The Montgomery advertiser., 1907-12-31
BASIS OF VALUES
SECRETARY OF STATE NOTIFIES
 INSURANCE COMPANIES.
Securities Will Be Assessed Tn Accord
 ance With Resolutions Passed At
 M Conventions of Cemmissfon- \ I'M CTS In Louisville.

In conformity with an agreement reached by the Insurance Commission CTS at a session held in Louisville De- cember IS and 19. Insurance Commis- sioner Frank N. Julian has written the insurance companies doing business in the State letter telling them Of the manner in which it has been, decided to value securities of companies.
 The valuations will be made in ac- cordance with the following resolution passed at the meeting held in Louis vile.
 Tt is the sense of this meeting of Insurance Commissioners that state departments in determining the Valu ! ation of securities included in the financial statements of insurance cor porations may ascertain the real mar ket value by taking the mean of mar ket prices on the first day of each month, and the 31st day of December in the year 1907, and computing there- from the average value Tor the year by dividing the aggregate Of sald amounts by thirteen; provided, that Tn any particular case where exceptional facts warrant a departure from this rule 1t shall not apply.
 And be it resolved that a committee of seven commissioners, in addition to the chairman, be appointed at once as a committee on valuation of securities for 1907. and that said committee shall be empowered to employ expert ap- praisers to make up a list or such securities held by insurance companies as they may deem necessary. with statement of the market value of each, and report the same to, such, com . missioners as may request LtNns early as practicable after January l. l9oS.y
 Secretary Julian did not attend, the meeting at Louisville but both he and Deputy Commissioner Albert c. Sex ton wrote letters to the convention in Bafr yfa m expressed. There is some difference in the ideas of the two officials on the subject of valuations. as the following extracts from their letters will show:
 Extracts from letter of MT. Julian:
 Relative to the valuation of securi- ties I beg to advise that 1t strikes me that the fairest way to make val uation of securities would be to take say period of six months in 1907, and get or secure therefrom mean valuation and let that valuation pre- vail.
 do not believe that companies dealing in speculative stocks and bonds hould be given credit In fair years and then be allowed to accept that same valuation during the time or financial stringency"
 Extract from letter of Deputy Com missioner Sexton:
 "In the matter of the valuation of securities by insurance companies re- porting to this department on Decem- Der 31 next, would favor a disposition to accept the statements of all com panies upon the basis of a fair aver age valuation without regard to pres ent conditions reserving the right to change such valuations as may be made by respective companies which may seem justified.
 The valuations as reported for 1908 may more nearly represent values un- der normal business conditions but | am inclined to think at this time that | we shall reserve the right to audit | companies statements this year with due regard to Aerage values for the | past year."