Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-07-06
A DEFICIENCY IN ITS ASSETS
Result of an Official Investigation Of the
Commercial Alliance.
The New York Superintendent of In
surance Asks to Have Proceedings
Begun to Wind Up the Company.

There has been much interest here in the
status OF the Commercial Alliance Life In
| surance Company of New York, as that
was the company which bought up the
stock and property Of the Washington Ben
eficial Endowment Association, and into
which 1t WAS proposed to turn the certifi-
cate holders of the Endowment Associa-
| ton. An investigation Of the af-
fairs Of the company has been
made by the insurance department of
the state of New York. and some of the
! results have been made known. The New
| York Journal of Commerce Of yesterday
| says:
An official investigation into the affairs
Of the Commercial Alliance Life Insurance
| Company by the insurance department OF
| the state of New York shows that not only
| has the company used up Its capital stock
| of $4,000. but that in addition its assets
| fall short of its liabilities by the sum of
$40, 1910. Unless funds to cover this i'm
pairment are contributed by noon today the
| deputy superintendent says he will report
| the company to the attorney general as an
| insolvent corporation, requesting him to
| take the usual steps which involve the
| winding up Of the company and the APP
pointment of a receiver. The news will
| arouse considerable interest among life I'M
| derwriters this is one of the regular
| life insurance companies of this state-there
| being only thirteen-and not one of the lit
| tie assessment concerns which figure fire.
| quently in the papers. Its insurance in
force amounts to about sixteen million dol
| lars.
The official letter of Mr. Michael Shannon.
deputy superintendent Of insurance, is as
August %, 1894.
"E. A. Dunhar1. Esq. President Commercial
Alliance Life Insurance Co.:
Ilanr Cd I"t,dn 1of nff Incl ont
a copy Of the report of the examiners of the
| Insurance department appointed to examine
into the condition of your company was sent
you. Upon the strength Of hearing held
| Upon the 10th instant, which was granted
| your company according to statute and upon
| the basis of the report referred to above. it
was made evident that after allowing you
| such assets as you are permit, ed to hold oy
the laws Of this state, and after ascertain
ing your liabilities as required by statute, a
deficiency in your assets was found to exist
amounting to the sum OF TG.llo.N i.
| therefore. call your attention to the fact
! that, unless the deficiency above set forth Is
made good forthwith, l shall report you to
the attorney general as an insolvent cor
poration. Yours very respectfully,
MICHAEL SHANNON,
| First Deputy Superintendent"
| Since August 70 Deputy Superintendent
Shannon has a number of times called upon
the officers of the company for informa-
ton as to whether the money had been put
up They did not make any definite state
ment until Tuesday. when President E. A.
Durham and Controller John /. Holly called
by request upon Mr.. Shannon, who has been
sick at his house for several days, and as
sured him they were ready to make good
the amount required.
The money had not been put in yesterday
afternoon. and the insurance department
| Will not wait longer than noon today.
Inc Oincers OF the company are as fol-
lows: T. A. Durham, president; William H.
Pierce. vice president; John i. Holly, con-
troller; Hobart Cheesman, NJ. D.; A. W.
| Irahord, treasurer; c. H. Bogert, jr actu-
airy. The company's Office formerly was at
NO. 40 broadway, but a few months ago it
moved to the new building of the Postal
Telegraph Company.
The Commercial Alliance Life Insurance
Company commenced business on February
OF $2OO,OOO, as the Commercial Union Lie
| insurance Company. A few years ago IL
absorbed an assessment life insurance con-
Germ. and changed its name TO the Com
| mercial Alliance Life Insurance Company.
! In 1893 John !. Holly. who had been presi-
dent since the company started, resigned,
and controlling interest was sold to Dun
ham d Trafford, Providence, r. l., life
insurance agency firm. E. A. Durham was
then elected president and A. w. Trafford
| treasurer.
The speciality of the Commercial Alliance
mas been the natural premium plan of life
| insurance Its annual statement for the
year ending December 81, 1893. showed total
| invested and other assets Of $36S, lO9 So out
insurance department amounted to $9l,-
2l9.O7, leaving total admitted assets of
$2I6.S9O. 50. The non-admitted assets are
eommuted commissions, agents balances,
] bills receivable and office furniture. 1t has
| been rumored that this statement was incor-
rect. 1t is also stated that the names of
directors who resigned a long time ago
nave appea red since upon life insurance cir
| culars distributed by the company. Efforts
to obtain copy Of the report made by the
examiners were unsuccessful yesterday. At
the office of the company yesterday after
| noon II was stated that the president vice
president and controller were out and thai
no one else would make a statement on be-
half OF the company.
To Apply for Reccivership.
A dispatch from Albany to the New York
Times today says:
Superintendent Of Insurance James F.
| Pierce yesterday reported the Commercial
| Alliance Life Insurance Company of New
| York to the attorney general for him to
begin proceedings to have a receiver ap-
pointed to wind up the affairs Of the COM
pany. This action was taken as the result
of an examination of the company's af-
| fairs.
| 1t was stated yesterday that the COM
pany would have to produce the amount
| demanded by noon, or else 1t would be
reported to the attorney general as an
irsolvent corporation, with request that
an application be made for the appoint
ment of a receiver.
At the offices of the company in the
Pos tai Telegraph building Controller John
/. Holly said. before news had been re-
ceived from Albany, that the company had
been reported to the attorney general; that
the time had been extended by the insur-
ance department, and that the company
had been granted until the end Of the pres
ent week to make up the alleged deficiency.
I'VE don't think that the money should
be demanded at ALL added Mr.. Holly, land
If we went into court on the question of
the appointment of q receiver II is our be-
lief that We could defeat the demands Of
| tie department. But 1t would not be good
policy, and we shall put up the money, all
| of which has been pledged. If We fought
the matter in court our business would be
| ruined before a decision could be had, and
| IL 1t was in our favor. as we think IL would
be, 1t would do US no good. or course the
| dana rtnaent ia acting in perfect good faith