The San Francisco call., 1897-03-21
End of an Insurance Tangle
Has Been Nearly
Reached.
The Assistant Secretary, Who
Has Been in Charge, Makes
a Report.
After Toiling Twenty.Eight Months
He Has Almost Brought About
a Final Settlement.

The affairs of the defunct Oakland
Home Insurance Company, which in 1894
went into the hands of the assistant secre-
] tary OF the company, Oscar +. Sites, for
liquidation, have practically been wound
up. At 4 meeting of the board OF direct
ors, which was held yesterday, a report
was submitted which shows to the very
large number OF persons in Oakland and
San Francisco who were concerned in the
operation of the company much that is of
interest.
This report was submitted by Mr.. Sites
1t appears therefrom that on Septem Der
/, 1894, when report was furnished by r.
B. S. York, the books of the company
showed an apparent excess OF assets above
liabilities of $l4 600 or more. But" says
Mr.. Sites in his report just submitted, "a
most critical and exhaustive analysis dis
closed the fact that large amount OF
dead and worthless matter had been
fiaured among the assets, and, from in
sufficient data, the stated liabilities proved
to be incorrect also.
"In other words items Of commissions,
cancellations. etc., with which sundry
! agencies should have been credited, and
The amount OF hopelessly bad accounts
reduced the assets by $44, All "a, while the
Liabilities were swelled by unreported
loss's and other claims, in amount
S4465 10. This left an Indebtedness of
$l43, ,o0398 with assets of only sos, AL 4S
10 pay il. 2 deficit of $34, ,556 30 10 contend
| with, instead of surplus"
|: Tnls was not all, for there were forty
7 seven lawsuits over contested losses and a
large percentage OF assets and liabilities
also was scattered through nineteen
! States. During the past eighteen months
seven suits have been brought against
| stockholders under the individual liabil-
ity law. all of which have been disposed of.
| During twenty-eight months, the period
| in which Mr.. Sites has been winding up
the affairs of the company, cash has been
received TO the total of $120. 1856 80. The
disbursements during the same period
have amounted to $12o,251 76, the largest
two items being bills payable, $S1, ,s01 40,
and losses, $17, 1865 OF. This left balance
On hand January l, 1897. of just S44 IA.
! Zone great hardship to contend with, /"
reported Mr.. Sites, "in the settlement OF
the company's business was the manifest
carelessness with which many of the i'm
portant accounts had been handled
through the books of both the Western
department ID the home Office. 1t was
/ a most dlhIcuit matter to substantiate
some of our Claims and many vaiua bic
items had tecofne lost and sunk out OF
sight through gross n egligence.'
The following facts in the statement
give clear idea 10 all concerned of the ex-
act situation of the affairs of the corpora
ton January l, 1897, since when there
has been no material change. The liza.
blllties January l, 1897 amounted TO
$7609 SO, and TO meet these there were the
following items: Cash on hand, $44 IA;
premium notes. $2076 IL; warrants, $3I
bills receivable, SHY 5S; equity in real
estate, making total of $5333 40. OF the
liabilities Mr.. Sites reported that $153S 0s
are good valid claims. The balance is
composed largely OF losses still in itiga-
tion, and is an uncertain factor that may
be largely II not wholly left out.
There is one interesting fact connect
&c with the settlement of the company S
affairs which was not mentioned in the
assistant secretary's statement, but which
is mentioned by one of the directors This
is that Mr.. Sites has drawn from the cash
received only $2470 while he was entitled
to $500. There has been saved in actual
cash by the action of the assistant secre.
tary enough to more than pay every dol
lar OF expense excepting interest and
taxes, and enough TO pay $1,000 on account
of the last two items also. The actual to-
tai saving TO the company amounts to
$41,732 81.
There is an indebtedness of $12, ,294 30,
which is secured by hypothecations of real
estate not IL the name of tue company
and consequently these amounts were
deducted from both the assets and the liza
bilities In making up the statement.