The herald., 1898-01-28


Tho Bankers Alliance of California is ap-
parently on its last legs. The concern was
Incorporated In 1888 for the purpose of do
ing life and accident insurance business
on the assessment plan. At the start the
backing of fine list OF local names was
procured, business soon rolled In, opera
tiojls were pushed in other States, where
tho company opened branches and large
income was secured.
unfortunately, people will meet with ac-
qidents and many will die when they are
jaot expected to do so. Claims rolled in,
assessments had to be made. which were
not always promptly met and the fallacy
of assessment insurance conducted on the
plan of the Bankers Alliance became ap-
parent to the initiated.
In April, 1896, the Association had de-
ficieney of $l19, ,2S5.42, and things looked
very blue. A number of changes were
made in the management; the parties of
local prominence whose names ahd been
kept at the front mostly withdrew and two
Chicago men, l., Reploge and ID. w. c.
Merriam, came in and took the reins.
In January, 1897, the statement made by
the concern showed total receipts for the
year 1896, $247 261.22, and disbursements for
the same period, s2i7972.41. They claimed
assets of $780, 23S.2l, largely made up, how
ever, of notes and bills receivable, AT the
same date they had SIS, 13S, 900 insurance in
force, and stated to the Insurance Com
missioner that they had no liabilities or
claims due and unpaid but admitted con
tingent liabilities" of $4,000. Upon which
the Insurance Commissioner issued to them
a certificate in the following language
under date December 2Sth, 1896:
II have carefully gone over the facts
and figures obtained by me during my re-
cent investigation of the affairs of the
Bankers Alliance. The business of your
company is being conducted in an econom-
ical and conservative manner, and If con-
tinued on present lines the Alliance cer-
tainly has a bright future. The annual
statement of the company will be verified
In few weeks in accordance with the re-
quirements of our statutes 1t is possible
that l may have at that time some sug-
gestions to make (although l do not an
ticipate any), but for the present / have
none. as l am entirely satisfied with the
management. Very truly,
m. X. HIGGINS,
r- Insurance Commissioner"
A year has passed since this rosy light
was cast upon the company's affairs. In
the meantime the management of the con-
cern has again changed hands, j. o. Curry
being the president w. A. Nimocks the
vice-president and E. L. Bostwick secre-
tary and comptroller.
Mr.. Curry is now in Chicago arranging
for the reinsurance of all policy holders
'in good standing" with a Chicago COM
pany. 1t is understood that new policies
will be issued without re-eXamination, the
assured paying henceforth the rates of the
company assuming the risk.
This action has been forced upon the
management by the impossibility of meet
ing the payment of accumulated claims,
now represented as amounting to fully
$780, 900. There is said to be only about
$4,000 in the treasury, and although there
is nominaly a large amount in notes out
standing, 1t would not be prudent to reckon
these assets as worth much. If anything.
There is no probability of raising the large
sum needed by assessments, and the out
look for parties with claims Is there
fore not hopeful.
The president and vice-president being
both absent. Secretary Bostwick was
asked to make a statement of the COM
panys condition, which he declined to DO
at present. Being asked whether the rumor
was true that the company is insovent,
having 500 900 worth of claims against it
and comparatively little money to meet
them, he evaded the question by saying
that there had been many rumors, but that
proved nothing. He laid great stress on
the fact that policy holders 'in good stand
ing would be fairly dealt with under the
new arrangement and admitted that they
would then be much better off than they
now are.
The failure of concern started here
4
but can only be regarded as the result of
loose and eXtravagant management and
the attempt to give something for nothing
which is to too great an extent the leading
characteristic of assessment schemes.
The San Diego Vidette quotes the fol-
lowing paragraph from recent article
in these columns relating to the extraor-
dinary methods used by the officials of that
city in disposing of a large bond issue,
whereby the taxpayers were heavy losers:
San Diego appears to have lost the con-
siderable premium estimated at about
$4,000, which its citizens might have OBJ
tained on the sale of the recent issue of
$260,OO0 city Az per cent refunding bonds,
lately sold for the nominal premium of
$500. The lesson is an instructive one in
municipal management.
The Vidette goes on to say, by way of
comment:
1.-THE council is Republican by an over
whelming majority, and is believed to be
absolutely under the influence of three
Republicans known here the big
Three" who have been chuckling over the
robbery ever since. 1t will be remembered
that the city attorney, Republican, drew
up the ordinance, that the managing COM
mittee was Republican, and that the may
or who signed the ordinance was radical
Republican, a lawyer, and an exceedingly
bright financier. The steal was Republi-
can from the beginning to the end, and it
is with unfeigned pleasure that we COM
mend this Republican council to the COM
miseration of the Republican taxpayers
who voted down honest men in order to put
their own partisans in office"
This is the only explanation that has ap-
peared in print of an action that is not
only inexcusable on any ground of poll
tics, but which. If the facts have been cor
rectly stated, and they are thus far un-
contradicted, ought to submit the perpe-
traitors to criminal prosecution.
Interpretations
The Mutual Medical, Dental and Legal
Service association, San Francisco; $1OO 600.
all subscribed.
The Alaska Venture company, Snn Fran
cisco; 100000; subscribed, $500
Mortgages, $1,000 and Over
w. o. Dow ct al. to B. c. Lattin--Part
J0t 10 hllx r. Mott troat