The Omaha guide., 1935-02-02
RECEIVERS DISMISSED
FROM VICTORY LIFE
giles necessary before success W
finally won.
Might Have Gained

u1l&Ab 3ldfC 0d1AC0
The procedure used in mutual
izing Victory Mutual has estab-
lished insurance precedent in
illinois, said Mr.. Watts. 1.-THE
fedora lcourt here permitted US to
do the precise thing which the
District of Columbia court refus-
ed to allow the receivers of Nat
ionaL Benefit to do, that is, mutu-
alize the company for the benefit
Of the policyholders.
We were limited in our possibilt es.
Only two companies offered to reinsure
offer and the Missouri Life a COM
paratively small white concern Of 81.
Louis.
March rs, 1893. Judge Evans ap-
proved OF a g stock company pro-
posed by a committee headed by Rev.
L.. K. Williams, Dr.. Savory, DR..
Haley Bel, John Holman and A.. l..
Williams. Finding they could not raise
the monep necessary to meet the heavy
demands for new capital, this group
returned Z o court and asked that they
be permitted to form for a mutual or
ganization TO be owned by the policy
holders. The judge assented. The
Illinois insurance department was fin
ally sold on the idea of permitting the
receiver to put the asset Of the old
as capital for the new mutual
company. June 9, 1893 the state
granted a license. June q, the
contract was approved.
White Texas Aids.
Immediately the fundamental
faith Of the public demontrated it
self. Premium income which had
fallen TO $1,000 per month when
difficulty had come, ran up to
10000 per month. The Recon
struction Finance Corporation,
convinced Of the soundness Of the
plan and with the cooperation Of
examiner, Rochelle. one of its Of
ficals who formerly was Of the
Texas Insurance Dept, loaned,
$48, 500.
"This loan has been repaid.
The 100000 in death claims
which had accumulated at the
time of reorganization, have all
been paid in full. The receivers
fees have been met. The company
has been licensed in the District
Of Columbia. 1t confidently ex-
poets to be deadmitted into New
York soon, a sufficient common
tary upon the soundness with
which it has been rebuilt. Its pol
icy will be to concentrate upon
the large profitable fields which
lie within its grasp.
"In September 1894, the insur-
ance department made a repprais
al Of assets and slightly increased
valuations. The results is a sur
plus Of 100000. The court sign
ed an order after a study made
by the receiver, the attorney and
an Independent actuary, the court
signed an order through which all
causes Of action are transferred to
the new company. This may result
in the collection Of large sums,
J claimed TO be due, but the re-
ownership is not held open pend
ing their collection.
Slash Overhead
81 believe the company will
make steady progress. | agree
with receiver Gullett who says
he will stack the home office
force against any similar group
in any white company he knows"
Mr. Watts made another signi-
ficant remark. He said that his
study of the company showed
that insofar as the insurance com
pany was concerned it was as
sound as a dollar and it. was only
the efforts made to save the Dou-
glass National Bank in which it
had become a large stakeholder
which caused the difficulty of the
insurance organization. The $67,-
700 stock liability which the
company was involved in as a re-
suit Of its stock holdings in the
bank were compromised for $4,000.
DR.. Savory and his associates
seem well on their way to make
a certainty, Judge Evans state
ment iii court in 1894 when he
said: eve have overthrown a
defective organization and estab-
lished what it seems to me will be
the largest Negro insurance com
pany in tn United States"
The financial committee Of
man and Drs. Williams and Saw