The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1855-10-31
CBt 99ailp gonrnal,
swlNDLING INSURANCE COMPANIES.

Gen. JAMES NJ. Cook, Controller of our State
Finances continues to search out and follow
up the bogus Insurance Companies which pro-
Tossing to have paid-up cash capital of hun
dreds of thousands of dollars, are taking money
for insurance which theyare utterly unable to
afford. Under his direction, some six or seven
companies have already been detected in doing
business without capital, mostly through the
Immediate agency Of William Barnes, Esq, of
Albany, whom the Controller has employed in
this work. The latest discovered of these
delusions is the 16atlae Fire Insurance Coalpa-
ay, organized in May last under the act of 1858,
and claiming to have a paid-up cash capital of
100000. BUTT appears oninvestigation that
this entire sum was borrowed of banker at
enormous usury and deposited in Bank for the
purpose oforganizing this Company on an appa-
rent capital; that said money though deposited
in the name ofthis Company, could only be-
drawn on checks countersigned by the lender
!aforesaid; and in fact it was so drawn within
the succeeding three or four days, leaving the
Company not only without capital but actually
in debt 81, 800 for the shave on its pretended
capital for the two or three days it could make
a show of having any; yet this company i'm
Imediate1y set to work INsURING all applicants
against fire; and up to the 18th inst, had is
sued 416 policies and received Sc, 800 thereon,
beside S772 remaining unpaid; had sustained
and paid two losses, amounting together TO
1866, and now has about twenty agents en-
lployed in soliciting risks in different parts OF
this country and Canada, at an average COM
lpensation of ten per cent. on premiums re-
ceiyed and five per cent. on the profits realiz-
ed by the Company on the business of the
agency, beside general agent in this City and
a sub-general agent at Louisville, Ky. This
Company has now outstanding risks to the
amount of hundreds of thousands of dollars,
to meet which it has 1886 in cash and 81, 600
I(nominally) in mortgages (by stockholders on
lots in Buffalo, Newtown and Bedford, N. Y,
while it owes salaries to the amount ofsome
1880, and in unearned premiums at least
+, 500. MIR: Barnes of course reports it insol-
went, and the Controller is proceeding to deal
with it accordingly. Yet James Pierson,
President, John Wilson Freeborn, Secretary
attested on the 18th day of May last that the
| full capital of 100000 had been subscribed
and in good faith paid in to constitute the capi-
tai stock of said Company, and that the said
capital in cash was then deposited in the Bank
of the Republic, 'tand that there is no 'inten-
ton or design existing of any person orper-
''sons whomsoeyer to withdraw from the said
'Bank any part or portion of said moneys, un-
til the same is wanted to be invested or other
wise used or appropriated to and for the sole
and exclusive usse and benefit of said Compa-
ny.''
Such is the substance of Mr.. Barnes's report
made on Friday last to the Controller, and
promptly acted en- by him. The thanks of
the community are eminently due to both.
EM Y Tribune.