The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-02-20
VIRGINIA STATE PUT
ON FIRM BASIS
Management Changed and
S133,oO0 Put Up to Make
Concern Strong

Showing surplus To policy holders
of s224.265.35. the Virginia state In
Surance Company was reorganized
late Saturday evening. with Archie
II. Harris as secretary and the execu-
tive officer OF the company and Fritz
Sitterding as vice presidents. These
two men succeed Robert Lecky, Jr.,
who has held the position OF score
tary and vice president of the COM
pany. The following directors were
elected: Georg. l. Christian. S. Fl.
Halves. John S. Elicit, J. NJ. Fourqu-
rean, Fritz Sitterding, y. +. Ancar-
row, J. ID. Carneal, II. w. Rountree
and Robert l.ecky. Jr, were re-elect-
ed. The directorate was then added
to by the election OF w. NJ. Addison.
r. A. Cary. II. s. Halves, w. II. Mas
she. l.. T. Morris and c. u. Wingfield.
The directors put up $4,000 In
cash 10 restore the lost capital and
Ia create reserve fund for the bene-
1T Of the policy-h holders and the com
pany is now on as Arm financial
foundation as any in the State. The
suggestion for reorganization came
from the Virginia bureau OF insurance.
after a careful investigation OF the
company's affairs, and was cheerfully
acceded to by the directors as a mat
ter OF pride to the company and bene-
lit to the policy holders. The inyes-
tigation showed that the capital stock
Of the company had been greatly
reduced and that the business was
rapidly falling of.
Mr.. Harris i'm Charge.
Mr.. Harris. the newly elected sec
Rotary. took charge OF the business
Monday morning and the outlook for
a bright future is most encouraging.
Following heavy losses in the Bal
timore IRE in 1904. the directors con-
tributed total Of s7f.sl2.50. consu
tuting a reserve for the policy-holders,
but forming a liability ahead. of the
capital stock, This was later paid
down to about SAs, 00u- Realizing
that the company had lost heavily on
the 1al0 business. the directors put
UP s45,0 900 additional last December.
making a total liability OF So. zoo. BY
the reorganization the par value OF
each share IL cut to s12.50 from s25.
thus reducing the present capital to
100000 4 new issue of capital stock
IN made TO the amount OF 100000
which the directors subscribe for in
ilVidually al a price OF 1913. This
when figured down to the cent. re-
stores the genuine capital to 5000, Geo.
and creates. a. lsnrniQs fund ct saA.e
s65.36.
Inc bAaiFtatht a~ A~%AVN
by the reorganized company Monday
shows total assets to be s54e,es6.3o
with liabilities OF s3lI. S2o.s5 and sur
plus to policy holders OF s234. 2s5.35.
The capital stock Is 100000. sur
plus, s34.2s5.35.
Errors I'm Calculations
Upon Investigation of the COMPANY
by the insurance bureau 1t was found
out that the statements submitted
failed 10 show the true conditions of
the affairs There were many errors
in the method of calculations. show
ing an aggregate OF $4,000. While
worthless accounts and those OF
doubtful character with local city
business were taken up In the agents
balances and no proper deductions
made. The bureaus report further
says that there were various other
details showing a lack Of couserva-
tism In drawing up Its annual state
meuts.
The report says that the company
business has declined recently to an
alarming extent. Its gross premium
income In 1909 was $a23.534.is. while
for 1910 this had dropped to $685.
20T.ST. The company was doing
business at such q loss that, according
to the report just completed. its capt.
tai was impaired as of date Decem-
Der 81. 1910. in the sum of ss9.0S7.sS,
or practically half of the total.
Realizing that this condition of af-
fairs could not continues, Commits
>foner Button took the matter up with
the directors They readily cooper
ated with the insurance department
in formulating a plan of reorganiza-
ton, and backed up their good in
tentions, with the actual payment of
large amounts of money to save the
company.