The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-10-15
P|T|FUL RECORD
OF BIG COMP ANY
United Insurance Concern Paid
Out Nearly All Receipts
for Expenses.

What will doubtless prove rucful
lesson to those Virginians who, disre-
garding the warnings of the bureau OF
Insurance, through The Tlmes-D'spatch'
purchased stock in the United 1nsur-
ance Company is to be found IN the
FACTS ,dduced by an examination OF Its
affairs by the New York insurance DC
partment, just published. 1t is pc
lieved from the showing made that TINS
stock Is worth perhaps 10 cents on
tho dollar and that. the investors VIII
haya nothing much except the bag fof
their holdings. !.
Time and again the department. is
sued IT'S statements regarding the ex-
travagant methods of promoting new
Insurance companies. The burden OF
its song was: Don't buy insurance
stock from travelling agents
II Is found. however that a good
many people in this State bit. let
TOR lust received from prominent
professional man shows that he bought
81 900 worth OF stock
Az long as n year ago the Bureau OF
Insurance. in ono OF its bulletins, salo
of the United Insurance Company: IN
view of the past record OF It's promo.-
| ers, the bureau cannot recommend the
| public Of this State 10 invest IN the
| stock of this company"
| Expenses Heavy.
| Tho trouble with these companies
was that their expenses were too heavy.
Large commissions were paid to the
apents and to the promoters Where
thew were not swindling schemes, they
were poor business propositions for
| this reason The one In question APP
pears to have been excessively poor.
The United Insurance Company OF
! Arizona and It's allied or subsidiary
| concern, the United Fire Insurance
COMPANY. of New York, were to form
the biggest thing of it's kind ever
dreamed Of The literature of the
United covered the face of the coun-
try, and agents descanted on the fac'
that this was to be the most stupeh-
dous proposition which ever came down
the insurance highway. Under tne
new law, which permits the New YORK
/ department to examine companies IN
i process of formation and prior &c
licensing, examiners have been taxing
i a look into the United's affairs.
i Apparently. according to the report
4 it is now being conducted by men who
j really had in mind the formation OF ar
\ INSURANCE company and were not mere
4 " promoters. Their methods are less
extravagant than were those of theil
predecessors. while their literature Il
more conservative. But their treasury
perhaps because Of the former proce
dure. does not look particularly we'll.
Gave Notes for Stock.
The proposition was to issue 10000
600 shares OF the par value of 81 each
It was intended to write every kind o
INSURANCE known to man. @. l.. Nal
Laningham was the organizer and orig
inal operator. The directors appear u
have taken blocks of stock. for which
they gave their notes. although on
of them put up $50 in actual cash. Bis
salaries were paid to statesmen, and ad
. vances were made to them. These sol'
$685. shares of stock for $245,oo0. o
which s6S,O00 was paid for In notes
81. 300 by other securities. and $4,000
in cash was secured. OF these tota
cash collections of $4,000. all ha
, been paid out in salaries and expense
save $4,000. The fixed expenses rui
! to $3.50 per month. This Is the con
! Germ in which some Virginians ow:
stock.
Van Laningham severed his connec
: ton with the company, apparently, o
November l. 1900, receiving s15,219.1
'in full of his claims. Three day
later he seems to have been paid quit
large amount in addition. folloWe
by other payments.
! 1T was decidedly careless" says tn
report, for the company to have pub
lished. as part of It's prospectus,
letter containing a misstatement {
4 /.