INSURANCE DEFICIENCY.

New Zealand Herald, Volume LX, Issue 18519, 2 October 1923, Page 7

INSURANCE DEFICIENCY.

SUM OF AT,LEAST.£I,OOO,OOO

PAYMENTS TO MANAGER.

SHAREHOLDERS URGE ACTION

By Telegraph—Press Association— Copyright. A. and N.Z. ' LONDON, Sept/30. At a meeting of creditors and shareholders in the City Life Insurance Company, the Official Receiver made some remarkable revelations. :■ He'./ stated that the unsecured creditors ■• represented £1,374,000 and there ' would be a:i deficiency of at least £1,000,000. f In 1912 there was a surplus of £47,472. The next five-yearly valuation, revealed a deficiency of £178,000- The directors arranged for the new managing director (Aldridge) and a man named Redgrave to raise £160,000. , The receiver alleged that the company, however, received nothing, the money, with another £160,000, being handed to another . company in which Aldridge was: interested. Norman, the company's agent, lit was alleged, received £16,000 for introducing Aldridge and Redgrave. / Aldridge's salary was £2200 and 2£ per cent, commission, yet the company lent him £21,000, which was later in-: creased to £62,000, the company eventually losing £10,000 over the debt. .- When the managing ; directorship terminated Aldridge received £3750' 1 compensation, and later was lent £2000 to save him from bankruptcy. Several shareholders demanded that the late board bo prosecuted.; '