The Birmingham age-herald., 1911-06-23
BITTER AND SWEET M|NGLE IN REPORT ON INTERSTATE CO. Actuary Halliday Submits Statement of Birmingham
 Insurance Company SAYS MANAGEMENT
 IS NOT EFFICIENT
Complimentary Figures Show That Company's Surplus Over Liabili- ties Is $105, 5,e43.26-Extracts
 From the Report
By BERRYMAN c. BETTY

MAN sHs
 Montgomery June 22.-(Special.) .)-Words and figures that are bitter and sweet, respectively, are intermingled in report of Actuary W. R. Halliday of Montgom- cry, which has been submitted to the state insurance department on the South ern States Fire and Casualty Insurance Company of Birmingham. The report has been printed in pamphlet form, and is being circulated among those concerned Or interested in the holdings of the com pany.
 The complimentary figures which are included in the report are those that show that the companys surplus over all liabilities is 05,94326 a row Of hg- ures which shows the corporation to be thoroughly solvent, and on a splendid financial footing. The bitterness in the report comes in, chiefly. on the last of the fourteen finely printed pages, when the actuary concludes: "The company has been fortunate in awaking large measure of local patriotism, and it is probable that under different manage ment the company will have success full career.
 s.In view, however, of the facts dis closed in the foregoing report, I cannot recommend that the company continue to operate under it's present management, and a complete reorganization of lines satisfactory to you should be insisted upon as a guarantee that the business will be conducted in the future on sound basis"
 Figures Given
 The report of the actuary shows that the amount of capital stock paid up in cash for the period ending December 3l. 1910, was s3s5,s5O Total income is placed at $So6, ,7i546. Disbursements, s494O07.19; ledger assets, s494,007.15; non-ledger as sets, s6616.S1; surplus over all assets. Si05, ,94326
 The actuary in his report criticises many of the financial dealings of the company, because of which he recom- mends change in the management
 Since submission of the report it is understood that a few official changes have been made, but no criticism has attached to any of the moves. In fact, the only criticism offered by the exam finer is that a new management would probably assure a greater success for the company.
 Whether or not in response to the ac- tuarys suggestions, it is understood that many of the stockholders of the com pany are endeavoring to have "clean sweep of the official family at the next directors meeting, which is sched- uled to take place in Birmingham July l, according to what scant information can be gathered from the insurance men of this city who are acquainted with the contents of the report. It is also given out however, that just about as many of the stockholders are bent on retaining the present management. un- der the presidency of D. E. Manasco, and under the general management and vice. presidency of D.. c. Tevis.
 From what can be gathered, moreover, friends of State Senator Robert Moul- throp, of Barbour county, are urging him to offer for the presidency of the company though there can be no con firmation of this. Friends of Jack Cranford of Jasper are also said to be
 
 Senator Moulthrop Is recognized as one of the financial leaders in the state and is said to be well fitted to take charge of such an enterprise. It is known that efforts have been made to urge his candidacy.
 Some of the Criticisms
 Some of the criticism offered by the a ant in, h ie ic Fol
 Until the latter part of the year 1910 the records of meetings of stock holders, directors and committees were preserved principally in the shape of pencilcd notes and memoranda and un- signed typewritten sheets. We found mass of such typewritten matter and penciled memoranda in the office at the beginning of the examination, and compared these as carefully as possible with the minutes as finally transcribed into the book of records. We are un- able. with one exception, to say thai. al- terations have. crept into the minute book, or that there have been omis- sions in the record of the company, since transactons over great period of time were not duly recorded
 "The lax system of maintaining the records of the company In the shape of loose sheets amords opportunity, how ever, for garbling the records of the corporation and plunging the affairs of the company into confusion. One controversy already has arisen from the unsatisfactory methods or recording minutes. We refer to q dispute that has arisen over the contract of employ mont between the company and MT. J. II. Hard.
 "The minutes should be promptly written into the company's record book at the conclusion of each meeting of stockho olders, directors or committees, and should he read iron the minute book at the next succeeding meeting for approval or alteration. In the last examination of this, company the officers were admonished to exercise greater care in the company's records but they seem to have paid little heed to the ad- vice of the examiner"
 Purchase of Bonds
 "Every purchase of bonds has been accompanied by severe loss in the form of discounts on certificates of deposit. The excuse for purchasing bonds at such cost is explained by the officers to be tho result of a desire to deposit bonds with various state officials. TlSere does not appear to have been necessity for largo purchase of bonds on ac- count of intrastate business. Tho de- mands for heavier deposits of bonds with state. officials emanated from a desire to transact an interstate busi- ness. The development of the com- pany's plans and insurance business in the state of Mississippi the, only for eisn state which has granted it license. and irtended entrance into other states on account of which large purchases of bonds were made, has not justified the loss sustained in the shape of dis