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. . I T C. Quarterly VOLUME 6, NO. 4 FALL, 1948 North Carolina Contains Home Offices of Many Large and Growing Insurance Companies, Particularly in Life Field One of the fine Home Office Buildings of North Carolina Life Insurance Companies (See inside cover) PUBLISHED BY Employment Security Commission of North Carolina RALEIGH, N. C. PAGE 82 t c t i t t ! i ' ' ' the e: S: C. QUARTERLY FALL, 1948 The E. S. C. Quarterly (Formerly The U.C.C. Quarterly) Volume 6, Number 4 Fall, 1948 Issued four times a year at Raleigh, N. C, by the EMPLOYMENT SECURITY COMMISSION OF NORTH CAROLINA Commissioners: Mrs. W. T. Bost, Raleigh; Judge C. E. Cowan, Morganton; C. A. Fink, Spencer; R. Dave Hall, Belmont; Marion W. Heiss, Greensboro; Dr. Harry D. Wolf, Chapel Hill. State Advisory Council: Capus M. Waynick, Raleigh, Chair-man; Willard Dowell, Raleigh; H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake Forest; Robert F. Phillips, Ashe-ville; Mrs. Dillard Reynolds, Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric Stallings, Charlotte. HENRY E. KENDALL Chairman R. FULLER MARTIN Director Unemployment Compensation Division ERNEST C. McCRACKEN Director North Carolina State Employment Service Division M. R. DUNNAGAN Editor Informational Service Representative Cover illustrations represent typical North Carolina industries under the unemployment compensation program or related activities. Cover for Fall. 1948—This showplace at Sedgefield, about half-way between Greensboro and High Point, is the home office of the Pilot Life Insurance Co., one of the beautiful and im-posing plants built by life insurance companies in the State. On the 132-acre tract, 70 acres are in lawn, beautifully land-scaped, with 60 large English boxbushes, European lindens, white blossom cherry trees, crepe myrtles, white pine, birch, hemlock and other varieties of shrubs around the buildings. All drives are paved. Three buildings, completed in Sep-tember, 1928, are of English type architecture with oversize Jeffersonian brick, and cast stone trim. One building is 190 x 40 feet, 3% stories high, and two are 125 x 44 feet, 2% stories high. Inside are large departments with large win-dows. All trim inside is Minnesota birch, floors are linoleum and lighting is fluorescent. A pool, lily lined and with about 600 goldfish, 30 x 50 x 2% feet, is in the center of the court. Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: E. S. C. Informational Service, P. O. Box 5S9, Raleigh, N. C. CONTENTS Pagic N. C. Insurance Companies 8 2 Many Big Life Insurance Firms Flourish in State 8 3 Jefferson Standard, Durham Life, Pilot Life, N. C. Mutual Life, Security Life Trust, Home Security Life, Occidental Life, Imperial Life, State Capital Life, Southern Life, Pyramid Life, Winston Mu-tual Life, Coastal Plain Life, Fidelity National Life. Commissioner Controls Insurance Activity in State 10 By R. F. Adkins Ten Fire and Casualty Company Home Offices in State __ 101 Hardware Mutual, Carolina Casualty, Blue Ridge, Southern Fidelity Mutual, Bankers' Fire, Textile Insurance, Old A'orth State, Atlantic Fire, Piedmont Fire, Southern Fire. Regulate Fire, Compensation, Auto Insurance Rates __ 111 Fire Insurance, By Landon Hill Compensation—Automobile, By John F. Fletcher Companies and Agents Members of N. C. Associations __ 113 N. C. Asso. of Insurance Agents, By S. G. Otstot ; N. C Asso. of Insurance Women ; N. C. Industrial Insurers Conference ; N. C. Slate Asso. of Life Underwriters; N. C. Asso. of Mutual Insurance Agents. Three Hospital and Medical Associations in State 115 The Hospital Care Association, Inc. ; Hospital Savings Asso. of N. C, By L'mis M. Connor, Jr.; The State Hospital Asso., Inc. Fraternal Benefit Funds Operated by Three Groups 119 Independent Farmer Mutual Fire Insurance Groups __ 120 Farmer Mutual Fire Insurance Asso. and 19 Branches __ 123 Basic Coverage in Insurance and other Activities 126 By W. D. Holoman Many Claimants Fail to Qualify for Benefits 130 By Edith C. Dennis Note: Articles in this issue, not credited to other (with By-line) were written (some rewritten by firm representa-tives) by M. R. Dunnagan, Editor. N. C. INSURANCE COMPANIES North Carolina has been a fertile field for the or-ganization and development of insurance companies, particularly in the life insurance field. The State now has 15 companies, 12 of them well established and remarkably successful. Three are new, but with bright prospects for very successful operation. In the State are home offices of a dozen companies gen-erally placed in the fire and casualty classification, which includes marine, compensation and other types. Two fire and casualty companies are now in the process of organization. The dozen older and well established life insurance companies with home office in North Carolina have made wonderful strides. In the past 50 years many life insurance companies have been organized in the State, but most of them have disappeared through consolidation and absorption. A few have been liquidated. The result is that the dozen companies that have been in operation for a decade or more are classed as among the most substantial and sound companies in the entire country. A few figures and comparisons are sufficient to prove the importance of North Carolina companies in the life insurance field. Total assets of these com-panies at the end of 1947 had reached the staggering sum of $369,037,500. This shows a growth of 230 percent during the ten-year period since the end of 1937, when total assets were only $111,785,519. Equally impressive was the increase in insurance in force of 174 percent, from $755,361,357 at the end of 1937 to $2,072,927,117 at the end of 1947. Further evidence that life insurance in North Carolina is big business for the home companies is furnished by other consolidated figures. Capital stock of the home companies, except for the four mutual companies which do not have capital stock, amounted to $14,966,071 and the surplus had reach-ed $30,014,897, both of which is additional protec-tion for policyholders. Total liabilities, exclusive of capital and surplus, was thus $322,119,565 at the end of 1947. At that time total investments of North Carolina insurance companies amounted to $283,119,768, largely in Federal, State and other bonds, stocks, mortgages and loans to policyholders. During the year 1947 premium income amounted to $70,040,638, while $21,213,959 was paid last year to policyholders and beneficiaries. These life insur-ance companies employed approximately 2500 work-ers in North Carolina last year, paying them salaries and wages of approximately $8,172,000, in addition to amounts paid to large numbers of workers em-ployed in other states. These figures, of course, do not include the activi ties of the dozen fire and casualty companies in the State, which would increase many of them by large percentages. Nor do they include the more extensive operations within this State of the hundreds of life, fire and casualty companies located in other states which are licensed to operate in North Carolina and have large agencies and large numbers of agents do-ing business in North Carolina. Particularly in the casualty field, and to a less ex-tent in the fire insurance field, the great bulk of the insurance premiums paid for protection by North Carolina firms and individuals go to companies out-side the State. That is pointed to by the two fire and casualty companies now being organized within the State as a reason for their organization. FALL, 1948 THE E. S. C. QUARTERLY PAGE 83 Many Big Life Insurance Firms Flourish in State North Carolina has proven a prolific field in the organization and development of insurance com-panies, particularly in the life field. During the past 50 years many life insurance companies have been organized in the State, but numbers of them have been consolidated, absorbed and liquidated. In the process 15 life insurance companies were in opera-tion this year, all of them, except three new ones, having attained remarkable success in the State and some of them expanded into other states. Two new companies, organized last year, are Coastal Plain Life Insurance Co., Rocky Mount, and Fidelity National Life Insurance Co., Greensboro. The latter purchased control of the George Wash-ington Life Insurance Co., Charleston, W. Va., re-cently and will operate under the George Washing-ton charter, thus reducing the companies with home offices in the State to 14. Eleven of the 14 are stock companies and three are mutual companies, although several of the stock companies started as mutuals and later converted to stock companies. Oldest and one of the strongest of the State com-panies is the North Carolina Mutual Life Insurance Co., Durham, organized, owned and operated by lead-ing Negro citizens of Durham and in other cities. It began business on a shoe-string in 1899 and is ap-proaching its golden anniversary. The Pilot Life Insurance Co., Sedgefield, Greensboro, second in age, had its beginning in 1903, when a firm that had been in operation since 1890, established an insurance de-partment. The Imperial Life Insurance Co., Ashe-ville, was third in the list, starting in 1905 as a mutual company, but became a stock company in 1920. Three companies were organized in 1906, but two of these shifted base after starting in business. The Durham Life Insurance Co. was organized in Dur-ham as a mutual company, but moved to Raleigh in 1920 and had become a stock company in 1913. The Occidental Life Insurance Co., Raleigh, was organ-ized in Albuquerque, N. Mexico, but in 1926 pulled up stakes and settled in Raleigh, considered greener and more luscious territory. The Winston Mutual Life Insurance Co., Winston-Salem, also Negro own-ed and operated, organized in 1906. The Jefferson Standard Life Insurance Co., the State's largest, was organized the next year, 1907, in Raleigh, and moved to Greensboro in 1912. The Home Security Life Insurance Co., Durham, was organized in 1916. In 1920, the Security Life & Trust Co., Winston-Salem, was organized in Greens-boro and moved to Winston-Salem in 1924. In 1927 the Southern Life Insurance Co., Greens-boro, began operations as the Dixie Mutual Life In-surance Co. in Raleigh, but moved to Greensboro in 1931 and merged with the Southern Life and Acci-dent Insurance Co., and, in 1947, changed its name to Southern Life. Depression born, the Pyramid Life Insurance Co. was organized in Charlotte in 1929. Of more modern origin is the State Capital Life Insurance Co., organized in Raleigh in 1936 and get-ting ready to move into its new home office building later this 'year. Two new companies, referred to above, the Coastal Plain Life Insurance Co., Rocky Mount, and the Fidelity National Life Insurance Co., Greensboro, were organized last year. More details of these strong financial institutions are given in the articles below. JEFFERSON STANDARD LIFE INSURANCE CO. Greensboro, N. C. The Jefferson Standard Life Insurance Co., with home office in the Jefferson Standard Building, Greensboro, started business 41 years ago in Ral-eigh, moved to Greensboro five years later and has grown into the largest insurance firm in North Carolina and one of the largest in the entire nation, its insurance in force now exceeding $800,000,000. Even when it started the Jefferson Standard was a big organization for that time, for North Carolina and in view of the financial conditions which existed in the State and nation. It was founded and started by big men, with an initial capitalization of $250,000 and a surplus of like amount, paid in by leading fig-ures in Raleigh and surrounding area. The firm was incorporated May 27, 1907, and actually started in business August 7, 1907, with offices in the Masonic Temple, second floor. P. D. Gold, Jr., Greensboro, and Charles W. Gold, Wilson, brothers, were chief promoters of the organ-ization. Listed with them as the group applying for and granted a charter were H. G. Chatfield, Joseph G. Brown, Col. Charles E. Johnson, H. W. Jackson, The late Julian Price, tohose dynamic force and native ability drove the Jefferson Standard Life Insurance Co., Greens-boro, into the top ranks among the companies of the nation. Mr. Price was with Jefferson Standard (and an absorbed com-pany) for Jt l years, loas president for 27 years and was chairman of the board at the time of his death in an automobile accident October 25, 19^6. PAGE 84 THE E. S. C. QUARTERLY FALL, 1948 Thomas B. Womack, all of Raleigh ; and J. C. Hales, Wilson; Charles Brantley Aycock, later Governor, Goldsboro, and C. D. Benbow, Greensboro. Other prominent names linked with the organiza-tion in its early days in Raleigh were Dr. Albert An-derson, Col. A. B. Andrews, vice-president of the Southern Railway Co., for many years; B. S. Jer-man, president of the Commercial National Bank; Charles Home, Clayton ; John 0. Ellington, Fayette-ville ; Col. John F. Bruton, Wilson ; A. G. Myers, Gas-tonia, and Josephus Daniels, an organizer, a stock-holder until his death January 15, 1948 and one of the early policyholders. First officers of the Jefferson Standard were Joseph G. Brown, president of the Citizens National Bank, president for five years, until it moved to Greensboro in 1912; P. D. Gold, Jr., vice-president; Charles W. Gold, secretary and treasurer, and Dr. Albert Anderson, medical director. While still in Raleigh the Jefferson Standard re-insured the business of the Carolina Life Insurance Co. and of the Southern Life Insurance Co., the latter of Fayetteville. Then, in 1912, the Jefferson Stand-ard, the Security Life and Annuity Co., and the Greensboro Life Insurance Co., both of Greensboro, consolidated under the Jefferson Standard's charter. Then a fight developed among the directors on the question of moving the home office to Greensboro. Finally, P. D. Gold, Jr., formerly of Greensboro, cast the deciding vote and the Jefferson Standard moved to Greensboro in 1912. Following the move to Greensboro, most of the Raleigh officers and directors dropped from the pic-ture and most of the stockholders sold their stock. P. D. Gold, Jr., soon got out of the company, but his brother, Charles W. Gold, remained an official for many years. In 1913, soon after the move to Greens-boro, George A. Grimsley, Greensboro, was elected president of the Jefferson Standard, heading the company through 1918. When the Jefferson Standard made its first annual report, as of the end of 1907, after less than five months of actual operation, it had insurance in force of less than $1,000,000. Five years later, when it moved to Greensboro, it was in splendid financial condition and had made extensive progress. The foundation had been laid for a business that was to develop insurance in force of about $750,000,000 at the time of its 1947 report and a figure which passed the $800,000,000 mark last August, the 41st birth anniversary month. Consolidation with the Southern Life and Annuity Co. in 1912 had increased the capital stock from $250,000 to $350,000. In 1923 the capital was dou-bled by a 100% stock dividend, to $700,000. In 1926 it was increased to $1,000,000 by a stock dividend of 331/3% and the sale of 666% shares of stock to em-ployees of the company. Par value of stock, which had been $50 at the beginning and in 1922 was in-creased to $100, was reduced in 1938 from $100 to $10 a share and the capital was increased to $2,000,- 000. By a 100% stock dividend in 1941, the capital was increased to $4,000,000. And, by a 150% stock dividend in 1945, the capital stock reached $10,- 000,000. Present officers of the Jefferson Standard are Ralph C. Price, president; Joseph M. Bryan, first vice-president; C. Elmer Leak, executive vice-presi-dent; Julius C. Smith, vice-president and general counsel; M. A. White, second vice-president; J. H. Barrier, vice-president; D. E. Buckner, vice-presi-dent and actuary ; Dr. H. F. Starr, medical director ; Carlyle Gee, secretary; H. P. Leak, vice-president and treasurer ; Karl Ljung, agency manager ; George K. Cavenaugh, manager, Securities Department. Ralph B. Coit, actuary, almost from the beginning, and vice-president for several years, retired June 30. L. M. Johnson, one of the original employees and former treasurer, also retired June 30. Members of the board of directors are Selby An-derson, Wilson; W. L. Brooks, Charlotte; Shepard Bryan, Atlanta, Ga.; W. G. Clark, Sr., and W. G. Clark, Jr., Tarboro; A. G. Myers, Gastonia; J. H. Barrier, Joseph M. Bryan, Charles W. Causey, C. Elmer Leak, H. P. Leak, J. Van Lindley, Ralph C. Price, Pierce C. Rucker, Julius C. Smith, Dr. H. F. Starr and M. A. White, all of Greensboro. Col. Wil-liam A. Blair, Winston-Salem, director for many years, died March 2, 1948. Key man and guiding and driving force in Jeffer-son Standard for more than 27 years, serving as president from 1919 to 1946, was Julian Price, who had been with the Greensboro Life Insurance Co. since 1905, and was made vice-president and agency manager when that firm was consolidated with the Jefferson Standard in 1912. He had become a solic-itor and general agent for Greensboro Life in 1905 and was made secretary and agency manager of that company in 1909. Mr. Price, native of Virginia, born near Richmond November 25, 1867, attended public schools and be-gan his business career as a telegraph operator and train dispatcher in 1887. He was a traveling sales-man for the American Tobacco Co. for two years, until 1905, when he started at the bottom of a busi-ness he was destined to lead and push to a command-ing position in the nation's financial and business life. When he had reached 79 years of age and was made chairman of the board, with his characteristic vigor, he announced that he was not being put on the shelf and would continue to run the Jefferson Standard, and he did, until his death in an automo-bile accident October 25, 1946. A selfmade man in the best sense of the word, Mr. Price had come up through the scarcity period of Reconstruction. When he reached the point of au-thority through his own efforts, he began to display the man he had produced. When he assumed charge of production for the Jefferson Standard in 1912, following consolidation, the assets of the company were $3,608,860 and the insurance in force amounted to $37,504,117. Seven years later, when he was FALL, 1948 THE E. S. C. QUARTERLY PAGE 85 elected president, in February, 1919, assets were $9,703,325 and insurance in force amounted to $81,- 644,994. And by the end of 1946, a few months after his death, assets were $179,290,937 and insurance in force had exceeded $672,000,000. Cold figures are impressive, but they do not tell the complete story of the driving, dynamic and or-ganizing genius of Julian Price. He gathered around him able and loyal executives and officials. He en-tered into the full life of his city, his state and his nation. Important business and civic positions he held make a long list. He was president of the At-lantic and Yadkin Railway, a director of the Moores-ville Mills and Southeastern Cottons, Inc., president of the Federal Home Loan Bank in Winston-Salem, first chairman of the N. C. Salary and Wage Com-mission, a trustee of the N. C. A. & T. College, Greensboro, a member of many civic, patriotic and social organizations. In 1940, Mr. Price was elected president of the American Life Convention, served as chairman of the Association of Life Insurance Presidents and was a director of the Institute of Life Insurance. Mr. Price was a member and reached high positions in several Masonic bodies and was a 33rd degree Mason. He was a past potentate and life member of Oasis Temple of the Shrine and a life member of the Elks, and held membership and high positions in numerous other organizations. His son and successor as president of Jefferson Standard was brought up in the company. Ralph Clay Price, a native of Greensobro and approaching his 47th anniversary, was educated at the University of North Carolina and at Harvard Business School. He started his insurance work as an agent, later be-came superintendent of agencies, was elected vice-president, became executive vice-president in 1944 and in 1946 succeeded his father as president of the company. Mr. and Mrs. Julian Price had one daughter, now Mrs. Joseph McKinley Bryan, wife of the first vice-president of the company. While Jefferson Standard, like other insurance companies, has had its ups and downs, lean years during depression and wars, it has maintained a re-markable growth throughout most of its 41 years of operation. During the flush period of 1922, the company started its magnificent 17 story home office building at the corner of Elm and Market Street, Greensboro, and occupied it the next year. Jefferson Standard owns Pilot Life Insurance Co., also Greensboro, the controlling interests in the Security National Bank, Greensboro, the Jefferson Standard Broadcasting Co., which operates Radio Station WBT in Char-lotte, one of the two largest broadcasting companies in the state, and owns the controlling interest in Radio Station WBIG in Greensboro. Starting as a North Carolina company, Jefferson Standard has spread out over the years until it now has representatives and agencies in hundreds of cities in 30 states, the District of Columbia and Porto Rico. At the end of 1947, it had 310,644 policies in force amounting to $747,501,522. Of these policies, 92,439, amounting to $217,467,867, were in North Carolina. In its home office and seven North Carolina branch offices, Jefferson Standard has a total of 517 em-ployes with an annual payroll of $1,266,000. In addition, it has 243 agents in the state who received commissions, salaries and other compensation of $795,000 in 1947. The financial statement as of December 31, 1947, showed that among the nearly $200,000,000 in assets, the company had mortgage loans of $86,621,832, of which $6,257,732 were in North Carolina. Bonds owned by the company amounted to $62,080,669, of which $36,068,470 were in U. S. Government bonds and $6,396,926 were in bonds of North Carolina gov-ernmental units and industries. Stock investments amount to $17,152,765, of which $8,807,490 were investments in North Carolina stocks. Real estate owned by the company amounted to $9,544,105, of which $4,343,604 was owned in North Carolina. In loans to policyholders secured by cash value of poli-cies, the company had $12,804,544. In its liabilities of $176,357,286, policy reserves amounted to $149,626,539. The Jefferson Standard RALPH B. COIT WAS GREEN INSURANCE FIRM EXAMINER Ralph B. Coit, for more than 30 years actuary for the Jefferson Standard Life Insurance Co. in Greensboro and for several years vice-president, retiring last June 30, readily admits that he has not always known all there is to know about insurance and insurance companies. Mr. Coit, who operated as an accountant and actuary in New York City for a period and took a fling for a few years in Texas, came to Raleigh soon after the turn of the century as actuary for North Carolina Insurance Department while Col. James R. Young, first State Insurance Commissioner, was still holding that office. The Jefferson Standard had been organized in Raleigh in 1907, and it was not long after that date that the Insurance Department began its examinations of insurance companies, a few of which were operating in the State about that time. Colonel Young and Mr. Coit talked it over and both admitted that they knew very little about examining the books of insurance companies. Then they hit upon a plan. They were sure that the South Carolina Insurance Commissioner was familiar with such examinations, so they invited the South Carolina executive to join them in the examination of Jefferson Standard. He accepted readily. When the South Carolina commissioner arrived and had met Colonel Young and Mr. Coit, he told them he was very glad to join them in the examination of the local insurance company, since he had never had any experience in such examinations and wanted to find out how the examination was conducted. And, wasn't that a pretty kettle of fish? However, the three officials went to the Jefferson Stand-ard's home office, just as nervous as novices could be in undertaking a big task. But they were not alone in that. Mr. Coit reports that the Jefferson Standard folks were ner-vous, too. Their records had not been examined before. They asked the examining officers to wait for a while. Then, they went into action, straightening up little odds and ends that might not look good to examiners. Affairs of the com-pany were in good shape, Mr. Coit reports. And, as an aftermath, Mr. Coit was hired by Jefferson Standard as its actuary, going with the company to Greens-boro when it moved to that city from Raleigh in 1912. And, too, he was a vital cog in the Jefferson Standard wheel until his retirement June 30, 1948. PAGE 86 THE E. S. C. QUARTERLY FALL, 1948 has total surplus funds as additional protection for policyholders of $23,500,000, including $10,000,000 of capital stock, $12,000,000 in surplus unassigned and $1,500,000 in contingency reserves. During 1947, the total income amounted to $38,- 118,499.32, while total disbursements amounted to $18,638,885.02. Premium income last year amounted to $6,876,880.02 from North Carolina and $18,097,- 582.50 from outside the state. Payments to policy-holders in 1947 amounted to $8,664,444, of which $3,860,311 was paid to living policyholders. Of the total, $2,748,988.30 was paid to policyholders in North Carolina and $5,915,455.96 went to policy-holders outside the state. Also net reserves of pol-icyholders increased in 1947 by $5,318,543.05 for those in North Carolina, and $10,251,378.81 for those living outside the state. Citizens of North Carolina join with the officials and employees in pride and satisfaction that an or-ganization such as the Jefferson Standard Life In-surance Co. has been built up within the state. Jefferson Standard's modern 11-story fireproof home office building, 115 x 186 feet, contains about 185,000 square feet of office space. It is made of structural steel, granite, concrete, terra cotta and brick, ivith marble lobby and wainscoting and interior of finished mahogany. DURHAM LIFE INSURANCE CO. Raleigh, N. C. The Durham Life Insurance Co., occupying sev-eral floors of its modern new Insurance Building, Fayetteville and Davie Streets, in Raleigh, has de-veloped into one of the State's largest life insurance companies from a very modest beginning on Decem-ber 4, 1906, in Durham as the Durham Mutual Pro-tective Association. The launching of the organization was unpreten-tious, a group of native North Carolinians forming the association. The organizers were both salesmen and officers, and operations were limited to Durham and nearby communities. This humble start was valuable in that it resulted in a foundation dedicated to personal policyowner service with both conserva-tive and progressive operation and management. The goal of the organizers was to build an insurance company which would deserve a reputation for serv-ice and dependability, and it was on this premise that they adopted the slogan "We Protect The Fam-ily." In March, 1912, the name was changed to the Durham Mutual Life Insurance Co. and during the following year the business was incorporated as the Durham Life Insurance Co. The first officers were A. M. Moize, president; C. B. Hall, vice-president; Silas B. Coley, secretary; and J. R. Weatherspoon, treasurer. The original stock subscribers were these officers and E. N. Moize, Dr. E. H. Bowling, D. L. Cozart, A. J. Mims, Jesse Bishop, C. E. Thomas and W. H. Byrd. In 1913, the company reinsured the business of the Catawba Mutual Life and Health Insurance Co. of Gastonia, and in 1914, the business of the Dixie Mutual Life Insurance Co. of Asheville. In 1916, the business of the Progressive Mutual Life Insur-ance Co. of Raleigh was reinsured, and at that time, Mr. Coley, who had since left the Durham Life and organized the Progressive Mutual and was then its president, was elected president of the Durham Life, a position which he still holds. In 1921 the business of the Royal Mutual Life Insurance Co. of Wilming-ton was reinsured and in 1930 the Durham Life pur-chased the Business Men's Life Insurance Co. of Greensboro. Due to many advantages offered in the capital city of North Carolina, officials of the Durham Life In-surance Co. decided to move its home office from Durham to Raleigh, and the move was made in 1920. After renting office space for a time, the company purchased the old Pullen Building at the corner of Fayetteville and Davie Streets. This purchase was made with the thought that it would serve as tem-porary home office quarters and that some day the company would build on this site a home office struc-ture that would serve the present and future needs of the company. As a result of this dream and plan, the Durham Life completed and occupied its new building in 1942. FALL, 1948 THE E. S. C. QUARTERLY PAGE 87 The building is one of the most modern and com-plete office structures in the South, and is as near fire proof in construction as possible. The building-is 17 stories in height, with a base width of 112 feet and extends 210 feet through the entire block. The material is Indiana limestone with marble trim and terrazo floors. The entire building has fluorescent lighting and is fully air conditioned. When the present Durham Life Insurance Co. was incorporated in 1913, the amount of insurance in force was less than $1,000,000 and all policy con-tracts were on the weekly premium or industrial plan. At that time the company started a gradual and steady expansion program, establishing agency service offices in all the principal cities and towns of North Carolina and later expanding to South Caro-lina. It is now doing likewise in the State of Vir-ginia. In this expansion program it has added to its modern industrial contracts all up-to-date types of Ordinary Life and Endowment Contracts, thereby enabling it to take care of the protection needs of every member of the family. In the three states in which it operates, the Dur-ham Life has 18 district offices, considerably more than 100 detached agency offices and more than 500 trained field representatives equipped and ready to meet any types of protection problem of the people within its territory. Both in insurance in force and in financial strength, the Durham Life Insurance Co. has experi-enced steady and substantial growth. Today it has capital stock of $1,000,000, more than 99 per cent of which is owned in North Carolina, and at the end of 1947 it had 592,683 policyowners with insurance in force of $175,344,803. Its financial statement at the end of 1947 showed total admitted assets of ap-proximately $24,000,000 with total liabilities, exclus-ive of capital stock and surplus, of approximately $19,500,000. The ratio is $1.22 of assets for each $1.00 of liabilities. This 1947 report shows a net premium income of $4,947,000 in North Carolina and $1,654,000 from outside the State, a total of $6,601,000. Total dis-bursements last year amounted to $4,123,000. In 1947 payments to policyowners amounted to $1,162,- 000 and in addition $2,588,000 in reserve was placed to the credit of policyowners as required by law. Among its investments, the Durham Life Insurance Co. owns approximatelwy $13,000,000 in bonds of which $10,850,000 are U. S. Government bonds. In-vestments in stocks exceed $1,600,000 and mortgages amount to more than $2,000,000. It also owns the stock of WPTF Radio Co., which operates Radio Station WPTF, one of the two 50,000 watt stations in North Carolina. The growth of the company in recent years has been sound and substantial. Since 1940, policies in force have increased by more than 225,000 and the amount of insurance in force has increased by more than $100,000,000. Present officers of the company are S. B. Coley, president; C. G. Coley, C. B. Hall, A. J. Mims, F. P. Coley, vice-presidents; E. T. Burr, vice-president and actuary ; R. F. Harward, vice-president in charge of the Industrial Department; D. L. Cozart, secre-tary; J. R. Weatherspoon, treasurer; I. O. Brady, general counsel ; H. D. Coley, agency manager ; How-ell DeBerry, comptroller; R. E. Marshall, assistant actuary; Jesse Bishop and W. C. Cozart, assistant secretaries; C. H. Andrews, assistant secretary in charge of Underwriting Department; A. L. Mims, assistant secretary, assistant in charge of Under-writing Department ; P. T. Stone, assistant secretary in charge of Purchasing Department; T. A. Up-church, assistant treasurer in charge of Mortgage Loan Department. The directors of the Durham Life Insurance Co., different from the plan of operation of most big cor-porations, are all employees of the company. They are S. B. Coley, C. G. Coley, E. T. Burr, C. B. Hall, A. J. Mims, R. F. Harward, D. L. Cozart, Jesse Bish-op and J. R. Weatherspoon. Practically all the chief officials of the company are North Carolina farm boys. President Coley was Ultra modern is the home office of the Durham Life Insur-ance Co., 11 stories high, 112 x 210 feet base, of Indiana lime-stone, marble trim and terrao floors. The entire building is air conditioned and has fluorescent lighting. PAGE 88 THE E. S. C. QUARTERLY FALL, 1948 born on a farm in Wake County September 7, 1880. As a young man he went to Durham and worked for a time for the American Tobacco Co. prior to organ-ization of the Durham Life. Mr. Coley has been active in many civic and patriotic organizations. He was one of the organizers of the Citizens Associa-tion of North Carolina, served a term as its president and has since been treasurer of this association. Secretary Cozart is a Granville County farm boy, born July 23, 1882. He was in the wholesale grocery business in Roxboro before joining the Durham Life in 1913. Treasurer Weatherspoon was born on a Durham County farm May 7, 1881. He was in the fire in-surance and banking business prior to his associa-tion with the company. Vice-president and actuary Burr came to the Dur-ham Life from the North Carolina Insurance De-partment, where he was actuary. He is a native of Danville, Virginia, and his early insurance experi-ence was with the Life Insurance Company of Vir-ginia. The Durham Life is proud of its part in the great contribution that the institution of life insurance has made and is continuing to make toward the finan-cial security of the American home. During its years of operation it has paid to policyowners and beneficiaries $19,627,868.78, much of which has gone to living policyowners, and in addition has to the credit of present policyowners legal reserves amount-ing to $18,428,900. The entire organization is devoting its full efforts to a continuance of the best possible insurance serv-ice for its policyowners. PILOT LIFE INSURANCE CO. Greensboro, N. C. Pilot Life Insurance Co., Sedgefield, Greensboro, founded in 1903, is the oldest legal reserve basis North Carolina insurance company and one of the oldest in the entire South. And as its officers claim, it is "the largest life insurance company in the country"—country in this respect meaning rural area since it is 10 miles from the center of Greens-boro. Actually Pilot Life had its origin in 1890 when the Worth-Wharton Real Estate and Investment Co. became a real estate and rental collection business with a paid-in capital of $25,000 in a single ground-floor office about 12 feet wide and 20 feet long. The entire staff included a combination bookkeeper-ste-nographer- file clerk. This location was on South Elm Street near what was known as "Court Square." It was just across the street from the drugstore where William Sidney Porter, later to become im-mortal as O. Henry, clerked for his uncle, drew cartoons of local celebrities and decided that he wanted to become a writer. In 1893 the company's name was changed to South-ern Loan and Trust Co., and the new offices in the first company-erected building were occupied. In 1899 a five-story office building was erected to take care of the growing business. This building was occupied until 1928 when the company moved to its present location at Sedgefield on the Greensboro- High Point Highway. The Southern Loan and Trust Co. charter was amended on July 1, 1903, to permit writing life in-surance on the old line legal reserve basis, and a life insurance department was established. This actually was the beginning of the life insurance phase of the company's operation. During its first month the new department issued 18 policies or a total of $39,500. Policy No. 1 was on the life of R. G. Vaughn, prominent Greensboro citizen, and the original pol-icy was placed in the cornerstone of the company's present home office building. The company's name was changed again on Feb-ruary 1, 1905, to Southern Life and Trust Co., when it was considered advisable to create separate cor-porations to handle the several enterprises of the company other than its life insurance and trust business. For several important reasons the name of the company was changed again in 1924 to Pilot Life Insurance Co. One of the chief reasons was that 30 other insurance companies had at this time "south" or "southern" as a part of their name and also that the company had disposed of its trust de-partment. The new name was taken from Pilot Mountain, located about 40 miles from Greensboro, which, as a symbol of strength and solidarity had long been incorporated in the company's trademark. Already the company had been widely known as "The Pilot Company." Legend reveals that the Indians gave the mountain its name, "Jomeokee"—The Pilot, because it was a sure landmark rising abruptly 2400 feet above them. A. W. McAlister, one of the founders and vice presidents, was manager of the insurance depart ment from the time of its organization and became president of the former Southern Life and Trust Co on January 26, 1909, a position he held until 1931. Emry C. Green served as president from 1934 to 1946. O. F. Stafford, formerly president of the Gate City Life Insurance Co., Greensboro, was elected presi dent of Pilot Life in January, 1946, soon after the Pilot Life and Gate City Life were merged. Start-ing as an agent, he has worked in nearly every posi-tion in the field and in the home office. His wide experience in every phase of the life insurance busi-ness makes him one of the best known and most capable insurance executives in the State. J. M Waddell, executive vice-president, is considered one of the ablest executives in the insurance field. He joined Pilot Life as agency manager in 1933, was made vice-president in 1940, and elected to the board of directors in January, 1944. He became executive vice-president in 1945. The merging of the Pilot Life and the Gate City both successful North Carolina companies, extend- FALL, 1948 THE E. S. C. QUARTERLY PAGE 89 ed types of insurance contracts written by the con-solidated company. The Pilot Life had been engaged in writing ordinary and industrial insurance, and the Gate City in addition had been operating for sev-eral years in the group life and group hospital fields. Today Pilot is one of the largest multiple line com-panies in the South. Members of the Board of Directors of Pilot Life are: Ralph C. Price, president of Jefferson Stand-ard Life Insurance Co., chairman of the board; C. H. Benson, J. M. Bryan, M. G. Follin, Jr., T. H. Lind, 0. F. Stafford, J. M. Waddell, and C. R. Wharton, all of Greensboro, and L. Lee Gravely, Rocky Mount. Officers are : O. F. Stafford, president; J. M. Wad-dell, executive vice-president; C. H. Benson, vice-president and actuary ; M. G. Follin, Jr., W. B. Clem-ent and J. F. Freeman, vice-presidents ; C. R. Whar-ton, vice-president and general counsel; T. H. Lind, vice-president and treasurer; Rufus White, agency manager ; L. L. McAlister, secretary ; Dr. J. L. Cook, medical director; F. C. Willis, auditor; G. V. Mc- Neill, assistant treasurer and Manager Mortgage Loan Department; I. C. Crawford and H. C. Beeson, assistant treasurers ; L. A. Crawford and S. E. Tate, assistant secretaries; M. U. Makely, assistant act-uary; W. D. Tharin, assistant manager, Mortgage Loan Department. Total admitted assets of Pilot Life amounted to $57,701,870.21 on December 31, 1947, including $20,019,808.06 in U. S. Government bonds; $398,- 161.32 in State, county, and municipal bonds; $3,- 146,706.89 in public utility, industrial, and other bonds; $3,948,471.75 in preferred and common stocks; $22,583,591.79 in first mortgage loans; $1,- 969,421.04 in real estate; $2,856,071.70 in loans to policyholders ; and $1,221,674.29 in cash. Liability of the company on December 31, 1947, amounted to $50,701,870.21, and total surplus funds and additional protection to policyholders amounted to $7,000,000, including contingency reserve of $250,000, capital stock of $1,000,000, and unassigned surplus of $5,750,000. Pilot Life had $407,415,552 in insurance in force on December 31, 1947, of which $54,121,180 represents the gain in 1947. On August 31, 1948, total insurance in force had increased to over $433,000,000. Assets of the company increased $6,939,929 in 1947, and in that year the premium in-come reached the new record of $12,215,463.56. Dur-ing the year the company's interest return on invest-ed assets increased to 3.30 percent. During its 45 years of operation, Pilot Life has paid to beneficiaries and living policyholders a grand total of $47,161,600, and the 1947 payments amount-ed to $3,703,741.32. During the past year the com-pany has begun operation in the states of Alabama. Louisiana and Mississippi, raising their territory to eleven states and the District of Columbia. Not the least of Pilot Life Insurance Co.'s assets is its beautiful rural home at Sedgefield. The three attractive buildings form a quadrangle in a highly landscaped area embracing 131 acres. One of the most attractive features of this suburban develop-ment is the cafeteria operated by the company for its employees on a cost basis. Most of the employees live in Greensboro and commute by private car and bus to this rural retreat. Pilot Life has approximately 750 employees in its home office and in the field in North Carolina who have an annual payroll of approximately $1,750,000. NORTH CAROLINA MUTUAL LIFE INSURANCE CO. Durham, N. C. The North Carolina Mutual Life Insurance Co., home office in the Mutual Building, 114 West Par-rish Street, Durham, has come a long way from scratch, often over rough roads, to approach its golden anniversary as the largest Negro insurance company in the nation and, therefore, in the world. On that eventful October 20, 1898, when the idea to organize a company for the purpose of providing health and death benefits for its members took form, there were gathered with John Merrick: Dr. A. M. Moore, P. W. Dawkins, D. T. Watson, W. G. Pearson, E. A. Johnson and Dr. J. E. Shepard. The charter for the newly organized company was drawn by Attorney T. O. Fuller, State legislator, and on February 28, 1899, it was incorporated as a mu-tual assessment association by a special act of the General Assembly of North Carolina. The organ-ization commenced business April 1, 1899, under the name of North Carolina Mutual and Provident Association with John Merrick, president; Dr. A. M. Moore, treasurer, and D. T. Watson, secretary-man-ager, all deceased. During the first year of operation, five of the seven organizers became discouraged and withdrew from the organization. The company was then reorganiz-ed with John Merrick as president, A. M. Moore as secretary-treasurer and C. C. Spaulding as general manager. Mr. Spaulding had joined the organiza-tion as local agent a few months after the company began business. When he became general manager, his duties included managing the office, cleaning up the office, traveling for the company and doing its clerical work. During the first year of its operation, one of the first men to whom a policy had been sold, died sud-denly after paying the first premium. This death claim was for $40 and the organization did not have money enough to pay it. The three officers, Mer-rick, Moore and Spaulding, met to consider the case. They realized that if the claim was not paid they might just as well close up shop. So they dug into their pockets and paid the $40. From that time on, business was much easier to get. A valuable godfather to the new organization, himself an astute business man, was Washington Duke. Mr. Duke laid the foundation for the Amer-ican Tobacco Co., which his sons, James B. and B. N. Duke, organized and developed into one of the PAGE 90 THE E. S. C. QUARTERLY FALL, 1948 largest manufacturing firms in the country. When Washington Duke dropped into Merrick's barber shop for his morning shave, Merrick would present to him problems bothering the officers of the new company. Mr. Duke gave them advice which they always followed and which always proved sound. Not only did the advice given help the young organ-ization over many of its toughest spots, it also proved instrumental to a large degree in shaping the policies of the institution. Mr. Spaulding, who has shaped the destinies and planned the growth of the company, almost from its beginning, readily admits that while he was solicit-ing business, he frequently made short trips and had to depend upon first premiums from policies sold to pay his way back home. The first office of the company was located in Dr. Moore's office on Main Street near where the Dur-ham County Court House now stands. The present home office building is a modern up-to-date build-ing which the company owns. During the first year of operation, from April 1 to the end of 1899, the company collected only $395.50. The company began business on the Mutual As-sessment Plan. In 1905, it began writing ordinary business to the amount of $500. Spaulding took policy number one which he still carries. Its first examination by the State Insurance Department came in 1909, the year the Insurance Department was set up, and its report says "everything was found in tact." The charter was amended in 1913 and the company began doing business on the old line legal reserve basis. The change to its present name was made in 1919. The North Carolina Mutual Life Insurance Co. in 1904 took over several small South Carolina com-panies. These companies were absorbed because the State of South Carolina then required a deposit of $10,000 for any such company doing business in the State and these small companies were not able to meet this requirement. Raising the required $10,000 to qualify in the State of South Carolina presented another problem that had to be solved. With the spirit of sacrifice that had from the beginning char-acterized the promoters, Merrick, Moore and Spauld-ing hypothecated their personal holdings with a local banking institution and with the $10,000 in hand, journeyed en masse to South Carolina to pre-sent personally the $10,000 check to the Insurance Department. During the 19 years up to 1920, the company established agencies in nine states and the District of Columbia, including: Georgia, Virginia, Maryland, Tennessee, Mississippi, Arkansas, Flor-ida, Alabama and Oklahoma. During the period of 1906 to 1932, the North Caro-lina Mutual Life Insurance Co. absorbed a dozen other Negro insurance companies, largely in North and South Carolina. These included : Peoples Benev-olent & Relief Association, Charlotte ; Capital Benev-olent Association, Columbia, S. C. ; Winston Indus-trial Association, Winston-Salem; Family Rescue Fraternal & Beneficial Society, Baltimore, Md. ; Afro- American Mutual Life Insurance Co., Rock Hill, S. C. ; Toilers Mutual Life Insurance Co., Tarboro ; Provident Relief Association, Washington, D. C. ; In-ternational Life Insurance Co., Reidsville; Eagle Life Insurance Co., Raleigh, and King Mutual Life In-surance Co., Edenton. The World War period, specifically from 1914 to 1920, witnessed the most remarkable growth in the history of the company. The premium income dur-ing that period increased more than 300% from $358,311 to $1,324,541. The company's agents in 1920 produced $13,680,424 in new and revived ordi-nary business and $9,660,842 in new and revived in-dustrial insurance. On January 1, 1927, the com-pany entered upon a program of retrenchment and concentration and transferred its business in Flor-ida, Mississippi, Arkansas and Oklahoma, amount-ing to approximately $10,000,000 to other life in-surance companies, withdrawing from those four states in order to intensify its operations in Alabama, Tennessee, Georgia, South Carolina, North Carolina, Virginia, Maryland and the District of Columbia. In spite of the fact that about 25% of its busi-ness had been transferred to other companies at the beginning of 1927, including assets of more than $500,000 and more than $10,000,000 in business, the company during the two years that followed gained $3,000,000 in insurance in force and closed the year with more than $38,000,000 in insurance in force. Following the death of the first president, John Merrick, on August 6, 1919, Dr. A. M. Moore served as second president until his death on April 29, 1923. Other executives who died in the service of the in-stitution and who at the time of their death held important positions were: J. M. Avery, vice-presi-dent- secretary; W. D. Hill, assistant secretary, and R. L. McDougald, vice-president. Present officers and directors of the company are : C. C. Spaulding, president and chairman of the board ; W. J. Kennedy, Jr., vice-president and secre-tary; E. R. Merrick, vice-president and treasurer; G. W. Cox, vice-president and agency director; Dr. Clyde Donnell, vice-president and medical director; A. T. Spaulding, vice-president, actuary and comp-troller ; M. A. Goins, assistant secretary, all of Dur-ham ; A. J. Clement, Sr., district manager, Charles-ton, S. C. ; D. C. Deans, vice president-associate agency director, Richmond, Va. ; J. L. Wheeler, vice-president- assistant agency director, Atlanta, Ga. ; W. H. Harvey, district manager, Columbia, S. C, and A. E. Spears, district manager, Charlotte. Other officers include: Mrs. B. A. J. Whitted, cashier; J. W. Goodloe, assistant secretary-office manager; Aaron Day, Jr., assistant secretary-man-ager Ordinary Department ; J. S. Hughson, assistant to treasurer ; D. B. Martin, assistant agency director ; C. C. Spaulding, Jr., attorney-assistant treasurer; Mrs. V. G. Turner, assistant treasurer ; W. A. Clem-ent, assistant to agency director ; N. H. Bennett, as-sistant actuary. Other home office administrative FALL, 1948 THE E. S. C. QUARTERLY PAGE 91 personnel include: R. C. Foreman, chief auditor, branch offices; B. W. Kennedy, claims supervisor; W. E. Williams, statistician, and J. J. Henderson, manager controller's department. These individuals, through efficiency and hard work, came up through the ranks and earned the positions they now hold, many of them having been with the institution from 10 to over 40 years. Key man and moving spirit in the North Carolina Mutual Life Insurance Co. from its beginning has been C. C. Spaulding, who started with the company during its first year as agent and office manager and in 1923 became its third president. Mr. Spaulding, a native of Columbus County, was a cotton farmer until he was grown. Then, against the advice of friends, he moved to Durham and took a job as dishwasher at a small hotel at $10 a month. When the opportunity came to become an insurance agent, he seized it and through sheer ability, char-acter and efficiency, moved upward until he became president of the largest Negro insurance company in the world. He displays in his high executive position the same qualities that caused him to leave the cot-ton farm and leave the dishwashing job. He is still a man of the people, solid, efficient and kind. Spauld-ing has been dubbed "cooperation" because of his ability to get along with all types of people. Long gone is the element of showmanship, which he and his two associates, Merrick and Moore, con-sidered essential to a new business. The three wore the highest white stiff collars they could find. They felt that this would impress the people of their im-portance. A picture of the trio hangs on the wall in the home office conveying an air of importance. They succeeded in impressing the public. Without capital or experience, but with character and effi-ciency, they laid the foundation for a truly great business enterprise. Among the qualities of C. C. Spaulding is his abil-ity to gather round him men of ability and integrity. As is the case in few other large enterprises, every member of the board of directors of the company is a working employee of the company. The future wel-fare of the company's employees has not been over-looked. The employee's retirement program that safeguards the well-being of every employee, reflects commendable foresight and consideration on the part of the management. As a direct benefit derived from the retirement program, every employee, during his or her productive years, can look forward to the time of retirement with confidence and with a feel-ing of security, knowing financial provisions have been made for future years under a group annuity contract with one of the outstanding life companies in the group annuity field. The ability and efficiency of the administrative staff of the North Carolina Mutual Life Insurance Co. have been responsible for the splendid record made through the years. At the end of 1947, the company had $130,787,958 insurance in force. Its assets had reached $19,902,804.97, which includes $14,517,941.93 in stocks and bonds, $14,190,881.93 in government, state, municipal and corporation bonds; $2,601,582.57 in mortgage loans; $716,924.31 in loans on policies, and $670,049.20 in real estate, including the home office valued at $340,395.34. In addition to $15,507,527.95 in reserves for policy-holders which represents 80% of the company's assets, and the other usual reserves, the company has surplus and other unassigned funds of $2,813,- 974.67. Payments to policyholders during 1947 amounted to $1,850,072 which brings the total pay-ments of policyholders in its 49 years of operation to $28,504,601, an enviable record which gives North Carolina Mutual a strong position among the life insurance companies of the country. Further evidence of the company's substantial con-dition, is the fact that it has $119.80 in assets for every $100 of liability. This and other assets, tangi-ble and intangible, including able and experienced personnel, are sufficient grounds for predicting ex-pansion and extension of the service of the North Carolina Mutual Life Insurance Co. in future years. SECURITY LIFE & TRUST CO. Winston-Salem, N. C. The Security Life and Trust Co., 1281 West Fourth Street, Winston-Salem, has developed into the upper fourth in size among the 400 greatest companies in America in the 28 years since it organized and start-ed business in 1920. This company was founded in Greensboro by George A. Grimsley, who had many years of success-ful life insurance and business experience. He had served as president of the Jefferson Standard Life Insurance Co. in Greensboro for many years and had engaged in other successful business enterprises. He was the first president of the Security Life and Trust Co. Associated with Mr. Grimsley in found-ing the company was C. Collins Taylor, an outstand-ing business executive, who became first vice-presi-dent and agency manager. After operating successfully in Greensboro for four years, the company moved its home office to Winston-Salem, and in 1932 purchased a palatial residence on West Fourth Street and built extensive additions which makes it an ideal home office. In Winston-Salem, the Security Life and Trust Co. received new blood among its officers and direc-tors from many of the leading industrial and busi-ness men located in the Twin City and throughout the State. Mr. Grimsley continued as president until 1932 when he was elected chairman of the board of directors, a position he held until his death. He was succeeded as president by Dr. Fred M. Hanes, who had been medical director since 1923 and a mem-ber of the board of directors since 1930. Dr. Hanes was elected chairman of the board of directors in 1935, serving as chairman until his death in 1946, while assistant dean of the Medical School of Duke University. PAGE 92 THE E. S. C. QUARTERLY. FALL, 1948 Egbert L. Davis, a man with wide executive and sales experience with the R. J. Reynolds Tobacco Co. and connected with the Security Life and Trust Co. for many years, was elected executive vice-president in 1933. In 1935 he was elected president and treas-urer of the company. Other officers of the company are Tully D. Blair, vice-president and agency manager; W. Grady Southern, vice-president; S. L. Booke, vice-president and actuary ; R. Grady Wilmoth, assistant treasurer ; Harry W. Lewis and J. M. Hodgin, assistant secre-taries; A. C. Adams, assistant actuary; Dr. S. W. Hurdle, medical consultant ; Dr. John P. Davis, med-ical director ; and Womble, Carlyle, Martin and Sand-ridge, general counsel. The board of directors, consisting of some of the most prominent industrial and business leaders in Winston-Salem and elsewhere in the State, includes : Robert M. Hanes, S. Clay Williams, Egbert L. Davis, P. H. Hanes, Thurmond Chatham, Tully D. Blair, C. T. Leinbach, B. S. Womble, S. L. Booke, W. Grady Southern, Robert W. Gorrell and A. H. Bahnson, all of Winston-Salem; J. Sam White, Mebane; Millard F. Jones, Rocky Mount; J. Raymond Smith, Mt. Airy; D. Hiclen Ramsey, Asheville; Leo H. Harvey, Kinston; W. Frank Dowd, Jr., Charlotte; and W. Y. Preyer, Greensboro. Capital stock of the Security Life and Trust Co. is $500,000, increased in 1944 from $400,000 by the issuance of a 25 percent stock dividend. During the past decade, it has made the remarkable record of leading all other North Carolina insurance companies in the production of ordinary life insurance in seven out of the ten years, and in 1947 it led any other North Carolina company to the extent of 20 per cent. In its 28 years of operation, Security Life and Trust Co. has distributed approximately $15,000,000 to policyholders, much of it to beneficiaries still living. An unusually large expansion of the business of the Security Life and Trust Co. is shown by the BBliilillp llliiliiiiillf comparison of figures in its statement as of Decem-ber 31, 1947, with those of ten years ago. Assets in that period have increased almost four-fold, from $5,076,647 in 1937 to $18,959,331 last year. In 1937, the company had 26,557 policyholders with total in-surance in force of $43,398,111 as compared with 74,849 policyholders in 1947 with insurance amount-ing to $172,009,902. Total income in 1947 amounted to $5,178,448. Total disbursements in 1947 amounted to $2,823,816, of which $1,085,802 was payments of claims to pol-icyholders, and of this $452,690 was paid on claims of policyholders in North Carolina. Approximately 90 per cent of the stock of the Security Life and Trust Co. is owned by 263 resi-dents of North Carolina. Of the investments in stocks, $491,320.58 was in North Carolina corpora-tions and $1,519,444.55 was in corporations outside of the State. Security Life had $7,079,948.59 invested in U. S. Government bonds and $204,500 invested in bonds issued in the State of North Carolina. Approxi-mately 75 per cent of the mortgage loans, involving 783 loans, amounting to $5,044,177, are made on North Carolina property and 382 mortgage loans, involving loans of $1,819,158, represents the amount outside of the State. The Security Life and Trust Co., in addition to the paid-up capital of $500,000, has in its surplus and contingency funds $905,625.66, which is addi-tional protection to the policyholders over and above its legal requirements. This company has weath-ered all storms, depressions, wars and high prices, and has come through with flying colors. These con-ditions and the experience and loyalty of its staff of men and women, which includes 700 individuals in its home office and in the field, indicates greater expansion which its officers anticipate in future years. Entirely adequate is the Home Office of Security Life & Trust Co., formerly a palatial residence, renovated and with wings added. HOME SECURITY LIFE INSURANCE CO. Durham, N. C. The Home Security Life Insurance Co., with the Home Office at 111 Corcoran Street, Durham, organ-ized in 1916 and almost wiped out by the influenza epidemic two years later, has developed into one of the largest and strongest insurance companies now operating in North Carolina. Organizers of the company were A. M. and E. N. Moize, both of Dur-ham, who about a decade before had organized the Durham Life Insurance Co., which moved to Raleigh about that time, and the late George Watts, tobac-conist and financier of Durham. The charter of the corporation was secured June, 1916, and the company was started a month later. For some time after its organization, the company occupied one room in the Trust Building and had two women as the only full-time employees. The paid-in capital stock was $50,000 and the company had a surplus of $10,000. FALL, 1948 THE E. S. C. QUARTERLY PAGE 93 The first officers were A. M. Moize, president; E. N. Moize, vice-president ; J. M. Alexander, secretary, and T. C. Worth, treasurer. They and George Watts and later his son-in-law, John Sprunt Hill, composed the board of directors. After the company had been in operation for only two years, the influenza epidemic struck in Durham, as well as elsewhere, in 1918 and wiped out the earn-ings, the surplus and the capital stock. At that time John Sprunt Hill received the controlling interest of the firm from George Watts and was able to re-finance the new company and put it back on its feet. Since that time it has experienced remarkable growth. Indicative of the growth of the company since December 1, 1920, when the surplus was only $29.05, the capital stock in 1928 was increased to $100,000, of which $40,000 was in stock dividends and $10,000 in a new stock issue. Again in 1940 a 100 percent stock dividend was declared, increasing the capital to $200,000, and in 1941 the capital stock was again doubled to $400,000, of which 90 percent was in a stock dividend and $20,000 was in a new stock issue. Again in 1946, stock dividend of 25 percent was declared ,increasing the capital to $500,000. All of these stock dividends were in addition to dividends paid to stockholders almost every year since 1920. After operating for eight or ten years in two or three offices in the Trust Building, the Home Secur-ity Life Insurance Co. moved into offices in the Masonic Building. In 1938, when John Sprunt Hill completed the building which he named "111 Corco-ran Street Building," but which is generally referred to as the Hill Building, the company moved into this building and at present occupies about 8,800 square feet of floor space on the sixth floor and part of the fifth floor. In August, 1934, President Moize died and George Watts Hill, son of the major stockholder of the company and owner of the building it occupies, was elected president. In 1938, Mr. Hill was made chairman of the board and Bascom Baynes was pro-moted to president. Mr. Baynes, who finished at Oak Ridge Institute in 1911, took a job as bookkeeper for the Odell Hard-ware Co. in Greensboro and moved up to vice-presi-dent and general manager of the firm. In 1927, he resigned and bought an interest in the Greensboro Life Insurance Co., of which he became vice-presi-dent, and in 1930, was elected president. In 1933, the Greensboro Life merged with the Home Security in Durham and Mr. Baynes joined the new firm as agency supervisor. Mr. Baynes was elected execu-tive vice-president in 1936 and two years later be-came president. During the ten years of Mr. Baynes' presidency, the Home Security Life Insurance Co. made its most spectacular gains. The assets increased from $2,- 000,000 to $12,500,000 and the insurance in force increased from $35,000,000 to approximately $108,- 500,000. The firm now has a staff of 397 with a payroll in excess of $1,200,000 a year. Home Security Life Insurance Co. occupies two floors of "III Corcoran Street", better known as the Hill Building, owned by the principal owners of the insurance company. G. W. Munford, prior to that time with the North Carolina Department of Insurance, joined the firm in 1925 as secretary and in 1934 was promoted to vice-president, assisting in agency organization and in public relations. On January 1, 1948, he retired. In 1929, F. B. Dilts, of the .State Insurance Depart-ment, joined the Home Security Life Insurance Co. as its first actuary and served as such until January 1, 1947, when he retired. He was succeeded as act-uary by D. P. Morris who came to the company from a position as actuary with the London Life Insurance Co. in Ontario, Canada. Present officers are : George Watts Hill, chairman of the board ; Bascom Baynes, president ; J. M. Bates, actuary ; K. B. Robertson, vice-president and agency director; C. C. Hamlet, secretary; Waiter Sledge, treasurer ; W. W. Sledge, general counsel ; H. B. Bel-vin, controller; R. A. Ross, M.D., medical director; Lois Belvin, assistant secretary; J. Elliott Irvine, investment officer. Directors of the corporation are : John Sprunt Hill, George Watts Hill, Bascom Baynes, G. W. Munford, W. W. Sledge, Dr. R. A. Ross, Walter Sledge and Dr. C. A. Adams. The Home Security Life Insurance Co. has a sur-plus of $1,307,884.38. Included in assets are invest-ments of $6,284,421.73 in bonds, $411,383,101.08 in mortgages and $782,019.16 in stocks, all in North Carolina, in addition to its capital stock of $500,000 owned by twenty North Carolina stockholders. Dur-ing its period of operation it has paid $279,789.68 to policyholders and has increased its net reserves for policyholders to $1,561,803. The Home Security Life Insurance Co. is another shining example of how PAGE 94 THE £. S. C. QUARTERLY FALL, 1948 North Carolina's money and North Carolina's brains can build a successful financial institution, devoted entirely to North Carolina's interest. Further evidence of the soundness and stability of the Home Security Life Insurance Co. is given by Dunne's Insurance Report. In its 1947 analysis it gives this company a rating of A-Plus (Excellent). It further shows that the assets for each $100.00 of liabilities for twenty of the largest insurance com-panies in the country average $106.88; whereas, Home Security's average is $116.24; the increase in assets for the same twenty largest companies aver-ages 6.98 percent, and the Home Security average is 23.04 percent; the increase in insurance in force for these twenty largest companies averages 9.83 percent in contrast to Home Security's increase of 16.64 percent ; the increase in surplus of these twenty companies is an average of 7.18 per cent as compared with Home Security's increase of 44.61 percent. LIFE INSURANCE CO. STOCK RESEMBLED WHITE ELEPHANT The Home Security Life Insurance Co., Durham, one of the strongest and among the larger life insurance companies in North Carolina, has not always been strong. You can take the word of John Sprunt Hill, its principal owner for many years, for that statement. In fact, Mr. Hill tells an interesting story about its beginning years. The organizers were A. M. and E. N. Moize, but they were backed by George Watts, wealthy tobacconist and financier of Durham, who bought half the stock in the organization. The firm had capital stock of $50,000 and a paid-in surplus of $10,000. Mr. Hill had been issued a small slice of the stock as a fee for drawing up the papers of incorporation, as he recalls, and to keep a majority of the stock in the family. Mr. Hill was the son-in-law of Mr. Watts. The company had been organized in 1916 and was doing very well. Then, two years later the influenza epidemic struck. It struck Durham hard and it struck the Home Security Life much harder. In just a short time so many of the company's policyholders had died, that it took all of the surplus and all of the capital to pay death claims, and that was not enough to pay all claims. The company was a few hundred dollars below surface level. Then, one day, Mr. Hill relates, his father-in-law, Mr. Watts, came into his office with a batch of papers in his hand. He admitted to Mr. Hill that he was "whipped" and looked it. He related that the company, flat broke and in debt, had him licked. He had had enough of it. "Here," he said to Mr. Hill, "take this stock. You can have it, all of it, as a gift." Mr. Hill hesitated to look a gift horse in the mouth, but admits that his father-in-law's present of $25,000 in stock of the Home Security Life looked like a white elephant to him. However, he accepted the stock, thanked his father-in- law and then set about doing some tall financing. He was able to pull a string or two which permitted paying off the remaining claims. Further actions placed the company on its feet and by December 31, 19 20, it showed the very surprising surplus of $29.05. Since that time it has paid dividends almost every year and has increased its capital stock from $50,000 to $500,000, practically all of which was in stock dividends. The company has assets of $12,500,000, a surplus of $1,308,- 00 0, and insurance in force amounting to approximately $108,500,000. George Watts Hill, son of the recipient and grandson and namesake of the donor of the stock in the Home Security Life Insurance Co. 30 years ago, is chairman of the board of directors. OCCIDENTAL LIFE INSURANCE CO. Raleigh, N. C. The Occidental Life Insurance Co., with home offices in the Professional Building, Raleigh, pre-sents probably what is the only example in the his-tory of the United States in which a life insurance company organized and operated in one state, picked up and moved, lock, stock, and barrel, to another state. This move constituted a reversal of Horace Greeley's advice to "go west." This trek of around 3,000 miles brought the West to the East. Occidental Life Insurance Co., organized in Albu-querque, New Mexico, in 1906, operated in that state for 20 years. Realizing the advantage of locating in an area of greater concentration of population, Occidental's officials, led by A. B. McMillen, who had become president in 1912, reviewed various lo-cations in the East. North Carolina is only one-third the size of New Mexico, but has ten times the population. In 1926, in view of the population ad-vantages and industrial advancements, North Caro-lina was chosen as the location for the company. Raleigh was selected as the city which had been most favorably recommended. Just about the time the tremendous task of trans-porting the company, which included its key person-nel, 3,000 miles to North Carolina was completed, Mr. McMillen died, and Laurence F. Lee, who had been vice-president and general counsel from the beginning, was elected president. Mr. Lee had served as general counsel for several banking firms and for Occidental in Albuquerque. He became president of American Life Convention for the 1944-45 term. Currently, Mr. Lee is a mem-ber of the Board of Directors of the U. S. Chamber of Commerce, a member of both the Jacksonville, Florida, and Raleigh Chambers of Commerce, the Florida State Chamber of Commerce, the Association of Life Insurance Counsel, a member of Rotary, a director of the American Service Bureau, and a mem-ber of President Truman's Loyalty Review Board of the Civil Service Commission. In 1934, Occidental Life Insurance Co. purchased the Peninsular Life Insurance Co. of Jacksonville, Florida, and Mr. Lee became president of this com-pany, also. Meantime, W. H. Trentman joined Occidental in 1930, as director of agencies, after an extensive ex-perience in life insurance in New Mexico. In 1934, Mr. Trentman was elected vice-president, and in 1943 was made executive vice-president. Officials of the company, in addition to President Lee and Executive Vice-President Trentman, are: W. L. Noneman, vice-president; C. E. Hyre, secre-tary and treasurer; C. R. Morris, assistant secre-tary; Fred B. Hart, assistant treasurer; Dr. V. S. Caviness, medical director; H. A. Davis, manager, Claims Department ; Micou F. Browne, agency direc-tor; R. H. Britton, director of training; R. S. Wil-liamson, director, Advertising and Sales Promo-tion. FALL, 1948 THE E. S. C. QUARTERLY PAGE 95 Directors of the company include Mr. Lee, P. C. Rodey, Mr. Trentman, Mr. Hyre, Mr. Noneman, George P. Geoghegan, Jr., Mrs. F. 0. McMillen, wid-ow of the former president ; Willis Smith, and J. M. Woolery, the latter elected July 29, to succeed the late Richard S. Busbee. Occidental, which writes ordinary life insurance, has recorded a remarkably consistent growth during its 42 years of operation, and has experienced its most satisfactory progress during the past few years. At the end of 1947, Occidental had $71,873,368 in insurance in force, a gain of $8,443,085 during the year of 1947. At that time, its assets had reached $12,990,737.14, a gain of $1,004,113.14 in 1947. Occidental, in contradiction of the old adage that "one must die to win" produces figures to show that while only $6,221,825 had been paid to beneficiaries following the death of the insured, $8,000,530, or 72 percent, had been paid to living policyholders. This means that $14,222,355 had been paid out by Occi-dental since its beginning. As a further indication of value of insurance to the living, Occidental provides insurance of many different types—plans for parents in the education of their children, for retiring mortgages on their homes, for savings within the reach of the individ-ual, for retirement income, and for endowment in cash at a certain age. A large percentage of the benefits paid out by Occidental are now being used for educational, retirement, and endowment pur-poses. In keeping with the ideals of the founders of Occi-dental, all of its assets are invested in projects vital to the economy of the country. These include Fed-eral, State, and municipal bonds, mortgages, and investments in important financial activities of the nation. As indicative of the growth of Occidental, its number of policyholders increased from 15,630 in 1937 to 36,058 in 1947; the insurance in force increased in the same period from less than $27,000,- 000 to almost $72,000,000, and its assets increased from $5,690,000 to almost $13,000,000. Of the nearly $13,000,000 in liabilities, Occidental has in its capital stock and surplus funds, $1,301,- 427.90 as additional protection for its stockholders. Among its assets are $4,107,104.05 in first mortgage loans, $6,907,940.92 in stocks and bonds, and $909,- 629.34 in loans to its policyholders against their reserves held by the company. Partial vieio of Industrial Department Clerical Section of Imperial Life Insurance Co., Asheville. IMPERIAL LIFE INSURANCE CO. Asheville, N. C. The Imperial Life Insurance Co., 50 College Street, Asheville, was organized and started business in 1905 as the Imperial Mutual Life and Health Insur-ance Co. As of January 1, 1920, the company was incorporated and its name changed to the present name. At the beginning, the company handled only health and accident insurance, but in 1912, industrial life insurance was added and in 1919, the company began writing ordinary life contracts. In 1932, the com-pany discontinued health and accident and has since devoted itself to ordinary life and industrial life contracts. For several years, the business was lo-cated in rented quarters on Patton Avenue, but in 1925, it erected a modern three-story building on College Street, which it has since occupied. Important figures in organizing the company were : Gay Green, a prominent industrial and financial leader with large property holdings at Asheville and in western North Carolina ; J. Pink Starnes, who died in 1914; A. W. Ek and J. N. Jarrett. Mr. Green was elected president and still holds that position. J. Warlick was elected the first treasurer, a position he still holds. A. W. Ek was secretary until his death in October, 1942, at which time Treasurer Warlick was made secretary and treasurer. J. N. Jarrett was the first vice-president, serving until 1941, a place which was not filled after that date. O. E. Starnes was elected vice-president in 1920, a position he still occupies. Present directors are Gay Green, O. E, Starnes, J. Warlick, K. W. Partin, and W. H. Starnes. Mem-bers of the executive committee are Gay Green, O. E. Starnes and J. Warlick. O. E. Starnes, vice-president, literally grew up with the company. He was the son of J. Pink Starnes, one of the organizers, and started work with the firm in 1908, three years after it was organized. He is manager of the Mortgage Loan Department. L. T. New has been general manager of the company for the past three years. He started as agent in Wil-mington in 1915 and was agency supervisor and located in Greensboro from 1927 to 1935, when he was transferred to the home office as agency direc-tor. Other important officials in the home office are : John Ehle, manager of the Ordinary Department; W. H. Starnes, manager of the Printing Depart-ment, and Charles E. Starnes, home office manager. The Imperial Life Insurance Co. has been unusual-ly successful, enlarging and extending its activities gradually during the first 40 years. Its growth has been spectacular during the last three or four years. PAGE 96 THE E. S. C. QUARTERLY FALL, 1948 At the beginning of its stock company activities, the capital was $50,000 with authority to increase to $100,000. This increase was made in 1924 with a 100 percent stock dividend. In 1936, with another 100 percent dividend, the capital was increased to $200,000. During the 43 years of operation, in addi-tion to its $150,000 in stock dividends, the company had declared cash dividends totaling $465,000. The Imperial Life Insurance Co., at the end of 1947, had total admitted assets of $12,040,111, in-cluding $6,985,202 in bonds, $3,497,527 in first mort-gages and $179,865 in selected stocks. Last year, the total income was $4,131,185, including net pre-mium income of $3,584,945. During the year, total disbursements were $2,257,522, of which $531,546 was in payment to policyholders. In 1947, the net reserves for policyholders increased in the amount of $1,474,109. In the decade from 1937 to 1947, the assets of the Imperial Life Insurance Co. increased five-fold, from $2,500,000 to slightly more than $12,000,000. Insur-ance in force increased almost fourfold, from $26,- 944,749 to $96,058,790. In that period, ordinary life increased from 7,271 policies to 22,219 policies, the amount increasing from $7,711,160 in 1937 to $25,- 958,112 in 1947. In that same period, industrial policies increased from 120,971, amounting to $19,- 233,589 to 239,371 policies, amounting to $70,100,- 678. The Imperial Life Insurance Co. operates exclus-ively in North Carolina and covers the entire State with 24 district offices in all of the larger communi-ties. In the field and home office, it has a force of more than 500 workers and the annual payroll is approximately $1,500,000. Although located in the mountain metropolis of Asheville and covering the mountain area closely, Imperial Life has extended its activities into all sections of the State and the remarkable expansion experienced during the past few years is indicative of still further extension of its activities in the years to come. STATE CAPITAL LIFE INSURANCE CO. Raleigh, N. C. The State Capital Life Insurance Co., Wachovia Bank Building, Raleigh, although less than 12 years old, has developed since it was chartered July 29, 1936, and started business two months later, into one of the soundest insurance firms in the State and is just now erecting a modern building to take care of its future expansion. State Capital Life started out modestly enough with a paid in capital stock of $100,000, with a sur-plus of $50,000 and a contingency reserve of $50,- 000. Its small office space in the Wachovia Bank Building increased until it now occupies all of the fifth floor and part of the fourth floor of this build-ing and the third floor of the Raleigh Industrial Bank Building. A modern office building is now in process of con-struction as a home for the company on Hillsboro Street, at the corner of Gardner Street, just across Hillsboro from N. C. State College. The building will be 100 x 100 feet in size, with full basement and three floors above ground, on a lot 180 x 150 feet, which will allow erection of additional building as space is required. The company also owns a lot back of the site which will be used for parking space, thus eliminating the requirement for parking on congest-ed Hillsboro Street. Plans for the new building in-clude the installation of a cafeteria on the third floor for use of the employees, as well as a library and an auditorium to be used in connection with the school to be operated in training new personnel. State Capital Life Insurance Co. writes life insur-ance policies of all forms, including ordinary, indus-trial, bank loan, building and loan, group life and hospitalization, and a special school bus policy which is sold direct to the counties of the State covering children riding in school buses. On its original capital stock of $100,000 the State Capital Life Insurance Co. declared a 50 percent stock dividend in 1944 and issued $15,000 in addi-tional stock, thus increasing the capital stock to $165,000. Again in 1946 the capital stock was in-creased to $250,000 and $120,000 was added to the surplus in order to provide for expansion, including extending operations into South Carolina and Geor-gia. A group of prominent and successful business and financial leaders in North Carolina and one from South Carolina were among the original promoters of the organization of the State Capital Life Insur-ance Co. These included Wade S. Dunbar, Laurin-burg; E. H. Evans, Laurinburg; J. P. Gibbons, Ham-let ; Robert M. Hanes, Winston-Salem ; R. H. Liver-more, Pembroke ; Thomas O'Berry, Goldsboro ; Ed-win Pate, Laurinburg; and Julian H. Scarborough, Columbia, S. C. State Capital Life Insurance Co. is erecting this modem three-story and basement building on Hillsboro Street, oppo-site State College. It is 100 x 100 feet with adequate space for enlargement. It will be occupied by the end of the year. FALL, 1948 THE E. S. C. QUARTERLY PAGE 97 Irving F. Hall, of Raleigh, was elected 1o head the new insurance firm. Mr. Hall had served for several years as executive vice-president of the Atlantic Joint Stock Land Bank and the Greensboro Joint Stock Land Bank, both here in Raleigh. Upon the death of former Governor Angus W. McLean in 1934, Mr. Hall was elected president of the Joint Stock Land Banks and continued in that position until these and other Joint Stock Land Banks were liquidated by Act of Congress, starting in 1933. Officers of the company, all of Raleigh, in addi-tion to President Hall, include: H. C. Gerald, vice-president ; W. E. Simmons, vice-president and agency manager ; H. F. Ledford, secretary ; James MacN. Duff, assistant secretary; Thomas W. Alexander, treasurer ; John C. Bertram, actuary ; Dr. Hubert B. Haywood, medical director; Arch T. Allen, general counsel ; Graham F. Trott, manager, Bank Loan De-partment; John T. Simpson, manager, Building and Loan Department ; and H. W. Clody, manager, Group Department. Present members of the board of directors, an ex-pansion of the original group, include : Messrs. Dun-bar, Evans, Gibbons, Hanes, Livermore, O'Berry, Pate, Scarborough, and H. A. Easley, Rocky Mount, Irving F. Hall, Raleigh, Dr. Hubert B. Haywood, Raleigh, J. E. Johnson, Lumberton, Philip R. Whit-ley, Wendell, J. Wallace Winborne, Raleigh, and Wm. P. Baskin, Bishopville, S. C. Indicative of growth of the State Capital Life In-surance Co. is the increase in number of policies from 16,508 in 1937, when the company was slightly more than a year old, to 124,309 at the end of 1947. In the same period the insurance in force increased from $5,428,000 to $57,377,920, while the assets in-creased from $145,922 to $3,073,227.72 last Decem-ber. The net surplus and capital stock was $432,- 739.65. Investments include more than $200,000 in stocks, $687,000 in mortgages, largely in North Caro-lina, almost $1,002,925 in bonds, of which $310,000 is in U. S. bonds, and cash more than $800,000. SOUTHERN LIFE INSURANCE CO. Greensboro, N. C. The Southern Life Insurance Co., Southern Life Building, 330 South Greene Street, Greensboro, was organized in Raleigh in 1927 under the name of the Dixie Life Insurance Co., moved to Greensboro in 1931 and merged with the Southern Life and Acci-dent Insurance Co. in 1932, changing its name to Southern Dixie Life Insurance Co. In 1947, the name was changed to Southern Life Insurance Co. Principal organizer of Dixie Life in Raleigh was A. J. Fletcher, lawyer and prominent business man of Raleigh. When Dixie Life moved to Greensboro, W. L. Carter, Sr., native of South Carolina, in life insurance work since 1902, became president and has continued in that capacity since that time. Mr. Carter was one of the organizers of the Gate City Life Insurance Co. in Greensboro in 1908 and /'Bte-m || j Modern Home Office of the Southern Life Insurance Co. con-taining about 80,000 square feet of floor space on a lot 120 x 300, extending through the block. was its secretary and treasurer for 18 years. That company later merged with the Pilot Life Insurance Co. Also, Mr. Carter organized the Fidelity Life Insurance Co. in Spartanburg, S. C, in 1929. This company was merged in 1930 with the Peninsular Life Insurance Co., of Jacksonville, Florida, of which Laurence F. Lee, president of the Occidental Life Insurance Co., of Raleigh, has been president for several years. The Southern Life Insurance Co. handles all forms of ordinary life and industrial life insurance and has made steady progress in all departments. It employs 75 workers in the home office and in its agencies located in all of the principal centers of North Carolina. For several years it had its offices in the Jefferson Building, but in 1947, purchased its own building, a three story structure with full base-ment at the corner of South Greene and Exchange Streets. The lot is about 120 x 300 feet, extending entirely through the block and the building contains approximately 30,000 square feet. The company now uses the first and second floors and parts of the basement, renting the top floor and part of the basement floor for other purposes, including agencies of the Federal Government. Present officers of the company are : W. L. Carter, Sr., president; W. L. Carter, Jr., vice-president; T. C. Collins, secretary-treasurer ; J. L. Wooten, assist-ant secretary-treasurer, and W. R. Wail, actuary. Directors include : the two Carters and Mr. Collins and A. J. Fletcher, Raleigh, and Charles T. Hagen, Jr., Greensboro. Mr. Collins, secretary-treasurer, had several years of experience as district manager for the Southern Life and Accident Co. in Winston- Salem, where he was also manager for the Southern Life Insurance Co. before he became secretary-treas-urer in 1935. The Southern Life Insurance Co., believing in its own activities, provides free hospitalization insur-ance for its members with six months or more of service, which started October 1, 1947. As of July PAGE 98 THE E. S. C. QUARTERLY FALL, 1948 1, 1948, the company also started giving its em-ployees group life insurance after one year of service and old age retirement benefits starting after age 60 or 65, the amount depending upon the length of service and average income earned. Starting with paid-in capital stock of $26,000, the Southern Life Insurance Co. increased its capital in 1945 to $156,000 and has an additional contingent reserve of $300,000. The net surplus at the end of 1947 was $930,279.84. Total admitted assets of the Southern Life Insur-ance Co. had reached $4,558,587.35 at the end of 1947, an increase of twenty-fold over the $229,559.21 in 1937. At the end of 1947, the company had 257,- 852 policies in force with an aggregate of $59,815,- 342.00 in insurance in force, an increase from 55,686 policies, with insurance in force of $8,344,932 a dec-ade before. Investments of the company include $92,167.50 in stocks, $3,050,049.77 in 571 first mort-gages and $981,482.72 in bonds, including $345,000 in U. S. Government bonds. During the year 1947, the net premium income of the company was $2,636,528.87 and total disburse-ments were $1,917,816.40, of which $500,030.06 was in payments to policyholders. During the year, the company increased its net reserves for policyholders by $613,577.00. The Southern Life Insurance Co. is strictly a North Carolina firm. All of the stock is owned in North Carolina, all of the business done is in this State and all of the investments are North Carolina investments, except for the U. S. Government bonds. PYRAMID LIFE INSURANCE CO. Charlotte, N. C. The Pyramid Life Insurance Co., Johnston Build-ing, Charlotte, founded during one of the worst de-pressions of modern times, carried an advertisement in 1933, the headlines of which read: "Many Great Men—Many Great Industries Were Born in A De-pression Cradled in Adversity. In Such a Beginning a Bedrock Foundation is Laid." During the summer of 1929, two groups of men in Charlotte were interested in forming a legal reserve life insurance company with its home office in the Queen City, which then had no home office of a life insurance company. The stock market crash in the fall of 1929 doubtless influenced these twc groups in getting together, the outcome of which was organ-ization of the Pyramid Life Insurance Co. Pyramid Life was to have a capital of $1,000,000, but it was not until early in 1931 that the organizers were able to secure the services of an experienced life insurance man and raise about $250,000 in cash, and sell the first policy. In 1932, Pyramid Life acquired the Pioneer Life Insurance Co., of Greenville, S. C, in exchange of Pyramid stock for Pioneer stock. Pioneer Life sur-rendered its charter and was dissolved. Pyramid Life took over its assets and liabilities and some of its personnel. At this time, Eddie E. Jones, president of Pyramid Life since its organization, began to devote full time to the insurance company. The first employee of the company had been John R. Pender, as assistant sec-retary and treasurer, who, with one secretary, was the entire "home office force" for a year or more prior to the employment of William A. Searle, of Montpelier, Vermont, as executive vice-president, to get the company really started in business. The first board of directors was large, representa-tive men having been taken from the two groups of organizers, and when Pioneer Life was acquired, additional directors were taken on the board from the South Carolina company. The first officers included J. Luther Snyder, chair-man of the board ; Charles P. Moody, vice-chairman of the board; Eddie E. Jones, president; Ivey W. Stewart, Ernest Ellison and H. B. Heath, vice-presi-dents ; E. Y. Keesler, secretary and treasurer ; John R. Pender, assistant secretary and treasurer; Dr. Hamilton W. McKay, medical director; Dr. Frank L. Ray, assistant medical director; Hunter Marshall, Jr., general counsel. Present officers of Pyramid Life are J. Luther Snyder, chairman of the board; Eddie E. Jones, president; John R. Pender and W. T. DuPree, vice-presidents ; J. A. Law, secretary and treasurer ; John Fort, assistant treasurer ; Dr. Frank L. Ray, medical director ; Hunter Marshall, general counsel. Pyramid Life is licensed to do business in its own State of North Carolina and also in South Carolina, Georgia, Florida and Alabama. Gross assets are now in excess of $2,000,000 and life insurance in force exceeds $30,000,000. WINSTON MUTUAL LIFE INSURANCE CO. Winston-Salem, N. C. One of the early Negro life insurance companies in North Carolina has had a remarkable career since it was organized in August, 1906, while the two towns of Winston and Salem were separate munici-pal corporations. A group of leading Winston-Salem Negroes recog-nized the need for an industrial insurance organiza-tion that would fill a place for wage earners, partic-ularly in the Winston-Salem area. Since that time the Winston Mutual Life Insurance Co. has spread out until it covers practically the entire State with district offices throughout North Carolina. The late Dr. J. W. Jones was the moving spirit be-hind the organization and became its first treasurer. J. S. Fitts, a prominent Negro lawyer, was the first president. J. C. McKnight, one of the original direc tors, is still a director. M. W. Johnson was the first agency director and J. A. Blume was the first office j manager and the only active officer for several j years. G. W. Hill, the present president, was among the first agents employed by the company. FALL, 1948 THE E. S. C. QUARTERLY PAGE 99 For the first five or six years, the office was located in one room over the Jones Drug Store at Fourth and Church Streets. From 1913 to 1928, the office was located on Church Street over the Forsyth Sav-ings and Trust Co. For the next eleven years, until 1939, the firm occupied offices on Third Street. At the expiration of that time the company purchased a building, a modern two story edifice, suitable for its activities, on the corner of Eleventh Street and Woodland Avenue. In 1913, J. A. Blume was promoted to president of the company, succeeding J. S. Fitts and served until 1936 when G. W. Hill succeeded him. N. T. Mitchell, district office manager at Wilmington, is one of the older employees of the company, having been in service for 28 years, and E. M. Lewis, co-manager of the Winston-Salem district office, has 20 years of service with the company. During the first one-third of the 42 years of opera-tion, the Winston Mutual Life Insurance Co. had many "ups and downs", but was laying a firm foun-dation on which to build an important financial in-stitution. Since the installation of G. W. Hill as president, eleven years ago, the company has ex-perienced its most remarkable growth During that period the assets increased from $89,000 to $1,255,- 000, an increase of more than 1400 percent. The Winston Mutual Life Insurance Co. has wise-ly invested its total admitted assets of more than $1,255,000. Among its investments are $500,000 in U. S. Government bonds and $20,200 in stocks and other bonds. Its mortgage loans on real estate amount to $568,983.83, cash and deposits in banks amount to $104,078.88 and its real estate holdings are valued at $55,606.61. With total liabilities of $992,016.87, the company has a surplus of $180,000 and $83,607.99 reserved for contingencies, giving a total fund of $263,607.99 for additional protection of its policyholders. As the Winston Mutual Life Insurance Co. advertises, it has $126.57 in assets for each $100.00 in liabilities. Present officers and directors of the company fol-low: G. W. Hill, president and manager; J. E. Til-lett, Edenton, vice-president; E. E. Hill, secretary; W. P. Hairston, treasurer ; Mrs. Nellie M. Bausman, assistant treasurer-cashier; A. W. Harper, auditor; A. T. Spaulding, Durham, consulting actuary; Dr. John R. Henry, medical director; W. Avery Jones, attorney, and G. Cosmo Hill, J. C. McKnight and Mrs. Selena Hayes Hall, directors. District offices and managers are located at the following points in the state : Winston-Salem, A. W. McKnight and E. M. Lewis, managers; Greensboro, R. E. Walker, manager; Salisbury, L. J. Caldwell, manager; Charlotte, W. L. Adams, manager; Ashe-ville, R. L. Spicer, manager; Raleigh, P. A. Simmons, manager ; Fayetteville, C. W. Newell, manager ; Wil-mington, N. Theo Mitchell, manager; Rocky Mount, J. L. Smith, C. R. Reid and C. J. Artis, managers. Three special field representatives are J. H. Alex-ander, W. E. Baird and M. H. Spence. The Winston Mutual Life Insurance Co. operates its own printing department, in which all policies, forms and stationery are printed. With its firm and business-like foundation, built over a period of 42 years and the remarkable growth during the past decade, the Winston Mutual Life In-surance Co. is now in position to extend and expand its activities in the industrial insurance field to greater achievements in the years to come. COASTAL PLAIN LIFE INSURANCE CO. Rocky Mount, N. C. The Coastal Plain Life Insurance Co., with its home office at 123 Rose Street, Rocky Mount, is a new and husky youngster in the life insurance field in North Carolina. It was incorporated July 25, 1947, and started business just before the year ended. The Coastal Plain Life Insurance Co. has author-ized capital stock of $250,000, with $100,000 paid-in and a contributed surplus of $75,000. It is develop-ing a full line of industrial life and health and acci-dent insurance. With five full-time employees in the home office, the company has 35 workers in the field. In its expansion program, the Coastal Plain Life Insurance Co. has district offices already established at Rocky Mount, Durham, Goldsboro, Washington, Wilmington and Greenville, with plans for further additions and has agents operating in Henderson, Tarboro, Kinston and Wilson. Officers of the company include: S. E. Wilson, president; W. C. Woodard, Jr., vice-president, and G. H. Foster, secretary. Directors, some of the most prominent business and professional men in Rocky Mount and other eastern communities, include, in addition to Mr. Wilson and Mr. Woodard, William H. Shaw, chairman; Hyman L. Battle, James C. Gardner, R. D. Wimberly, A. R. Weathers, Dr. R. D. Kornegay, J. J. Haggerty; H. H. Strandberg and Wiley W. Mears, all of Rocky Mount ; B. A. Wilson, Henderson; R. M. Fountain, Tarboro, and T. B. Glover, Roanoke Rapids. Mr. Wilson, president, a native of Warren County, has had 23 years of experience in industrial and ordinary life insurance. Ten years of this time was spent in Rocky Mount as district manager of the Southern Life Insurance Co., Greensboro. Mr. Wood-ard, vice-president, a native of Rocky Mount, is also an experienced insurance man, having spent ten years as district agent in Rocky Mount for the At-lantic Life Insurance Co., Richmond, Va. Mr. Foster, secretary, came to Rocky Mount about a year ago to help organize the Coastal Plain Life Insurance Co. He is a native of New Jersey and spent nine years with William R. Price and Co., general agents, and five years with the Ocean Accident and Guarantee Corp., both of New York City. The Coastal Plain Life Insurance Co. has made satisfactory growth in the less than one year it has been in operation. PAGE 100 THE E. S. C. QUARTERLY FALL, 1948 FIDELITY NATIONAL LIFE INSURANCE CO. Greensboro, N. C. The Fidelity National Life Insurance Co., 412 Dixie Building, Greensboro, is one of North Caro-lina's newest life insurance firms. It was incorpo-rated July 7, 1947, with authorized capital of $2,000,- 000, with $200,000 paid-in and $100,000 in contribut-ed surplus. Officers of this new company are : Emry C. Green, president and treasurer; D. E. Hudgins, vice-presi-dent and general counsel, and Ralph L. Lewis, secre-tary. Directors of the company, in addition to the three officers, all prominent business and profes-sional men in the Piedmont area, include: W. J. •Carter, H. C. Carter, C. W. Edwards, John W. Clark, V. B. Higgins and W. J. Adams, Jr., all of Greens-boro; Earl N. Phillips, A. M. Rankin, Jr., and Jack Burris, all of High Point; N. C. English and Doak Finch, Thomasville; Ralph M. Holt, Burlington; J. Murrey Atkins, Charlotte; Miles J. Smith and Fred J. Stanback, Salisbury, and B. E. Jordan, Saxapa-haw. Mr. Green, native of Halifax County, taught school at Weldon and was also a postal employee briefly. He is a graduate of Georgia Tech in chemical negi-neering. Years ago, he went to Greensboro and for several years was developing as an insurance man with the Jefferson Standard Life Insurance Co. He moved up until he became secretary. He held this position for several years and was also manager of the Mortgage Loan Department. In 1934, Mr. Green was elected president of the Pilot Life Insurance Co., continuing in that position until 1946. For several months he has been engaged in the organization of the Fidelity National Life Insurance Co. Ralph L. Lewis, native of New York State, moved to Greensboro as a child with his parents in 1910. For six or seven years, he was on the road for the Hartford Fire Insurance Co. and in 1924, he returned to Greensboro and became associated with J. E. Lathan and Co., real estate firm, serving as secretary until 1936. Then, he organized the firm of Lewis and Stephens, Inc., real estate and insurance, later selling his interest in that firm. Mr. Lewis was a member of the Greensboro City Council from 1932 to 1940, serving as mayor of the city in 1939-40. From 1940 to 1946, he was in the U. S. Army, serving as Base Commander at several overseas places. He was a Colonel at the time of his discharge. D. E. Hudgins, vice-president of Fidelity National Life and its general counsel, is a native of Marion, a graduate of the University of North Carolina and a Rhodes scholar to England. He has been a promi-nent Greensboro attorney for several years. The Fidelity National Life Insurance Co., in Aug-ust, purchased the controlling interest in the George Washington Life Insurance Co. of Charleston, West Virginia. This well-known institution was organ-ized in 1906. The Fidelity National will carry on its operations through the George Washington Life and will discontinue operations of the Fidelity National for the time being. Mr. Green has been made president and Mr. Lewis vice-president of the George Washington Life Insur-ance Co. Commissioner Controls Insurance Activity in State By R. F. Adkins, Casualty Rate Specialist, N. C. Insurance Department The North Carolina Insurance Department was established by Act of the General Assembly on March 8, 1899. The Statutes charge the department with the execution of all laws relating to insurance and other subjects placed by law under the Department. Included in these "other subjects" are the North Carolina Building & Loan Division, the State Fire Marshal's office, the State Building Code, inspection and certain other functions of State properties and buildings, and administration of the State Property Fire Insurance Fund. The Commissioner of Insurance is elected by the people of the State for a term of four years, in the same manner as any other elective State officer. His salary is fixed by law. The Statutes provide that the Commissioner shall have the following powers and duties : 1. To see that all laws of the State governing in-surance companies, associations, and orders or bu-reaus relating to the business of insurance are faith-fully executed and to make rules and regulations not inconsistent with the law, to enforce, carry out and make effective such provisions of the law. 2. To receive and thoroughly examine all annual statements which are required to be filed by each in-surance company licensed to do business in the State. 3. To file with the Clerk of Superior Court of each county on the first day of May a list of companies, associations, orders and bureaus licensed to do busi-ness in North Carolina. 4. To report in detail to the Attorney General any violations of the law relative to insurance companies, associations, orders and bureaus or the business of insurance generally. 5. To conduct examinations, investigations and hearings wherever necessary relative to any matters involving the business of insurance. 6. To conduct or cause to be made, in cooperation with local authorities, inspections of buildings in towns and cities of the State to assure compliance with the Building Code and laws relative thereto. FALL, 1948 THE E. S. C. QUARTERLY PAGE 101 Examine plans and specifications of certain build-ings or proposed buildings such as public buildings, hospitals, hotels and theatres. 7. To report biennially to the Governor and the General Assembly on his official acts, including a summary of official rulings and regulations. 8. To issue licenses to insurance companies mak-ing application to do business in the State provided it is determined that such companies are duly quali-fied and meet all requirements of the law for admis-sion. To conduct examinations of all applicants as insurance agents and to issue licenses to applicants qualifying as insurance agents. 9. To perform all the duties and exercise all the powers of supervision over all domestic building and loan associations, including the issuance of licenses and collection of license fees. 10. To examine carefully, as often as once in three years, each domestic insurance company especially as to its financial condition and ability to fulfill its obligations and whether it has complied in all re-spects with the laws. To assist in the examination of insurance companies located in other states and licensed to write insurance in North Carolina, inso-far as the giving of such assistance is possible. 11. To conduct annual examinations of all build-ing and loan associations licensed to do business in the State. 12. To investigate all complaints and charges of violations brought to the Department's attention. 13. To collect all taxes and license fees levied up-on insurance companies, bureaus and agents, and to deposit all such funds with the State Treasurer. 14. To require the filing of all rates for all types of insurance and all policy and endorsement forms used in writing all types of insurance; to examine carefully such rates and policy forms and to approve same if found to be in accordance with the provisions of the Insurance Laws and fully justified. To dis-approve all filings of rates and forms not in accord-ance with the provisions of the Insurance Laws and not fully justified. The Statutes provide that the office of the Com-missioner shall be a public office and the records, re-ports, books and papers thereof on file therein shall be accessible to the inspection of the public. Many important changes and revisions in the In-surance Laws were enacted by the 1945 and 1947 sessions of the General Assembly. Foremost are Statutes relating to regulation of rates for various lines of insurance and to meet the requirements of Federal Public Law 15—a result of the Supreme Court's decision in June, 1944, that insurance is in-terstate commerce. The duties of the Commissioner of Insurance as specified in the Insurance Laws and as set forth in the rules and regulations adopted by the Department all point to one specific objective; i. e., the safeguard-ing and protection of the public interests of the citi-zens of the State in all matters relative to insurance which is purchased by the citizens for the protection of themselves, their beneficiaries, or the public. This objective, however, requires a tremendous amount of detail and the functioning of complicated depart-mental machinery which must be administered by the Commissioner, his deputies, and the personnel under him. It requires the strictest scrutiny of all rate schedules, policy forms, company practices, an-nual financial statements of the companies, the li-censing of the highest type of insurance agents, and the stamping out of all illegal and unethical practices on the part of anyone connected with the insurance business. Col. James R. Young was the first Insurance Com-missioner and was succeeded, in turn, by Stacey W. Wade, the late Dan C. Boney and the present Com-missioner William P. Hodges. Ten Fire and Casualty Company Home Offices in State North Carolina has a dozen home companies which fall into the general classification of fire and casualty companies, embracing marine, compensation and other types, ten of which are in operation and two of which are still in the organization stage. The State has within its borders fewer home offices of fire and casualty companies than is the case with life insurance companies. Many fire insurance companies started in North Carolina as home companies have been absorbed en-tirely or are controlled by larger fire insurance groups chartered in and operating from other states. Three of the larger North Carolina firms have been able to retain their names and operate as North Carolina companies, many of the directors living in this State. They are the Atlantic Fire Insurance Co., Raleigh, affiliated with the Phoenix Insurance Co., Hartford, Conn. ; the Piedmont Fire Insurance Co., Charlotte, one of the group of the ^Etna Insurance Co., and the Southern Fire Insurance Co., Durham, affiliated with the Crum & Forster group. The old-est company in the State, the North Carolina Home Insurance Co., Raleigh, no longer exists and has be-come a departmental office of the group composing the American National Fire Insurance Co. of New York. Still another, the Dixie Fire Insurance Co., Greensboro, has also passed out of existence and operates as a branch of the American Fire Insurance Co. of Newark, N. J. In the group of home-owned fire and casualty com-panies are the Hardware Mutual Fire Insurance Company of the Carolinas, Charlotte, which has gone into other fields than hardware; the Carolina Casualty Insurance Co., Burlington ; two Negro com- PAGE 102 THE E. S. C. QUARTERLY FALL, 1948 panies in Durham, the Bankers Fire Insurance Co., and the Southern Fidelity Mutual Insurance Co., both affiliated with the large North Carolina Mutual Life Insurance Co., Durham; and the Blue Ridge Fire Insurance Co., which started in South Carolina a few years ago and moved to Shelby January 1, 1946. Two other companies in process of organiza-tion are the Old North State Insurance Co., Green-ville, and the Textile Insurance Co., which will have its home office in High Point. Detailed information on these companies is given in the articles below. HARDWARE MUTUAL FIRE INSURANCE COMPANY OF THE CAROLINAS Charlotte, N. C. The Hardware Mutual Fire Insurance Company of the Carolinas, 118 East Fourth Street, Charlotte, chartered in 1911 and beginning business in 1912, is the only advance premium mutual fire insurance company in North Carolina and probably the only one in the entire southeast. This firm was organized as a service of the Hard-ware Association of the Carolinas and for many years wrote insurance for the hardware merchants of North and South Carolina. In 1933, it started writing general business insurance covering other kinds of business property, along with its hardware store business. The first officers of the Hardware Mutual Fire Insurance Company were: W. W. Watt, Charlotte, president; W. H. Keith, Timmonsville, S. C, vice-president; E. W. Duvall, Cheraw, S. C, treasurer; T. W. Dixon, Charlotte, secretary. Additional direc-tors were: M. Bonnoitt, Darlington, S. C. ; U. Ben-ton Blalock, Wadesboro ; A. R. Craig, Marion, S. C. ; W. H. Smith, Gaffney, S. C, and R. H. McDuffie, Asheville. This group, along with M. J. O'Neill, Henderson, and H. E. Reid, Lincolnton, formed the organizing committee. Col. James R. Young, North Carolina Insurance Commissioner, was so interested in helping to pro-mote this company that he agreed, probably extra-legally, to accept the personal notes of members of the board of directors and others as a fund in lieu of reserves and to guarantee that any fire losses would be paid. When sufficient funds had been ac-cumulated as reserves, Commissioner Young return-ed the notes filed with him. Incidentally, the first loss amounted to $95.00, which was paid promptly, as has been the case in every loss since. Mr. Watt, the first president, at the time of his election, was a traveling salesman in the Carolina area for a large hardware jobbing house in Phila-delphia. He continued as president until 1939 when he was made chairman of the board. He died two years later. A. R. Craig, one of the original directors, was made assistant secretary and moved to Charlotte in 1919. When T. W. Dixon, the first secretary, died in 1924, Mr. Craig succeeded him as secretary and the offices of secretary and treasurer were com-bined. Mr. Craig continued to hold this combined position until 1939, when he succeeded Mr. Watt as president of the organization. When the Hardware Mutual Fire Insurance Co. was first organized, it started in offices in the Com-mercial National Bank Building. It remained there TWO N. C. FIRE INSURANCE COMPANIES LOSE IDENTITY N. C. HOME INSURANCE CO. The North Carolina Home Insurance Co., Commercial Building, Raleigh, oldest insurance company in North Caro-lina, which weathered the storms and came through 80 years of ups and downs from the Reconstructions days, is no more. Its nucleus is now a departmental office of the American National Fire Insurance Company of New York, and its affiliates. The North Carolina Home Insurance Co. was organized by a group of North Carolina citizens in 1868, three years after the War Between the States ended, because residents of this State could not get Are insurance on their property through northern companies. Several such companies were formed in North Carolina during that Reconstruction period, but North Carolina Home was the only one to survive. This company had an initial capital stock of $126,400, about all ! in notes of many prominent citizens in the State, for there was little cash then. In 1888 the State Bank, which held a large amount of the notes of the North Carolina Home Insurance Co., went into liquidation, and control of the company was purchased by the Great American Insurance Co. This control con-tinued until last year, even though the North Carolina Home had about 300 stockholders in this State. In 19 47 a re organization and consolidation was completed by which the American National Fire Insurance Co. of New York, form erly of Columbus, Ohio, acquired control of the North Caro-lina Home, and this company has now passed into history After the Great American acquired the North Carolina Home, in 1899, Alexander Webb joined the company as vice president and executive officer. A few years later Mr. Webb was elected president and held that position for 40 years or more, until the merger last year. He joined the com pany at the age of 30 and is now 78. He has been the main spring of the firm during these years and has entered fully into the life and growth of Raleigh. Raleigh now has one of the four departmental offices, the others being located in Chicago, San Francisco, and Montreal, Canada. Mr. Webb continues as manager of this office for North Carolina and part of South Carolina for-the six affiliated companies, American National Fire, Great American, American Alliance, Rochester American, Massa chusetts Fire and Marine, and Detroit Fire and Marine. DIXIE FIRE INSURANCE CO. The Dixie Fire Insurance Co., Dixie Building, Greensboro, was another of the North Carolina fire insurance companies which has now lost its identity and name and the former organization is now a branch of the American Fire Insur-ance Co., Newark, N. J., which acquired control and liquidat-ed the Dixie Fire last year. James Blades, wealthy lumberman of Elizabeth City and later of New Bern, was the first president of Dixie Fire, al though he never moved to Greensboro. The company wai promoted by a Mr. Thompson and the organization was per fected about 1910. Mr. Blades continued as president foi about five years, until his death in an automobile accident west of Hickory while on his way to Montreat. Harry R. Bush, an experienced fire insurance man, was brought into the company and as president directed its affairs successfully for many years. Dixie Fire, meanwhile had been consolidated with the North State Fire Insurant Co., operations continuing under Dixie Fire's charter. Mr Bush was instrumental in getting the American Fire Insur ance Co., interested in Dixie Fire, resulting in the purchas< later. :ALL, 1948 THE E. S. C. QUARTERLY PAGE 103 mtil 1942, when it moved to its present location at L18 East Fourth Street. With only two or three )aid employees at the beginning, it now has twenty employees, thirteen in the home office at Charlotte ind seven traveling men covering North and South Carolina. Present officers of the company are: Arthur R. >aig, president and treasurer; J. M. Anderson, Columbia, S. C, vice-president; M. R. Whisnant, sec-retary, and R. S. Logan, cashier. The directors, in iddition to Messrs. Craig, Anderson and Whisnant ire : H. P. Duvall, Jr., Cheraw, S. C. ; J. T. Griffith, Monroe ; J. R. Poindexter, Elkin ; R. E. Barron, Rock Sill, S. C. ; D. E. Turner, Sr., Mooresville, and Abel barren, Garland. Indicative of the value of the operation of this company is a report that in its 36 years of opera- ;ion, it has paid $1,234,176.30 in dividends to its policyholders and has paid $785,983.00 in net losses ;o its policyholders. In its December 31, 1947, state-nent of conditions, the company shows total assets )f $661,313.70 and of its liabilities, $444,827.69 is shown as surplus to its policyholders. The company aow has $3.00 in assets for every $1.00 of liabilities. Because of the company's care in selecting risks md its economy in management, it has been possible for the company, having no stockholders, to pay handsome dividends to its policyholders. During the 36 years of operation, it paid policyholders dividends di 25 per cent from 1912 through 1918; from 1919 through 1922, dividends amounted to 33V3 percent and since that time, dividends have been on a 35 per-cent basis. Assets of the Hardware Mutual Fire Insurance Co. have trebled during the past decade, increasing from $208,797.16 in 1937 to $661,313.70 at the end of business in 1947. Of its net surplus of $444,827.69, investments include $148,954.21 in stocks and $301,- 767.84 in bonds, of which $165,152.43 is invested in U. S. bonds. Two of the effective slogans of Hardware Mutual Fire Insurance Company of the Carolinas are: "Make your insurance, pay your dividends," and "Make your dividends, pay your taxes." Incidentally, Alfred M. Best & Co.'s Insurance Report for 1948 rates this company as A-plus (Ex-cellent) . CAROLINA CASUALTY INSURANCE CO. Burlington, N. C. The Carolina Casualty Insurance Co., located at 221 Morehead Street, Burlington, incorporated Aug-ust 26, 1943, and starting business late in that year, s the only North Carolina insurance company which ?ives a general coverage of casualty insurance, in-cluding accident, health, hospitalization, automo- )ile, general liability and compensation. This company grew out of the activities of Bay-or's Insurance Service, Inc., general agent and state nanager for several insurance companies and ope-rating in Raleigh, Durham and Burlington for the past fifteen years. P. C. Baylor, president, and a group of his asso-ciates in Baylor's Insurance Service decided to or-ganize the Carolina Casualty Insurance Co. for the purpose of handling some of the business that had been handled through Baylor's Insurance Service in North Carolina and several other states. Mr. Baylor, a native of New Jersey, who has been in North Carolina for fifteen years, in addition to his two main firms, is engaged in other relative activ-ities. R. F. Halyburton, executive vice-president and secretary of the Carolina Casualty Insurance Co.,' formerly in local agency business in New Jersey, has been associated with Mr. Baylor since 1936 and is also secretary-treasurer of Baylor's Insurance Service. A. C. Fairey, first vice-president, was in local agency business in Charlotte and Greensboro for several years and for ten years, until 1936, was chief deputy insurance commissioner of North Carolina. He also has been associated with Baylor's Insurance Service since 1938 and has been vice-president of that service for the past year or two. F. F. Foster, vice-president, is a native of Iowa and engaged in casualty insurance activities later in Charlotte, join-ing Baylor's Insurance Service in 1943. F. M. Hunter, vice-president, in charge of the Accident and Health Department of the Carolina Casualty Insurance Co., also was associated with Baylor's Insurance Service. Officers of the company include: P. C. Baylor, president; R. F. Halyburton, executive vice-presi-dent and secretary ; A. C. Fairey, first vice-president ; F. F. Foster and F. M. Hunter, vice-presidents; W. R. Massey, treasurer; N. S. Baylor, assistant secre-tary and assistant treasurer; J. D. Coleman, assist-ant secretary; A. B. Coe, assistant treasurer, and J. D. Cooper, general counsel. Directors of the company are : M. A. Carty, Miami Beach, Fla., chairman of the board; J. M. Benson, J. M. Freeman, J. A. Bailey, N. S. Baylor, P. C. Baylor, W. M. Brown, Jr., T. D. Cooper, D. S. Doster, A. C. Fairey, F. F. Foster, R. F. Halyburton, F. M. Hunter, W. R. Massey and Ralph H. Scott, all of Burlington. In the home office in Burlington, the company has fifty-five employees with an annual payroll of $180,- 000 and in addition about 500 agents, approximately 200 of whom operate in North Carolina. The Carolina Casualty Insurance Co. is licensed to do business in eight states and is in active operation in Arkansas, Florida, Georgia, Kentucky, North Caro-lina, South Carolina, Tennessee and Virginia. Ap-proximately 50 percent of its total policy writings at present are in North Carolina. All business in excess of $5,000 on each claim or series of claims is reinsured to protect against serious losses in any of the company's casualty writings. Growth and progress of the company have been conservative and steady and the operations have been very successful. Net premiums written increased PAGE 104 THE E. S. C. QUARTERLY FALL, 1948 from $12,066 during the first month or two of opera-tion in 1943 to $818,599 in 1947. Assets increased from $260,077 to $738,476 and the surplus from $285,929 to $325,994 in the same period. Most of the assets include cash $113,737, U. S. Government bonds $511,505, and $43,142 in selected stocks. The company has set aside reserve funds of $412,482 and had $325,994 as surplus for the additional pro-tection of its policyholders. The company has $179.03 of assets for every $100.00 of its liabilities. In 1947, the company's income was $869,934 and its expenditures, $775,866, including losses paid and expenses of operation. The ratio of income to dis-bursements indicates that $115 was received for each $100 paid out. These figures show that the company is in excellent financial condition. BLUE RIDGE INSURANCE CO. Shelby, N. C. The Blue Ridge Insurance Co., 215 East Warren Street, Shelby, was organized by a group of Shelby men, headed by Fred W. Blanton, and was incorpo-rated October 6, 1944, in South Carolina with home office in Spartanburg, S. C. As of January 1, 1946, the company secured a North Carolina charter and moved its home office to Shelby. When first organized, the authorized capital stock was $300,000, and prior to moving the company to Shelby, the North Carolina charter authorized cap-ital stock of $1,000,000. The Blue Ridge Insurance Co. was organized for the announced purpose of trying to keep a portion of the fire insurance pre-mium dollars in the south and particularly in the Carolinas. It is pointed out that the South has sent millions of dollars to New York and to the New England states in fire and automobile insurance premiums. The organizers have as their purpose the development of a strong locally owned stock company and investing their money in the states in which they do business, at present in North and South Carolina. The Blue Ridge Insurance Co. is one of the few North Carolina fire and casualty companies that is owned and operated by North Carolina people. It is engaged in underwriting fire and automobile risks, including insurance against fire, theft and collision of automobiles, fire, windstorm and extended cover-age for buildings and flight and ground coverage for airplanes. A portion of each risk is reinsured in cases of fire, windstorm and extended coverage in-surance. Principal promoters of the Blue Ridge Insurance Co. are officials and directors of the Manufacturers and Jobbers Finance Corporation of Shelby and this corporation is at present the largest stockholder in the insurance company, owning more than one-fourth of the shares outstanding as of June 1, 1948. The insurance company has an arrangement with the Finance Corporation, by which the company writes practically all fire, theft and collision insurance re-quired on vehicles financed by the Finance Corpora-tion. This connection provides a substantial source of business for the insurance company, since the premiums written on M. & J. business for the year of 1947 amounted to $365,375.75. From a small beginning in the latter part of 1944, the Blue Ridge Insurance Co. has developed i
Object Description
Description
Title | E.S.C. quarterly |
Date | 1948 |
Digital Characteristics-A | 52 p.; 7.24 MB |
Digital Collection | North Carolina Digital State Documents Collection |
Digital Format | application/pdf |
Title Replaces | U.C.C. quarterly** |
Audience | All |
Pres File Name-M | pubs_serial_escquarterly19471950.pdf |
Pres Local File Path-M | Preservation_content\StatePubs\pubs_serial_escquarterly |
Full Text | . . I T C. Quarterly VOLUME 6, NO. 4 FALL, 1948 North Carolina Contains Home Offices of Many Large and Growing Insurance Companies, Particularly in Life Field One of the fine Home Office Buildings of North Carolina Life Insurance Companies (See inside cover) PUBLISHED BY Employment Security Commission of North Carolina RALEIGH, N. C. PAGE 82 t c t i t t ! i ' ' ' the e: S: C. QUARTERLY FALL, 1948 The E. S. C. Quarterly (Formerly The U.C.C. Quarterly) Volume 6, Number 4 Fall, 1948 Issued four times a year at Raleigh, N. C, by the EMPLOYMENT SECURITY COMMISSION OF NORTH CAROLINA Commissioners: Mrs. W. T. Bost, Raleigh; Judge C. E. Cowan, Morganton; C. A. Fink, Spencer; R. Dave Hall, Belmont; Marion W. Heiss, Greensboro; Dr. Harry D. Wolf, Chapel Hill. State Advisory Council: Capus M. Waynick, Raleigh, Chair-man; Willard Dowell, Raleigh; H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake Forest; Robert F. Phillips, Ashe-ville; Mrs. Dillard Reynolds, Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric Stallings, Charlotte. HENRY E. KENDALL Chairman R. FULLER MARTIN Director Unemployment Compensation Division ERNEST C. McCRACKEN Director North Carolina State Employment Service Division M. R. DUNNAGAN Editor Informational Service Representative Cover illustrations represent typical North Carolina industries under the unemployment compensation program or related activities. Cover for Fall. 1948—This showplace at Sedgefield, about half-way between Greensboro and High Point, is the home office of the Pilot Life Insurance Co., one of the beautiful and im-posing plants built by life insurance companies in the State. On the 132-acre tract, 70 acres are in lawn, beautifully land-scaped, with 60 large English boxbushes, European lindens, white blossom cherry trees, crepe myrtles, white pine, birch, hemlock and other varieties of shrubs around the buildings. All drives are paved. Three buildings, completed in Sep-tember, 1928, are of English type architecture with oversize Jeffersonian brick, and cast stone trim. One building is 190 x 40 feet, 3% stories high, and two are 125 x 44 feet, 2% stories high. Inside are large departments with large win-dows. All trim inside is Minnesota birch, floors are linoleum and lighting is fluorescent. A pool, lily lined and with about 600 goldfish, 30 x 50 x 2% feet, is in the center of the court. Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: E. S. C. Informational Service, P. O. Box 5S9, Raleigh, N. C. CONTENTS Pagic N. C. Insurance Companies 8 2 Many Big Life Insurance Firms Flourish in State 8 3 Jefferson Standard, Durham Life, Pilot Life, N. C. Mutual Life, Security Life Trust, Home Security Life, Occidental Life, Imperial Life, State Capital Life, Southern Life, Pyramid Life, Winston Mu-tual Life, Coastal Plain Life, Fidelity National Life. Commissioner Controls Insurance Activity in State 10 By R. F. Adkins Ten Fire and Casualty Company Home Offices in State __ 101 Hardware Mutual, Carolina Casualty, Blue Ridge, Southern Fidelity Mutual, Bankers' Fire, Textile Insurance, Old A'orth State, Atlantic Fire, Piedmont Fire, Southern Fire. Regulate Fire, Compensation, Auto Insurance Rates __ 111 Fire Insurance, By Landon Hill Compensation—Automobile, By John F. Fletcher Companies and Agents Members of N. C. Associations __ 113 N. C. Asso. of Insurance Agents, By S. G. Otstot ; N. C Asso. of Insurance Women ; N. C. Industrial Insurers Conference ; N. C. Slate Asso. of Life Underwriters; N. C. Asso. of Mutual Insurance Agents. Three Hospital and Medical Associations in State 115 The Hospital Care Association, Inc. ; Hospital Savings Asso. of N. C, By L'mis M. Connor, Jr.; The State Hospital Asso., Inc. Fraternal Benefit Funds Operated by Three Groups 119 Independent Farmer Mutual Fire Insurance Groups __ 120 Farmer Mutual Fire Insurance Asso. and 19 Branches __ 123 Basic Coverage in Insurance and other Activities 126 By W. D. Holoman Many Claimants Fail to Qualify for Benefits 130 By Edith C. Dennis Note: Articles in this issue, not credited to other (with By-line) were written (some rewritten by firm representa-tives) by M. R. Dunnagan, Editor. N. C. INSURANCE COMPANIES North Carolina has been a fertile field for the or-ganization and development of insurance companies, particularly in the life insurance field. The State now has 15 companies, 12 of them well established and remarkably successful. Three are new, but with bright prospects for very successful operation. In the State are home offices of a dozen companies gen-erally placed in the fire and casualty classification, which includes marine, compensation and other types. Two fire and casualty companies are now in the process of organization. The dozen older and well established life insurance companies with home office in North Carolina have made wonderful strides. In the past 50 years many life insurance companies have been organized in the State, but most of them have disappeared through consolidation and absorption. A few have been liquidated. The result is that the dozen companies that have been in operation for a decade or more are classed as among the most substantial and sound companies in the entire country. A few figures and comparisons are sufficient to prove the importance of North Carolina companies in the life insurance field. Total assets of these com-panies at the end of 1947 had reached the staggering sum of $369,037,500. This shows a growth of 230 percent during the ten-year period since the end of 1937, when total assets were only $111,785,519. Equally impressive was the increase in insurance in force of 174 percent, from $755,361,357 at the end of 1937 to $2,072,927,117 at the end of 1947. Further evidence that life insurance in North Carolina is big business for the home companies is furnished by other consolidated figures. Capital stock of the home companies, except for the four mutual companies which do not have capital stock, amounted to $14,966,071 and the surplus had reach-ed $30,014,897, both of which is additional protec-tion for policyholders. Total liabilities, exclusive of capital and surplus, was thus $322,119,565 at the end of 1947. At that time total investments of North Carolina insurance companies amounted to $283,119,768, largely in Federal, State and other bonds, stocks, mortgages and loans to policyholders. During the year 1947 premium income amounted to $70,040,638, while $21,213,959 was paid last year to policyholders and beneficiaries. These life insur-ance companies employed approximately 2500 work-ers in North Carolina last year, paying them salaries and wages of approximately $8,172,000, in addition to amounts paid to large numbers of workers em-ployed in other states. These figures, of course, do not include the activi ties of the dozen fire and casualty companies in the State, which would increase many of them by large percentages. Nor do they include the more extensive operations within this State of the hundreds of life, fire and casualty companies located in other states which are licensed to operate in North Carolina and have large agencies and large numbers of agents do-ing business in North Carolina. Particularly in the casualty field, and to a less ex-tent in the fire insurance field, the great bulk of the insurance premiums paid for protection by North Carolina firms and individuals go to companies out-side the State. That is pointed to by the two fire and casualty companies now being organized within the State as a reason for their organization. FALL, 1948 THE E. S. C. QUARTERLY PAGE 83 Many Big Life Insurance Firms Flourish in State North Carolina has proven a prolific field in the organization and development of insurance com-panies, particularly in the life field. During the past 50 years many life insurance companies have been organized in the State, but numbers of them have been consolidated, absorbed and liquidated. In the process 15 life insurance companies were in opera-tion this year, all of them, except three new ones, having attained remarkable success in the State and some of them expanded into other states. Two new companies, organized last year, are Coastal Plain Life Insurance Co., Rocky Mount, and Fidelity National Life Insurance Co., Greensboro. The latter purchased control of the George Wash-ington Life Insurance Co., Charleston, W. Va., re-cently and will operate under the George Washing-ton charter, thus reducing the companies with home offices in the State to 14. Eleven of the 14 are stock companies and three are mutual companies, although several of the stock companies started as mutuals and later converted to stock companies. Oldest and one of the strongest of the State com-panies is the North Carolina Mutual Life Insurance Co., Durham, organized, owned and operated by lead-ing Negro citizens of Durham and in other cities. It began business on a shoe-string in 1899 and is ap-proaching its golden anniversary. The Pilot Life Insurance Co., Sedgefield, Greensboro, second in age, had its beginning in 1903, when a firm that had been in operation since 1890, established an insurance de-partment. The Imperial Life Insurance Co., Ashe-ville, was third in the list, starting in 1905 as a mutual company, but became a stock company in 1920. Three companies were organized in 1906, but two of these shifted base after starting in business. The Durham Life Insurance Co. was organized in Dur-ham as a mutual company, but moved to Raleigh in 1920 and had become a stock company in 1913. The Occidental Life Insurance Co., Raleigh, was organ-ized in Albuquerque, N. Mexico, but in 1926 pulled up stakes and settled in Raleigh, considered greener and more luscious territory. The Winston Mutual Life Insurance Co., Winston-Salem, also Negro own-ed and operated, organized in 1906. The Jefferson Standard Life Insurance Co., the State's largest, was organized the next year, 1907, in Raleigh, and moved to Greensboro in 1912. The Home Security Life Insurance Co., Durham, was organized in 1916. In 1920, the Security Life & Trust Co., Winston-Salem, was organized in Greens-boro and moved to Winston-Salem in 1924. In 1927 the Southern Life Insurance Co., Greens-boro, began operations as the Dixie Mutual Life In-surance Co. in Raleigh, but moved to Greensboro in 1931 and merged with the Southern Life and Acci-dent Insurance Co., and, in 1947, changed its name to Southern Life. Depression born, the Pyramid Life Insurance Co. was organized in Charlotte in 1929. Of more modern origin is the State Capital Life Insurance Co., organized in Raleigh in 1936 and get-ting ready to move into its new home office building later this 'year. Two new companies, referred to above, the Coastal Plain Life Insurance Co., Rocky Mount, and the Fidelity National Life Insurance Co., Greensboro, were organized last year. More details of these strong financial institutions are given in the articles below. JEFFERSON STANDARD LIFE INSURANCE CO. Greensboro, N. C. The Jefferson Standard Life Insurance Co., with home office in the Jefferson Standard Building, Greensboro, started business 41 years ago in Ral-eigh, moved to Greensboro five years later and has grown into the largest insurance firm in North Carolina and one of the largest in the entire nation, its insurance in force now exceeding $800,000,000. Even when it started the Jefferson Standard was a big organization for that time, for North Carolina and in view of the financial conditions which existed in the State and nation. It was founded and started by big men, with an initial capitalization of $250,000 and a surplus of like amount, paid in by leading fig-ures in Raleigh and surrounding area. The firm was incorporated May 27, 1907, and actually started in business August 7, 1907, with offices in the Masonic Temple, second floor. P. D. Gold, Jr., Greensboro, and Charles W. Gold, Wilson, brothers, were chief promoters of the organ-ization. Listed with them as the group applying for and granted a charter were H. G. Chatfield, Joseph G. Brown, Col. Charles E. Johnson, H. W. Jackson, The late Julian Price, tohose dynamic force and native ability drove the Jefferson Standard Life Insurance Co., Greens-boro, into the top ranks among the companies of the nation. Mr. Price was with Jefferson Standard (and an absorbed com-pany) for Jt l years, loas president for 27 years and was chairman of the board at the time of his death in an automobile accident October 25, 19^6. PAGE 84 THE E. S. C. QUARTERLY FALL, 1948 Thomas B. Womack, all of Raleigh ; and J. C. Hales, Wilson; Charles Brantley Aycock, later Governor, Goldsboro, and C. D. Benbow, Greensboro. Other prominent names linked with the organiza-tion in its early days in Raleigh were Dr. Albert An-derson, Col. A. B. Andrews, vice-president of the Southern Railway Co., for many years; B. S. Jer-man, president of the Commercial National Bank; Charles Home, Clayton ; John 0. Ellington, Fayette-ville ; Col. John F. Bruton, Wilson ; A. G. Myers, Gas-tonia, and Josephus Daniels, an organizer, a stock-holder until his death January 15, 1948 and one of the early policyholders. First officers of the Jefferson Standard were Joseph G. Brown, president of the Citizens National Bank, president for five years, until it moved to Greensboro in 1912; P. D. Gold, Jr., vice-president; Charles W. Gold, secretary and treasurer, and Dr. Albert Anderson, medical director. While still in Raleigh the Jefferson Standard re-insured the business of the Carolina Life Insurance Co. and of the Southern Life Insurance Co., the latter of Fayetteville. Then, in 1912, the Jefferson Stand-ard, the Security Life and Annuity Co., and the Greensboro Life Insurance Co., both of Greensboro, consolidated under the Jefferson Standard's charter. Then a fight developed among the directors on the question of moving the home office to Greensboro. Finally, P. D. Gold, Jr., formerly of Greensboro, cast the deciding vote and the Jefferson Standard moved to Greensboro in 1912. Following the move to Greensboro, most of the Raleigh officers and directors dropped from the pic-ture and most of the stockholders sold their stock. P. D. Gold, Jr., soon got out of the company, but his brother, Charles W. Gold, remained an official for many years. In 1913, soon after the move to Greens-boro, George A. Grimsley, Greensboro, was elected president of the Jefferson Standard, heading the company through 1918. When the Jefferson Standard made its first annual report, as of the end of 1907, after less than five months of actual operation, it had insurance in force of less than $1,000,000. Five years later, when it moved to Greensboro, it was in splendid financial condition and had made extensive progress. The foundation had been laid for a business that was to develop insurance in force of about $750,000,000 at the time of its 1947 report and a figure which passed the $800,000,000 mark last August, the 41st birth anniversary month. Consolidation with the Southern Life and Annuity Co. in 1912 had increased the capital stock from $250,000 to $350,000. In 1923 the capital was dou-bled by a 100% stock dividend, to $700,000. In 1926 it was increased to $1,000,000 by a stock dividend of 331/3% and the sale of 666% shares of stock to em-ployees of the company. Par value of stock, which had been $50 at the beginning and in 1922 was in-creased to $100, was reduced in 1938 from $100 to $10 a share and the capital was increased to $2,000,- 000. By a 100% stock dividend in 1941, the capital was increased to $4,000,000. And, by a 150% stock dividend in 1945, the capital stock reached $10,- 000,000. Present officers of the Jefferson Standard are Ralph C. Price, president; Joseph M. Bryan, first vice-president; C. Elmer Leak, executive vice-presi-dent; Julius C. Smith, vice-president and general counsel; M. A. White, second vice-president; J. H. Barrier, vice-president; D. E. Buckner, vice-presi-dent and actuary ; Dr. H. F. Starr, medical director ; Carlyle Gee, secretary; H. P. Leak, vice-president and treasurer ; Karl Ljung, agency manager ; George K. Cavenaugh, manager, Securities Department. Ralph B. Coit, actuary, almost from the beginning, and vice-president for several years, retired June 30. L. M. Johnson, one of the original employees and former treasurer, also retired June 30. Members of the board of directors are Selby An-derson, Wilson; W. L. Brooks, Charlotte; Shepard Bryan, Atlanta, Ga.; W. G. Clark, Sr., and W. G. Clark, Jr., Tarboro; A. G. Myers, Gastonia; J. H. Barrier, Joseph M. Bryan, Charles W. Causey, C. Elmer Leak, H. P. Leak, J. Van Lindley, Ralph C. Price, Pierce C. Rucker, Julius C. Smith, Dr. H. F. Starr and M. A. White, all of Greensboro. Col. Wil-liam A. Blair, Winston-Salem, director for many years, died March 2, 1948. Key man and guiding and driving force in Jeffer-son Standard for more than 27 years, serving as president from 1919 to 1946, was Julian Price, who had been with the Greensboro Life Insurance Co. since 1905, and was made vice-president and agency manager when that firm was consolidated with the Jefferson Standard in 1912. He had become a solic-itor and general agent for Greensboro Life in 1905 and was made secretary and agency manager of that company in 1909. Mr. Price, native of Virginia, born near Richmond November 25, 1867, attended public schools and be-gan his business career as a telegraph operator and train dispatcher in 1887. He was a traveling sales-man for the American Tobacco Co. for two years, until 1905, when he started at the bottom of a busi-ness he was destined to lead and push to a command-ing position in the nation's financial and business life. When he had reached 79 years of age and was made chairman of the board, with his characteristic vigor, he announced that he was not being put on the shelf and would continue to run the Jefferson Standard, and he did, until his death in an automo-bile accident October 25, 1946. A selfmade man in the best sense of the word, Mr. Price had come up through the scarcity period of Reconstruction. When he reached the point of au-thority through his own efforts, he began to display the man he had produced. When he assumed charge of production for the Jefferson Standard in 1912, following consolidation, the assets of the company were $3,608,860 and the insurance in force amounted to $37,504,117. Seven years later, when he was FALL, 1948 THE E. S. C. QUARTERLY PAGE 85 elected president, in February, 1919, assets were $9,703,325 and insurance in force amounted to $81,- 644,994. And by the end of 1946, a few months after his death, assets were $179,290,937 and insurance in force had exceeded $672,000,000. Cold figures are impressive, but they do not tell the complete story of the driving, dynamic and or-ganizing genius of Julian Price. He gathered around him able and loyal executives and officials. He en-tered into the full life of his city, his state and his nation. Important business and civic positions he held make a long list. He was president of the At-lantic and Yadkin Railway, a director of the Moores-ville Mills and Southeastern Cottons, Inc., president of the Federal Home Loan Bank in Winston-Salem, first chairman of the N. C. Salary and Wage Com-mission, a trustee of the N. C. A. & T. College, Greensboro, a member of many civic, patriotic and social organizations. In 1940, Mr. Price was elected president of the American Life Convention, served as chairman of the Association of Life Insurance Presidents and was a director of the Institute of Life Insurance. Mr. Price was a member and reached high positions in several Masonic bodies and was a 33rd degree Mason. He was a past potentate and life member of Oasis Temple of the Shrine and a life member of the Elks, and held membership and high positions in numerous other organizations. His son and successor as president of Jefferson Standard was brought up in the company. Ralph Clay Price, a native of Greensobro and approaching his 47th anniversary, was educated at the University of North Carolina and at Harvard Business School. He started his insurance work as an agent, later be-came superintendent of agencies, was elected vice-president, became executive vice-president in 1944 and in 1946 succeeded his father as president of the company. Mr. and Mrs. Julian Price had one daughter, now Mrs. Joseph McKinley Bryan, wife of the first vice-president of the company. While Jefferson Standard, like other insurance companies, has had its ups and downs, lean years during depression and wars, it has maintained a re-markable growth throughout most of its 41 years of operation. During the flush period of 1922, the company started its magnificent 17 story home office building at the corner of Elm and Market Street, Greensboro, and occupied it the next year. Jefferson Standard owns Pilot Life Insurance Co., also Greensboro, the controlling interests in the Security National Bank, Greensboro, the Jefferson Standard Broadcasting Co., which operates Radio Station WBT in Char-lotte, one of the two largest broadcasting companies in the state, and owns the controlling interest in Radio Station WBIG in Greensboro. Starting as a North Carolina company, Jefferson Standard has spread out over the years until it now has representatives and agencies in hundreds of cities in 30 states, the District of Columbia and Porto Rico. At the end of 1947, it had 310,644 policies in force amounting to $747,501,522. Of these policies, 92,439, amounting to $217,467,867, were in North Carolina. In its home office and seven North Carolina branch offices, Jefferson Standard has a total of 517 em-ployes with an annual payroll of $1,266,000. In addition, it has 243 agents in the state who received commissions, salaries and other compensation of $795,000 in 1947. The financial statement as of December 31, 1947, showed that among the nearly $200,000,000 in assets, the company had mortgage loans of $86,621,832, of which $6,257,732 were in North Carolina. Bonds owned by the company amounted to $62,080,669, of which $36,068,470 were in U. S. Government bonds and $6,396,926 were in bonds of North Carolina gov-ernmental units and industries. Stock investments amount to $17,152,765, of which $8,807,490 were investments in North Carolina stocks. Real estate owned by the company amounted to $9,544,105, of which $4,343,604 was owned in North Carolina. In loans to policyholders secured by cash value of poli-cies, the company had $12,804,544. In its liabilities of $176,357,286, policy reserves amounted to $149,626,539. The Jefferson Standard RALPH B. COIT WAS GREEN INSURANCE FIRM EXAMINER Ralph B. Coit, for more than 30 years actuary for the Jefferson Standard Life Insurance Co. in Greensboro and for several years vice-president, retiring last June 30, readily admits that he has not always known all there is to know about insurance and insurance companies. Mr. Coit, who operated as an accountant and actuary in New York City for a period and took a fling for a few years in Texas, came to Raleigh soon after the turn of the century as actuary for North Carolina Insurance Department while Col. James R. Young, first State Insurance Commissioner, was still holding that office. The Jefferson Standard had been organized in Raleigh in 1907, and it was not long after that date that the Insurance Department began its examinations of insurance companies, a few of which were operating in the State about that time. Colonel Young and Mr. Coit talked it over and both admitted that they knew very little about examining the books of insurance companies. Then they hit upon a plan. They were sure that the South Carolina Insurance Commissioner was familiar with such examinations, so they invited the South Carolina executive to join them in the examination of Jefferson Standard. He accepted readily. When the South Carolina commissioner arrived and had met Colonel Young and Mr. Coit, he told them he was very glad to join them in the examination of the local insurance company, since he had never had any experience in such examinations and wanted to find out how the examination was conducted. And, wasn't that a pretty kettle of fish? However, the three officials went to the Jefferson Stand-ard's home office, just as nervous as novices could be in undertaking a big task. But they were not alone in that. Mr. Coit reports that the Jefferson Standard folks were ner-vous, too. Their records had not been examined before. They asked the examining officers to wait for a while. Then, they went into action, straightening up little odds and ends that might not look good to examiners. Affairs of the com-pany were in good shape, Mr. Coit reports. And, as an aftermath, Mr. Coit was hired by Jefferson Standard as its actuary, going with the company to Greens-boro when it moved to that city from Raleigh in 1912. And, too, he was a vital cog in the Jefferson Standard wheel until his retirement June 30, 1948. PAGE 86 THE E. S. C. QUARTERLY FALL, 1948 has total surplus funds as additional protection for policyholders of $23,500,000, including $10,000,000 of capital stock, $12,000,000 in surplus unassigned and $1,500,000 in contingency reserves. During 1947, the total income amounted to $38,- 118,499.32, while total disbursements amounted to $18,638,885.02. Premium income last year amounted to $6,876,880.02 from North Carolina and $18,097,- 582.50 from outside the state. Payments to policy-holders in 1947 amounted to $8,664,444, of which $3,860,311 was paid to living policyholders. Of the total, $2,748,988.30 was paid to policyholders in North Carolina and $5,915,455.96 went to policy-holders outside the state. Also net reserves of pol-icyholders increased in 1947 by $5,318,543.05 for those in North Carolina, and $10,251,378.81 for those living outside the state. Citizens of North Carolina join with the officials and employees in pride and satisfaction that an or-ganization such as the Jefferson Standard Life In-surance Co. has been built up within the state. Jefferson Standard's modern 11-story fireproof home office building, 115 x 186 feet, contains about 185,000 square feet of office space. It is made of structural steel, granite, concrete, terra cotta and brick, ivith marble lobby and wainscoting and interior of finished mahogany. DURHAM LIFE INSURANCE CO. Raleigh, N. C. The Durham Life Insurance Co., occupying sev-eral floors of its modern new Insurance Building, Fayetteville and Davie Streets, in Raleigh, has de-veloped into one of the State's largest life insurance companies from a very modest beginning on Decem-ber 4, 1906, in Durham as the Durham Mutual Pro-tective Association. The launching of the organization was unpreten-tious, a group of native North Carolinians forming the association. The organizers were both salesmen and officers, and operations were limited to Durham and nearby communities. This humble start was valuable in that it resulted in a foundation dedicated to personal policyowner service with both conserva-tive and progressive operation and management. The goal of the organizers was to build an insurance company which would deserve a reputation for serv-ice and dependability, and it was on this premise that they adopted the slogan "We Protect The Fam-ily." In March, 1912, the name was changed to the Durham Mutual Life Insurance Co. and during the following year the business was incorporated as the Durham Life Insurance Co. The first officers were A. M. Moize, president; C. B. Hall, vice-president; Silas B. Coley, secretary; and J. R. Weatherspoon, treasurer. The original stock subscribers were these officers and E. N. Moize, Dr. E. H. Bowling, D. L. Cozart, A. J. Mims, Jesse Bishop, C. E. Thomas and W. H. Byrd. In 1913, the company reinsured the business of the Catawba Mutual Life and Health Insurance Co. of Gastonia, and in 1914, the business of the Dixie Mutual Life Insurance Co. of Asheville. In 1916, the business of the Progressive Mutual Life Insur-ance Co. of Raleigh was reinsured, and at that time, Mr. Coley, who had since left the Durham Life and organized the Progressive Mutual and was then its president, was elected president of the Durham Life, a position which he still holds. In 1921 the business of the Royal Mutual Life Insurance Co. of Wilming-ton was reinsured and in 1930 the Durham Life pur-chased the Business Men's Life Insurance Co. of Greensboro. Due to many advantages offered in the capital city of North Carolina, officials of the Durham Life In-surance Co. decided to move its home office from Durham to Raleigh, and the move was made in 1920. After renting office space for a time, the company purchased the old Pullen Building at the corner of Fayetteville and Davie Streets. This purchase was made with the thought that it would serve as tem-porary home office quarters and that some day the company would build on this site a home office struc-ture that would serve the present and future needs of the company. As a result of this dream and plan, the Durham Life completed and occupied its new building in 1942. FALL, 1948 THE E. S. C. QUARTERLY PAGE 87 The building is one of the most modern and com-plete office structures in the South, and is as near fire proof in construction as possible. The building-is 17 stories in height, with a base width of 112 feet and extends 210 feet through the entire block. The material is Indiana limestone with marble trim and terrazo floors. The entire building has fluorescent lighting and is fully air conditioned. When the present Durham Life Insurance Co. was incorporated in 1913, the amount of insurance in force was less than $1,000,000 and all policy con-tracts were on the weekly premium or industrial plan. At that time the company started a gradual and steady expansion program, establishing agency service offices in all the principal cities and towns of North Carolina and later expanding to South Caro-lina. It is now doing likewise in the State of Vir-ginia. In this expansion program it has added to its modern industrial contracts all up-to-date types of Ordinary Life and Endowment Contracts, thereby enabling it to take care of the protection needs of every member of the family. In the three states in which it operates, the Dur-ham Life has 18 district offices, considerably more than 100 detached agency offices and more than 500 trained field representatives equipped and ready to meet any types of protection problem of the people within its territory. Both in insurance in force and in financial strength, the Durham Life Insurance Co. has experi-enced steady and substantial growth. Today it has capital stock of $1,000,000, more than 99 per cent of which is owned in North Carolina, and at the end of 1947 it had 592,683 policyowners with insurance in force of $175,344,803. Its financial statement at the end of 1947 showed total admitted assets of ap-proximately $24,000,000 with total liabilities, exclus-ive of capital stock and surplus, of approximately $19,500,000. The ratio is $1.22 of assets for each $1.00 of liabilities. This 1947 report shows a net premium income of $4,947,000 in North Carolina and $1,654,000 from outside the State, a total of $6,601,000. Total dis-bursements last year amounted to $4,123,000. In 1947 payments to policyowners amounted to $1,162,- 000 and in addition $2,588,000 in reserve was placed to the credit of policyowners as required by law. Among its investments, the Durham Life Insurance Co. owns approximatelwy $13,000,000 in bonds of which $10,850,000 are U. S. Government bonds. In-vestments in stocks exceed $1,600,000 and mortgages amount to more than $2,000,000. It also owns the stock of WPTF Radio Co., which operates Radio Station WPTF, one of the two 50,000 watt stations in North Carolina. The growth of the company in recent years has been sound and substantial. Since 1940, policies in force have increased by more than 225,000 and the amount of insurance in force has increased by more than $100,000,000. Present officers of the company are S. B. Coley, president; C. G. Coley, C. B. Hall, A. J. Mims, F. P. Coley, vice-presidents; E. T. Burr, vice-president and actuary ; R. F. Harward, vice-president in charge of the Industrial Department; D. L. Cozart, secre-tary; J. R. Weatherspoon, treasurer; I. O. Brady, general counsel ; H. D. Coley, agency manager ; How-ell DeBerry, comptroller; R. E. Marshall, assistant actuary; Jesse Bishop and W. C. Cozart, assistant secretaries; C. H. Andrews, assistant secretary in charge of Underwriting Department; A. L. Mims, assistant secretary, assistant in charge of Under-writing Department ; P. T. Stone, assistant secretary in charge of Purchasing Department; T. A. Up-church, assistant treasurer in charge of Mortgage Loan Department. The directors of the Durham Life Insurance Co., different from the plan of operation of most big cor-porations, are all employees of the company. They are S. B. Coley, C. G. Coley, E. T. Burr, C. B. Hall, A. J. Mims, R. F. Harward, D. L. Cozart, Jesse Bish-op and J. R. Weatherspoon. Practically all the chief officials of the company are North Carolina farm boys. President Coley was Ultra modern is the home office of the Durham Life Insur-ance Co., 11 stories high, 112 x 210 feet base, of Indiana lime-stone, marble trim and terrao floors. The entire building is air conditioned and has fluorescent lighting. PAGE 88 THE E. S. C. QUARTERLY FALL, 1948 born on a farm in Wake County September 7, 1880. As a young man he went to Durham and worked for a time for the American Tobacco Co. prior to organ-ization of the Durham Life. Mr. Coley has been active in many civic and patriotic organizations. He was one of the organizers of the Citizens Associa-tion of North Carolina, served a term as its president and has since been treasurer of this association. Secretary Cozart is a Granville County farm boy, born July 23, 1882. He was in the wholesale grocery business in Roxboro before joining the Durham Life in 1913. Treasurer Weatherspoon was born on a Durham County farm May 7, 1881. He was in the fire in-surance and banking business prior to his associa-tion with the company. Vice-president and actuary Burr came to the Dur-ham Life from the North Carolina Insurance De-partment, where he was actuary. He is a native of Danville, Virginia, and his early insurance experi-ence was with the Life Insurance Company of Vir-ginia. The Durham Life is proud of its part in the great contribution that the institution of life insurance has made and is continuing to make toward the finan-cial security of the American home. During its years of operation it has paid to policyowners and beneficiaries $19,627,868.78, much of which has gone to living policyowners, and in addition has to the credit of present policyowners legal reserves amount-ing to $18,428,900. The entire organization is devoting its full efforts to a continuance of the best possible insurance serv-ice for its policyowners. PILOT LIFE INSURANCE CO. Greensboro, N. C. Pilot Life Insurance Co., Sedgefield, Greensboro, founded in 1903, is the oldest legal reserve basis North Carolina insurance company and one of the oldest in the entire South. And as its officers claim, it is "the largest life insurance company in the country"—country in this respect meaning rural area since it is 10 miles from the center of Greens-boro. Actually Pilot Life had its origin in 1890 when the Worth-Wharton Real Estate and Investment Co. became a real estate and rental collection business with a paid-in capital of $25,000 in a single ground-floor office about 12 feet wide and 20 feet long. The entire staff included a combination bookkeeper-ste-nographer- file clerk. This location was on South Elm Street near what was known as "Court Square." It was just across the street from the drugstore where William Sidney Porter, later to become im-mortal as O. Henry, clerked for his uncle, drew cartoons of local celebrities and decided that he wanted to become a writer. In 1893 the company's name was changed to South-ern Loan and Trust Co., and the new offices in the first company-erected building were occupied. In 1899 a five-story office building was erected to take care of the growing business. This building was occupied until 1928 when the company moved to its present location at Sedgefield on the Greensboro- High Point Highway. The Southern Loan and Trust Co. charter was amended on July 1, 1903, to permit writing life in-surance on the old line legal reserve basis, and a life insurance department was established. This actually was the beginning of the life insurance phase of the company's operation. During its first month the new department issued 18 policies or a total of $39,500. Policy No. 1 was on the life of R. G. Vaughn, prominent Greensboro citizen, and the original pol-icy was placed in the cornerstone of the company's present home office building. The company's name was changed again on Feb-ruary 1, 1905, to Southern Life and Trust Co., when it was considered advisable to create separate cor-porations to handle the several enterprises of the company other than its life insurance and trust business. For several important reasons the name of the company was changed again in 1924 to Pilot Life Insurance Co. One of the chief reasons was that 30 other insurance companies had at this time "south" or "southern" as a part of their name and also that the company had disposed of its trust de-partment. The new name was taken from Pilot Mountain, located about 40 miles from Greensboro, which, as a symbol of strength and solidarity had long been incorporated in the company's trademark. Already the company had been widely known as "The Pilot Company." Legend reveals that the Indians gave the mountain its name, "Jomeokee"—The Pilot, because it was a sure landmark rising abruptly 2400 feet above them. A. W. McAlister, one of the founders and vice presidents, was manager of the insurance depart ment from the time of its organization and became president of the former Southern Life and Trust Co on January 26, 1909, a position he held until 1931. Emry C. Green served as president from 1934 to 1946. O. F. Stafford, formerly president of the Gate City Life Insurance Co., Greensboro, was elected presi dent of Pilot Life in January, 1946, soon after the Pilot Life and Gate City Life were merged. Start-ing as an agent, he has worked in nearly every posi-tion in the field and in the home office. His wide experience in every phase of the life insurance busi-ness makes him one of the best known and most capable insurance executives in the State. J. M Waddell, executive vice-president, is considered one of the ablest executives in the insurance field. He joined Pilot Life as agency manager in 1933, was made vice-president in 1940, and elected to the board of directors in January, 1944. He became executive vice-president in 1945. The merging of the Pilot Life and the Gate City both successful North Carolina companies, extend- FALL, 1948 THE E. S. C. QUARTERLY PAGE 89 ed types of insurance contracts written by the con-solidated company. The Pilot Life had been engaged in writing ordinary and industrial insurance, and the Gate City in addition had been operating for sev-eral years in the group life and group hospital fields. Today Pilot is one of the largest multiple line com-panies in the South. Members of the Board of Directors of Pilot Life are: Ralph C. Price, president of Jefferson Stand-ard Life Insurance Co., chairman of the board; C. H. Benson, J. M. Bryan, M. G. Follin, Jr., T. H. Lind, 0. F. Stafford, J. M. Waddell, and C. R. Wharton, all of Greensboro, and L. Lee Gravely, Rocky Mount. Officers are : O. F. Stafford, president; J. M. Wad-dell, executive vice-president; C. H. Benson, vice-president and actuary ; M. G. Follin, Jr., W. B. Clem-ent and J. F. Freeman, vice-presidents ; C. R. Whar-ton, vice-president and general counsel; T. H. Lind, vice-president and treasurer; Rufus White, agency manager ; L. L. McAlister, secretary ; Dr. J. L. Cook, medical director; F. C. Willis, auditor; G. V. Mc- Neill, assistant treasurer and Manager Mortgage Loan Department; I. C. Crawford and H. C. Beeson, assistant treasurers ; L. A. Crawford and S. E. Tate, assistant secretaries; M. U. Makely, assistant act-uary; W. D. Tharin, assistant manager, Mortgage Loan Department. Total admitted assets of Pilot Life amounted to $57,701,870.21 on December 31, 1947, including $20,019,808.06 in U. S. Government bonds; $398,- 161.32 in State, county, and municipal bonds; $3,- 146,706.89 in public utility, industrial, and other bonds; $3,948,471.75 in preferred and common stocks; $22,583,591.79 in first mortgage loans; $1,- 969,421.04 in real estate; $2,856,071.70 in loans to policyholders ; and $1,221,674.29 in cash. Liability of the company on December 31, 1947, amounted to $50,701,870.21, and total surplus funds and additional protection to policyholders amounted to $7,000,000, including contingency reserve of $250,000, capital stock of $1,000,000, and unassigned surplus of $5,750,000. Pilot Life had $407,415,552 in insurance in force on December 31, 1947, of which $54,121,180 represents the gain in 1947. On August 31, 1948, total insurance in force had increased to over $433,000,000. Assets of the company increased $6,939,929 in 1947, and in that year the premium in-come reached the new record of $12,215,463.56. Dur-ing the year the company's interest return on invest-ed assets increased to 3.30 percent. During its 45 years of operation, Pilot Life has paid to beneficiaries and living policyholders a grand total of $47,161,600, and the 1947 payments amount-ed to $3,703,741.32. During the past year the com-pany has begun operation in the states of Alabama. Louisiana and Mississippi, raising their territory to eleven states and the District of Columbia. Not the least of Pilot Life Insurance Co.'s assets is its beautiful rural home at Sedgefield. The three attractive buildings form a quadrangle in a highly landscaped area embracing 131 acres. One of the most attractive features of this suburban develop-ment is the cafeteria operated by the company for its employees on a cost basis. Most of the employees live in Greensboro and commute by private car and bus to this rural retreat. Pilot Life has approximately 750 employees in its home office and in the field in North Carolina who have an annual payroll of approximately $1,750,000. NORTH CAROLINA MUTUAL LIFE INSURANCE CO. Durham, N. C. The North Carolina Mutual Life Insurance Co., home office in the Mutual Building, 114 West Par-rish Street, Durham, has come a long way from scratch, often over rough roads, to approach its golden anniversary as the largest Negro insurance company in the nation and, therefore, in the world. On that eventful October 20, 1898, when the idea to organize a company for the purpose of providing health and death benefits for its members took form, there were gathered with John Merrick: Dr. A. M. Moore, P. W. Dawkins, D. T. Watson, W. G. Pearson, E. A. Johnson and Dr. J. E. Shepard. The charter for the newly organized company was drawn by Attorney T. O. Fuller, State legislator, and on February 28, 1899, it was incorporated as a mu-tual assessment association by a special act of the General Assembly of North Carolina. The organ-ization commenced business April 1, 1899, under the name of North Carolina Mutual and Provident Association with John Merrick, president; Dr. A. M. Moore, treasurer, and D. T. Watson, secretary-man-ager, all deceased. During the first year of operation, five of the seven organizers became discouraged and withdrew from the organization. The company was then reorganiz-ed with John Merrick as president, A. M. Moore as secretary-treasurer and C. C. Spaulding as general manager. Mr. Spaulding had joined the organiza-tion as local agent a few months after the company began business. When he became general manager, his duties included managing the office, cleaning up the office, traveling for the company and doing its clerical work. During the first year of its operation, one of the first men to whom a policy had been sold, died sud-denly after paying the first premium. This death claim was for $40 and the organization did not have money enough to pay it. The three officers, Mer-rick, Moore and Spaulding, met to consider the case. They realized that if the claim was not paid they might just as well close up shop. So they dug into their pockets and paid the $40. From that time on, business was much easier to get. A valuable godfather to the new organization, himself an astute business man, was Washington Duke. Mr. Duke laid the foundation for the Amer-ican Tobacco Co., which his sons, James B. and B. N. Duke, organized and developed into one of the PAGE 90 THE E. S. C. QUARTERLY FALL, 1948 largest manufacturing firms in the country. When Washington Duke dropped into Merrick's barber shop for his morning shave, Merrick would present to him problems bothering the officers of the new company. Mr. Duke gave them advice which they always followed and which always proved sound. Not only did the advice given help the young organ-ization over many of its toughest spots, it also proved instrumental to a large degree in shaping the policies of the institution. Mr. Spaulding, who has shaped the destinies and planned the growth of the company, almost from its beginning, readily admits that while he was solicit-ing business, he frequently made short trips and had to depend upon first premiums from policies sold to pay his way back home. The first office of the company was located in Dr. Moore's office on Main Street near where the Dur-ham County Court House now stands. The present home office building is a modern up-to-date build-ing which the company owns. During the first year of operation, from April 1 to the end of 1899, the company collected only $395.50. The company began business on the Mutual As-sessment Plan. In 1905, it began writing ordinary business to the amount of $500. Spaulding took policy number one which he still carries. Its first examination by the State Insurance Department came in 1909, the year the Insurance Department was set up, and its report says "everything was found in tact." The charter was amended in 1913 and the company began doing business on the old line legal reserve basis. The change to its present name was made in 1919. The North Carolina Mutual Life Insurance Co. in 1904 took over several small South Carolina com-panies. These companies were absorbed because the State of South Carolina then required a deposit of $10,000 for any such company doing business in the State and these small companies were not able to meet this requirement. Raising the required $10,000 to qualify in the State of South Carolina presented another problem that had to be solved. With the spirit of sacrifice that had from the beginning char-acterized the promoters, Merrick, Moore and Spauld-ing hypothecated their personal holdings with a local banking institution and with the $10,000 in hand, journeyed en masse to South Carolina to pre-sent personally the $10,000 check to the Insurance Department. During the 19 years up to 1920, the company established agencies in nine states and the District of Columbia, including: Georgia, Virginia, Maryland, Tennessee, Mississippi, Arkansas, Flor-ida, Alabama and Oklahoma. During the period of 1906 to 1932, the North Caro-lina Mutual Life Insurance Co. absorbed a dozen other Negro insurance companies, largely in North and South Carolina. These included : Peoples Benev-olent & Relief Association, Charlotte ; Capital Benev-olent Association, Columbia, S. C. ; Winston Indus-trial Association, Winston-Salem; Family Rescue Fraternal & Beneficial Society, Baltimore, Md. ; Afro- American Mutual Life Insurance Co., Rock Hill, S. C. ; Toilers Mutual Life Insurance Co., Tarboro ; Provident Relief Association, Washington, D. C. ; In-ternational Life Insurance Co., Reidsville; Eagle Life Insurance Co., Raleigh, and King Mutual Life In-surance Co., Edenton. The World War period, specifically from 1914 to 1920, witnessed the most remarkable growth in the history of the company. The premium income dur-ing that period increased more than 300% from $358,311 to $1,324,541. The company's agents in 1920 produced $13,680,424 in new and revived ordi-nary business and $9,660,842 in new and revived in-dustrial insurance. On January 1, 1927, the com-pany entered upon a program of retrenchment and concentration and transferred its business in Flor-ida, Mississippi, Arkansas and Oklahoma, amount-ing to approximately $10,000,000 to other life in-surance companies, withdrawing from those four states in order to intensify its operations in Alabama, Tennessee, Georgia, South Carolina, North Carolina, Virginia, Maryland and the District of Columbia. In spite of the fact that about 25% of its busi-ness had been transferred to other companies at the beginning of 1927, including assets of more than $500,000 and more than $10,000,000 in business, the company during the two years that followed gained $3,000,000 in insurance in force and closed the year with more than $38,000,000 in insurance in force. Following the death of the first president, John Merrick, on August 6, 1919, Dr. A. M. Moore served as second president until his death on April 29, 1923. Other executives who died in the service of the in-stitution and who at the time of their death held important positions were: J. M. Avery, vice-presi-dent- secretary; W. D. Hill, assistant secretary, and R. L. McDougald, vice-president. Present officers and directors of the company are : C. C. Spaulding, president and chairman of the board ; W. J. Kennedy, Jr., vice-president and secre-tary; E. R. Merrick, vice-president and treasurer; G. W. Cox, vice-president and agency director; Dr. Clyde Donnell, vice-president and medical director; A. T. Spaulding, vice-president, actuary and comp-troller ; M. A. Goins, assistant secretary, all of Dur-ham ; A. J. Clement, Sr., district manager, Charles-ton, S. C. ; D. C. Deans, vice president-associate agency director, Richmond, Va. ; J. L. Wheeler, vice-president- assistant agency director, Atlanta, Ga. ; W. H. Harvey, district manager, Columbia, S. C, and A. E. Spears, district manager, Charlotte. Other officers include: Mrs. B. A. J. Whitted, cashier; J. W. Goodloe, assistant secretary-office manager; Aaron Day, Jr., assistant secretary-man-ager Ordinary Department ; J. S. Hughson, assistant to treasurer ; D. B. Martin, assistant agency director ; C. C. Spaulding, Jr., attorney-assistant treasurer; Mrs. V. G. Turner, assistant treasurer ; W. A. Clem-ent, assistant to agency director ; N. H. Bennett, as-sistant actuary. Other home office administrative FALL, 1948 THE E. S. C. QUARTERLY PAGE 91 personnel include: R. C. Foreman, chief auditor, branch offices; B. W. Kennedy, claims supervisor; W. E. Williams, statistician, and J. J. Henderson, manager controller's department. These individuals, through efficiency and hard work, came up through the ranks and earned the positions they now hold, many of them having been with the institution from 10 to over 40 years. Key man and moving spirit in the North Carolina Mutual Life Insurance Co. from its beginning has been C. C. Spaulding, who started with the company during its first year as agent and office manager and in 1923 became its third president. Mr. Spaulding, a native of Columbus County, was a cotton farmer until he was grown. Then, against the advice of friends, he moved to Durham and took a job as dishwasher at a small hotel at $10 a month. When the opportunity came to become an insurance agent, he seized it and through sheer ability, char-acter and efficiency, moved upward until he became president of the largest Negro insurance company in the world. He displays in his high executive position the same qualities that caused him to leave the cot-ton farm and leave the dishwashing job. He is still a man of the people, solid, efficient and kind. Spauld-ing has been dubbed "cooperation" because of his ability to get along with all types of people. Long gone is the element of showmanship, which he and his two associates, Merrick and Moore, con-sidered essential to a new business. The three wore the highest white stiff collars they could find. They felt that this would impress the people of their im-portance. A picture of the trio hangs on the wall in the home office conveying an air of importance. They succeeded in impressing the public. Without capital or experience, but with character and effi-ciency, they laid the foundation for a truly great business enterprise. Among the qualities of C. C. Spaulding is his abil-ity to gather round him men of ability and integrity. As is the case in few other large enterprises, every member of the board of directors of the company is a working employee of the company. The future wel-fare of the company's employees has not been over-looked. The employee's retirement program that safeguards the well-being of every employee, reflects commendable foresight and consideration on the part of the management. As a direct benefit derived from the retirement program, every employee, during his or her productive years, can look forward to the time of retirement with confidence and with a feel-ing of security, knowing financial provisions have been made for future years under a group annuity contract with one of the outstanding life companies in the group annuity field. The ability and efficiency of the administrative staff of the North Carolina Mutual Life Insurance Co. have been responsible for the splendid record made through the years. At the end of 1947, the company had $130,787,958 insurance in force. Its assets had reached $19,902,804.97, which includes $14,517,941.93 in stocks and bonds, $14,190,881.93 in government, state, municipal and corporation bonds; $2,601,582.57 in mortgage loans; $716,924.31 in loans on policies, and $670,049.20 in real estate, including the home office valued at $340,395.34. In addition to $15,507,527.95 in reserves for policy-holders which represents 80% of the company's assets, and the other usual reserves, the company has surplus and other unassigned funds of $2,813,- 974.67. Payments to policyholders during 1947 amounted to $1,850,072 which brings the total pay-ments of policyholders in its 49 years of operation to $28,504,601, an enviable record which gives North Carolina Mutual a strong position among the life insurance companies of the country. Further evidence of the company's substantial con-dition, is the fact that it has $119.80 in assets for every $100 of liability. This and other assets, tangi-ble and intangible, including able and experienced personnel, are sufficient grounds for predicting ex-pansion and extension of the service of the North Carolina Mutual Life Insurance Co. in future years. SECURITY LIFE & TRUST CO. Winston-Salem, N. C. The Security Life and Trust Co., 1281 West Fourth Street, Winston-Salem, has developed into the upper fourth in size among the 400 greatest companies in America in the 28 years since it organized and start-ed business in 1920. This company was founded in Greensboro by George A. Grimsley, who had many years of success-ful life insurance and business experience. He had served as president of the Jefferson Standard Life Insurance Co. in Greensboro for many years and had engaged in other successful business enterprises. He was the first president of the Security Life and Trust Co. Associated with Mr. Grimsley in found-ing the company was C. Collins Taylor, an outstand-ing business executive, who became first vice-presi-dent and agency manager. After operating successfully in Greensboro for four years, the company moved its home office to Winston-Salem, and in 1932 purchased a palatial residence on West Fourth Street and built extensive additions which makes it an ideal home office. In Winston-Salem, the Security Life and Trust Co. received new blood among its officers and direc-tors from many of the leading industrial and busi-ness men located in the Twin City and throughout the State. Mr. Grimsley continued as president until 1932 when he was elected chairman of the board of directors, a position he held until his death. He was succeeded as president by Dr. Fred M. Hanes, who had been medical director since 1923 and a mem-ber of the board of directors since 1930. Dr. Hanes was elected chairman of the board of directors in 1935, serving as chairman until his death in 1946, while assistant dean of the Medical School of Duke University. PAGE 92 THE E. S. C. QUARTERLY. FALL, 1948 Egbert L. Davis, a man with wide executive and sales experience with the R. J. Reynolds Tobacco Co. and connected with the Security Life and Trust Co. for many years, was elected executive vice-president in 1933. In 1935 he was elected president and treas-urer of the company. Other officers of the company are Tully D. Blair, vice-president and agency manager; W. Grady Southern, vice-president; S. L. Booke, vice-president and actuary ; R. Grady Wilmoth, assistant treasurer ; Harry W. Lewis and J. M. Hodgin, assistant secre-taries; A. C. Adams, assistant actuary; Dr. S. W. Hurdle, medical consultant ; Dr. John P. Davis, med-ical director ; and Womble, Carlyle, Martin and Sand-ridge, general counsel. The board of directors, consisting of some of the most prominent industrial and business leaders in Winston-Salem and elsewhere in the State, includes : Robert M. Hanes, S. Clay Williams, Egbert L. Davis, P. H. Hanes, Thurmond Chatham, Tully D. Blair, C. T. Leinbach, B. S. Womble, S. L. Booke, W. Grady Southern, Robert W. Gorrell and A. H. Bahnson, all of Winston-Salem; J. Sam White, Mebane; Millard F. Jones, Rocky Mount; J. Raymond Smith, Mt. Airy; D. Hiclen Ramsey, Asheville; Leo H. Harvey, Kinston; W. Frank Dowd, Jr., Charlotte; and W. Y. Preyer, Greensboro. Capital stock of the Security Life and Trust Co. is $500,000, increased in 1944 from $400,000 by the issuance of a 25 percent stock dividend. During the past decade, it has made the remarkable record of leading all other North Carolina insurance companies in the production of ordinary life insurance in seven out of the ten years, and in 1947 it led any other North Carolina company to the extent of 20 per cent. In its 28 years of operation, Security Life and Trust Co. has distributed approximately $15,000,000 to policyholders, much of it to beneficiaries still living. An unusually large expansion of the business of the Security Life and Trust Co. is shown by the BBliilillp llliiliiiiillf comparison of figures in its statement as of Decem-ber 31, 1947, with those of ten years ago. Assets in that period have increased almost four-fold, from $5,076,647 in 1937 to $18,959,331 last year. In 1937, the company had 26,557 policyholders with total in-surance in force of $43,398,111 as compared with 74,849 policyholders in 1947 with insurance amount-ing to $172,009,902. Total income in 1947 amounted to $5,178,448. Total disbursements in 1947 amounted to $2,823,816, of which $1,085,802 was payments of claims to pol-icyholders, and of this $452,690 was paid on claims of policyholders in North Carolina. Approximately 90 per cent of the stock of the Security Life and Trust Co. is owned by 263 resi-dents of North Carolina. Of the investments in stocks, $491,320.58 was in North Carolina corpora-tions and $1,519,444.55 was in corporations outside of the State. Security Life had $7,079,948.59 invested in U. S. Government bonds and $204,500 invested in bonds issued in the State of North Carolina. Approxi-mately 75 per cent of the mortgage loans, involving 783 loans, amounting to $5,044,177, are made on North Carolina property and 382 mortgage loans, involving loans of $1,819,158, represents the amount outside of the State. The Security Life and Trust Co., in addition to the paid-up capital of $500,000, has in its surplus and contingency funds $905,625.66, which is addi-tional protection to the policyholders over and above its legal requirements. This company has weath-ered all storms, depressions, wars and high prices, and has come through with flying colors. These con-ditions and the experience and loyalty of its staff of men and women, which includes 700 individuals in its home office and in the field, indicates greater expansion which its officers anticipate in future years. Entirely adequate is the Home Office of Security Life & Trust Co., formerly a palatial residence, renovated and with wings added. HOME SECURITY LIFE INSURANCE CO. Durham, N. C. The Home Security Life Insurance Co., with the Home Office at 111 Corcoran Street, Durham, organ-ized in 1916 and almost wiped out by the influenza epidemic two years later, has developed into one of the largest and strongest insurance companies now operating in North Carolina. Organizers of the company were A. M. and E. N. Moize, both of Dur-ham, who about a decade before had organized the Durham Life Insurance Co., which moved to Raleigh about that time, and the late George Watts, tobac-conist and financier of Durham. The charter of the corporation was secured June, 1916, and the company was started a month later. For some time after its organization, the company occupied one room in the Trust Building and had two women as the only full-time employees. The paid-in capital stock was $50,000 and the company had a surplus of $10,000. FALL, 1948 THE E. S. C. QUARTERLY PAGE 93 The first officers were A. M. Moize, president; E. N. Moize, vice-president ; J. M. Alexander, secretary, and T. C. Worth, treasurer. They and George Watts and later his son-in-law, John Sprunt Hill, composed the board of directors. After the company had been in operation for only two years, the influenza epidemic struck in Durham, as well as elsewhere, in 1918 and wiped out the earn-ings, the surplus and the capital stock. At that time John Sprunt Hill received the controlling interest of the firm from George Watts and was able to re-finance the new company and put it back on its feet. Since that time it has experienced remarkable growth. Indicative of the growth of the company since December 1, 1920, when the surplus was only $29.05, the capital stock in 1928 was increased to $100,000, of which $40,000 was in stock dividends and $10,000 in a new stock issue. Again in 1940 a 100 percent stock dividend was declared, increasing the capital to $200,000, and in 1941 the capital stock was again doubled to $400,000, of which 90 percent was in a stock dividend and $20,000 was in a new stock issue. Again in 1946, stock dividend of 25 percent was declared ,increasing the capital to $500,000. All of these stock dividends were in addition to dividends paid to stockholders almost every year since 1920. After operating for eight or ten years in two or three offices in the Trust Building, the Home Secur-ity Life Insurance Co. moved into offices in the Masonic Building. In 1938, when John Sprunt Hill completed the building which he named "111 Corco-ran Street Building," but which is generally referred to as the Hill Building, the company moved into this building and at present occupies about 8,800 square feet of floor space on the sixth floor and part of the fifth floor. In August, 1934, President Moize died and George Watts Hill, son of the major stockholder of the company and owner of the building it occupies, was elected president. In 1938, Mr. Hill was made chairman of the board and Bascom Baynes was pro-moted to president. Mr. Baynes, who finished at Oak Ridge Institute in 1911, took a job as bookkeeper for the Odell Hard-ware Co. in Greensboro and moved up to vice-presi-dent and general manager of the firm. In 1927, he resigned and bought an interest in the Greensboro Life Insurance Co., of which he became vice-presi-dent, and in 1930, was elected president. In 1933, the Greensboro Life merged with the Home Security in Durham and Mr. Baynes joined the new firm as agency supervisor. Mr. Baynes was elected execu-tive vice-president in 1936 and two years later be-came president. During the ten years of Mr. Baynes' presidency, the Home Security Life Insurance Co. made its most spectacular gains. The assets increased from $2,- 000,000 to $12,500,000 and the insurance in force increased from $35,000,000 to approximately $108,- 500,000. The firm now has a staff of 397 with a payroll in excess of $1,200,000 a year. Home Security Life Insurance Co. occupies two floors of "III Corcoran Street", better known as the Hill Building, owned by the principal owners of the insurance company. G. W. Munford, prior to that time with the North Carolina Department of Insurance, joined the firm in 1925 as secretary and in 1934 was promoted to vice-president, assisting in agency organization and in public relations. On January 1, 1948, he retired. In 1929, F. B. Dilts, of the .State Insurance Depart-ment, joined the Home Security Life Insurance Co. as its first actuary and served as such until January 1, 1947, when he retired. He was succeeded as act-uary by D. P. Morris who came to the company from a position as actuary with the London Life Insurance Co. in Ontario, Canada. Present officers are : George Watts Hill, chairman of the board ; Bascom Baynes, president ; J. M. Bates, actuary ; K. B. Robertson, vice-president and agency director; C. C. Hamlet, secretary; Waiter Sledge, treasurer ; W. W. Sledge, general counsel ; H. B. Bel-vin, controller; R. A. Ross, M.D., medical director; Lois Belvin, assistant secretary; J. Elliott Irvine, investment officer. Directors of the corporation are : John Sprunt Hill, George Watts Hill, Bascom Baynes, G. W. Munford, W. W. Sledge, Dr. R. A. Ross, Walter Sledge and Dr. C. A. Adams. The Home Security Life Insurance Co. has a sur-plus of $1,307,884.38. Included in assets are invest-ments of $6,284,421.73 in bonds, $411,383,101.08 in mortgages and $782,019.16 in stocks, all in North Carolina, in addition to its capital stock of $500,000 owned by twenty North Carolina stockholders. Dur-ing its period of operation it has paid $279,789.68 to policyholders and has increased its net reserves for policyholders to $1,561,803. The Home Security Life Insurance Co. is another shining example of how PAGE 94 THE £. S. C. QUARTERLY FALL, 1948 North Carolina's money and North Carolina's brains can build a successful financial institution, devoted entirely to North Carolina's interest. Further evidence of the soundness and stability of the Home Security Life Insurance Co. is given by Dunne's Insurance Report. In its 1947 analysis it gives this company a rating of A-Plus (Excellent). It further shows that the assets for each $100.00 of liabilities for twenty of the largest insurance com-panies in the country average $106.88; whereas, Home Security's average is $116.24; the increase in assets for the same twenty largest companies aver-ages 6.98 percent, and the Home Security average is 23.04 percent; the increase in insurance in force for these twenty largest companies averages 9.83 percent in contrast to Home Security's increase of 16.64 percent ; the increase in surplus of these twenty companies is an average of 7.18 per cent as compared with Home Security's increase of 44.61 percent. LIFE INSURANCE CO. STOCK RESEMBLED WHITE ELEPHANT The Home Security Life Insurance Co., Durham, one of the strongest and among the larger life insurance companies in North Carolina, has not always been strong. You can take the word of John Sprunt Hill, its principal owner for many years, for that statement. In fact, Mr. Hill tells an interesting story about its beginning years. The organizers were A. M. and E. N. Moize, but they were backed by George Watts, wealthy tobacconist and financier of Durham, who bought half the stock in the organization. The firm had capital stock of $50,000 and a paid-in surplus of $10,000. Mr. Hill had been issued a small slice of the stock as a fee for drawing up the papers of incorporation, as he recalls, and to keep a majority of the stock in the family. Mr. Hill was the son-in-law of Mr. Watts. The company had been organized in 1916 and was doing very well. Then, two years later the influenza epidemic struck. It struck Durham hard and it struck the Home Security Life much harder. In just a short time so many of the company's policyholders had died, that it took all of the surplus and all of the capital to pay death claims, and that was not enough to pay all claims. The company was a few hundred dollars below surface level. Then, one day, Mr. Hill relates, his father-in-law, Mr. Watts, came into his office with a batch of papers in his hand. He admitted to Mr. Hill that he was "whipped" and looked it. He related that the company, flat broke and in debt, had him licked. He had had enough of it. "Here," he said to Mr. Hill, "take this stock. You can have it, all of it, as a gift." Mr. Hill hesitated to look a gift horse in the mouth, but admits that his father-in-law's present of $25,000 in stock of the Home Security Life looked like a white elephant to him. However, he accepted the stock, thanked his father-in- law and then set about doing some tall financing. He was able to pull a string or two which permitted paying off the remaining claims. Further actions placed the company on its feet and by December 31, 19 20, it showed the very surprising surplus of $29.05. Since that time it has paid dividends almost every year and has increased its capital stock from $50,000 to $500,000, practically all of which was in stock dividends. The company has assets of $12,500,000, a surplus of $1,308,- 00 0, and insurance in force amounting to approximately $108,500,000. George Watts Hill, son of the recipient and grandson and namesake of the donor of the stock in the Home Security Life Insurance Co. 30 years ago, is chairman of the board of directors. OCCIDENTAL LIFE INSURANCE CO. Raleigh, N. C. The Occidental Life Insurance Co., with home offices in the Professional Building, Raleigh, pre-sents probably what is the only example in the his-tory of the United States in which a life insurance company organized and operated in one state, picked up and moved, lock, stock, and barrel, to another state. This move constituted a reversal of Horace Greeley's advice to "go west." This trek of around 3,000 miles brought the West to the East. Occidental Life Insurance Co., organized in Albu-querque, New Mexico, in 1906, operated in that state for 20 years. Realizing the advantage of locating in an area of greater concentration of population, Occidental's officials, led by A. B. McMillen, who had become president in 1912, reviewed various lo-cations in the East. North Carolina is only one-third the size of New Mexico, but has ten times the population. In 1926, in view of the population ad-vantages and industrial advancements, North Caro-lina was chosen as the location for the company. Raleigh was selected as the city which had been most favorably recommended. Just about the time the tremendous task of trans-porting the company, which included its key person-nel, 3,000 miles to North Carolina was completed, Mr. McMillen died, and Laurence F. Lee, who had been vice-president and general counsel from the beginning, was elected president. Mr. Lee had served as general counsel for several banking firms and for Occidental in Albuquerque. He became president of American Life Convention for the 1944-45 term. Currently, Mr. Lee is a mem-ber of the Board of Directors of the U. S. Chamber of Commerce, a member of both the Jacksonville, Florida, and Raleigh Chambers of Commerce, the Florida State Chamber of Commerce, the Association of Life Insurance Counsel, a member of Rotary, a director of the American Service Bureau, and a mem-ber of President Truman's Loyalty Review Board of the Civil Service Commission. In 1934, Occidental Life Insurance Co. purchased the Peninsular Life Insurance Co. of Jacksonville, Florida, and Mr. Lee became president of this com-pany, also. Meantime, W. H. Trentman joined Occidental in 1930, as director of agencies, after an extensive ex-perience in life insurance in New Mexico. In 1934, Mr. Trentman was elected vice-president, and in 1943 was made executive vice-president. Officials of the company, in addition to President Lee and Executive Vice-President Trentman, are: W. L. Noneman, vice-president; C. E. Hyre, secre-tary and treasurer; C. R. Morris, assistant secre-tary; Fred B. Hart, assistant treasurer; Dr. V. S. Caviness, medical director; H. A. Davis, manager, Claims Department ; Micou F. Browne, agency direc-tor; R. H. Britton, director of training; R. S. Wil-liamson, director, Advertising and Sales Promo-tion. FALL, 1948 THE E. S. C. QUARTERLY PAGE 95 Directors of the company include Mr. Lee, P. C. Rodey, Mr. Trentman, Mr. Hyre, Mr. Noneman, George P. Geoghegan, Jr., Mrs. F. 0. McMillen, wid-ow of the former president ; Willis Smith, and J. M. Woolery, the latter elected July 29, to succeed the late Richard S. Busbee. Occidental, which writes ordinary life insurance, has recorded a remarkably consistent growth during its 42 years of operation, and has experienced its most satisfactory progress during the past few years. At the end of 1947, Occidental had $71,873,368 in insurance in force, a gain of $8,443,085 during the year of 1947. At that time, its assets had reached $12,990,737.14, a gain of $1,004,113.14 in 1947. Occidental, in contradiction of the old adage that "one must die to win" produces figures to show that while only $6,221,825 had been paid to beneficiaries following the death of the insured, $8,000,530, or 72 percent, had been paid to living policyholders. This means that $14,222,355 had been paid out by Occi-dental since its beginning. As a further indication of value of insurance to the living, Occidental provides insurance of many different types—plans for parents in the education of their children, for retiring mortgages on their homes, for savings within the reach of the individ-ual, for retirement income, and for endowment in cash at a certain age. A large percentage of the benefits paid out by Occidental are now being used for educational, retirement, and endowment pur-poses. In keeping with the ideals of the founders of Occi-dental, all of its assets are invested in projects vital to the economy of the country. These include Fed-eral, State, and municipal bonds, mortgages, and investments in important financial activities of the nation. As indicative of the growth of Occidental, its number of policyholders increased from 15,630 in 1937 to 36,058 in 1947; the insurance in force increased in the same period from less than $27,000,- 000 to almost $72,000,000, and its assets increased from $5,690,000 to almost $13,000,000. Of the nearly $13,000,000 in liabilities, Occidental has in its capital stock and surplus funds, $1,301,- 427.90 as additional protection for its stockholders. Among its assets are $4,107,104.05 in first mortgage loans, $6,907,940.92 in stocks and bonds, and $909,- 629.34 in loans to its policyholders against their reserves held by the company. Partial vieio of Industrial Department Clerical Section of Imperial Life Insurance Co., Asheville. IMPERIAL LIFE INSURANCE CO. Asheville, N. C. The Imperial Life Insurance Co., 50 College Street, Asheville, was organized and started business in 1905 as the Imperial Mutual Life and Health Insur-ance Co. As of January 1, 1920, the company was incorporated and its name changed to the present name. At the beginning, the company handled only health and accident insurance, but in 1912, industrial life insurance was added and in 1919, the company began writing ordinary life contracts. In 1932, the com-pany discontinued health and accident and has since devoted itself to ordinary life and industrial life contracts. For several years, the business was lo-cated in rented quarters on Patton Avenue, but in 1925, it erected a modern three-story building on College Street, which it has since occupied. Important figures in organizing the company were : Gay Green, a prominent industrial and financial leader with large property holdings at Asheville and in western North Carolina ; J. Pink Starnes, who died in 1914; A. W. Ek and J. N. Jarrett. Mr. Green was elected president and still holds that position. J. Warlick was elected the first treasurer, a position he still holds. A. W. Ek was secretary until his death in October, 1942, at which time Treasurer Warlick was made secretary and treasurer. J. N. Jarrett was the first vice-president, serving until 1941, a place which was not filled after that date. O. E. Starnes was elected vice-president in 1920, a position he still occupies. Present directors are Gay Green, O. E, Starnes, J. Warlick, K. W. Partin, and W. H. Starnes. Mem-bers of the executive committee are Gay Green, O. E. Starnes and J. Warlick. O. E. Starnes, vice-president, literally grew up with the company. He was the son of J. Pink Starnes, one of the organizers, and started work with the firm in 1908, three years after it was organized. He is manager of the Mortgage Loan Department. L. T. New has been general manager of the company for the past three years. He started as agent in Wil-mington in 1915 and was agency supervisor and located in Greensboro from 1927 to 1935, when he was transferred to the home office as agency direc-tor. Other important officials in the home office are : John Ehle, manager of the Ordinary Department; W. H. Starnes, manager of the Printing Depart-ment, and Charles E. Starnes, home office manager. The Imperial Life Insurance Co. has been unusual-ly successful, enlarging and extending its activities gradually during the first 40 years. Its growth has been spectacular during the last three or four years. PAGE 96 THE E. S. C. QUARTERLY FALL, 1948 At the beginning of its stock company activities, the capital was $50,000 with authority to increase to $100,000. This increase was made in 1924 with a 100 percent stock dividend. In 1936, with another 100 percent dividend, the capital was increased to $200,000. During the 43 years of operation, in addi-tion to its $150,000 in stock dividends, the company had declared cash dividends totaling $465,000. The Imperial Life Insurance Co., at the end of 1947, had total admitted assets of $12,040,111, in-cluding $6,985,202 in bonds, $3,497,527 in first mort-gages and $179,865 in selected stocks. Last year, the total income was $4,131,185, including net pre-mium income of $3,584,945. During the year, total disbursements were $2,257,522, of which $531,546 was in payment to policyholders. In 1947, the net reserves for policyholders increased in the amount of $1,474,109. In the decade from 1937 to 1947, the assets of the Imperial Life Insurance Co. increased five-fold, from $2,500,000 to slightly more than $12,000,000. Insur-ance in force increased almost fourfold, from $26,- 944,749 to $96,058,790. In that period, ordinary life increased from 7,271 policies to 22,219 policies, the amount increasing from $7,711,160 in 1937 to $25,- 958,112 in 1947. In that same period, industrial policies increased from 120,971, amounting to $19,- 233,589 to 239,371 policies, amounting to $70,100,- 678. The Imperial Life Insurance Co. operates exclus-ively in North Carolina and covers the entire State with 24 district offices in all of the larger communi-ties. In the field and home office, it has a force of more than 500 workers and the annual payroll is approximately $1,500,000. Although located in the mountain metropolis of Asheville and covering the mountain area closely, Imperial Life has extended its activities into all sections of the State and the remarkable expansion experienced during the past few years is indicative of still further extension of its activities in the years to come. STATE CAPITAL LIFE INSURANCE CO. Raleigh, N. C. The State Capital Life Insurance Co., Wachovia Bank Building, Raleigh, although less than 12 years old, has developed since it was chartered July 29, 1936, and started business two months later, into one of the soundest insurance firms in the State and is just now erecting a modern building to take care of its future expansion. State Capital Life started out modestly enough with a paid in capital stock of $100,000, with a sur-plus of $50,000 and a contingency reserve of $50,- 000. Its small office space in the Wachovia Bank Building increased until it now occupies all of the fifth floor and part of the fourth floor of this build-ing and the third floor of the Raleigh Industrial Bank Building. A modern office building is now in process of con-struction as a home for the company on Hillsboro Street, at the corner of Gardner Street, just across Hillsboro from N. C. State College. The building will be 100 x 100 feet in size, with full basement and three floors above ground, on a lot 180 x 150 feet, which will allow erection of additional building as space is required. The company also owns a lot back of the site which will be used for parking space, thus eliminating the requirement for parking on congest-ed Hillsboro Street. Plans for the new building in-clude the installation of a cafeteria on the third floor for use of the employees, as well as a library and an auditorium to be used in connection with the school to be operated in training new personnel. State Capital Life Insurance Co. writes life insur-ance policies of all forms, including ordinary, indus-trial, bank loan, building and loan, group life and hospitalization, and a special school bus policy which is sold direct to the counties of the State covering children riding in school buses. On its original capital stock of $100,000 the State Capital Life Insurance Co. declared a 50 percent stock dividend in 1944 and issued $15,000 in addi-tional stock, thus increasing the capital stock to $165,000. Again in 1946 the capital stock was in-creased to $250,000 and $120,000 was added to the surplus in order to provide for expansion, including extending operations into South Carolina and Geor-gia. A group of prominent and successful business and financial leaders in North Carolina and one from South Carolina were among the original promoters of the organization of the State Capital Life Insur-ance Co. These included Wade S. Dunbar, Laurin-burg; E. H. Evans, Laurinburg; J. P. Gibbons, Ham-let ; Robert M. Hanes, Winston-Salem ; R. H. Liver-more, Pembroke ; Thomas O'Berry, Goldsboro ; Ed-win Pate, Laurinburg; and Julian H. Scarborough, Columbia, S. C. State Capital Life Insurance Co. is erecting this modem three-story and basement building on Hillsboro Street, oppo-site State College. It is 100 x 100 feet with adequate space for enlargement. It will be occupied by the end of the year. FALL, 1948 THE E. S. C. QUARTERLY PAGE 97 Irving F. Hall, of Raleigh, was elected 1o head the new insurance firm. Mr. Hall had served for several years as executive vice-president of the Atlantic Joint Stock Land Bank and the Greensboro Joint Stock Land Bank, both here in Raleigh. Upon the death of former Governor Angus W. McLean in 1934, Mr. Hall was elected president of the Joint Stock Land Banks and continued in that position until these and other Joint Stock Land Banks were liquidated by Act of Congress, starting in 1933. Officers of the company, all of Raleigh, in addi-tion to President Hall, include: H. C. Gerald, vice-president ; W. E. Simmons, vice-president and agency manager ; H. F. Ledford, secretary ; James MacN. Duff, assistant secretary; Thomas W. Alexander, treasurer ; John C. Bertram, actuary ; Dr. Hubert B. Haywood, medical director; Arch T. Allen, general counsel ; Graham F. Trott, manager, Bank Loan De-partment; John T. Simpson, manager, Building and Loan Department ; and H. W. Clody, manager, Group Department. Present members of the board of directors, an ex-pansion of the original group, include : Messrs. Dun-bar, Evans, Gibbons, Hanes, Livermore, O'Berry, Pate, Scarborough, and H. A. Easley, Rocky Mount, Irving F. Hall, Raleigh, Dr. Hubert B. Haywood, Raleigh, J. E. Johnson, Lumberton, Philip R. Whit-ley, Wendell, J. Wallace Winborne, Raleigh, and Wm. P. Baskin, Bishopville, S. C. Indicative of growth of the State Capital Life In-surance Co. is the increase in number of policies from 16,508 in 1937, when the company was slightly more than a year old, to 124,309 at the end of 1947. In the same period the insurance in force increased from $5,428,000 to $57,377,920, while the assets in-creased from $145,922 to $3,073,227.72 last Decem-ber. The net surplus and capital stock was $432,- 739.65. Investments include more than $200,000 in stocks, $687,000 in mortgages, largely in North Caro-lina, almost $1,002,925 in bonds, of which $310,000 is in U. S. bonds, and cash more than $800,000. SOUTHERN LIFE INSURANCE CO. Greensboro, N. C. The Southern Life Insurance Co., Southern Life Building, 330 South Greene Street, Greensboro, was organized in Raleigh in 1927 under the name of the Dixie Life Insurance Co., moved to Greensboro in 1931 and merged with the Southern Life and Acci-dent Insurance Co. in 1932, changing its name to Southern Dixie Life Insurance Co. In 1947, the name was changed to Southern Life Insurance Co. Principal organizer of Dixie Life in Raleigh was A. J. Fletcher, lawyer and prominent business man of Raleigh. When Dixie Life moved to Greensboro, W. L. Carter, Sr., native of South Carolina, in life insurance work since 1902, became president and has continued in that capacity since that time. Mr. Carter was one of the organizers of the Gate City Life Insurance Co. in Greensboro in 1908 and /'Bte-m || j Modern Home Office of the Southern Life Insurance Co. con-taining about 80,000 square feet of floor space on a lot 120 x 300, extending through the block. was its secretary and treasurer for 18 years. That company later merged with the Pilot Life Insurance Co. Also, Mr. Carter organized the Fidelity Life Insurance Co. in Spartanburg, S. C, in 1929. This company was merged in 1930 with the Peninsular Life Insurance Co., of Jacksonville, Florida, of which Laurence F. Lee, president of the Occidental Life Insurance Co., of Raleigh, has been president for several years. The Southern Life Insurance Co. handles all forms of ordinary life and industrial life insurance and has made steady progress in all departments. It employs 75 workers in the home office and in its agencies located in all of the principal centers of North Carolina. For several years it had its offices in the Jefferson Building, but in 1947, purchased its own building, a three story structure with full base-ment at the corner of South Greene and Exchange Streets. The lot is about 120 x 300 feet, extending entirely through the block and the building contains approximately 30,000 square feet. The company now uses the first and second floors and parts of the basement, renting the top floor and part of the basement floor for other purposes, including agencies of the Federal Government. Present officers of the company are : W. L. Carter, Sr., president; W. L. Carter, Jr., vice-president; T. C. Collins, secretary-treasurer ; J. L. Wooten, assist-ant secretary-treasurer, and W. R. Wail, actuary. Directors include : the two Carters and Mr. Collins and A. J. Fletcher, Raleigh, and Charles T. Hagen, Jr., Greensboro. Mr. Collins, secretary-treasurer, had several years of experience as district manager for the Southern Life and Accident Co. in Winston- Salem, where he was also manager for the Southern Life Insurance Co. before he became secretary-treas-urer in 1935. The Southern Life Insurance Co., believing in its own activities, provides free hospitalization insur-ance for its members with six months or more of service, which started October 1, 1947. As of July PAGE 98 THE E. S. C. QUARTERLY FALL, 1948 1, 1948, the company also started giving its em-ployees group life insurance after one year of service and old age retirement benefits starting after age 60 or 65, the amount depending upon the length of service and average income earned. Starting with paid-in capital stock of $26,000, the Southern Life Insurance Co. increased its capital in 1945 to $156,000 and has an additional contingent reserve of $300,000. The net surplus at the end of 1947 was $930,279.84. Total admitted assets of the Southern Life Insur-ance Co. had reached $4,558,587.35 at the end of 1947, an increase of twenty-fold over the $229,559.21 in 1937. At the end of 1947, the company had 257,- 852 policies in force with an aggregate of $59,815,- 342.00 in insurance in force, an increase from 55,686 policies, with insurance in force of $8,344,932 a dec-ade before. Investments of the company include $92,167.50 in stocks, $3,050,049.77 in 571 first mort-gages and $981,482.72 in bonds, including $345,000 in U. S. Government bonds. During the year 1947, the net premium income of the company was $2,636,528.87 and total disburse-ments were $1,917,816.40, of which $500,030.06 was in payments to policyholders. During the year, the company increased its net reserves for policyholders by $613,577.00. The Southern Life Insurance Co. is strictly a North Carolina firm. All of the stock is owned in North Carolina, all of the business done is in this State and all of the investments are North Carolina investments, except for the U. S. Government bonds. PYRAMID LIFE INSURANCE CO. Charlotte, N. C. The Pyramid Life Insurance Co., Johnston Build-ing, Charlotte, founded during one of the worst de-pressions of modern times, carried an advertisement in 1933, the headlines of which read: "Many Great Men—Many Great Industries Were Born in A De-pression Cradled in Adversity. In Such a Beginning a Bedrock Foundation is Laid." During the summer of 1929, two groups of men in Charlotte were interested in forming a legal reserve life insurance company with its home office in the Queen City, which then had no home office of a life insurance company. The stock market crash in the fall of 1929 doubtless influenced these twc groups in getting together, the outcome of which was organ-ization of the Pyramid Life Insurance Co. Pyramid Life was to have a capital of $1,000,000, but it was not until early in 1931 that the organizers were able to secure the services of an experienced life insurance man and raise about $250,000 in cash, and sell the first policy. In 1932, Pyramid Life acquired the Pioneer Life Insurance Co., of Greenville, S. C, in exchange of Pyramid stock for Pioneer stock. Pioneer Life sur-rendered its charter and was dissolved. Pyramid Life took over its assets and liabilities and some of its personnel. At this time, Eddie E. Jones, president of Pyramid Life since its organization, began to devote full time to the insurance company. The first employee of the company had been John R. Pender, as assistant sec-retary and treasurer, who, with one secretary, was the entire "home office force" for a year or more prior to the employment of William A. Searle, of Montpelier, Vermont, as executive vice-president, to get the company really started in business. The first board of directors was large, representa-tive men having been taken from the two groups of organizers, and when Pioneer Life was acquired, additional directors were taken on the board from the South Carolina company. The first officers included J. Luther Snyder, chair-man of the board ; Charles P. Moody, vice-chairman of the board; Eddie E. Jones, president; Ivey W. Stewart, Ernest Ellison and H. B. Heath, vice-presi-dents ; E. Y. Keesler, secretary and treasurer ; John R. Pender, assistant secretary and treasurer; Dr. Hamilton W. McKay, medical director; Dr. Frank L. Ray, assistant medical director; Hunter Marshall, Jr., general counsel. Present officers of Pyramid Life are J. Luther Snyder, chairman of the board; Eddie E. Jones, president; John R. Pender and W. T. DuPree, vice-presidents ; J. A. Law, secretary and treasurer ; John Fort, assistant treasurer ; Dr. Frank L. Ray, medical director ; Hunter Marshall, general counsel. Pyramid Life is licensed to do business in its own State of North Carolina and also in South Carolina, Georgia, Florida and Alabama. Gross assets are now in excess of $2,000,000 and life insurance in force exceeds $30,000,000. WINSTON MUTUAL LIFE INSURANCE CO. Winston-Salem, N. C. One of the early Negro life insurance companies in North Carolina has had a remarkable career since it was organized in August, 1906, while the two towns of Winston and Salem were separate munici-pal corporations. A group of leading Winston-Salem Negroes recog-nized the need for an industrial insurance organiza-tion that would fill a place for wage earners, partic-ularly in the Winston-Salem area. Since that time the Winston Mutual Life Insurance Co. has spread out until it covers practically the entire State with district offices throughout North Carolina. The late Dr. J. W. Jones was the moving spirit be-hind the organization and became its first treasurer. J. S. Fitts, a prominent Negro lawyer, was the first president. J. C. McKnight, one of the original direc tors, is still a director. M. W. Johnson was the first agency director and J. A. Blume was the first office j manager and the only active officer for several j years. G. W. Hill, the present president, was among the first agents employed by the company. FALL, 1948 THE E. S. C. QUARTERLY PAGE 99 For the first five or six years, the office was located in one room over the Jones Drug Store at Fourth and Church Streets. From 1913 to 1928, the office was located on Church Street over the Forsyth Sav-ings and Trust Co. For the next eleven years, until 1939, the firm occupied offices on Third Street. At the expiration of that time the company purchased a building, a modern two story edifice, suitable for its activities, on the corner of Eleventh Street and Woodland Avenue. In 1913, J. A. Blume was promoted to president of the company, succeeding J. S. Fitts and served until 1936 when G. W. Hill succeeded him. N. T. Mitchell, district office manager at Wilmington, is one of the older employees of the company, having been in service for 28 years, and E. M. Lewis, co-manager of the Winston-Salem district office, has 20 years of service with the company. During the first one-third of the 42 years of opera-tion, the Winston Mutual Life Insurance Co. had many "ups and downs", but was laying a firm foun-dation on which to build an important financial in-stitution. Since the installation of G. W. Hill as president, eleven years ago, the company has ex-perienced its most remarkable growth During that period the assets increased from $89,000 to $1,255,- 000, an increase of more than 1400 percent. The Winston Mutual Life Insurance Co. has wise-ly invested its total admitted assets of more than $1,255,000. Among its investments are $500,000 in U. S. Government bonds and $20,200 in stocks and other bonds. Its mortgage loans on real estate amount to $568,983.83, cash and deposits in banks amount to $104,078.88 and its real estate holdings are valued at $55,606.61. With total liabilities of $992,016.87, the company has a surplus of $180,000 and $83,607.99 reserved for contingencies, giving a total fund of $263,607.99 for additional protection of its policyholders. As the Winston Mutual Life Insurance Co. advertises, it has $126.57 in assets for each $100.00 in liabilities. Present officers and directors of the company fol-low: G. W. Hill, president and manager; J. E. Til-lett, Edenton, vice-president; E. E. Hill, secretary; W. P. Hairston, treasurer ; Mrs. Nellie M. Bausman, assistant treasurer-cashier; A. W. Harper, auditor; A. T. Spaulding, Durham, consulting actuary; Dr. John R. Henry, medical director; W. Avery Jones, attorney, and G. Cosmo Hill, J. C. McKnight and Mrs. Selena Hayes Hall, directors. District offices and managers are located at the following points in the state : Winston-Salem, A. W. McKnight and E. M. Lewis, managers; Greensboro, R. E. Walker, manager; Salisbury, L. J. Caldwell, manager; Charlotte, W. L. Adams, manager; Ashe-ville, R. L. Spicer, manager; Raleigh, P. A. Simmons, manager ; Fayetteville, C. W. Newell, manager ; Wil-mington, N. Theo Mitchell, manager; Rocky Mount, J. L. Smith, C. R. Reid and C. J. Artis, managers. Three special field representatives are J. H. Alex-ander, W. E. Baird and M. H. Spence. The Winston Mutual Life Insurance Co. operates its own printing department, in which all policies, forms and stationery are printed. With its firm and business-like foundation, built over a period of 42 years and the remarkable growth during the past decade, the Winston Mutual Life In-surance Co. is now in position to extend and expand its activities in the industrial insurance field to greater achievements in the years to come. COASTAL PLAIN LIFE INSURANCE CO. Rocky Mount, N. C. The Coastal Plain Life Insurance Co., with its home office at 123 Rose Street, Rocky Mount, is a new and husky youngster in the life insurance field in North Carolina. It was incorporated July 25, 1947, and started business just before the year ended. The Coastal Plain Life Insurance Co. has author-ized capital stock of $250,000, with $100,000 paid-in and a contributed surplus of $75,000. It is develop-ing a full line of industrial life and health and acci-dent insurance. With five full-time employees in the home office, the company has 35 workers in the field. In its expansion program, the Coastal Plain Life Insurance Co. has district offices already established at Rocky Mount, Durham, Goldsboro, Washington, Wilmington and Greenville, with plans for further additions and has agents operating in Henderson, Tarboro, Kinston and Wilson. Officers of the company include: S. E. Wilson, president; W. C. Woodard, Jr., vice-president, and G. H. Foster, secretary. Directors, some of the most prominent business and professional men in Rocky Mount and other eastern communities, include, in addition to Mr. Wilson and Mr. Woodard, William H. Shaw, chairman; Hyman L. Battle, James C. Gardner, R. D. Wimberly, A. R. Weathers, Dr. R. D. Kornegay, J. J. Haggerty; H. H. Strandberg and Wiley W. Mears, all of Rocky Mount ; B. A. Wilson, Henderson; R. M. Fountain, Tarboro, and T. B. Glover, Roanoke Rapids. Mr. Wilson, president, a native of Warren County, has had 23 years of experience in industrial and ordinary life insurance. Ten years of this time was spent in Rocky Mount as district manager of the Southern Life Insurance Co., Greensboro. Mr. Wood-ard, vice-president, a native of Rocky Mount, is also an experienced insurance man, having spent ten years as district agent in Rocky Mount for the At-lantic Life Insurance Co., Richmond, Va. Mr. Foster, secretary, came to Rocky Mount about a year ago to help organize the Coastal Plain Life Insurance Co. He is a native of New Jersey and spent nine years with William R. Price and Co., general agents, and five years with the Ocean Accident and Guarantee Corp., both of New York City. The Coastal Plain Life Insurance Co. has made satisfactory growth in the less than one year it has been in operation. PAGE 100 THE E. S. C. QUARTERLY FALL, 1948 FIDELITY NATIONAL LIFE INSURANCE CO. Greensboro, N. C. The Fidelity National Life Insurance Co., 412 Dixie Building, Greensboro, is one of North Caro-lina's newest life insurance firms. It was incorpo-rated July 7, 1947, with authorized capital of $2,000,- 000, with $200,000 paid-in and $100,000 in contribut-ed surplus. Officers of this new company are : Emry C. Green, president and treasurer; D. E. Hudgins, vice-presi-dent and general counsel, and Ralph L. Lewis, secre-tary. Directors of the company, in addition to the three officers, all prominent business and profes-sional men in the Piedmont area, include: W. J. •Carter, H. C. Carter, C. W. Edwards, John W. Clark, V. B. Higgins and W. J. Adams, Jr., all of Greens-boro; Earl N. Phillips, A. M. Rankin, Jr., and Jack Burris, all of High Point; N. C. English and Doak Finch, Thomasville; Ralph M. Holt, Burlington; J. Murrey Atkins, Charlotte; Miles J. Smith and Fred J. Stanback, Salisbury, and B. E. Jordan, Saxapa-haw. Mr. Green, native of Halifax County, taught school at Weldon and was also a postal employee briefly. He is a graduate of Georgia Tech in chemical negi-neering. Years ago, he went to Greensboro and for several years was developing as an insurance man with the Jefferson Standard Life Insurance Co. He moved up until he became secretary. He held this position for several years and was also manager of the Mortgage Loan Department. In 1934, Mr. Green was elected president of the Pilot Life Insurance Co., continuing in that position until 1946. For several months he has been engaged in the organization of the Fidelity National Life Insurance Co. Ralph L. Lewis, native of New York State, moved to Greensboro as a child with his parents in 1910. For six or seven years, he was on the road for the Hartford Fire Insurance Co. and in 1924, he returned to Greensboro and became associated with J. E. Lathan and Co., real estate firm, serving as secretary until 1936. Then, he organized the firm of Lewis and Stephens, Inc., real estate and insurance, later selling his interest in that firm. Mr. Lewis was a member of the Greensboro City Council from 1932 to 1940, serving as mayor of the city in 1939-40. From 1940 to 1946, he was in the U. S. Army, serving as Base Commander at several overseas places. He was a Colonel at the time of his discharge. D. E. Hudgins, vice-president of Fidelity National Life and its general counsel, is a native of Marion, a graduate of the University of North Carolina and a Rhodes scholar to England. He has been a promi-nent Greensboro attorney for several years. The Fidelity National Life Insurance Co., in Aug-ust, purchased the controlling interest in the George Washington Life Insurance Co. of Charleston, West Virginia. This well-known institution was organ-ized in 1906. The Fidelity National will carry on its operations through the George Washington Life and will discontinue operations of the Fidelity National for the time being. Mr. Green has been made president and Mr. Lewis vice-president of the George Washington Life Insur-ance Co. Commissioner Controls Insurance Activity in State By R. F. Adkins, Casualty Rate Specialist, N. C. Insurance Department The North Carolina Insurance Department was established by Act of the General Assembly on March 8, 1899. The Statutes charge the department with the execution of all laws relating to insurance and other subjects placed by law under the Department. Included in these "other subjects" are the North Carolina Building & Loan Division, the State Fire Marshal's office, the State Building Code, inspection and certain other functions of State properties and buildings, and administration of the State Property Fire Insurance Fund. The Commissioner of Insurance is elected by the people of the State for a term of four years, in the same manner as any other elective State officer. His salary is fixed by law. The Statutes provide that the Commissioner shall have the following powers and duties : 1. To see that all laws of the State governing in-surance companies, associations, and orders or bu-reaus relating to the business of insurance are faith-fully executed and to make rules and regulations not inconsistent with the law, to enforce, carry out and make effective such provisions of the law. 2. To receive and thoroughly examine all annual statements which are required to be filed by each in-surance company licensed to do business in the State. 3. To file with the Clerk of Superior Court of each county on the first day of May a list of companies, associations, orders and bureaus licensed to do busi-ness in North Carolina. 4. To report in detail to the Attorney General any violations of the law relative to insurance companies, associations, orders and bureaus or the business of insurance generally. 5. To conduct examinations, investigations and hearings wherever necessary relative to any matters involving the business of insurance. 6. To conduct or cause to be made, in cooperation with local authorities, inspections of buildings in towns and cities of the State to assure compliance with the Building Code and laws relative thereto. FALL, 1948 THE E. S. C. QUARTERLY PAGE 101 Examine plans and specifications of certain build-ings or proposed buildings such as public buildings, hospitals, hotels and theatres. 7. To report biennially to the Governor and the General Assembly on his official acts, including a summary of official rulings and regulations. 8. To issue licenses to insurance companies mak-ing application to do business in the State provided it is determined that such companies are duly quali-fied and meet all requirements of the law for admis-sion. To conduct examinations of all applicants as insurance agents and to issue licenses to applicants qualifying as insurance agents. 9. To perform all the duties and exercise all the powers of supervision over all domestic building and loan associations, including the issuance of licenses and collection of license fees. 10. To examine carefully, as often as once in three years, each domestic insurance company especially as to its financial condition and ability to fulfill its obligations and whether it has complied in all re-spects with the laws. To assist in the examination of insurance companies located in other states and licensed to write insurance in North Carolina, inso-far as the giving of such assistance is possible. 11. To conduct annual examinations of all build-ing and loan associations licensed to do business in the State. 12. To investigate all complaints and charges of violations brought to the Department's attention. 13. To collect all taxes and license fees levied up-on insurance companies, bureaus and agents, and to deposit all such funds with the State Treasurer. 14. To require the filing of all rates for all types of insurance and all policy and endorsement forms used in writing all types of insurance; to examine carefully such rates and policy forms and to approve same if found to be in accordance with the provisions of the Insurance Laws and fully justified. To dis-approve all filings of rates and forms not in accord-ance with the provisions of the Insurance Laws and not fully justified. The Statutes provide that the office of the Com-missioner shall be a public office and the records, re-ports, books and papers thereof on file therein shall be accessible to the inspection of the public. Many important changes and revisions in the In-surance Laws were enacted by the 1945 and 1947 sessions of the General Assembly. Foremost are Statutes relating to regulation of rates for various lines of insurance and to meet the requirements of Federal Public Law 15—a result of the Supreme Court's decision in June, 1944, that insurance is in-terstate commerce. The duties of the Commissioner of Insurance as specified in the Insurance Laws and as set forth in the rules and regulations adopted by the Department all point to one specific objective; i. e., the safeguard-ing and protection of the public interests of the citi-zens of the State in all matters relative to insurance which is purchased by the citizens for the protection of themselves, their beneficiaries, or the public. This objective, however, requires a tremendous amount of detail and the functioning of complicated depart-mental machinery which must be administered by the Commissioner, his deputies, and the personnel under him. It requires the strictest scrutiny of all rate schedules, policy forms, company practices, an-nual financial statements of the companies, the li-censing of the highest type of insurance agents, and the stamping out of all illegal and unethical practices on the part of anyone connected with the insurance business. Col. James R. Young was the first Insurance Com-missioner and was succeeded, in turn, by Stacey W. Wade, the late Dan C. Boney and the present Com-missioner William P. Hodges. Ten Fire and Casualty Company Home Offices in State North Carolina has a dozen home companies which fall into the general classification of fire and casualty companies, embracing marine, compensation and other types, ten of which are in operation and two of which are still in the organization stage. The State has within its borders fewer home offices of fire and casualty companies than is the case with life insurance companies. Many fire insurance companies started in North Carolina as home companies have been absorbed en-tirely or are controlled by larger fire insurance groups chartered in and operating from other states. Three of the larger North Carolina firms have been able to retain their names and operate as North Carolina companies, many of the directors living in this State. They are the Atlantic Fire Insurance Co., Raleigh, affiliated with the Phoenix Insurance Co., Hartford, Conn. ; the Piedmont Fire Insurance Co., Charlotte, one of the group of the ^Etna Insurance Co., and the Southern Fire Insurance Co., Durham, affiliated with the Crum & Forster group. The old-est company in the State, the North Carolina Home Insurance Co., Raleigh, no longer exists and has be-come a departmental office of the group composing the American National Fire Insurance Co. of New York. Still another, the Dixie Fire Insurance Co., Greensboro, has also passed out of existence and operates as a branch of the American Fire Insurance Co. of Newark, N. J. In the group of home-owned fire and casualty com-panies are the Hardware Mutual Fire Insurance Company of the Carolinas, Charlotte, which has gone into other fields than hardware; the Carolina Casualty Insurance Co., Burlington ; two Negro com- PAGE 102 THE E. S. C. QUARTERLY FALL, 1948 panies in Durham, the Bankers Fire Insurance Co., and the Southern Fidelity Mutual Insurance Co., both affiliated with the large North Carolina Mutual Life Insurance Co., Durham; and the Blue Ridge Fire Insurance Co., which started in South Carolina a few years ago and moved to Shelby January 1, 1946. Two other companies in process of organiza-tion are the Old North State Insurance Co., Green-ville, and the Textile Insurance Co., which will have its home office in High Point. Detailed information on these companies is given in the articles below. HARDWARE MUTUAL FIRE INSURANCE COMPANY OF THE CAROLINAS Charlotte, N. C. The Hardware Mutual Fire Insurance Company of the Carolinas, 118 East Fourth Street, Charlotte, chartered in 1911 and beginning business in 1912, is the only advance premium mutual fire insurance company in North Carolina and probably the only one in the entire southeast. This firm was organized as a service of the Hard-ware Association of the Carolinas and for many years wrote insurance for the hardware merchants of North and South Carolina. In 1933, it started writing general business insurance covering other kinds of business property, along with its hardware store business. The first officers of the Hardware Mutual Fire Insurance Company were: W. W. Watt, Charlotte, president; W. H. Keith, Timmonsville, S. C, vice-president; E. W. Duvall, Cheraw, S. C, treasurer; T. W. Dixon, Charlotte, secretary. Additional direc-tors were: M. Bonnoitt, Darlington, S. C. ; U. Ben-ton Blalock, Wadesboro ; A. R. Craig, Marion, S. C. ; W. H. Smith, Gaffney, S. C, and R. H. McDuffie, Asheville. This group, along with M. J. O'Neill, Henderson, and H. E. Reid, Lincolnton, formed the organizing committee. Col. James R. Young, North Carolina Insurance Commissioner, was so interested in helping to pro-mote this company that he agreed, probably extra-legally, to accept the personal notes of members of the board of directors and others as a fund in lieu of reserves and to guarantee that any fire losses would be paid. When sufficient funds had been ac-cumulated as reserves, Commissioner Young return-ed the notes filed with him. Incidentally, the first loss amounted to $95.00, which was paid promptly, as has been the case in every loss since. Mr. Watt, the first president, at the time of his election, was a traveling salesman in the Carolina area for a large hardware jobbing house in Phila-delphia. He continued as president until 1939 when he was made chairman of the board. He died two years later. A. R. Craig, one of the original directors, was made assistant secretary and moved to Charlotte in 1919. When T. W. Dixon, the first secretary, died in 1924, Mr. Craig succeeded him as secretary and the offices of secretary and treasurer were com-bined. Mr. Craig continued to hold this combined position until 1939, when he succeeded Mr. Watt as president of the organization. When the Hardware Mutual Fire Insurance Co. was first organized, it started in offices in the Com-mercial National Bank Building. It remained there TWO N. C. FIRE INSURANCE COMPANIES LOSE IDENTITY N. C. HOME INSURANCE CO. The North Carolina Home Insurance Co., Commercial Building, Raleigh, oldest insurance company in North Caro-lina, which weathered the storms and came through 80 years of ups and downs from the Reconstructions days, is no more. Its nucleus is now a departmental office of the American National Fire Insurance Company of New York, and its affiliates. The North Carolina Home Insurance Co. was organized by a group of North Carolina citizens in 1868, three years after the War Between the States ended, because residents of this State could not get Are insurance on their property through northern companies. Several such companies were formed in North Carolina during that Reconstruction period, but North Carolina Home was the only one to survive. This company had an initial capital stock of $126,400, about all ! in notes of many prominent citizens in the State, for there was little cash then. In 1888 the State Bank, which held a large amount of the notes of the North Carolina Home Insurance Co., went into liquidation, and control of the company was purchased by the Great American Insurance Co. This control con-tinued until last year, even though the North Carolina Home had about 300 stockholders in this State. In 19 47 a re organization and consolidation was completed by which the American National Fire Insurance Co. of New York, form erly of Columbus, Ohio, acquired control of the North Caro-lina Home, and this company has now passed into history After the Great American acquired the North Carolina Home, in 1899, Alexander Webb joined the company as vice president and executive officer. A few years later Mr. Webb was elected president and held that position for 40 years or more, until the merger last year. He joined the com pany at the age of 30 and is now 78. He has been the main spring of the firm during these years and has entered fully into the life and growth of Raleigh. Raleigh now has one of the four departmental offices, the others being located in Chicago, San Francisco, and Montreal, Canada. Mr. Webb continues as manager of this office for North Carolina and part of South Carolina for-the six affiliated companies, American National Fire, Great American, American Alliance, Rochester American, Massa chusetts Fire and Marine, and Detroit Fire and Marine. DIXIE FIRE INSURANCE CO. The Dixie Fire Insurance Co., Dixie Building, Greensboro, was another of the North Carolina fire insurance companies which has now lost its identity and name and the former organization is now a branch of the American Fire Insur-ance Co., Newark, N. J., which acquired control and liquidat-ed the Dixie Fire last year. James Blades, wealthy lumberman of Elizabeth City and later of New Bern, was the first president of Dixie Fire, al though he never moved to Greensboro. The company wai promoted by a Mr. Thompson and the organization was per fected about 1910. Mr. Blades continued as president foi about five years, until his death in an automobile accident west of Hickory while on his way to Montreat. Harry R. Bush, an experienced fire insurance man, was brought into the company and as president directed its affairs successfully for many years. Dixie Fire, meanwhile had been consolidated with the North State Fire Insurant Co., operations continuing under Dixie Fire's charter. Mr Bush was instrumental in getting the American Fire Insur ance Co., interested in Dixie Fire, resulting in the purchas< later. :ALL, 1948 THE E. S. C. QUARTERLY PAGE 103 mtil 1942, when it moved to its present location at L18 East Fourth Street. With only two or three )aid employees at the beginning, it now has twenty employees, thirteen in the home office at Charlotte ind seven traveling men covering North and South Carolina. Present officers of the company are: Arthur R. >aig, president and treasurer; J. M. Anderson, Columbia, S. C, vice-president; M. R. Whisnant, sec-retary, and R. S. Logan, cashier. The directors, in iddition to Messrs. Craig, Anderson and Whisnant ire : H. P. Duvall, Jr., Cheraw, S. C. ; J. T. Griffith, Monroe ; J. R. Poindexter, Elkin ; R. E. Barron, Rock Sill, S. C. ; D. E. Turner, Sr., Mooresville, and Abel barren, Garland. Indicative of the value of the operation of this company is a report that in its 36 years of opera- ;ion, it has paid $1,234,176.30 in dividends to its policyholders and has paid $785,983.00 in net losses ;o its policyholders. In its December 31, 1947, state-nent of conditions, the company shows total assets )f $661,313.70 and of its liabilities, $444,827.69 is shown as surplus to its policyholders. The company aow has $3.00 in assets for every $1.00 of liabilities. Because of the company's care in selecting risks md its economy in management, it has been possible for the company, having no stockholders, to pay handsome dividends to its policyholders. During the 36 years of operation, it paid policyholders dividends di 25 per cent from 1912 through 1918; from 1919 through 1922, dividends amounted to 33V3 percent and since that time, dividends have been on a 35 per-cent basis. Assets of the Hardware Mutual Fire Insurance Co. have trebled during the past decade, increasing from $208,797.16 in 1937 to $661,313.70 at the end of business in 1947. Of its net surplus of $444,827.69, investments include $148,954.21 in stocks and $301,- 767.84 in bonds, of which $165,152.43 is invested in U. S. bonds. Two of the effective slogans of Hardware Mutual Fire Insurance Company of the Carolinas are: "Make your insurance, pay your dividends," and "Make your dividends, pay your taxes." Incidentally, Alfred M. Best & Co.'s Insurance Report for 1948 rates this company as A-plus (Ex-cellent) . CAROLINA CASUALTY INSURANCE CO. Burlington, N. C. The Carolina Casualty Insurance Co., located at 221 Morehead Street, Burlington, incorporated Aug-ust 26, 1943, and starting business late in that year, s the only North Carolina insurance company which ?ives a general coverage of casualty insurance, in-cluding accident, health, hospitalization, automo- )ile, general liability and compensation. This company grew out of the activities of Bay-or's Insurance Service, Inc., general agent and state nanager for several insurance companies and ope-rating in Raleigh, Durham and Burlington for the past fifteen years. P. C. Baylor, president, and a group of his asso-ciates in Baylor's Insurance Service decided to or-ganize the Carolina Casualty Insurance Co. for the purpose of handling some of the business that had been handled through Baylor's Insurance Service in North Carolina and several other states. Mr. Baylor, a native of New Jersey, who has been in North Carolina for fifteen years, in addition to his two main firms, is engaged in other relative activ-ities. R. F. Halyburton, executive vice-president and secretary of the Carolina Casualty Insurance Co.,' formerly in local agency business in New Jersey, has been associated with Mr. Baylor since 1936 and is also secretary-treasurer of Baylor's Insurance Service. A. C. Fairey, first vice-president, was in local agency business in Charlotte and Greensboro for several years and for ten years, until 1936, was chief deputy insurance commissioner of North Carolina. He also has been associated with Baylor's Insurance Service since 1938 and has been vice-president of that service for the past year or two. F. F. Foster, vice-president, is a native of Iowa and engaged in casualty insurance activities later in Charlotte, join-ing Baylor's Insurance Service in 1943. F. M. Hunter, vice-president, in charge of the Accident and Health Department of the Carolina Casualty Insurance Co., also was associated with Baylor's Insurance Service. Officers of the company include: P. C. Baylor, president; R. F. Halyburton, executive vice-presi-dent and secretary ; A. C. Fairey, first vice-president ; F. F. Foster and F. M. Hunter, vice-presidents; W. R. Massey, treasurer; N. S. Baylor, assistant secre-tary and assistant treasurer; J. D. Coleman, assist-ant secretary; A. B. Coe, assistant treasurer, and J. D. Cooper, general counsel. Directors of the company are : M. A. Carty, Miami Beach, Fla., chairman of the board; J. M. Benson, J. M. Freeman, J. A. Bailey, N. S. Baylor, P. C. Baylor, W. M. Brown, Jr., T. D. Cooper, D. S. Doster, A. C. Fairey, F. F. Foster, R. F. Halyburton, F. M. Hunter, W. R. Massey and Ralph H. Scott, all of Burlington. In the home office in Burlington, the company has fifty-five employees with an annual payroll of $180,- 000 and in addition about 500 agents, approximately 200 of whom operate in North Carolina. The Carolina Casualty Insurance Co. is licensed to do business in eight states and is in active operation in Arkansas, Florida, Georgia, Kentucky, North Caro-lina, South Carolina, Tennessee and Virginia. Ap-proximately 50 percent of its total policy writings at present are in North Carolina. All business in excess of $5,000 on each claim or series of claims is reinsured to protect against serious losses in any of the company's casualty writings. Growth and progress of the company have been conservative and steady and the operations have been very successful. Net premiums written increased PAGE 104 THE E. S. C. QUARTERLY FALL, 1948 from $12,066 during the first month or two of opera-tion in 1943 to $818,599 in 1947. Assets increased from $260,077 to $738,476 and the surplus from $285,929 to $325,994 in the same period. Most of the assets include cash $113,737, U. S. Government bonds $511,505, and $43,142 in selected stocks. The company has set aside reserve funds of $412,482 and had $325,994 as surplus for the additional pro-tection of its policyholders. The company has $179.03 of assets for every $100.00 of its liabilities. In 1947, the company's income was $869,934 and its expenditures, $775,866, including losses paid and expenses of operation. The ratio of income to dis-bursements indicates that $115 was received for each $100 paid out. These figures show that the company is in excellent financial condition. BLUE RIDGE INSURANCE CO. Shelby, N. C. The Blue Ridge Insurance Co., 215 East Warren Street, Shelby, was organized by a group of Shelby men, headed by Fred W. Blanton, and was incorpo-rated October 6, 1944, in South Carolina with home office in Spartanburg, S. C. As of January 1, 1946, the company secured a North Carolina charter and moved its home office to Shelby. When first organized, the authorized capital stock was $300,000, and prior to moving the company to Shelby, the North Carolina charter authorized cap-ital stock of $1,000,000. The Blue Ridge Insurance Co. was organized for the announced purpose of trying to keep a portion of the fire insurance pre-mium dollars in the south and particularly in the Carolinas. It is pointed out that the South has sent millions of dollars to New York and to the New England states in fire and automobile insurance premiums. The organizers have as their purpose the development of a strong locally owned stock company and investing their money in the states in which they do business, at present in North and South Carolina. The Blue Ridge Insurance Co. is one of the few North Carolina fire and casualty companies that is owned and operated by North Carolina people. It is engaged in underwriting fire and automobile risks, including insurance against fire, theft and collision of automobiles, fire, windstorm and extended cover-age for buildings and flight and ground coverage for airplanes. A portion of each risk is reinsured in cases of fire, windstorm and extended coverage in-surance. Principal promoters of the Blue Ridge Insurance Co. are officials and directors of the Manufacturers and Jobbers Finance Corporation of Shelby and this corporation is at present the largest stockholder in the insurance company, owning more than one-fourth of the shares outstanding as of June 1, 1948. The insurance company has an arrangement with the Finance Corporation, by which the company writes practically all fire, theft and collision insurance re-quired on vehicles financed by the Finance Corpora-tion. This connection provides a substantial source of business for the insurance company, since the premiums written on M. & J. business for the year of 1947 amounted to $365,375.75. From a small beginning in the latter part of 1944, the Blue Ridge Insurance Co. has developed i |
OCLC number | 26477199 |