Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-02-15
Attorney General Jackson Of New
York viii Ask for a
Receiver.
ANNUAL STATEMENT FALSE.
Insnrance Examiners Declare
showing Made Was Misleading;
$4,000 Policyboiders.

many ~ Y, Feb 14.--Attorney
a,ot Jackson viii make application
d, New York for the appointment OF
a,,ar for the Mutual Reserve Life
,.s,yonce company of New York, on
na ,round mat the company is hope
vestgated recently.
Attorney General Jackson said his
5.oision 10 ask for a receiver was based
an The report of state superintendent
y, insurance Kelsey, who contended
.sot the company is lnsolvent with II
deficit Of sL7l11l4 OF this alleged
deeclt 100000 was in the value of
,oal estate owned by the company and
SSee ana was in liens against the poll
Ses of the insured. These were claimed
w, the officers Of the company to be
an asse, but Kelsey would not allow H.
Tho company has $4,000 poilcyhold-
ors son,e or whom had formed a com
,,it,ee n secure the dissolution OF the
nn,nany and distribution OF its assets.
OFFICIALS WE'RE INDICTED.
Following the legislative insurance
Investigation, several officers of the
Mutual were indicted on charges of
larceny of the funds of the company
md Of forgery. George Burnham, Jr,
vice president and counsel, was con-
vlcted Of larceny but the conviction
was reversed and new trial ordered.
Much criticism OF the company was
made by pohlyholders during the IN
surance investigation
Superintendent otto Kelsey of the
state insurance department gave out
tonight the report of the department
examiners, Nelson b, Hadley and
Charles Hughes, upon the Mutual Re
serve Life company. together with a
statement i'm part as follows:
1.-THE Mutual Reserve Fund Life
association. from its organization in
1881 to 1902, was an assessment assoc
citation In 1902, 1t recognized as an
old line premium company and changed
It's name to the Mutual Reserve Life
Insurance company.
DEATH RATE WAS HIGH.
"The death rate of the assessment
class had been much higher than the
average. and to meet the deficiency in
this respect, as well as the expenses of
Ne company, various special calls
have been made and in several in
stances liens aggregating $736,021
were placed againt the policies with
out the knowledge OF the policyholder.
The examiners report disallows
as assets the liens placed against the
policies by the company without the
knowledge of the policyholders, the
superintendent being of the opinion
that he allowance of such items would
Il be gross injustice to the individual,
pOllcyholcers as well as being Illegal.
The examination also disclosed the
fact that the building now occupied "
the company at the corner OF Broadway
and Duane streets. in the city of New
York. was held by 1t under the lease
for a limited number of years under
conditions making the investment of
the company therein, amounting TO
about 100000 in ALL applicable 10 the
payment OF policyholders without the
consent OF the lessor. A careful APP
praisal of the ase-hold interest was
made and its value reduced from the
book value of about S450,000 to $780,
000'
STATEMENT WAS FALSE,
The examiners say. among other
things:
In our opinion 1t is impossible to
IN any wise ascertain what the equities
are as between the polcyholders we
found the last annual statement was
both false and misleading a vast
AMOUNT OF liabilities We're not reported
and a large amount OF assets that we
believe are Of no value to the company
we're reported as available assets.
In our opinion. IN 1906. the records
q This company show that 1t was i'm
possible for this company to carry out
It's contracts"
The examiners show a deficiency of
ltllll6 as Of Aug. 81, 1907. They
allow admitted assets nf S3,7O1 SOP.
Included in this item are premium
notes. loans and liens amounting TO ST.
iaO54O, and outstanding and deferred
Premiums OF S700.s5i. They charge to-
Jay liabilities of $5,41S,717. Included
claims Of Sl,O0S, iO1.