The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-25
STRONG Defence OF
VIRGINIA COMPANY
Leading New York Insurance
Journal Pays Its Respects to
Examiners Of Wolfe Type.
CHARGES NOT SUSTAINED
What the People Want iii Such
Examinations Is the Truth
Shorn of Comments.
CHARGES NOT SUSTAINED
(rrom tie Mutual Underwater,

(Irrom the Mutual Underwater,
Rochester,, N. w
a controversy Of fair sized proper
tons Is wasing IN Virginia with ref.
made of the Life Insurance Company
OF Virginia at tho hands OF Actuury
S. II. Wolfe. lie severely criticized
the management Of this company, al
policy -holders and twisted" their poli-
cics whenever It became necessary for
any purpose whatsoever to increase
the surplus of the company; that It's
to the Insurance officer Of the Com
monwcalth; that practically two-tfirus
OF It's mortgages were located II Illi-
nos ana We're purchased from bank
dent" Of the company;, that the mnn-
ngement disrcgarded the charter pro-
visions Of the company. and that 9TH
erwise there had been improprlcttcs
in its conduct.
There were six charges to which.
Insurance Commissioners Button, OF
Vil>,nia, cal,Ad the attention OF the
State Corporation Commission, and,
after hearing ut when the t taannaa
under oath, there was only one charge
sustained. and that was having tho
Office of general adviser" which, had
def1lte powers, dnes or o * t re-
office was recommended
MIR. ID. II. Fncklcr, of New York, one
of the leading consulting actuaries Of
the country, testified under oath, as
did also MIR. j. S. Davenport, actuary
81 the company, and Mr.. Thomas l3ou-
dar, of Richmond, an expert account
ant.
In this connection. it is explained
that the Bureau OF Insurance OF VIZ
ginla is not an Independent department
Of the government. as In most Of the
states. but Is under the supervision
ana control of the State Corporation
Commission, and any report Of the
Commissioner Of Insurance of tho re-
suit of his examination Of any com,
puny Is made to the commission ana
is subject to review by 1t. 1t would
seem, therefore, that this Corporation
Commission is the court Of last resort,
and that its findings are final. even
though they may not agree with the
personal opinions Of the actuary Or
examiner, or even those of the 1nsur-
ancc Commissioner.
Purpose OF Investigations.
The Underwater pays more than
passing attention to this examination,
for the reason that nvestiEntOrs prac-
tically everywhere seem to enter. upon
their work with the central desire Of
finding something to critlcisc, rather
than to set forth renl conditions, and
If results warrant It, report to Inc
policy -holders and the public that the
institution is solvent and IS conducted
in the interests of those who nave
placed their insurance In Its Keeping.
They not infrequently enlarge upon
trivial details, instead of reporting as
to the general conditions which prevail
in the conduct of an organization.
They thus not tnfroquently do more
harm than good. They create doubts
and suspicious which have untoward
results ana which defeat the very
onds aimed at by fair, and impartial
+ SuDerviS iOn..
The Corporation Commission Of Yir-
glnia decides that the charge of dis
elimination between policy holders.
and other, acts for the purpose OF In
not sustained. The only basis upon
which this charge is made is that In
1887 and 1889 the company induced
some OF its policy holders to exchange
their contracts for others containing
different terms. The evidence shows
We're made the facts and ci1'cum-
stances not only justified the com.
Many In requesting them Of its policy
holders, but that It's action In the PFC
misses was wise and prudent and re-
suited in great benefit to such policy
holders.
Charges Not Sustained.
The charge that the company OBJ
tanned possession OF mortgages, Sc
cured only by q practically Velueiess
collateral at the expense of thousands
OF dollars to It, was not sustained so
fur as 1t affects the present manage
ment of tho company. This YVES a her.
itage loft by a previous management
which the present officers cleaned up,
and 1t in no wise affectg the status
of the company either now or for a
number or years past.
The rendering Of false statements
to the insurance officer Of Virginia is
not sustained. Tho Corporation Com
mission says that "the evidence who'll
y fails to show that any statement
10 tho Insurance officer Of this Com
monWealth. or otherwise. was false
IN any proper sense of the word"
~ admits that occasionally small
errors or calculation may be found in
me report. but that these in no wise
nfected that status Of tho company OF.
It's policy-holdcrs.
The charge OF Actuary Wolfe that
practically two-t thirds Of Its mortgage
Illinois. In which State tho Life In
surance Company Of Virginia does not
40 business. Is not sustained. 1t Is
shown that. although less than thirty
held In, or its revenues derived from,
Virginia, 1t had out of approximately
$2,Go0,o0o OF total invested assets about
100000 invested In Virginia, which
1 :.
Of all tho companys Illinois mortgages
having been purchased at n premium,
as Is charged. 1t was shownby the evil
dence that less than one third Of them
We're bought ut any premium at nll
and that such premium was only 'sutfi-
cient to pay the expenses Of the loan
and a small commission to the ven
doris of the mortgages. Such premium
was not sufficient to reduce the net
earnings of the mortgages to less than
| five per cent, which arc snid to have
been fully equal to tho net earnings
upon mortgages In Virginia or else
where.
1t is admitted that tho president Of
the Life Insurance Company OF Viz
ginin is n kinsman of an officer of tho
| Colonial Trust and Savings Bank of
| Chicago, from which this company
purchased securities. but It Is set forth
that there is nothing In the evidence
to even remotely suggest any improper
dealings between these companies and
their officers. The commission further
says that 1t Is unable to find the
slightest impropriety In connection
with these transactions.
Report Not Sustained.
Tho other charges and .replics arc
along the line OF those set forth above
They clearly show that the State Cor.
poration Commission Of Virginia does
not sustain the report or the recon.
mendatlOnS OF Actuary Wolfe.