The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-24
The COMMITTEE REPORTS BAD
MANAGEMENT AND GREAT
COMPETITION.
DR.. KNOX'S CHEAP CAMPAIGN.
A MAN WITH A. BANK ACCOUNT
FORCES HIS CHILDREN
TO BEG.


Oakland Home Insurance Company held
at Masonic Temple yesterday 1852 shares
of stock were represented, and the follow
ing report of the committee appointed to
investigate the condition of the companys
affairs and to examine the books was read:
OAKLAND, March. 23, 1895.
To the Stockholders of the Oakland Home InSur-
Gnce C0mpdny-GENTLEMEN: Your committee
appointed TO Investigate, examine into and re-
port upon the past condition of the corporation
and the causes leading up TO the sinking of its
capital stock and surplus, especially as TO the
assessment of the stockholders, September,
1898, beg TO submit the following:
Expert S. X. Ballard was promptly engaged,
and his original supplemental reports are here
with attached, as forming part of your COM
mittees findings.
The condition of those books relating to the
operating or underwriting end of the business
compelled your committee TO limit the experts
work to the years 1892 and 1893. We have,
therefore, passed over any investigation or ex-
animation into the corporations management,
except incidentally, and confined ourselves
entirely to the published official statements,
their reliability unreliabilfty, and how far
the management was responsible and justified
in leyying the assessment last september
year ago of $50 per share.
Your committee was confronted at the out
set, as explained to them by their expert, with
the almost insurmountable obstacle that the
most useful and necessary book TO an insur-
Gnce company, viz: the reinsurance reserve
compilation. did not accurately exhibit the
real or actual reserve liability OF the corpora
ton. 1t was ana is, however, easily proven
that the liability has been underestimated.
Quoting from the experts report, No. l, on
page ,, he says:
THE item of liability under reserve for rein
surance on all statements under consideration
I have not figured. ii being impossible from
this item, although comparison OF the figures
given in the several statements would indicate
that those items are incorrect"
The cOmpany's business fell off considerably
during 1Gq3 and the reinsurance
necessarily much less when the company
closed out than at any time during 1898. In
this connection you are referred to the supple
mental report OF the expert as to the extent Oh
this and other underestimate liabilities as
affecting the actual condition of the company,
January l. August and December 81, 1898.
For comparative purpose note the follow
ing taken from the official statements filed
with the Insurance Commissioner:
Reserve January :, 1898 1854 ,O16 %
Reserve August !. 1898 ............... 416331 80
Reserve December3l, 1898 (after dis
charging reinsurance liability OF Chi
cago, amounting 10 S223,OS6 92).-.. 19S,952 81
1t requires very little examination TO justify
the statement OF our expert that these ''items
are incorrect"
In August, 1898, upon the demand of the
California Insurance Commissioner whose al
tention had been called by Montana's official
10 the cancellation of the company's licenses to
transact business in that State, the Oakland
Home filed II statement marked Exhibit CO.
increasing value of real estate S2S, 900.
Upon this showing the Commissioner exacted
an assessment of 500 per share TO make good
the impairment OF S99, 659 81, as a condition
precedent TO tie further prosecution of the
business.
If the statement referred to was reliable and
trustworthy then the assessment of 800, 900
$50 per share) restored intact the capital
stock of 5000, 900 latter providing for all liza
bilities). Now add the two profits made by in
surance contracts: Chicago, 500, I'll 70; head
office $73, 567 04; total, 1929 1913 II; deduct
ing present assets valued at, say SIG 900, and
we have an unexplainable deficit aggrega ting
hat1V Gan shar nd
May, 1894.
There being no evidence of malfeasance in
office, nor any inordinary drain upon the COM
pany Tor excessive current losses, the conclu-
sion can alone be reached that the August,
1898, statement was also incorrect"
Again we direct your attention to the
pert's figures, based upon the January, 1894,
statement. At this time the corporation was
suppos eddy in possession of a fully paid capital
of $500, 900, net surplus of S24 .S54 80, belong
ing to stockholders 1924 1913 80, but the ex-
pert's figures are brought forward 1924, S5S SO;
impairment OF 500, 304 So leaving balance
of 1892 543 40; doubtful assets now on hand,
$4,000, leaving $116, 553 40, matter OF $58
per err share; ;,,,,o - oooo,. g. .,,.o
other hypothesis than that this statement was
''incorrect' also.
Your committee are of the opinion that with
the spread of the company's business over so
wide territory, multiplying its liabilities and
expenses until both became uncomfortable and
prodded by relentless competition, the man
agement have TeSorteG to the lessening of the
binding themselves to its growing expenses, in
order to maintain the standing of the com
pany as one worthy OF public confidence and
business support.
The report was ordered placed on file
and the following directors were chosen
for the ensuing year: V. D. Moody, w. P
Jones, G. J. Shattuck, J. Z. Ruggles, NJ. II.
Eastman, j. S. Emery, John Crellin, r. F.
Crist, +. Delger l.. i. Cromwell and o. H.
Burnham.
An adjournment was then taken to meet
on call.
Money Is Not Required.
In the good old days the man with the
longest sack, or the man who was most
liberal with his wealth. polled the largest
vote on election day. But the ward heeler
is thing of the past and the Australian
ballot system has ruined the business for
vote catchers, and, according to the official
statements of the candidates at the recent
city election as filed with the County
Clerk, the one who spends the least money
polls the heaviest vote.
DIR. Myra Knox, the successful candidate
on many tickets for School Director-at-
large with a vote of 1893, only contributed
81 to the campaign fund, and Charles
Cushing, who was elected Free Library
Trustee with 3674 votes, did not spend one
cent.
Ed Gilligan, the Democratic candidate
will contest the election of William Wat
kinson, managed to use SAT So and his OPP
ponent's majority was just five votes.
He Forced Them to Beg.
Albrecht Smith, blind man, who lives
at 269 Jackson street, was up in the Police
Court yesterday charged with failing to
provide for minor children.
The warrant was issued at the request of
Mrs. S. c. Sanford of the Humane Society,
who said that the blind man had made a
practice of sending his children out to beg
almost from infancy, notwithstanding the
TACT that the old reprobate not only owns
his own home, but has a comfortable bank
account, and could keep his little ones in
school, where they belong.
Mrs Sanford says that she had Smith
arrested at the request of the Hebrew
Benevolent Society, which had made fire.
quent efforts to do something for Smith s
children, but had been prevented by the
father, who was afraid the little ones
would be taken from him, and he would
then be compelled to spend some of his
boarded gold.
Bondsmen Have Been Notified.
Ex-Coroner Henry Evers and O. C. Kirk,
who are on the bond of ex-Clerk of the