The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1912-05-21
PRESIDENT BROWN
MAKES STATEMENT
With Reference to the Pro-
posed Merger of Life In
SuranCe COMPANIES

public mind has been agitated over
the proposed aInalgamation of the
business Of the Jefferson Standard
Life insurance Company and the
greensboro Life Insurance Com
pany. Whilst | prefer to avoid news I
paper publicity, yet perhaps at this /
time a word from me NAV not be- I
amiss. I
1t may d strength to what I say !
Tor me to state that l have never ia |
VOred a merger. However, I have |
been in all the %counsels, and am thor !
oughly familiar with the official his |
tory OF the movement. The Ques- |
ton has been under consideration for
many months. Committees from both
companies first gave it the most care |
ful investigation. The advice of emf |
nent actuarieS was sought: the cOun-
sci of the Insurance Commissioner Of
the State, that of the Attorney-Gen-
eral, and other legal advice was OBJ
tanned The matter was then care
fully thrashed out by the directors
and by them recommended to the
stockholders. After a full and free
discussion at a regular meeting of the
it was determined by a
decided majority vote that a CONSOLE
dalton Of the business Of the two
companies would be for the best in
terest of all parties concerned, policy
holders as we'll as stockholders.
Then committees of twelve from
zach company were appointed to
agree upon the details of a merger
and report the same to an adjourned
meeting of the stockholders for their
final action.
This joint committee could not bind
the companies further han as to
name and location.
On Monday, the goth inst, at -
o'clock the stockholders of the Jeffer-
son will meet, and on Tuesday the
stockholders of the Greensboro Life
will meet, to hear and consider the
report of the joint committee. The
OckhOlderS of either nay
decline to enter into the proposed
merger. If they are satisfied with the
terms suggested and no legal difficult
ties are discovered, they may ratify
the action of the committee, if other
wise they will doubtless reject 1T.
Every stakeholder will have the OPP
portunity to express his own convic-
tions.
Now, a word to the p~olicyholders.
OF course, you will be accorded a full
hearing, and will be treated with alb
sOlute frankness. Besides this. YOU
should remember that you can al
ways get full information and pro-
lection at the hands of the Insurance
Commissioner Of the State.
There is nothing clearer to my
mind than hat an insurance com
pany is intended primarily for the
benefit of the p~olicyholder. In
doubleday the stockholders Of the JEFF
terson recognize this fact, and no step
has been taken by them without first
having the assurance from those who
ought to know hat every interest OF
the pOlicyhOlder was fully protected.
Indeed the assurance of eminent ac-
tuaries and expert insurance men has
been that the policies would be
strengthened by the proposed ANAL
Samation.
The high character of the men
who control the majority of the stock
of the Jefferson ought TO be the best
guarantee hat no proposition would
be considered that would in any way
je~OpardiZe any interest committed tC
them. A suggestion to the contrary
seems to me a reflection on the State
itself, for these men are hOnOred
citizens of North Carolina, and well
known as men of the highest char
acter, of fine business judgment, anc
of the strictest business integrity.
In additiO nto all this, if any other
purpose than the best interest of al
parties concerned had appeared II
would have been promptly thwartet
by the Insurance Commissioner, who
has full legal authority, as we'll az
the disposition, to protect every policy
holder. No step has been taken, OF
will be taken, or indeed can be taken
without his approval.
The Insurance Commissioner ha:
said publicly:
Each company must carry to thu
consolidated company the reserve re
Quired by law and a%djudged Sufticien
to mature the policies according t
their terms, besides whatever capita
and surplus that may be agreed upon
There is no occasion for any policy
holder to be uneasy as to the safet.
of his policy. For myself, | wOul(
rather have a policy in the consoli
dated company than in either Of tn
old companies"
Whilst the conclusions reached 81
far hnHo not hnnp In annnrd viii M,