Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1915-03-19
EXPERT MAKES REPORT
POLICY HOLDERS IN DEFUNCT
COMPANY MUST PAY DEBTS.
Horticultural Fire Relief Has obi
cations of $4,000 With Assets
of Only $4,000.

Policy holders OF the defunct Hor
ticultural Fire Relief and the two
subsidiary companies, of which there
are many in Dallas and Polk county
will be called upon by State Insur-
ance Commissioner Wells, acting as
receiver for the companies, to pay up
to 100 per cent of the standard rates
in order that the obligations Of the
defunct companies may be settled
Announcement that the policyholders
would be assessed was made Tuesday
by Mr.. Wells. There are approx
mately 10000 persons scattered
throughout Oregon, Washington and
Idaho who held policies in the Hor-
ticultural and subsidiary companies.
These are affected by the decision to
levy an assessment. Most of the pol
icy holders reside in Oregon.
With obligations amounting to ap-
proximately $11S,0OO and assets of
about $4,000 for the defunct con-
Germs, Receiver Wells faces the nee
essity of finding a way to satisfy the
claims and by calling upon the policy
holders to come to the aid Of the
companies is seen the only way out
OF the tangle. Acting upon an opin-
ion given to him by Attorney General
Brown and the opinions of experts on
assessment rights of mutual insur-
ance companies, Mr. Wells will de-
mand that persons holding policies
IN the companies on basis of 60,
rs and 80 per cent pay to the full
amount. As yet Mr.. Wells has not
determined whether the returns will
be enough to satisfy the outstanding
claims for fire losses.
Out of the almost inextricable
wreck of the Horticultural affairs,
Receiver Wells and W. W. Cham
breau, expert examiner, have dragged
facts of faulty business management
and misinformation furnished to pol
icy holders and also former Insurance
Commissioner Ferguson. The report
of Mr.. Chambreau setting forth these
facts have been filed in the circuit
court for Marion county, according
to The Statesman.
Tales of Suffering Told.
Tales of suffering and hardship re-
sulting because the Horticultural and
subsidiary companies have not paid
policy holders suffering losses, are
daily pouring into the office of Mr..
Wells in letters from those caught in
the wreck, and through all there runs
the insistent inquiry as to why the
state insurance department did not
protect the policy holders. Informed
that the companies have been insolv-
ent for more than Il year, the policy
holders blanc the department for not
having made any earlier investiga-
tion. Many of the letters received by
Mr.. Wells are heart-rending in their
cry of distress and protest. With
homes or business destroyed by fire,
many men and women are left pen
niless, with the non-payment of the
policies which they deemed good.
They are not able to understand why
they have not received the money
from their policies.
Carried down with the collapse of
the Horticultural and Oregon Mer-
chants Mutual was the Pacific Home
company. According to Mr.. Wells
the Horticultural assumed all the LA
bilities and Indebtedness of the Pa !
cific Home. The Horticultural also I
aided in payment of Oregon Mer- :
chants Mutual claims.
"These two companies probably J
cost the Horticultural Fire Relief
$42, 2,000," continues Mr. Well state
ment, and the only apparent offset is
about $4,000, consisting of some real /
and their office furniture $
and fixtures, making a net loss Of g
$32, 900. "The three combined COM T
panies show outstanding losses. ad- n
justed and unadjusted, of $4,000; $
unearned premiums, which have been n
collected and should be returned to i
the policy holders, of $4,000; bills v
payable $4,000, making the total ap- c
parent liabilities in the neighborhood n
Of S1ls,OOO." n
To meet these claims Mr.. Wells
says that he had approximately $4,000
cash, $500 in first class mortgages,
$4,000 in uneollected premiums un- |,
paid, including assessments, $1,000 in b
premium notes. $4,000 in real estate, n
making the apparent total assets ap- n
$4,000. After sub II
straeting the unpaid premiums from s
he assets Receiver Wells will have n
about $4,000. VI
"There is no question but what the a
BOARD of directors was misinfOrmed, n
IT in other words honestly misled re- n
yarding the true condition Of these p