The Providence news. (Providence [R.I.]) 1891-1906, 1894-11-05
Columbia Mutual Life Assurance Co.'s interesting His
tory and Condition
pecun M Some Husnu Young Gore Wreck Owing to the
wrona Kind Of HuseTHE NEWS Gave First Warning to the Public
Comprehensive Of the Career Of Edyng Enterprise

lowed The bia, then the Commercial
Alliance swallowed him--or, rather, be
swallowed the Commercial Alliance too.
Altogo her 1910 shares of Commercial
Alliance were bought, Dunham taking
1902 O them and four other persons the
bslanc The trans fers seem TO have been
accom- iSheolloosciy.
Then the business which the Columbia
had h. sled together was transferred 10
the Commercial Alliance, all the formers
policies except two being repisced by
policies In the latter concern. During ts
career OF little over year, the Columbia
had written 1884 policies amounting TO
nearly " 900 coo.
So the rich and elegant outfit Of the
home" life insurance concern was
shipped to New York along with Presi-
dent Dunhan who now became president
OF the Commercial Alliance and the new
headquarters were opened in great style At
203 Broad way.
A small Office was maintained in Butler
Exchange, but President Dunham and
all the elegance were esta blished in New
York City.
The First Warning.
TIE NEWS of May /, last, published in
it's Insurance Department the following;
The Columbia Life Insurance Go.
The Columbia Life Insurance Compsny of PrOvi-
denee r. H. whose risks, afier a short career have
bee n transferrel 70 the Commere ial Alliance LIE
ln.urance Conpsnv Of New Yore hss not gra,ihed
the expectations on Rhode Leland people who we're
aduccdlto subscribe 20 stock 10 tire vepturs In the
belief thst would be developed INTO local ihsii
The Columbia WAS started IN September. 1892
with a capital stock OF sl1O,0s by firm OF LIFE In
snranoe-Du Dunham, TraGord & co.-censistlng of
H. A. Durham, n. L Traford aud @. A Trsnord
The two TTa1ords were made president and secre-
tary respectively, and y. A, Dunhnm, who was the
master hand In the yenture. accepted the vice.
presidency.
one OF tks first uses made of the stoetholdsrs'
subscriptions was the expenditure OF 10000 fer the
purchase OF = controlling interest In the CONNER
ciai Alliance Life Insurance. Company, who.e sHsirs
~ that time we're in declining condition y. A..
Durham thea took the presidency, ana by aseries
~ po.ios Of 20 nsovssey n towsrd h.
stock holders. His success has as yet been but
partial fhe eompsny's caritAi stock cf s.oo,ocs Is
az present reduced by impairment 10 s25 90
In the meantime the coiumpis Life, after a short
struggle tor eIstenee and with the arsest portion
OF 80 assets consisting Of heavily impaired stock
In the Commercial Alliance, has given UP the
ghost and rspcsss in the arms Of tho concern which
the Columbis intended TO absorb. The stock Of
the Co umba Is now worth almost nothing
f51ss s9q sg 9T % M Tn 81
income during 1893 amounted 10 sS7,eeo, snd the
on account Of salarIe, alone. rhe compsny paid
the Commercial Alliance t25,iio for assuming its
IL l. TraHord has been made vice. president OF
the Commercial Alliance and A. w Tranord treas
urer.
This report created an immense sensa-
tion throughout Rhode Island. Copies OF
the issne OF The News, in which ~ APP
peared sold out entirely during two or
three days following its publication.
Policy holders visited THE NEws Office
and demanded further facts. Excited
friends OF the Columbia Assurance Com
pany d@nounccs the statement as q
libslou leland incidentally denounced
TUE NEWS Tor publishing IT. NoEe or
4 he ~ n axru ut,a roi ia
to the matter &C that time.
On June 80, two months later, the fol-
lowing suggestive paragraph also appesred
in the Insurance Department Of THE
NEWS:
The Commercial Alliance Life.
The official reports of the investigation OF the
Commercial Alliance Life Insurance Company will
be out in . few Gays. The company is consider
abb i'm paired and he superintsndent IL is under
stood, has required that additional funds be con-
tribuied 10 the assets this week.
The BombshcI.
THE NEWS is not a sensational news
paper. The information il offered six
months ago, before any other newspaper,
touched the matter, was but a suggestion
OF what has now developed and become
common newspaper property. The exam
ination referred TO in the Immediately
foregoing paragraph was begun In May
under authority of James T.. Pierce,
superintendent OF insurance for the
state of New York, and contem-
plated, ct that time, simply the
verification of the annual statement OF
the Commercial Alliance made TO the in
surance department OF New York for the
year ending December 81, 1898. The ex-
aininers, however, learned so much that
was interesting that they pursued their
investigation down TO and including June
so, 1894, the date OF the publication of
-. ..tN 49, - - -
in THE NEWS. The report was made to
the superintendent of insurance August Z,
and Then hearing Was huu upon ne re-
port and further additions made to il
under date OF September IL. Ths teport
In full was not made public until lart
week, and at about the same time the
Commercial Alliance was declared insoI-
vent and placed in the hands of receiver.
The report was startling.
IL showed the Commercial Alliance, ,since
President Dunham took hold OF it, was n
wreck and that it had carried down with
IL:
The Maine and New Brunswick.
The Total Abstinence, Chicago.
The Columbia Mutual.
The Washington Beneficial Endow-
msnt.
Untruthful Statements Charged.
And now, TO cap the climax, IL appears
lhhb Nut bllh OI lnt OOulfneTClhl AllfAnCe
were in a lar worse condition than the
Attorney General OF New York imagin cd
when he asked Judge Barrett, of the Su-
preme Cour., TO appoint receiver TO wind
up the business.
The officers OF the company cmphatically
opposed the application for a reccivership
on the ground that the corporation was
solvent. They obtained several adjourn
ments on the ground that money would
be- advanced TO make up the alleged inn
paTmsnt Of the capital, though they
Woulo not admit that there was any actual
shortage. William II. Willis was finally
appointed rtceiver fcv days ago. He
immediately heKan an Investigation,
which convinced him that the sworn
statement made about the company's
condition hsd been false, and that the
Commercial Alliance wss wreck and It's
assets were hardly sufficient to pay the
costs OF the rscsivsrssip.
Dir. Willis did not feel able To undsr-
taks the vast amount OF work that il
would require 10 ttraig hten out the
tangled accounts, aud so his attorney,
Henry y. Holchkiss, on SATURDAY last
asked Judge Barrctl TO relieve him and TO
appoint some Que else ia his stead Air.
~. i'll Il