The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-02-19
Half Of Fire Insurance
Company's pital
Stock Wiped Out.
HARRIS IA K ES
PLACE OF LECKY
Company Rcorganized, With Sit
terding as Vice-President, and
Business Affairs Are Now in
Sound Financial Condition.
Six New Directors
Named.

with alf Of It's capital stock wiped
Out, with It's business rapidly dimin-#i
ishinE and upon the demand OF the
Virginia Bureau Of Insurance. the viz
GINA state Fire Insurance Company
was yesterday r~eorganized. Robert
LeckE, Jr. %rctires from the offices OF
secretary and vicc-prcsident, and the8
directors put up $4,000 in cash to-
restore the. lost capital and to create
u reserve fnnd for the benefit or the
policy holders. ~
archie X. Harris. secretary OF tho!
Virginia committee Of the South.
eastern Underwriters Associations. q
unanimously elected secretary ofEthe9s
company, and will hereafter be itaySs
executive o4iiccr, Fritz Sitterding sue
ceeds Mr.. Lacky as vicc-president. SIX
new directors were elected from thas
stock holders,
tnEurs Good FIXTURE.
Under this plan Of reorganization.
III which the directors have been CO.
operating during the past month with
Insurance Commissioners Joseph But
ton, It Is anticipated that the Vir-5
ginia state will face n new and bright
future. In the years that have passed
since the close Of the War Between
the States It has been one Of yirginia'sl.
foremost companies. Its business has
spread until It Is now licensed ia
twelve States and the District of CoI-
nmbia, although it has withdrawn
from four during the past few years.
Inc Affairs OF the company, 1t Is felt
by the Bureau OF Insurance., are now
in safe and conservative hands. Thers{
Is plenty Of capital to protect the in-s
%terests OF every policy holder, while
the directors. who are among Rich
mond's foremost business men, have
for the third time demonstrated their
~ u 4, r,,1 49, - 49, -. E. ~ ,a&EG
contributing Of their own means to.
this end. 3s
Determinations Made. b
THU action follows a joint examina-
ton OF The affairs of the Virginia
State made during January by repre-
sentatives or the insurance DEPART
ments OF Virginia ana of South Caro-
lima. Isaac Davenport, actuary OF theS
Virginia Bureau, and T.. NJ. Phillippf.s
tho South Carolina actunry, conductedA
the examination.
Seen Mt IL glance, the condition OF
the company and the plan OF reorganf.5
alton rs follows: Following heavy
losses in the Baltimore fire In 1904.
the directors contributed q total of
s7l,sl2.ao, constituting a reserve forE
the policy holders. but forming a liR;--5
bility ahead or the capital stock. EThla
Was later paid down to about $4,000
Realizing that the company had lost
heavily on the 1910 business, the dr.
%rectors put up $4,000 additional last:
december. making n total liability OF;
sci 900. BY The reorganization the par
value of Zach share is cut TO $3.50
from SIS. thus reducing the presenss
capital to 500, 600. A new issue ofS
capital stock is made to the amount
OF 100000, which the directors SUBJ
scribe for individually at a pr.ce cf
i$s- This. w!iev figured Down to the
cent, restores the genuine capitaIGtof
5000, 900, and creates Il surplus fund
OF S3i,265.3o.
Saved by Directors.
Tho Virginia State Insurance. Com.
pany began business on March 4.
] S66, when the business interests ofe
Richmond were just beginning to picISss
up courage after the scenes or war
and fire and evacuation. It did
business which was regarded as en-
iircly successful, and was apparently
in good shape when tho big fire III
baltimore on February Z and 8, 1903.
caused q loss OF $13S,G75.36. The al.
%rcctors saved the concern by paying
in Sl7,S75.00 in the same month. foI-
lowed in June OF tho same scar by
S23.937.50 in addition. ~
These directors were Judge George
l.. Christian, s.. II. Hawes, j.. s.. ElleIt,s
J NJ. ~Fonrqurean, G. l.. Currie. j. d.
Carnca1. Fritz SitterdinS, II. a. Cary
and Edmund Waddill, Jr. The terms
of this loan were that it was to- o
stitutc n fund for the heneit Of policy
holders, but that ii was to be returned,
III the event OF liquidation, ahead Of
any money paid to stockholders. The
loan drew 1 per cent. interest, and
the directors were either to be rcim-
bHrsed from the profits OF the concern
or Giles this other stockholders we're to
make up the sum Only Il part oe
this money was ever returned. IT ina
fact constituted q guaranteed preferred
stock, retirable at will.
Errors We're Made.
"rhe ~company's statcments," said
Actuary Davenport IN mis- report, Sub
mittod to the various Insurance. la
p%ar;mcnts during the past few years
have failed to reveal the true condition
OF tho company. Accumulntive errors
in the method OF calculating tho nn-
earr-a~premium reserve underesttTrated
this liability. the errors having accu-
mulated to approximately $4,000
Worthless accounts and %ccouRts IL
doubtful Waite in connection with locasa
city business have been taken up tns
the agents balances. and M proper dsxY
auctions made on account OF sarne.S
Various other detaiis show lack OE&
conservatism III dca wingsup its annual;
statements"
Grave errors having been discoveries
In tho company's ,caictlattona f1rsprSpg
vious years, The concern reinsured8aYYs
rs New York and Texas bosinesa Saafds
hale its remaining business WIKI tfsas