$40,322 65 656 21 Interest from December 31, 1918 to May 12, 1919 at 44%.. Cash paid to Metropolitan Life Insurance Co.. $40,978 86 The accrued interest item in connection with the Travelers Insurance Company was settled in June, 1919; as a result the Metropolitan Life Insurance Company received an additional amount of cash in the sum of $334.46. Accounts: An analysis of the accounts of the Mercury Reinsurance Company at the office of the Alien Property Custodian disclosed that all obligations, including rent, salaries, commissions and miscellaneous expenses, have been satisfied. The ledger showed that on June 30, 1919, the company owned bonds of the book value of $383,150.24 and that there was on deposit with the New York Trust Company $19,925.45 in cash. I have not made an actual count or physical verification of the assets now in possession of the Alien Property Custodian. Conclusion It would appear from the examination made of the books and records of the company in possession of the Alien Property Custodian; from the affidavits hereto annexed of Morris W. Torrey, formerly manager of said United States branch, and of Mr. Scheide, manager of Enemy Insurance Companies, in behalf of said Alien Property Custodian; from the reinsurance contract between said custodian and the Metropolitan Life Insurance Company; and from the several releases or assumption agreements executed by the said eighteen companies mentioned in the rein surance contract, that all of the debts and liabilities of every kind of said Mercury Reinsurance Company that are due or may become due upon any contract or agreement made within the United States through the said United States branch, have been paid and extinguished as to said United States branch's liability therefor. William C. Scheide, being duly sworn deposes and says: That he is the manager of enemy insurance companies under and by virtue of an appointment made by Francis P. Garvan, Alien Property Custodian, dated May 10, 1919; and prior to that date was Chief of the Division of Insurance in the Alien Property Custodian's Office in Washington, D. C.; That on or about the eighteenth day of November 1918 the business and records of the United States Branch of the Mercury Reinsurance Company of Cologne, Germany, were taken over by A. Mitchell Palmer, the then Alien Property Custodian and that on the fourth day of February, Nineteen hundred and nineteen, the Alien Property Custodian entered into an agreement of reinsurance with the Metropolitan Life Insurance Company of New York, whereby the Metropolitan reinsured as of the thirty-first day of December, Nineteen hundred and eighteen all contracts of reinsurance outstanding on the books of the said Mercury Reinsurance Company and assumed the payment of all claims and demands arising out of said reinsurance obligations; That on the eighth day of May, Nineteen hundred and nineteen a final settlement of the accounts between Alien Property Custodian and the Metropolitan Life respecting the aforementioned agreement of reinsurance was made by the payment from the Mercury to the Metropolitan of the sum of $40,987.86 in cash, including interest of $656.21; That thereafter the Metropolitan Life Insurance Co. entered into agreements severally with all companies holding Mercury reinsurance contracts and certificates wherein the said Companies assented to the above mentioned reinsurance agreement, and released and discharged the said Mercury Reinsurance Company of and from any and all liability whatsoever under the contracts or treaties and reinsurance certificates of the Mercury Reinsurance Company, and further released their several rights, claims and demands against any and all deposits made by the said Mercury Reinsurance Company with its U. S. Trustees or with the Insurance Departments of the States of New York and Ohio for the benefit and protection of policyholders or creditors in the United States, and further consented to the payment of said deposits by the Custodian thereof to the said A. Mitchell Palmer, as Alien Property Custodian, or to his assigns: That all outstanding liabilities of the United States Branch of the Mercury Reinsurance Company have either been assumed as aforesaid by the Metropolitan Life Insurance Company, and released by the several companies, or have been paid and satisfied by the Alien Property Custodian, and that at the date hereof there are no debts or liabilities, policy or otherwise of the Mercury Reinsurance Company outstanding or unsettled; That all of the foregoing is true to the best of his knowledge, information and belief. Morris W. Torrey, being duly sworn, deposes and says: That November 18, 1918, when the business and records of the United States Branch of Mercury Reinsurance Company were taken over by the Alien Property Custodian, he was the United States Manager of said Branch, acting under and by authority of a license granted by the Secretary of the United States Treasury Department; that to the best of his knowledge, information and belief, the liabilities shown by the records of said Branch which were taken over by said Alien Property Custodian constituted all of the then outstanding liabilities, due or to become due upon any contract or agreement made by said United States Branch. Examined to ascertain condition September 30, 1919. This examination covers all transactions of the society from the time it commenced doing business up to and including September 30, 1919. History The Morris Plan Insurance Society was organized by the Industrial Finance Corporation, which owns practically all of the capital stock of the society, incorporated June 11, 1917, and commenced business September 18, 1917. It has a paid-in capital of $100,000 divided into 1,000 shares of a par value of $100 each. A surplus of $100,000 was also paid in before business was commenced. Purpose of Organization This society was organized to make insurances upon the lives or the health of persons and every insurance appertaining thereto and to grant, purchase or dispose of annuities as authorized by subdivision one of section seventy of the Insurance Law. The charter was amended December 6, 1917, at a meeting of the stockholders whereby all reference to insurance of the health of persons was eliminated. Corporate Powers A board of twenty-two directors, a president, one or more vicepresidents and such other officers and committees as the board may elect or appoint and empower exercise the corporate powers of the society. Directors Directors are elected at the annual meeting of the stockholders held on the second Wednesday of January at which time a full board is elected. It is not necessary for a director to be a stockholder. The by-laws provided originally for monthly meetings of the board of directors but on May 17, 1918, the by-laws were amended to provide for meetings to be held on the second Thursday in the months of January, April, July and October except when such day is a legal holiday in which case the meeting is held on the next succeeding business day. Officers The following officers are elected by the board of directors and hold office until their successors are elected: President, Vicepresidents (3), Treasurer, Secretary, Actuary. The president and vice-presidents must be directors. President The president exercises supervision over all the business and affairs of the society, the departments, officers and employees and such duties as are not specifically provided for by the by-laws shall be performed by them as he may direct. Treasurer The treasurer, subject to the order of the executive committee, has the custody and general oversight of the investments of the society; has charge of the books of account, bank and check books. He attends to the collection of interest and income and supervises the disbursements of the society, requiring proper vouchers therefor. Committee: At the present time there is only one committee — executive consisting of the president, vice-presidents and two directors not officers of the society. Any three members constitute a quorum. This committee meets at least once each month and whenever called in special meeting by the president. During intervals between the meetings of the directors, it is vested with the full powers of the board of directors in all cases where specific instructions have not been given by the board. It has general control and supervision of all financial affairs and accounts of the society, charge of investment of its funds including purchase, sale, exchange or conversion of securities, loans on collateral and investments, if any, on bonds and mortgages, but no loan or investment shall be made without the congent of all the members of the committee present. It has charge and supervision of the contracts of insurance of the society and of all matters relating to the medical department, the maximum of risks, rates and the making of policy claim disbursements, general supervision of the agency branch of the business, rates of compensation to be paid to agents, contracts with agents and any changes or substitutes to be made in such agencies. |