The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-25
WASHINGTON LIFE RESCUED.
CtPJTiL BADLY IMPAIRED IN
DER Old MANAGEMENT.
Examiner Reports That False Returns
We're Made TO the Department ana
Ihat the Brewers We're an Expensive
Family New Men and Money Come In.

Ihat the brewers We're an Expensive
Tamily-New Men and Money Come In.
The state Insurance Department will
make public to-day its report on the Wash
,nR'on Life Insurance Company, which is
hesad on an examination made last fall,
before the concern was thoroughly re-
organized A rev corps Of officers has
.nce been installed.
The report verifes the rumors, which
,ep, recurring about a month ago, that
the company was in financial distress.
+, also makes grave charges Of misman-
agement by the former president William
4 Brewer. Jr. declares that his salary
and that Of his son were out Of reason and
alleges that false annual returns were
made to the Insurance Department OF the
Stata 10 cover up the excess Of liabilities
over assets.
Chief Examiner Isaac Vanderpool de-
cisree IN his report that on Nov. go 1904
the aggregate assets OF the company we're
s6ai8o76 and that it's total liabilities we're
N7p4oIo The capital stock Of the con-
Germ was si?5.0Oo. The excess of liabilities
nver assets. $685.. showed therefore an
.nnaiI1neut of G5 per cent Of the COM
pany'- capital stock at that time, although
rne ia-t annual statement showed an al
aged surplus to poBoyhoders, including
rhe capital. OF se3ao0o.
The chief examiner crticises severely
the conduct Of the former officials OF the
company and says chat -the mismana ge-
ment Of the affairs OF the corporation,
notably in the conduct Of its agency de-
partment is simply incomprehensble.
Tn. sums expended in it's almost futile
Efforts to secure new business TO Offset the
normal termination of its old policies . he
-ays. call. | think. for censure. Between
commissions on first premiums, further
augmented by bonuses. expense allowances.
travelling expenses. agency salaries, clerk
hire and various other items chargeable
20 first year premiums, the total cost OF
new business has in some cases reached
the figure of 200 per cent. of the initial
years premiums.
This condition of affairs has been further
accumulated by the extravaganza attending
home Office expenses. In my opinion they
have been unwarranted, notably in the
case Of the president of the corporation
aud that of his own son, the vice-president.
That of the vice-president more than
doubled within a very recent period until
the combined salaries of these two officers
l5tely Appropriated s45 900 per annum,
According to the corporation directory
FOR 1901, Graham Fl. Brewer was secretary
Of the company and William A. Brewer
Jr president. The investigation upon
which the report is based was made prior
to Nov 30 Of last year The report de-
clares that to produce an apparent excess
-. L..
was finally driven to make false annual
returns 10 the State Insurance Department
and that for the year 1902 policies. the re-
serves upon which exceeded $500, 900. were
withheld from the department for valu-
siion.
II is a fact conolusively demonstrated
By the examination just completed. says
Mr. Vanderpool. that for the calendar
Years ending Dec. 81. 1907 and 100 3, the an
nual returns then sworn 10 were. in respect
10 the data furnished TO the department
Tor the correct valuations OF the companys
policies, reversions and annuities then In
force, materially false.
The method alleged to have been en-
poyed in juggling the oompany's reports.
was as follows. The home Office had
book Of record termed -blotter. upon
which was entered list of unpaid renewals
AZ tho end Of the year. On the policy
register where a renewal receipt was TO
be returned to the agent for collection
m "inconsplcuous notation was made on
the policy entry referring to the folio on
the -blotter. The policies were then
marked OF the valuation registers Of the
Insurance Department. Policies thus writ
Ten of and nulifed as liabilities, according
10 the report, we're restored TO force as
renewed shortly after the annual state
uents for 1892 and 1903 were made.
The company is now in the process of
reorganization The capital stock has been
increased to $4,000. establishing a surplus
10 polcynolders Of s575.3s Most of tho
oid hoard Of directors has been replaced
and the presidency is now held by John
Tatlock Jr who was formerly actuary
nj the Mutual Life. The State Insurance
Department declares Of its own voition
that IL has confidence in the integrity and
honesty Of purpose of the present manage
ment
Tho reorganization came on Dec. 30 last.
when President Brewers resignation was
accepted and Mr. Tatlock was elected to
succeed him. Practically new board OF
directors was also selected at that time.
For d month before the reorganization
there we're many rumors that the con-
cern's surplus was impaired and that the
STATE Insurance Departments report would
show that fact This was promptly denied
ty the then officers
Former President William A. Brewer,
Jr lives IN South Orange. y. j. 1t was
aid Of bis home yesterday that he was out
of town. Graham II. Brewer, who was
formerly secretary Of the company, was
also out Of town. President Tatlook had
M comment 10 make on the department 2
report.
Ans ~ THE SHOPPING TUNNEL.