The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1915-07-12
.[UN|NG ISSUES
STATEMENT ON
INSURANCE co.
HAS REQUESTED COURT TO
PLACE HIM IN CHARGE OF
THE FLORIDA LIFE INSUR-
ANCE COMPANY.
SPECIAL TO THE JOURNAL.

LuulnR, SCdO0 Cr6dSuT0Ty has DOSn- III
the city for several days. Upon be-
ing asked for a statement relative to
the affairs of the Florida Life In
surance Company he gave out the fol-
lowing:
Eat a meeting of the stockholders
of the Florida Life Insurance Com
pany, held on the first day of June
last, committee, consisting of ]. ].
Heard, president of the Heard Ma
tional Bank, w. C. Groom, vice presi-
dent of the Atlantic National Bank,
Frank Richardson of Jacksonville, R.
S. Hall of Ocala, and E. B. Shelter
of Quincy, was appointed to receive
propositions for the purchase of the
business of the company; also, to re-
ceive propositions for the reorganiza-
ton of the affairs of the company.
This committee was to report to a
meeting of the board of directors of
the company to be held on the 9th day
of this month. The stockholders, at
the meeting of June 1, authorized
and empowered the directors to make
such disposition of the company at
the meeting of July 9th as to said
board was considered to the best in
terest of said company.
"The committee received two pro-
posals to purchase the company and
its business. After fully considering
both propositions the committe unan-
imously decided that it was for the
company's best interest to reject both
propositions, neither of these propo-
sitions fully protecting the policy
holders, and recommended unani-
mously to the directors that applica-
ton be made to the court to place
the affairs and management of the
company in the hands of the state
treasurer, stating they were of the
opinion that by the state taking
charge of the company under the pro-
visions of chapter 6843, Laws of
Florida, Acts of 1915, which law
gives the state treasurer full power
fairs of the company subject to the
supervision of the court, the affairs
of the company would be conducted
at minimum of expense, every in
terest of the policyholder and stock
holder possible be conserved, and all
profits that might result from its
future management be saved to them
"The committee and directors felt
that no proposition had been made
by the proposed purchasers that could
not be realized by state control. The
business of the company now in force
amounts to about seven millions of
dollars. 1t is estimated by insurance
people generally that it takes all the
way from ten to fifteen dollars per
thousand to procure new insurance
business and place it upon the books.
The companies offering to buy the
Florida Life Insurance Company Of
fered nothing for this business. There
are also other items of possible profit
which should result to the company
for which no consideration was Of
fered by the intending purchasers.
By the state conducting the af-
fairs of the company its identity as
Florida company will be maintain
ed, all its receipts will remain in the
state and when the present depressed
financial conditions, due to the Euro
pean war, are ended and financial
matters are easier, it will be possible
for additional capital to be put in
the company and its operations in
the state made permanent and val
liable asset to the states business.
Application has been made to the
court to place the state treasurer in
charge of the company in compliance
with the order of the board of direc-
tors. When the state treasurer has
been placed in charge by the court,
as soon as possible thereafter a state
ment will be rendered to each policy
holder as to the condition of the com
pany's affairs, so that each will be
fully informed.
with the cooperation and support
of those interested in the affairs of
the company as policyholders and
stock holders, it was the unanimous
opinion of both the committee and
the board of directors, that the pol
icyholder would be fully protected and
that the stakeholder might also re-
ceive something. Every possible eff
fort and exertion on the part of the
state treasurer to bring about this
result will be made, and in this eff
fort he solicits and feels that he
should receive the support of not
only those financially interested in
the company, but the people of Flori-
da generally.
at might be added in conclusion
that the committee appointed at the
instance of the state treasurer to
probe into and investigate the past
management of the affairs of this
company are diligently at work upon
this matter. The state treasurer is
in hearty support and accord with
the efforts of the committee, will rem
der them every possible assistance and
intends seeing that any and all per-
sons found to be guilty of criminal Of
fense-if any-in the past manage
L Al