The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1905-11-06
MORE FIGURES
ON EQUITABLE
Sup. ementary Report BY
GeW York Official.
$O0g-KEEPING IS LOOSE
Large Sums Charged to Profit
and Loss.
rncomplete and Desuitory Nature Of
the voucher Records IL Criti-
cised-rable Of Interest
Rates h Given.

Albany, N. r.. Nov 5.---Francis Hen
bricks. the State Superintendent Of In
surance, today made public supple
mentary report by r.. H. Hunter. Dep
uty superintendent of Insurance, and
Chief Examiner Isaac vanderpoel. on
the condition of the Equitable Life As
surance Society of the United States at
the close of business ON June 80. 1905.
The report first discusses the real
estate OF the Society and places the
value of Its ONCE buildings In various
cities at s2e.S66.36S or S4.sss.s34 less
than the sum at which they are carried
on the. books OF the Society. 1t Is ex-
planned by the report that this reduc-
ton Is made on basis of the earnings
of the buildings. which yield per cent
on t2e.366,Ss
q TO the book value of real estate the
company has acquired under foreclos-
ure, the report adds $23.7ss.o7. making
the fetal estimated value Of such real
estate $4.664,54023 OF the loans on
bonds and mortgages the report says
they represent $sa.721,22:.16 and have
an average earning of more than Ia
per cent and that no period of the
Society's existence has this class of In
vestments been In a more satisfactory
condition"
Policies a. Collateral.
The loans made by the company on
the security OF policies assigned as COLI
lateral amount to S25,S65, $1,000, ac-
cording to the report. and the bonds
and stocks owned by the Society have
par value OF s195, 9o0.567, as against
book value OF $219,4s0.40S and a cur
rent market value on June 10. 1905. OF
$685., $685. $50.
Cash on deposit at the close of bus
mess June so, 1905. aggregated $2s.-
s7s,55Z.72. or this amount sS,s22,31a.sa
was on deposit with the Equitable
Trust Company of New York, s6,425s-
9s1.4T was deposited with the Mer-
camille Trust Company. and $5,45s.-
s1l.e7 with the National Bank OF Com
merce in New York.
Discussing the debit balances OF
agents, which are assigned to trust
companies and ageregating S5,st3,fS4..
81. the report states that they are mol
considered as admitted assets and are
deducted from the cash on deposit
bringing the amount down to $24.066.-
| 3e7 IS
The rep ort discusses at length pay
ment of 100000 in the form of check
drawn by the society to the Mercantile
Trust Company and dated February 4
1904. AS the boks of the Society did
not show the consideration for the
cheek, the report says ii was necessary
for the examiners to consult with the
0upSItHttHuSIlb VI oduAS stIlu tOuk tuiA
the accounts of the trust company.
The records of the Society showed
| that the account involving the $4,000
check was closed to profit and loss Oh
| the Societys books December 81, 1904
and It was learned that the trust COM
pany credited on the "T. v. Turner
LOAF" most OF the money realized from
this check,
Not on the Records.
As this transaction and other trans.
actions between the Equitable and
other trust companies do not appear or
| the Society's books, the report states
/ that the collateia ais for such lo1ns are
not included in the report as an asset
nor ara the Soc.ety's guarantees in such
| transactions charged against 1t as q
| liability.
OF the society's records. the report
| has this to say:
I'm the inv sstigation of other mat.
| tiers. where 1t became necessary to es.
I tatiish the title to certain securities OF
which the Society was at least the Gus.
| todian, the incomplete and desultorS
| nature of the voucher records or au'
thorizations in writing from the booI
/ entries connected with these transac,
| tions were ordersd to be made. wer,
| so baffling as to render II practically
| impossible to ascertain the status o
| these securities as to ownership. unit
recourse was nau W Sources entirel.
| independent of the books or records o.
| the Society"
| Computing the assets of the society
| after making deductions noted, the re
port states that the admitted assets ar,
S406.073,063 and the total liabilities ar,
estimated at the same amount. In ar
irving at the total Of the liabilities, tn,
total reserve, which includes the pres
emit value of all outstanding policiei
| and anYfaIfties is estimated Mt S3a2 asa
/ 1913 and the reserve for unassigned
surplus funds is placed at $62,008. 624.6 s
4 A table of interest rates shows tina
the society realized the following rate
| on its assets in 1904:
On bonds and mortgages 4.2s pc
cent: on stocks and bonds, 4.35 pc
cent; rent rate on mean real estate
| 2.27 per cent: interest rate on meal
net assets, 4.33 per cent.