Deseret Evening News | 1906-03-05 | Page 5 | Continental is Reported Solvent

irl N E N rAllS TAL IS SOlVE r state Officials Make Report and Criticise the Manage Management Management ment ACTUARY MAY BE CALLED IN INIn In jn 1005 Ilio Iho Company Prom Froll Condition or of the ii c unit Had a n Surplus H Assistant Secy S cr of ot State George Geor e D 13 quireS quires and State Bank Examiner l C CA A Glazier have completed their re rt r o ti t Secy Sec of State C S H 3 e on the affairs aitt of the Continental LIe Ufe In urance nce company th tM the manaKe ment of ot HIrAm Tyrce Tyree The Tha report which Is IH I decidedly has lias ia hen been made public by Iy II Secy Sec TinKey The officials in their report vigor t ly criticised th the management of o the Iho Ihor company compan r but bul stated that thaI the tho concern ji I In m a 0 solvent condition and anti deserved d to live lue not nol be bs wrecked As All to tho question of whether tho the contract by i with the Western company C whereby that company was waslo 1111 to lo liae aVe alc the Continental 8 agency ex excluSively exclusively In soliciting work and wilting writing tolli iolI ii 4 s Is I for tor tho the benefit of or tho the ap io company compan they suggest that It II bo be beete ete by b nil an It r about three thue weeks hard work ork to examine tho the affairs of oc the theton ton con puny pAt Y which examination show that thaI there was an actual nt III the th end of or the tho e H In 1911 and the tho failed to charge charRO up U as CS expenditures In the tho report tho the 27 U which 1181 been be n paid for promotion organization Mil and tIn d In 11 1905 tho tile go goes n on to show sho the company had a I surplus haVing recovered from the 1 of ot the year pre The Tile methods said to have hae Ilas e been heh adopted by b tho the company III In making n a I contract with a 11 l Ios Angeles firm for tor forer er policies from prominent men atler which local agents u ld these names ai ns an all advertisement tho the report criticises Recy Tinge Is II now going over the report carefully antI and until he mis hils ex cx examined examined It thoroughly he lIe tines does not 1101 CillO CIlIO to say ay what whal he will lo ito In III the matter Tl OF Till I Following Is the full tull text lext of ot the re rc report repart port part portIon lion Ion Charles havIe H Secretary of oC State tato Dear Dar D ar Sir ShWe We submit herewith a I report of our examination of ot the tho Con Continental Life Investment company which began on the tho 3rd of January 1000 In lIt handing you 11 the thc result rc ull of our labors we desire leSile to state that the of officers and ond of ot tho the company compan furnished every evory ever facility for tor Ing the work and compiled with our every mry request with uniform II 11 I to Im courtesy and frankness It has hall been heon our ende endeavor or to tl bring to your attention tarts facts which would Il ii Illustrate lustrate lu rate tho the strength lh as nR well ns liS tho the of at tho the system anil alII I methods method In Icing doing doln this thiH Home HOllie of ot our nut criticisms may ma CeCIl SON overe levere ere hut but these nrc mo mode In order that tho employed might be he Improved IN I 1901 1001 Wo o have hav hlas tile the to advise you OU that the exhibit of assets and liabilities of tho the company co at the close of tho the year nul 1906 1905 detailed statement of which lie ho herewith furnished you ou shows sho the company to have recovered I from reIn tho the thoa actual a deficiency which existed at nt tho the cioc clo o of 1904 I statement of ot which wo vo have ilae also aiM furnished 1 and showing a U of for 1905 In view PW Mth wide do publicity which has hall been given Ilven to the th affairs of or tho the company COlli pan we ve have havo deemed It II wis to furnish a n detailed statement of M tho assets and liabilities of tho the company We e have not been hC n to tn examine the thereal thereal real estate upon which mortgage luan have been made but hul have every vely reason rea on to tl believe that they the are nrc suf sufficiently secured Ve Ye have havo verified tho tile accounts of ot the tho company In III tho the differ different ent banks end find from their reports that tho banks actually had tho the money on en deposit with the thc exception of It the deport of or the Central Trust company compan t Sun San an Francisco nn an explanation of oC which will IlI bo be made later I ter In this report ruport NOTES AS HI CASH 1 This his company compI WI a I d on Cli Clithe the th I day of February 1901 1 90 I 1 with an all authorised capital of lOll and paid Up lip In cash Wo Yo find tind however that this WItS was not tho the true truo condition tint thU hod been b en T M In cash Inch and hod been paid in III II notes not held to be absolutely secure At tho close of M 1904 h hd d been heen paid In cash calt or stock find no nil stark Click was yg Issued until tho the cash had been received At tt tho the close of ot If 1905 1005 the amount paid In cash for capital Mock amounted to certificates cafes cates for tor worth of ci stock hav haY having ing ii been heen Issued We submit herewith a statement the II Income and disbursements of ot 1101 an nn per pel the tile statement of the tile com Coil rny rany ran with an III addition to tho the expendi expend expenditure expenditUres 1 ture tUrp made by hy the of 27 7 mil ii the amount of lit promotion organization and development expenses which had ban been laell omitted omit tell by the tile company compall In lil milkIng making Its statement also a n statement ot of the Resets and liabilities In III which thi thir r ha been deducted from coin the cash cosh cosho 00 o n html hani as all reported In the annual statement the tho sum of ot tho the m un by the company In Its account of special funds fundA and which represents an expense sect el and 1 was aa not cash on hand INCOME IE STATEMENT IEN toOk stock Premiums received Annuity noto note HIckson 1 Premium notes 3 Interest mortgage lo lIlt 1111 1 lest stud divi dividends on 00 stocks and bonds hondA Profits on sale sitio of or stocks and bonds i Total Income I Total footings Commissions Commission to agents Salaries und and In Including Including eluding managers und and 81 clerks Salaries to II officers officer 5 Clerk home office Taxes 67 51 Insurance department fees te s and and agents agent licenses Advertising anti and printing Lecal expenses and fixtures Postage expenses ell Medical examination fees Telephone nod telegraph ex expenses expense pense I 1621 1620 All 11 other oIlier unclaimed expense Organization development expense 11 BalAnce ASS ASSETS TS Mortgage 3 Collateral leaps MunicIpal warrants t Stocks Cash Cash In nl hands Bills Premium notes 2 4 1 AccrUe interest Agents debit bal bI balances ances Supplies SupplieR printed mat matter ter and Furniture anti fix Ox fixtures fixtures tures 14 Orosi GrOll assets MS tA Deduct assets I ROts not ad admitted admitted Admitted assets asset LIABILITIES 1904 Reserve H Salaries bills unpaid Agents balance balances and cash ad 1111 advanced dl Stock notes Capital Total liabilities Deficit THAT DEFICIT ron KOK 1904 Taking these e figures we find n II deficit for the year y 1904 of We Vc find however as OR a 11 result of oC the examina examination tion of ot 1901 HO that tile the deficit of 1901 1304 has hUll been heen overcome and the expense expedite e asset Is III no longer carried upon the books of the tho company but bul has taa ben been changed Into A proper asset et 11 having been paid pid out of the sali of ot premium notes and the tho balance balanco of ot organization and lIHI 11 development expenses have been b en charged to 10 the Western Agency com cent company compan pan pany and held ibid In the tho statement of oC 1903 nn ilK 3 cash In the hands of agents agent and In transit which appear upon tho th statement of at 1905 as V Wo u find that thaI during the month of or February 1906 anil while this Investigation wa was In progress tim the Western Vestern Agency company compall had depos depot deposited deposIted to the credit of ot the Continental Life Insurance Investment company sums summit amounting to In Iii the fol tol following following lowing banks b Thatcher Him Bros flanking Co CoLogan CoLogan Logan Utah Itch I l National bank Ogden Utah Union lank Hank Trust Co lid Hel Helena end ena Mont Central Cen Trust Co San SlIn Fran Francisco I ran cisco deco Cal If Idaho State bank halley Ida 27 1 charged to Western Vestern Agency Co 1168 Total So 10 that the entire entre amount of or money mooney so BO reported In ts II now IW In the hands of the tho company compan except 1468 which still sti ro re remains mains charged to the Western Agency company cOmpall 1 At jt the th time that the books closed for Co I the th year yel 1901 1504 there ther were wern other cash Items which were received by ly the company In 1905 and omo ionio lomo chicks cheeks that were ere dated In 1905 that wro sero carried to the c uli account of loot 1001 hut ns as this thin matter hoes coes not nt effect the th financial result r and ancl the thi present landing of ot the company we make malle no detailed statement We also submit a n table showing In detail tIme the Income of ot the company dur durIn durIn I In the year eal 1905 1901 and the tha expenditures foi tor the same Caine year car carICO INCOME ICO IE DURING YEAR YEAH IMS 1903 Amount received from premiums unpaid close ot of If 1904 lOOt received Amount first year premiums life le leI IMS I OS Amount received from front first year ar premiums premium health 1905 I OS Amount received re reIn from first year premiums acci accident Ilent dent 1905 1903 premiums life te Renewal I premiums health Renewal premiums accident nl 2310 O Increase I In capital stock 44 03 Interest mortgage loans Interest collateral loans Interest and ant divi evl dividend rend Cn tin n stocks stocka and bonds Interest Inter all 01 other sources 15 Profit roOt l on sale of f stock I Profit on sale of company stock l Medical M examina examination tion tiong lons paid by h Western Agency Co o 2910 Total Income AIM Add net l dG as assets assets sets 1904 Total T tul footings 40 EXPENDITURES DURING numo YEAR 1005 05 Annuities paul paid pall s 2100 Losses IA fes 3 Paid dividends to Commissions to tl agents new flaW IW busi busl business ness nest Commission to agents renewals and allow allowances ances ancell to agents Rents Hents Salaries of Salaries of clerks Taxes on personal property Insurance In depart department department ment fees and agents licenses Advertising printing stationery X Legal expenses es Furniture and fix Lures tureH Postage Medical examina examination tion 3 6 j Traveling ton expenses I Telephone and tele telegraph telegraph graph lOHM Miscellaneous Total I Total footings In ct rom onto m 1905 O OI I 81 expenditures II nce 30 We 11 0 submit a 1 detail statement of or the assets and liabilities Dec Iee De 31 1905 1005 nIl all ni of or which have havo havI been heen carefully verified STATEMENT OF 01 ASSETS OF 01 TIlE THE TI CONTINENTAL LIFE INSURANCE INVESTMENT IEST INT CO DEC DIC 31 1905 1903 Municipal warrants City Clr ity of ot S fi 5 I bonds Hear lear River school chool district No 0 13 at a I 1000 5 S per dent ent rOMO 10 bonds Hammond Canal anal en nal Co at lit n I 8 per cent celt 35 bonds Utah tah Co Light Power r Co o 0 6 per percent perCent cent conI 13 1 bonds Utah Co Light Power Co 6 per percent cent tet celt f STOCKS O shares sharell on un A Mach Slach Co Comar market mar el value 3 2619 2618 shares hure Idaho Sugar Co 0 00 market markel value shares 3 Rocky Hock itt Jit I lIeu Hell lell Tel rei Co 0 00 market shares Amalga malKa Amalgamated Amalgamated mated Sugar Co tOO market value 1800 shares Utah Uto h Sugar CI Cl 10 market value 12 COLLATERAL LOANS tOS SECURED AS COIA FOLLOWS 1 shares shareR Frying Pan Sheep Co par value market value alue 33 loan bait 50 shares InH Ins Inv Co par values market markel value 9 8 34 3 f shares Poindexter Orr Livestock mar marcet el value 3 1500 50 loan J POLICY POLICY LOANS LAS 1 I F F I 1 Fitzpatrick MORTGAGE LOANS DUE Salt Sni Lake City Co S L 14 LC I IC C Utah Simon Mary MaryLewis Lewis Bannock Co Ida Ia S Shoshone Lund Land t Water Co Lin Lincoln LIncoln coln Co C Ida 1111 10 2105 2106 W v 13 E 1 Trapp and andA A J 1 Pierce Ban Bannock Banneck nock neck Co Ida 12 1 2 2406 06 L K E I Lansing Co Ce Mont 10 Chan ChIte Pinkerton Co Coront Mont Benedict Wren ren stead Bannock Co 1118 J 1 H 8 and E 13 A Dougherty Ilea lea county Count coun tv Mont Thomas homas and N J Lewis Lwis fi Clark Co Mont lont E Slack II 11 M 21 Sorell So rex son len heaver Vel head Co Ca Mont l nt Weldon Else E Colonl e Ilea Heft BeA 1301 J 3 It n and N X II n Pinkerton lien Hea Colon t J H 11 1 I t Jck ock CO Ida 7 j 2000 Chas Chao M I Swanson et el nl al Sliver Silver Bow BowMont Bo Mont Wm Welt We H n Ryan tan Box Jinx Boxelder i elder cider Co Utah 1 11 Cache Cacho Co Utah lul n Cache Co Utah Bl CASH CASI ACCOUNTS Co Ce Salt Lake City CIt Daly Bank i Trust Ci Co lutto Mont 7 6 1 Central Trust Co CoSan Colan CoSan San lan Francisco 6 French American Hunk flunk Fren chico Cal Co 1231 Suite State Hank Bank of ot Dil Dillon DI lon Jon Dillon Dion Mont Cole eole oie Hanking Co Ce Corinne Utah 2237 2231 State Bank Dozeman Mont Lehl Lehi Commercial Savings hank Dank Lo 10 Lohi Lohi hi Utah Cash Catli In lit orce 1023 3 37 Renewal premiums notes lotes notel 3 h In hands handi of agents Western We tern Agency genc Co Ce balance 24 Butte Hutte branch otIlee olce to r 51 3 Premium notes first years business Accrued Interest on mortgages Accrued Interest on bonds and Accrued Interest on collateral loans loa n Accrued Interest on other assets 3 4 39 Net amount of ot premium not more than three months due as lS fol follow follows low lows H NEW WALS Grow Gross urns duo dle and n unreported n re reported ported on oil policies In force Del Dec 31 1906 1905 05 0 01 Gross dross defer deter deferred deferred red premi premium pell um 11 policies In iii force torce Dec Dee 1 1 Totals Deduct Ded lel load loadIng loadIng Ing bIg 3 8 78 Total admitted as its assets lS sets letl STATEMENT OF LIABILITIES Net Not premium re reefe reserve servo serve efe I Medical 1 examina examinations examinations tons not mint paid IIII Commissions to agents lents unpaid Duo agents on col collection collection lection of oC premi premium um hIlt 1 notes Capital stock up tip O Surplus 3 A portion porton of o the cash repotted reported above an na al deposited in COM Cos Co hunk baTIk consists of or a certificate of deposit depo ll amounting to bearing Interest nt nl the rate rato of ot 4 per cent If t held for tor four tour months which represents money monY advanced advance on cit notes note of ot the company which notes arc are held by b the company compan for collection This ar m arrangement was wa entered Into In Decem December her ber bel 1105 hut but the certificate of deposit depo ll was aR not nol Issued 1 until the day of January 1906 The amount of or risks written by h the company tom during the year ear 1906 1909 paid for far business was wan Tho Tile total amount at al ilsk Dec 31 1905 was aa The gross roll risks written In Utah during loOS 1105 were 00 The amount nt at II rIsk rl k In Utah at nt the close of 1905 was TYREE DREW DHE SOME SO I CHECKS In iii verifying the amounts claimed to be deposited In the several banks we ascertained that nt nl tho the close co e of at Dc De December cember 1905 the lh Central Trust com company pany 1 11 of San Han Francisco Cal COl hud html on nit deposit to 10 the tho credit of ot the Continental Life Insurance Investment company while the amount charged to the bank on the books bool of ot tho the company cOlpany WAS As An n Investigation of this ac account IC account count showed that tha the following checks had been drawn again batik bank balk by Mr Tyree tile the president pre lent on the fol Col following