The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-04
TURNS on THE Light
Continued from First pnre.

HHB
Nebraska on the Altschuler claim, which
WAS appealed by the company, OF $500. In
addition to the above. there are suits pend
Ing on the Murphy and 0'Neill claims, under
policies of the face amounts respectively OF
KlD,000 and $1,000. The net amount of these
plains. according to the company's computa-
klleged reinstatement of age, would be
lbs, 1855. These deaths occurred prior to
pap l, 1897, making the total unpaid claims
lor Dec. 81. 1885, $20993.12; whereas, the
Hatement reports unpaid losses and claims
pf every character only s., 95592 1t is i'm
possible to find justification even excuse
n sworn statement.
4 There was also omitted from liabilities in
Mhe last annual statement of the company
Wtem of $247.97 accrued for printing and sta
sIonery, which amount paid Jan. g 1897.
The real estate reported in the annual state
Hnent, as acquired during 1896 and included
Rt valuation of 5000, was acquired by
foreclosure of a mortgage and bought in at
ESOO, While the cost value was given in the
Ehs date by reliable real estate expert
kSlaceS its value at $780, The amount of
B4f50 has therefore been deducted from ledger
Iassets account of this item. The value
Originally made in 1882, was $l2, 500 and SO
farried upon the company's books.
\ The profit and loss item of So, $50, included
IN the above schedule of disbursements. rep
Presents the debit balance of / G. Fouse's
account with the company, ": en-. by this
Nhe books and records. said amount is an
Rpparept balance due on $1,000 of stock is
Nued to Mr.. Fouse Dec. 81. 1892 The records
TIC the company show that this amount of
Htock was to be paid for through his services
us consulting actuary. during the period of his
life. 1t is clearly evident that in the liquida-
Nton pf this charge such an amount should
thave Nnnually been passed to his credit as
tthe nui4ber of years covering his expectancy
ipf life would bear to the whole amount due.
ut is plain to be seen that the credits en-
Eered on the account were not based upon the
flboye calculation. There can be no other con-
Illusion from the records, but that the balance
Mus transferred is still due the company.
Hfr. Fouse, however, very positively asserts
~ Nat through his services as consulting act
quarry the company has practically received
fragment in full for this particular stock;
lthat it was not the agreement or contract
Ehat he should serve in such capacity during
ihis entire life. 1t may be that if the matter
fwere adjudicated, the court would adopt the
kview that the company received payment for
The stock by the agreement OF Mr. Fouse to
1serve as consulting actuary during the period
of his life and that upon failure by Fouse
ITO carry out his part of the agreement. he
would be liable to an action for damages.
/ On Nov. 25 1896, the records Ehow that
ithere transferred to A. NJ. DI Bord by
tMr. Fouse his entire stockholdirtg in the
company. amounting to ST. 422.O6. Which in
.cludes the $1,000 in question. 1t is, therefore,
apparent that in tie Fouse transaction the
company has suffered a loss of at least So, $50.
:, In this connection It seems proper to re-
lmark upon what would be termed fictitious
Stockholders. According to the stock book,
Ia. NJ. Du Bord holds aver one-ffth of the
inquiry as to the financial responsibility of
lSaid property, information was elected to the
Feffect that said Du Bord is lady steno-
tnsrapher in the employment of the Northern
Exchange bank. AS are directly advised
kby Mr.. Fouse that the negotiations for the
Y prchase of his stock were wholly made with
H-,ir. Scott it Is doubtless unnecessary to add
THAT she (Du Bord) did not pay for the same.
EiSurely it cannot be considered otherwise than
detrimental to the interests of the policy
bholders of this company, that such a large
percentage Of its capital stock should be
theld in the name OF party with no financial
lstanding or responsibility. Further comment.
Sas regards the motive of the party response
ible for this transaction, is also unnecessary.
1 HOW FUNDS WERE DEPLETED.
~ The funds or resources of the company
Nbave been actually depleted in small
mortgage securities, he'd collateral
bcompany's stock. There have been several
Ifuch foreclosures. the property being bid
I'm by the management Of the company at
" mere nominal price, which but partially
| lquilated the amount Of the principal due.
\ he company's lien, against the entire stock
holdings OF the parties giving the mortgage,
twas thereupon duly enforced. thus practical
| working its confscation to the company;
SsTficient TO cover at least the amount of
floss thus sustained, its assets CORES
Rondingly reduced.
4 AS the result of a thorough and careful
sshspection Of the company's real estate Sc
hcurities and holdings. in which our depart
yments were assisted by thoroughly competent
Lreal estate experts. considerable reduction
MAS been made in the ledger assets. The
Total reductions amount to $1l,340. While this
Pmay possibly appear excessive, still the fact
THAT in all instances where there have been
q foreclosures. the company has bid in the
Eproperty at a mere nominal figure. would
indicate that the properties have not in any
Ehegree been undervalued. The reductions
HeOVer the difference between net amount of
1.-THE loan and the actual appraised valuation
bSf the securities, and cover the following
Properties:
X Fifty-o4e lots in Koch & Kurt's addition
10 West st. Paul, Dakota county. Net
mount loan, $1,000 appraised at $1,000; re-
Certain fractional parts of lots IS. 10 and
20. block 5, College place. west division.
Net amount loan $500; appraised at $50; re-
s1uction $3.50
4 Block 3 and lots 10 to- 16 inclusive. of block
dakota county. Net amount loan. $3.50;
appraised at s 200; reduction. $1,000.
Mng DORIS Inver Grove addition, comprising
Iabout thirty acres. Net amount loan, ST.
l4GO; appraised at $500; reduction. $500. In
%Iprocess of foreclosure.
Blocks !, 2 Z. and 8, Round Lake, Ramsey
lhmount loan 81. 800; reduction, 81, 700. In pro-
hess of foreclosure.
Lot u, block 3, Potts addition. Ramsey
$500; reduction. $3.50 Foreciosed and now
owned by company.
L South 100 feet Of block 3D." divers ad-
ieiition to West st. Paul. except the west 146
Ifeet thereof. Foreclosed and now owned by
p Eompany. Appraised at $3.50; included in
Sdger assets at 5000 reduction. $3.50.
5ecial mention has already been made re-
garding this item
u The securities on two or three other loans
Iappear barely adequate, but in view of the
Insurance upon the improvements, running
} o the company. together with the well
Bknown financial responsibility of the
mortgag0rs, the same have been allowed to
stand without reduction.
n The matter Of the payment of losses by
kthe company was subject CT careful inVesti-
Bgation. All the losses paid, from its organi-
\ ~eratim. the proofs examined and the vouch-
IS and evidence Of payment checked and
| frihed. Special inquiry was made as to all
| sses of claims resisted, compromised or
| eroporton Of claims have been resisted, com
| romised or scaled down in settlement It
J \ probable. however, that the business of a
company which insures under-average lives
X pouring investigation than that of a com
| any insuring only selected lives OF the
| btal number Of losses paid, from the begin
ing of business to the date of this exami-
h alton, about IS per cent have been compro-
! hised or settled for less than the claim.
hese settlements have occurred almost who,-
! y in the years 1885, 1896 and 1897. The per-
| entage compromised. or settled for reduced
| mount, out of the total claims paid, was in
[ 1876. 80 per cent; in 1886 AZ per cent I'm 1897
X bf the eleven claims unpaid at this date are
IN suit or resisted. In most cases where los
Ses have been settled for less than the amount
bf the claims. they have been resisted and
eQmpro alised on the ground of alleged mds-
representation in the application or health
certificates, as to physical condition or pre-
| rious illness or disease. In the majority of
(ases there appears to have been reasonable
gere a number found however, where the
Xamines believe that techn :caiities unip. en-