The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-04
WOULD WIND IT UP
RUSSELL II. DORR WANTS TO END
THE LIFE INSURANCE CLEAR
ING COMPANY.
He HAS ISSUED CIRCULARS
SEEKING THE COOPERATION OF
THE OTHER STOCK HOLDERS
TO THAT END.
TWO STATES HAVE INVESTIGATED
The Affairs of the Company as O
Result of MIR. DORIS Circu-
lars.

Examiners Mathews and Comiagore,
of the Ohio and Kentucky insurance
departments, left ST Paul yesterday
for home, having just completed an
Inspection of the Life Insurance Clear
Ing company, of this city, in connect
lon with acting Life Insurance Com
missioner Lightbourn, of this state.
The inspection was a thorough one,
and occupied full week. The company
has recently been admitted to do bust
ness in both states but the inspection,
it now turns out, was the result of GER
tain statements made to the depart
ments of the states named, by Russell
r. Dorr, of this city, himself a heavy
stakeholder in the company under in
vestigation. Mr. Dorr was formerly
the president of the company, but was
ousted from that office at the beginning
of the present fiscal year of the COM
pany, and while it would be of no adj
vantage to him to have the stock of
the company deprecated, he seems
DESTROYS of having its business wound
up and it's risks reinsured in some other
company. BY having it denied the right
to solicit business in other states, it
seems, he thinks he can induce the
mana cement to relent in its present
up hill fight, and consent to the wind
ing up of the affairs of the company.
The company was the second of the
kind in America, to enter it's unique
field, the taking of what are known
as under average risks. One COM
pany previously made those a special
ty and since the organization of the
St Paul company the New York Life
Insurance company has engaged in
the taking of these risks as a side is
sue. Up to Jan. 1, Russell Dorr was
president and general manager of the
company. He retained the second title
until May 18th.
Since his retirement, Mr.. Dorr has
issued two circulars to the stock
holders of the company in which he
has advised that the company might
make more money by reinsuring it's
risks with some other company, which
would pay it a premium on the bust
ness, than 1t is now making, for the
company, being a new one, has just
about reached that stage where the
business is beginning to pay for the
expenses of promoting the concern.
Mr.. Dorr does not charge that the COM
pany is unsound, or that there Is any
danger of its becoming So but is urg-
ing that it would be better for the i'm
to thus reinsure their risks and wind
up the business of the present concern
This the present management opposes.
The inspection made by the officials
of three states, was as stated, a
thorough one, and showed what in the
case of fire insurance company would
be esteemed an impairment of the
capital stock. That is to say the income
of the company thus far has not been
equivlent to its heavy expenses, which
are naturally heavier during the earl
Ter years of a company, when business
is being pushed. Under the law of this
state, however. the capital stock of a
life insurance company is not charged
up as a liability and the company,
therefore, appears with a surplus to
its credit. Mr.. Lightbourn stated yes
terday that he was of the opinion that
the laws of both Ohio and Kentucky
were the same as to the treatment of
capital stock as those of Minnesota,
but even if they were not the impair
ment of the capital stock of the con-
Germ was very slight. He could not say
how much from memory, but it was a
minor amount.