The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-03-24
HAWAII POLICYHOLDERS
CONTINUED from Page one.)

| Ell
| in Honolulu, of the Mutual Reserve
/ Life Insurance Company of New York.
He was an energetic canvasser and it
| is believed wrote a good deal of life
insurance in Hilo and some consider
Fable amount in Honolulu, but he could
not be seen last night after the infor-
nation about the company here given
was obtained. Since the company has
| got into deep water however, Mr. Win
tter has written no new policies for it.
The other derelict concern having in
isurance risks in this Territory is the
Provident Savings Life Assurance So
ciety, represented here by the Bishop
Insurance Agency, Ltd. It has not
done any new business in this Terri
tory for some time, but has been col
Letting the premiums on old policies
In January of this year Commissioner
Campbell Cancelled its license owing
to reports of its condition, but that
did not prevent its collecting of pre-
miums
This society does not appear to be
in such a. bad way as the Mutual Re-
serve, for Commissioner Rittenhouse
Of Colorado. in the circular already
quoted, says:
1.-THE indications are that the society
will be reorganized within the next two
months, and such economies effected as
will enable it to resume the writing
of new business in the not distant
future. Until it is determined whether
or not such reforms are to be inaugu-
rated, it does not seem advisable for
the policyholders to lapse their policies,
or to withdraw funds from the COM
pany.'
1t was found, in the examination of
this society by the Colorado Depart
ment, that the society was impaired
to the extent of $414, 601.SS, also. that the
society's funds had been mismanaged
and misused by the Thomas manage
ment, and that the proposed merger
of the society with a small concern
known as the Pennsylvania Mutual
Life Insurance Company of Philadel-
phia. controlled by the ]. J. Coyle syn
dictate, was wholly detrimental to the
interests of the policyholdefs, and it
was not put through. The facts gath
cred by the Colorado Department were
given to District Attorney Jerome Of
New York, and within the week pre-
vious to the date of the circular o. F.
Thomas, formerly president and mana
ger, and E. r. Thomas, director and
principal stakeholder, were indicted by
the grand jury, charged with fmprop-
erly loaning and jeopardizing the funds
of the society. The Attorney General
LOT Pennsylvania had brought an action
to annul the charter of the Pennsyl-
vania Mutual, referred to above, for
improper use of funds and general
mismanagement. Regarding efforts of
the authorities to protect the policy
holders of the Provident the circular
says:
about 100000 of the funds of the
policyhoIders, which was distributed
in various Thomas-Heinze banks in
New York, was required to be with
drawn from those banks and placed
in an institution that was entirely safe.
This occurred during the panic of last
fall. The Coyle management was also
required to return $50, 900 to New York.
which had been transferred to a bank
in Philadelphia, of which one of the
Coyle directors was an officer. An un-
successful effort was made to secure
the return of $4,000 of the society's
funds paid for bonds of the Brockville,
Westport & Northwestern Railroad,
which were, in the opinion of the ex-
aminer. purchased contrary to law"
If there is going to be a reorganfza-
ton of the Provident, as reported like
Iy above, the policyholders in Hawaii
might do well to keep their policies
unimpaired until the issue is deter
mined.