Salt Lake Telegram | 1934-04-05 | Page 12 | Insurance firm to Reorganize

INSURANCE FIRM TO REORGANIZE California Western States Life Company Meets Supervisory Supervisory Su- Su Demands SACRAMENTO April S 5 JP iP of the Western California States Life Insurance company was launched early today followIng a lengthy meeting o of directors and a committee representing Insurance commissioners of the 10 western states in which the company does business J Roy Kruse of Sacramento president dent of the comp company ny will resign May MayI I 1 Resignations of five other o officers wl were re accepted Directors approved a 50 per cent reduction re- re In the stock which would cut the par par value of each share I from 10 to 5 Final approval ot of this action be asked of the stockholders at a special meeting April 13 Such a move Is understood understood- to have been demanded by commissioners of some states In which the company does business Funds Fund derived from rom the reduction would be bc placed in the surplus and c contingency n fund R Reorganization and the change in capital stock structure plans were confirmed confirmed con con- firmed last night by the four ance commissioners attending the meeting The resignations in no way reflect on these officers a joint statement said The reorganization is being brought about to quell disputes between be- be tween majority and minority groups of stockholders The financial of the corn com pany is ico sound Commissioners E. E A. A Smith Jr ot of Ut Utah h and commissioners of Washington Washing Washing- ton Oregon and California attended the meeting which followed a two two- day conference in Los Angeles at which commissioners from all 10 states were present The company's reserves are adequate adequate ade- ade quate and fully covered by acceptable a. a assets ets and the interests interest of oC all policy holders are amply protected commissioners corn com missioners stated yesterday It is the emphatic expression of all commissioners commis commis- that the contract holding public pub pub- lie lic need have no concern whatsoever especially in vIew of the excellent cash position of the institution The company has a capitalization of Investigation was precipitated by a stockholder dispute that started in January Januar when Philip Ware of Chico Cat Cal a director filed charges in behalf behalf be- be half of a group of minority stockholders stock stock- holders accusing the directors with mismanagement of the company's aft af fairs Interests of Utah Investors In the California Western States Life Insurance Insurance In- In company are beIng protect protected ed in reorganization of the company Elias A. A Smith Jr state stale insurance commissioner notified stockholders here Thursday Mr Smith is in San Franc Francisco eo and Sacramento in the interests of Utah stockholders In the company DIrectors tors ot of the company met Wednesday at Sacramento to perfect reorganization tion plans he said