The San Francisco call., 1895-11-17
INSURANCE.
company's counsel, with corps of assist
ants. and no charge is made except actual
Disbursements and fee of local coIuseI

company's counsel, with corps of assist
ants. and no charge is made except actual
disbursements and fee of local counsel.
Attorney-General Mylrea has examined
into the system and reports that it is COM
prehensive and complete, and that extra
ordinary care is exercised in protecting
the interests of the company in the grant
ing of loans. The Attorney General has
also examined the abstracts of such cases
as were involved, under foreclosure, in
default of interest, or loans made to
trustees, employees or connections of the
company and finds the papers complete
and without flaw.
The expense entailed by this system is
comparatively small on each loan placed,
and together with any loss through pur-
chase by the company on foreclosures and
subsequent sales gives slight loss 20 be
deducted from the gross 5 6-10 per cent in
terest earned, as the extra cost of hand
ling. This leaves a margin of nearly q
million dollars which would have to be i'm
paired before any deduction could Justly
be made from this item.
AS all payments OF interest or principal
are made direct to the home office and not
through loan agents it was deemed un-
necessary to communicate with each bor-
rover as to the amount OF his outstanding
loan; the same beng sufficiently checked
by the papers and receipts of interest.
Loans on policies and premium notes
we're checked by the notes themselves and
with the Wisconsin valuation registers, to
ascertain if the policies upon which they
are a lien were in force and able to sus-
tain the loans. These items were found to
agree with the company's books and state
ments.
The item of premiums in course of COL
lection and deferred was treated in like
manner, resulting in slight difference
only from the company's figures.
The bonds owned were counted by the
commissioners and found to be on hand
with the exception of those deposited with
the Insurance departments of Wisconsin,
Virginia and Canada, for which satisfac-
tory certificates were furnished. The pre-
MUM for market value over par allowed
$51, ,451 SO less than the company's state
ment.
Cash in office and in banks, as shown by
the books, was found to be correct.
The company's statement deducted $18,-
167 81, mostly agents credit balances,
from cash in office, which has been cor
rected above by carrying the same into
liabilities.
One-half of the agents debit balances
was found to be good by payment since
Decem Der 81, and otherwise, and has been
allowed.
The total assets found on examination
do not materially differ from the amount
claimed by the company at the same date.
Liabilities.
The valuation registers of the Massa-
chusetts department., being computed on a
per cent basis, were used for ascertainlng
the necessary reserves to be held Oh
policies and annuities. These were first
checked by comparison with the COM
pany's registers and discrepancies inquired
into and corrected. A further check was
made by comparison of policies reported
as loaned upon or having premiums in
course of collection or deferred. Inquiry
was likewise made into those policies
marked off the registers of the Wisconsin
department by lapse. surrender, death or
maturity, to ascertain if justifiably can
celed.
The final valuation is in excess of that
$144, ,361. 1t was discovered that there had
been Cancelled certain ten-payment life
policies whose owners had ceased paying
premiums and interest on notes. These
policies contain clauses giving paid-up in
surance Oh lapse for as many tenth parts
of original insurance as there had been
"com plete" annual premiums paid, but
the notes declare the policy forfeited in
case interest should not be paid thereon.
We are pleased to note the prompt ac-
tlon OF your executive committee in pass
ing resolution reinstating the insurance
on this class of policies as soon as your
attention was called to this matter.
1t was likewise found necessary to in
crease the special reserve on certain other
policies guaranteeing surrender values in
excess of ordinary reserves, from the sum
of $4,000 charged by the company to
$l2S, 1888, and to charge for guarantees in
excess OF per cent actuary reserve on GER
tain Tontine policies the sum of $22,312.
A deduction was made of $63, 3,514 81 from
the amount with which the company
charged itself for death claims outstanding
on account of error and because after care
December 81, 1894.
sTS.