New-York tribune., 1905-07-28

last annual statement and similar irep,s ON,
~ o@ueo . IN this report are produced in the item
OF unpaid death claims December 81. 1904 They
are returned in the annual statement OF the
company ut 1886 704 81. As the result Of this
429 50 S'"" ~ 'e s''4'
Making due allowance for the time it may oc-
ctpy TO thoroughly investigate all question: BILE
uealh CLAIMS, l think that as the result of this
examination i is quite clearly in evidence that
the company has adopted a settled policy of de-
10y ~ withholding the approval necessary to
constitute an admission by il OF the receipt OF
satisfactory evidence of death in the case Of all
CLAIMS under policies or certificates issued while
1he company was operating under Article VI of
eIIe insurance law From the date OF such ap
proVaI ninety days is the specified time within
@Mhich @ paylnent is 10 be made. The average
PERIOD elaPs!ng between the filing of proofs OF
oeatn' winch were upon invest cation" uti-
matelY found 20 be valid claims IS SO LENGTHY
as TO property subject the company TO the
SeVeresS criticism IN its treatment OF these bene-
rclaries many of whom must be subjected to no
litfie suffering and distress by this seeminaIy
holders
GENERALIZATION OF LEASE.
Home office leasehoId pronertv now c,o-1ad
with cost value Of S4S3 66O 81 originally rep
resented an expenditure of S4OS 296 so from re-
serve or emergency fund, per examination to
December II 1884 The appraiser for the IN
suTance Department who appraised the value of
the leasehoid at that time recommended in his
report under date of February 27 1891 that "a
the lease becomes less valuable from wear to
year, l would advise that the association invest
sum yearly as a sinking fund, of a sufficient
| amount to reimburse the pocyholders for the
moneys nelonglng 10 them absorbed in its erec-
ton and adds that Thirteen thousand four
hundred and fifty dollars laid aside at the end of
edch year and invested and compounded at 4
per cent annually Will produce 100000 at the
end Of twenty years" the expiration of the first
half or the term of the lease. when a reappraisal
of the property was To be made upon the basis
recited in the appraisers report
Adopting this suggestion, the company in
augurated the accretion of sinking fund 1t
appears 10 have been abandoned some time ago.
for in ten years it has reached but S56 94S rs
The sum of $4,000 has, however been borrowed
from this fund and is charged to norIuary ac-
count. The balance. therefore, after the loan
TO the latter account reduces the leasehold
sinking fund TO S14,94S.16 instead Of S165,60O
the amount which should now represent it. un-
Ger the recommendation made in 1895 by the
! appraiser of the Insurance Department.
PAID s3ooooo FOR NOTHING
In September 1900, the Mutual Reserve Fund
| Life Association reinsuTed practically all the
known as the Northwestern Life Assurance
! Company. located in Chicago. In his report for
Illinois states that "Concurrentiy, upon credit
! tors petition. receiver was appointed 10 take
I charge II the assets not belonging TO the sur
, Yiving and transferred members. and not turne
| over to the Mutual Reserve Fund and admin :
| lister the same for the benefit of the claimants
| and creditors of the company. Subsequently,,
| proceedings were instituted by the department
| which resulted in setting aside the former ap-
| Pointment and appointing Hampstead Wash
| burn receiver under the departments bill. who
/ is administering the estate
| The premium paid by the Northern Life As
| surance Company TO the Mutual Reserve Fund
/ Life Association as a consideration for the lat
! ter's assuming such liability may have been
( transferred to IT by the former company was
/ $3.50 64T y. subsequently commission was
/ paid by the Mutual Reserve Fund Life AssOcia-
ton OF $271 666 81 TO certain parties for de-
/ livering TO il such portion of the mem berShip
J rhzEe Life "A
! Fund took over by way of so-cailed reinsurance.
/ As this membership has since the date of it's re-
/ insurance been placed in separate class by
| Itself paying it's current mortality a class,
| fail to see what heneft this membership derived
| Continued page.