Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-11-09
CONDITIONS OF THE
COUNTY IMPROVED DURING
RECENT WEEKS.
INSURANCE COMMISSIONER
ENGLISH REVIEWS CONDITIONS
Conditions in United States Growing
Out Of European War Being Met by
Financial misunderstanding New
Basis For Valuation Of Securities
For Large Insurance Concerns.
Special to rimes-Republican.

Special to Times Republican.
Des Moines. Nov. S.-The valuation Of
the securities of the life insurance CONS
panies of the country is just at this time
subject claiming the attention of the
insurance departments of the various
states. At the recent national conven-
ton of the commissioners at Asheville
the committee on valuation of securities
considered the matter in a lengthy
session but made no report on the SUBJ
ject.
Emory FL. English, the Iowa commits
sioner who for the first time attended
this convention. received assignment
among others on this committee, of
which Superintendent Frank HasbroucK
OF the New York department. is chair
man. The present financial situation
IN the country has direct and import
ant bearing upon the method to be fol-
lowed by the committee in compiling
the annual book Of valuations issued in
January. upon which is based the
the annual statment of the companies
to be filed with the various state insur-
ance departments.
Usually the committee has taken the
stock exchange quotations of Dec. 81 as
the correct valuation of securities listed.
Realizing that a situation similar to
emergency Of 1907 is being faced right
now, when the average of 13" was
adopted and valuations fixed enabling
actual rather than listed values to be
used. Chairman Hasbrouck has COM
municated with members of the COM
mittee asking consideration of the
situation prior to the adjourned session
Of the commissioners convention in
New York on Dec. 8.
Seeking New Basis.
Looking toward the securing of
necessary information to properly
establish valuations as of June 80, as
per stock exchange quotations Of that
date, instead of Dec. 81, Commissioner
English said:
I'm the absence of any open stock
exchange in this country since late in
July. and the improbability of the same
being reopened before the first of the
year. feel that the quotations of June
80 will be as accurate as any that could
be obtained for the purpose required.
AS matter Of fact only very few of
the stocks and bonds quoted in the
book of valuations are included in the
investments Of Iowa companies. The
bulk of securities deposited in the Iowa
department consists of farm mortgages,
drainage bonds and the bonds Of mu-
inequalities"
Mr.. English has authorized the chair
man to consider this as his attitude as
a member of the valuation committee
and also as commissioner Of the Iowa
department. as he considers the quota
tions Of the date named as more nearly
accurate and rejecting more nearly real
values than those quoted later in July
when panic conditions existed just prior
to the opening of the European war,
or those obtafnable at the date Of the
closing of the New York stock exchange.
In view Of the present unsettled con-
ditions of the financial world, due to the
closing of the principal stock exchanges
and other causes which render 1t i'm
possible to obtain accurate quotations
for many securities. the New York de-
partment accepted market quotations as
OF June 30. 1914. for the valuation of
securities carried in the quarterly
with that department. A canvass Of the
by Mr.. Hasbrouck shows
general assent to the program above
outlined. Authority has been given by
most of the state departments, except
ing Massachusetts,, permitting this
action.
Financial Situation Improved.
1.-THE general financial situation in
this country has improved greatly dur
ing the past few weeks" says Commits
sioner English. "As matter of fact
the many serious problems with which
we are confronted following the out
break Of the European war have been
in way that has materially
improved the unsettled conditions of
July and August. The stock exchange
in New York remains closed and the
stock market inactive, because no
practical way has yet been found to
handle all of the phases of the enormous
of American securities
owned in Europe which flnanciers still
believe to be inevitable. There is little
likelihood, therefore, of an early open
ing of the New York stock exchange.
Should this occur before the beginning
Of 1915 it would certainly result in
forcing down more than ever the prices
Of securities, the intrinsic value of
which is not affected by conditions in
this country. 1t is pointed out that in
this case disgruntled stakeholder of
a company might bring action for re-
particularly if he could show
that the arbitrary basis Of valuation
used in the annual statement at the
direction Of the insurance commissions
ers did not represent actual value in
the market. This shows the Importance
Of the work before the committee"
Business Change at Ogden.
Special to Times Republican
Ogden, Nov. 8-A business change !