The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-08-29
SECURITY OF PHILADELPHIA TO
REWRITE LIFE INSURANCE
CLEARING COMPANY
Deal HAS JUST BEEN CLOSED
ST. PAUL CONCERN ABOUT TO END
IT'S SOMEWHAT TROUBLESOME
EXISTENCE
NOTICES TO PoL1cYHoLDERs

Commissioners O'Shaughnesxy In
sisted That the Securities of the
st. Paul Company Should Remain
I'm the Possession of the State I'm
til All POlicyhOIders Have Been
Paid or Otherwise Taken Care OF.
The Life Insurance Clearing company.
of st. Paul, is about to put an end to all
lts troubles. It has just closed a con-
tract with the Security Trust and Life.
or Philadelphia, whereby the latter will
reinsure all the ST. Paul company's busi-
ness. The deal has been in progress some
weeks and before Insurance Commission
er O'Shaughnessey went East, two weeks
ago, he specified the terms on which he
would consent to the absorption On
these lines Attorney NJ. D. Num-, who is
secretary and treasurer Of the company.
is understood to have made ARRANGEMENTS
with the Philadelphia Trust during his
absence in the East last week.
Under the arrangement the securities
of the Clearing company which are in
the possession of the state are to remain
where they are. These amount to S1OS.-
COO. The Clearing company people wanted
at least to be allowed to take down the
$500 over and above the required 100000.
but Commissioner O'Shaughnessey insist
ed on all of it remaining, and he will I'M
til every dollar of the Indebtedness rep
resented by any policy in the company
has been paid or taken care Of
ho DC,
to pay the Security company something
in the vicinity of $4O, GOO, and, as it is fore
e'i to practically turn over it's securities
valued, as stated, at $10S, ,0OO it will, it is
presumed, draw from the Philadelphia
company the difference. Letters inform
ing the policy holders of the Insurance
Clearing company of the contemplated
rewriting of their policies are now being
sent out
st. Paul people are familiar in gem
eral way with the life and troubles of
the Life Insurance Clearing company. It
was organized in 1891 and for few years
gave evidence Of prosperous and long
career Internal troubles, however. an
Peared, and this was followed a@ut three
years ago with reports that the business
OF the concern was not being conducted
satisfactorily. Insurance Journals talked
about 1t and when later former Insurance
Commissioner Dearth and the Illinois
commissioner made an investigation of
the assets of the company, they found
that the capital had been impaired some
$4,000. ME- Dearth gave the company
the aftermath. of making good the i'm
pairment or having a request for re-
ceiver made. The capital was not made
good but when the insurance commits
sicner asked for a receiver, district
judge refused to grant the petition. The
company, however, discontinued writing
new business. Last year, when the an
nual statement reached the state insur-
aEce department, it was found that 80
per cent of the business had lapsed. Mr.
Dearth at the time criticised this fact
freely and strongly. Whether or not this
lapSing has kept up is not known.
The Security Trust, which is to take
held of the Clearing companys business,
according to the last statement filed with
the insurance department, has a cash
capital of 1856, COO; admitted assets, 81 039,-
00l; liabilities not including capital, So p
123; surplus to policy holders not includ-
ing capital, $676,S78. It's business in Min
nesota was comparatively small, there
being seventy policies in force, represent
ing $165, GOO.
The same report shows the Life Clear
ing companys standing Dec. 81, 9S as fol-
lows: Cash capital, 100000; admitted as
sets, $151 $40; liabilities not including cap
ital stock, $72,2S4; surplus to policy hold
trs not including capital stock, $79,326
There was $50, ,4S5 in premiums in force in
minnesota at the beginning Of '9G and
So, ,199 ceased to be in force during the
year.
- considered that 1t is a good company
81 1;a:o -,
the Security will be as we'll of or better
than in the Clearing company, said Mr.
C'Shaughnessey yesterday. 81 will see
that the securities of the Clearing COM
pany remain in our possession until every
dollar of Indebtedness is taken care Of
No. I have not seen the new policy yet,
but IL has to be all right