The Birmingham age-herald., 1910-12-29
SEXTON ID REMAIN
 WITH THE CITIZENS
Statement Of Situation By
 Insurance Commissioner
STOCKHOLDERS TO MEET
DissensiOn In Company Has Been Remedied and Steps Will Be Taken To Do Away With Technical
 Impairment Of Capital

A. c. Sexton, manager of the local office of the Citizens National Life Insurance company, has announced his intention to remain with the company.
 T have decided to stand by the ship" he said yesterday, flor I am confident that everything will work out to the entire satisfaction of all those con- cerned and there is a sun shining be- hind the cloud.
 T have natural pride and a feel ing of intense interest in the outcome of this matter" continued MT. Sex ton. The offices will be continued in Birmingham and 1t is hoped that plans now contemplated will extend this branch over Alabama and Mississippi
 We will go ahead with full steam and will expect the cooperation of our friends as well as the stockholders and policyholders. The insurance de- partment of the state has agreed to lend aid Whenever possible.
 T am quite confident that those who are desiring the appointment of receiver will be sorely disappointed. There will be no receiver There will be a meeting of the stockholders in Louisville on January Il. when many matters of importance will be taken up."
 Statement By Commits toners
 Following the recent meeting in Louisville the Investigating commits sioners of four states prepared this statement:
 "To the Policyholders and Stockholders
 of the Citizens National Life Insur-
 ance Company:
 "The undersigned commissioners be- gan an examination of the Citizens Ma tional Life Insurance company on Mo- vember 27, 1910. We jointly employed ary of New York, to take charge of the examination, placing under him competent assistants with instructions to go fully into the condition of the company and It's methods of manage ment.
 We found at the outset serious in ternaI dissensions in the executive man. agement and set at once to impress all concerned that it was absolutely es- sential to the welfare of the company that these dissensions be terminated. This has been accomplished by one of the factions, consisting of two of the officers, retiring on the purchase of their stock holdings by the other executive officers. We deemed it proper in the early days of the investigation to issue a statement intended to re- yha1 n affaHt they had no occasion to be alarmed as to the safety of their contractual guarantees and all developments of the examination have justified us in the advice thus given. The company has on deposit with the treasurer of the state of Kentucky the full amount of the reserve under it's policies and in addi- tion thereto all are protected by ad- ditional assets held by the company.
 We found, however, much to con demn in the past management of the company, particularly in the matter of extravagant expenditures and manipu- lation of stock transactions. We are gratifed to believe that there will be no repetition of such unjustifiable stock transactions and we are also gratified to state that before the completion of the examination those now in charge of the company began the tnaugura- ton of thorough reorganization as to methods of management and ex- penses of operation.
 with economical and conservative management we have every reason to believe that the company can become an institution that will be a credit to it's state and section. It is proper to say that while we found the company entirely solvent as to Its policyhold- CTS we discovered impairment of the capital stock on the day as of which the examination was made, to- wit: November 30, 1910. Since that time this impairment has been considerably decreased and 1t is proper to say that the officers expect, within a short time. to entirely cure 1t. We have recom- mended as the most expeditions and satisfactory means to this end that the par value of the capital stock be re- duced in a sufficient amount to ac- complish this and also create a sub stantial surplus. The transfer in such way from capital stock account to sur plus will not decrease or alter the real value of the stock. In this connec- tion we may state that there are many things which we could not admit as assets under our laws which the man agement fully expects to realize the full amount of cash upon
 'The present officers are men of high chara cter and having confidence in their purpose to take all steps necessary to remedy the mistakes of the past, we have extended the time for the comple- tion of the examination for 30 days, in order to give ample opportunity to the new management to carry its reforms and remedial measures into effect.
 "Some weeks ago, when a campaign for proxies was apparent about to be inaugurated as between the then dis cordant clements in the management. we saw fit to advise stockholders 10 with hold their proxies. The reasons for giv- ing this advice no longer exist and we have no further suggestions to make to stockholders, other than to urge that they demand that the company be con ducted with the strictest economy and prudence and that they give their sup port to all efforts made along these lines.
 Louisville, Ky, December 21. 1910.
 REAL E. FOLK, Insurance Commissioner State of Ten
 nessee.
 T. M HENRY, "Insurance Commissioner State of Mis-
 sissippi
 'H. w. LAIRD, Deputy Insurance Commissioner State