The Birmingham age-herald., 1905-12-19
COMMITTEE IS CONCLUDING ITS
 INVESTIGATION Actions of Many Insurance Con- panits !qavc Been Thoroughly Probed Officially , HAVE JUGGLED WITH
 REAL ESTATE VALUES Companies Have Raised Valuations of Real Estate on Books to Cover Other Losses-Facts
 Disclosed.

New York December 1S.-Witn the re- 1 sumption of it's sessions today the Arm strong insurance Investigating committee started upon a winding up of it's work preparatory to formulating its report to the legislature. Today was devoted to the smaller companies. those under examina- tion being the Provident Savings, the Empire Life and the Life Association of America.
 With the counsel of the Provident so- ciety were taken up several real estate transactions. In one of these building in Savannah, Ga. was traded on two occasions for New York city property and a loan was then made on the Savannah building with the result that each time the building was returned to the posses sion of the society under foreclosure or default of interest. There appeared, ac- cordng to Mir Hughes. to be mark ing up of the book values of the society's real estate holdings almost annually and subsequently Miles M. Dawson, the expert actuary was sworn as a witness and pre- sented compilations showing that the so- ciety by its management, lost about $l00- poo last year which was offset by the marking up of it's real estate holdings.
 Stacey Wilson, secretary of the Empire Life, formerly the Home Benefit society, an assessment company. told how his company was run. The company owns no veal estate and has about S12.OoO Of assets with an outstanding liability of about e50000. This company does business prin- cipally in New York and Pennsylvania, having been barred from the most of the other states. Witness said that the hope of an increased business had been blasted by the action of many states in debarr- ing the company.
 The Life Association of America, or genized in 1901, was also taken up when its president, Henry T. Townsley, testi- fed He said the company was originally an assessment company, but in 1902 1t was incorporated a stock company He said his company frequently paid to brokers or agents what amounted to 20 per cent commission. A list of collateral loans was in evidence and when Mir. Hughes started to read it MT. Townsley asked if 1t read for the benefit of the newspapers MT. Hughes tartly replied that it was read to show that the com pany loaned money on worthless securi- ties.
 Statements Presented.
 When the insurance investigating com mittee opened it's session today Henry Moir, actuary of the Prevalent Savings Life Assurance society, was the first wit ness. He presented a statement showing the amounts received by his society in premiums from polcyholders to January l, 1905, to be $44,533671 and it's payments to policyholders, $25, ,309, ,S93. The society," s admitted assets held for the protection of policyholders, he said, are $926,19S Of this s7.174. 431 is the legal reserve. The difference between assets and legal re- serve (S751 76) is the surplus after De- cember 31, 1904.
 Mir. Mor compared the rate of insur- In England with those in America and described his company's agency sys- tenn
 From William Ebert, who has charge of the real estate of the Prevalent society Charles E.. Hughes, counsel for the com mittee elcted that the company erected an office building in Waco. Tex, in 1889 at a cost of $134445 that s50,0O0 betterments were made up on 1t and that in 1899 it's value had been marked up in the books of the company s253 956.
 William T. Gilbert, counsel for the Provi- dent society. who then testified that three years later the Waco property was traded off and then the Prevalent society made a loan of sl25,000 on it to Henry H. Peters. Peters conveyed the property over to the society again in default of payment and the society placed 1t at book value at $20h207, although MT Ebert, who again went on the stand said it cost the society S125,000 plus the interest
 MT. Gilbert who again testified, de- scribed a transaction in which the Provi- dent society bought brick building in Savannah. Ga, for sS3 TOT in 1897 which was marked up to a book value of $102, ,467 by 1899 traded off and then surrendered to the society in default of a loan This time 1t also cost the society about ss3,000, wit ness said, but in 1902 it's market value was fixed by an appraiser at s11OO00. Last year the property was traded off again.
 MT. Hughes asked Mir Gilbert if the real purpose of these transactions was not to make a satisfactory showing in the society's reports. MT. Gilbert said it was not and that the society wanted to get rid of the Savannah property.
 Worked Up Values.
 Edward w. Scott president of the Prevalent Savings Life Assurance society was called again. He said that in No vember, 1904 his societys unsecured ad- vances to agents amounted to s446OOo In december s206,000 was charged off to profit and the amount further reduced by pay ments by the agents to s70.00o. In Janu- ary the society made new advances to the agents amounting to TEA. Mir Scott said he is insured for s25,0o0 In his own com pany on which he received the commission but not renewals
 Miles M. Dawson, expert actuary for the committee, was called and submitted d statements showing the gains and losses by the management of the Prevalent so- ciety according to its reports since 1897. These statements showed loss of over s100 000 which was the witness said, off, set by the marking up of the value of real estate
 Stacey Wilson. secretary of the Empire Life Insurance company. was next called. This company was formerly the Home -----~~~~~-~---- ---------->---~--~~ (continued on Sixth PaQe.l