Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1914-12-03
New Concern With 50, 900,
600 Capital.

VOO Capital
citizsn's Company to Take Over Insur-
anes company's Assets.
WAN LEAR BLACK TO BE PREsI-
DENT.
Believed Thar Investmont Field viii
Be More Profitable Than Insurance.
That the financial situation-has UNI
dergone decided change for the bet
ter Is indicated by the announcement
made today Of the formation Of new
financial institution. backed by strong
Baltimore interests. which win begin
business in the near future. The new
company, which is to be an investment
corporation. will be known as the Citi-
zens Company, Incorporated, and will
acquire the assets Of the Citizens Fire
Insurance Company.
Announcement to this effect was made
today at the office of the Insurance Co.
by President r. w. Alexander, who al
80 made known the fact that all the
fire risks Of the last named company
had been transferred to or assumed by
the Niagara Fire Insurance Company
Of New York. The capital stock Of the
Niagara Insurance Company is 81. 000,-
600. surplus So. 500, 900 and total assets
Sc. GIG, 922, thereby absolutely safe
guarding every policy now outs; andiDg
Of the 'fCitizens. I"
The Citizens Fire Insurance Com
pany will retire from the fire insurance
business and be merged into the new
Citizens Company for the conduct of
financial, investment and security bus
mess. participating in undertakings
and acting as fiscal agent for corpora
tions. The new company is Incorporated
under the laws of Virginia. with cap
ital of 5000, 900 of which 81, 500, 900
will be s per cent. cumulative PREFER
ed stock. and $500 900 common stock,
each of the par value Of $40
Van Lear Black, vice president of the
Fidelity Trust Company of this city.
will head the new company as president
and it is stated that men of important
financial interests will be represented
on the board
The Citizens Fire Insurance Com
pany is a West Virginia corporation.
having been organized under the laws
OF that State in 1907. with an author
lied capital of $1,000, 900 At ayecent
meeting of its directors is was conclu-
ded that under present business condi-
tions. the increased tax burdens, the
outlook for fire insurance business for
the next few years vas not promising,
and under these existing conditions
with the strong associations of the Co.
an unusual opportunity was presented
to the stockholders to obtain more sat
isfactory returns in the line of opera
tions contemplated by the Citizens Co.
The reason for the change !. in the
status Of the Citizens Fire Insurance
Company from an insurance corpora
tion to an investment corporation is the
belief that the investment field will
prove more profitable than the insur-
ance. The headquarters of the Citizens
Fire Insurance Company were moved
to Baltimore in November 1911. just
prior to which time interests identified
with the Fidelity and Deposit Company
of Maryland acquired controlling in-l
terest in the Company 1t is understood
that r. W. Alexander, president of the
Citizens' Fire insurance Company, will
be identified with the new corporation.
The Citizens Company. with its large
capital. will aggressively go after bus
mess. and those behind it are confident
that it will soon take front rank among
institutions of its kind.
Besides its local connections, it will
affiliate with strong corporations en-
gagged in the same line of business in
other cities.
A majority of the stockholders al,
ready have assented to the proposed
change in the status of the Company.
Baltimore News.