Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-01-30

Officers were profiting by their connec-
ton with the Company"
1t is a matter of general knowledge
that, many years before the Directors
and Officers now in control of the
Union MutuaPs affairs became con-
nected with the Company, large
amount of Chicago real estate came
into its possession through foreclosure
and litigation. The present admins
tration at the close Of nearly every
year has charged off to profit and loss
something on the book value at which
it stood fourteen years ago.
The management of the Company ex-
pressed d desire to the examining Com
misaioners that they should cause an
appraisement to be made OF that prop
crty by reliable and competent parties
whose conclusions could be depended
upon as to the value at which this real
estate could be disposed of by sale at
the present time. The Illinois De-
partment. which had been invited by
Commissioner Carr to join in the ex-
animation OF the Company, appointed
Col. Henry s. Dietrich, a well-known
and highly respected resident Of
Chicago. who has had great experience
in buying and selling real estate in that
city. to make a thorough examination
OF the property and report his findings
to the Illinois Department.
The appraisamont, esta biished in this
way by the Examiners, which is $780,
457.25 less than it's former book value.
has been adopted as the asset value of
that property, ard il is believed that it
can be readily sold at prices not less
than the value at which it now stands
on the Company's books.
The appraisement of the stocks and
bonds owned by the Company was
made by the Examiners at quoted
market valuc the 31st day OF October,
1906 At that reriod, the bank Of Eng
land had advanced its rate OF discount
to six per cent. Money was scarce
and the rate for its use high in all the
money centres Of Europe and the
United States. Borrowers found it
difficult to obtain accommodation in
Boston and New York except by pay
ing fifteen or twenty per cent. for call
loans. Naturally, high grade invest
menc securities We're not changing
was in its r0"mal condition. The
the Company's assets by the Commits
sionerS under such circumstances
showed considerable reduction flom
the valuations made at the close of
1905.
With the official appraisement of the
Chicago real estate and the shrinkage
i'll quoted market values of quick as
sets, caused by temporary stringency
III the money market, q reduction in
the surplus has resulted, which how
ever, it is confidently believed will be
soon restored.
The revised Insurance laws now eff
fective in some of the States have
made numerous changes necessary in
the methods Of carrying on the bust
ness. The lessened rate Of compen-
sation under which field workers are.
in consequence, now compelled to la
Dor, has resulted in many soliciting
agents abandoning the vocation. Just
what effect all these matters will have
cannot at the present time be fore
seen. but, realizing that the first care
of the management of q company must
always be to hold the protection alb
soluteIy secure it has been decided to
pursue an unusually conservative pol
lev during 1907 in all disbursements.
including remuneration to officers, en-
plcyees and agents, dividends to pol
icyholders, and all items of expense,
believing that, through the many re-
trenchments now operative in all de-
partments of the service. a favorable
effect upon results in future years may
reasonably be expected.
Respectfully submitted,
FRED E. RICHARDS.
President.
ARTHUR L. BATES,
cc-President.
EDWARD A. MOVES,
FREDERICK ROBIE,.
FRANK f. ALLEN,
SELDEN Common,
DAVID G. HAMILTON,
J. FRANK. LANG,
HENRY B. CLEAVES,
JOSIAH H. DRUMMOND,
ROBERT WINSOR,
WILLIAM T. COBB,
Directors.
Portland. Maine, January %. 1907.
Fifty-seventh annual statement of the
Union Mutual Life Insurance Company,
of Portland Maine. for TIL; year ending