability of The members to pay the assessments
Which from time 10 time In the due course OF
business may be levied. The Home Ben.
eft Life Association has membership OF about
1900 persons ana the number of policies in
force aggrr gate So, $40, 500. Should two OF
three of these members die leaving claims
against this company say OF $4,000, and the
surviving members should refuse for whatever
reasons TO pay the assessments levied 10 meet
these death claims then the company might be
said to be insOlvent. -
The main questions which hav6Veen called
upon to determine are:
First-What class OF people with reference tc
their probable willingness and apparent ability
to pay assessments hold policies OF life inSur-
ance in this association? And has great care
been used in admitting none but those IN good
health TO membership?
est, and have the funds been properly applied
1hrd-Is the company, by preserving The
good will OF It's policy-holders and acquiring
other desirable members, able, in the due and
ordinary course of business, to pay the claims
which are now outstanding and are liable to be
presented against 1t In the future?
After careful perusa of The list OF policy
holders I think can safely say that the men,
bership OF the association is taken from the
better class OF our citizens. Many OF the mem.
bers can be found among our best-knOwn and
they are not of the class to be easily frightened
by any sudden furry, but would be- willing to
respond TO their assessments as long as they
have confidence In the Integrity and capabIlty
OF The managers OF the company. The exam
nations as TO The health of the applicants for
membership seem to be made with great care
and are as thorough and rigorous as in most
life companies.
Since January l, 1898, the association has
written 123 new policies, aggregating an In.
suraDce OF S269.O00. During that time 316
koU ttASr ShoIr n1lAin l,r1c
non.payment OF assessments. Among these are
Nathan Meyer and Arnold Stahl, two OF The
gentlemen who charge that the company is in
solvent. Strange as 1t may appear, one OF these
gentlemen, Mr.. Stahl, since the beginning of
this investigation. has applied In writing TO The
company for reinstatement. That 4 business
man who takes oath that a certain association
is insolvent should, at the same time. wish TO
become member In good standing Of that as
sociatlon causes me some surprise.
am perfectly satisfied that the management
honest. The books OF the association are kept
in a clear, businesslike manner up TO date aud
ii requires but short time to ascertain from
the books the exact status OF the company.
find that on July l5, 1893, the absolute as
sets OF the association amounted to $3S, ,4O3 81.
from which l have DEDUCTED the sum of
S954O 81, the same being unsecured agents
accounts and depreciation In values. This
leaves total OF net or invested assets of $685.
S63 "a The absolute liabilities amount to
S6So4 80. leaving balance OF net asseis OF
including assessments called and not yet due
and estimated assessments not yet called for
amount 10 S104,05S go. Allowing $4,000 for
cost of collection the contingent mortuary
assets amount to S1O0,O5S 60. The cOntin-
gent mortuary liabilities were at the same date
S9O250 making the surplus OF contingent
assets S9,908 go. BY these figures 1t Will be
seen that the total assets on July Is. 1898
wele S12s,921 "a, while The total liabilities
were S97. .054 80. leaving total surplus upon
said date Of S31. 1866 S5. OF course, as l said
hofor ha W do
pend entirely upon the payment by its men,
bers, of the assessments already called and to
be called. but 1t is not likely that the company
will collect all of its sO.called contingent NOR
tuary assets, because some Of its members
probably Will neglect to pay their assessments.
The question will then arise whether the COM
more new members than 1t loses. 1t will be
noticed by this report that during the past six
months the company lost BIG members, while IL
issued but 123 new policies.
The de III claims which make up the mortu-
ary liability number tweny-six. OF these, eight
claims, amounting to $34, $50, are resisted by
there are always two sides 10 legal controver.
sizes. and one story Is good generally until the
other is told, but II the facts which the company
presents in each OF these eight claims can be
substant1ated by legal testimony in the courts
the claims ought to be resisted, and the man
agement OF tue association would be neglectfu
OF its duty to the policy-hoiders II 1t did not
resist them. In six other claims OF the twenty
amounting to $22, 900. no proofs Of death have
yet been I'll d. and of course no action can be
taken on them until The proofs ale filed, and
the claims will not be due and payable until
ninety days thereafter. Three other claims,
amounting to $500, have been adjusted, but
are not yet due, ana the remaining nine claims
for $50, 600 are in process OF adjustment. OF
assessments called and due but yet not delin-
Quent there are S26,014 65. There Is cash In
bank STAG 40, cash on deposit with State
Treasurer $1,000, cash In sinking fund $780,
bills receivable S9016 O3. the same being In
most part promissOry notes from members and
nearly all convertible into cash. There are 5000
worth OF real estate and agents ledger
balaces amounting to $13,62S 13. some OF
which at least ought to be good. During the
past SIX months this company has collected In
assessments S53, ,689 70 ana has paid In death
losses and claims S19,750 and has paid various
banks on account Of loans SIG. 40 4S. The
balance of the sums collected, or the most part
thereof, has gone for running expenses. l can
certainly find no evidence that any OF the funds
of 1.-The association have been misappropriated
or not properly applied by the officers and
dire ctors TO the legitimate uses OF the company.
yet in my judgment the running expenses Of ,he
company nave been altOg ther too high. Ii
seems TO me that out OF collections amounting
10 over $4,000 some Steps should have been
er.-Latest u. S. Govt Report.