The New York herald., 1867-02-03

w YOKK HERALD. SUN
Il going sucn resolution a. that offered would cast
stigma the company from wnen u woua rsOSses N
with difficulty; and he begged ler as citizens oI New
York not 10 embarass the working OF the company ~
requesting the intervention OF Mr. Barnes before y was
thorouehly proved that such q measure was necer-
sary The results of such action might be extremely
disastrous II might DO The means OF starting panic
that none of them could see The end Of VIII iese pu
very few failures ana stoppages 10 create great COM
mercal panic among the corporations and large hrns
Ue therefore proposed as substitute the second
resolution offered by tho committee the following
Resolved That the committee 10 be appointed by inns
meeting be instructed that no step toe h
made and the figures reportedby the company be proved
erroneous. uaT rtts bssH# #1
was present . representative of the Sun insnfa
company and OF the Stockholders This was me- <Rg
was Simply proposed by the resolution Of the cor n,ee
TO request Mr. Barnes 10 investigate the case and no
harm ought possibly To result from that
Another gentleman said that the company had stated
In December when they called Tor cap al that they
had $3.50 600 hut $s00000 He knew "a person who
had subscribed $25oooo ON the sreng Of that asser'
4 voice--I subscribed $4,000 ou. the statement of
Mr. Grnne that there was $500 which must be used
second voice subscribed rs 600 on similar repre-
sentatlcns.
way.
4 gentleman said he was scrip holder and held no
sOCk Dut ne was unWJ tn&t tne sake OF
few dollars the secu, ity of the Sun Company should
be endangered The failure Of that institution would be
perous to the interests Of the commercial men Of New
York.
gentleman then began 70 speak against the resoiu
ton but wassoon interrupted by cry from tho middle
of the audience, 1--WE don't want any policy holders
here. This isA scriphosAers meeting.n
A gcntlaryan said he was both o sockhoder and a
scrphoider and be wa, in favor Of stopping tho com
pany beoaase he had confidence in their statements.
loud cries Of Question question ~ He believed
Il would e great benefit 70 the community 10 have
his xohi had saH n
| confidence wound up He wanted to get his moEey
back and long as he got that he did not care whose
| interests were prejudced. Cloud applause
scene OF the greatest confusion ensued and soon
as tie disorder had somewhat subsided tho substitute
for resolution again read and put TO the vote.
rhc yeas and nays being apparently equal hands
counted the motion being lost by rs TO II The original
resolution of the committee was then voted upon, and
Tho meeting was then adjourned the audience break
ing into little knots and expending great deal of
spirited argument upon the questions involved before
they finally dispersed.
The Statement orthe sun Cempany-Tkc Other
Side.
The scripholdcrs Of the Sun company have through
the public proceedings Of their meeting presented their
side OF the present misunderstanding The directors
have made the following statement explanation TO
one OF our reporters:-
The sun company has been in existence since Is41,
since which time it has paid, with few exceptions
yearly scrip dividend Of sometimes over hry1ve per
cent and average dividend Of twenty per cent
During the PAST four or FIVE years this scrip
mulaed the extent of million Of dollars and
az makes 1t the first portion Of the assets liable
70 be consumed to meet losses Il T. has been can
cesd as the emergency . OF 'ao last % ooani asas
OF upearned premiums handsome $3.50, ,Ooo1hich,
with the addition Of stock capital OF $500 ooo places
IL in perfect working condition. The nature of the
company is changed and it now becomes stock and
mutual institution combined With the differences that
policy holders in future share only o. The
oaiudar 0Oin n
this lower per cenage OF dividend however the insurers
viii be compensated in the guarantees given by sub
scrbed capital and prospective reduction Of insurance
rates
The company claims that under the law the institu-
tion present formed IS not new company, the
scrpbolders charge but the old company, and cite
defence Of their statement section twenyono OF para
graph twenty-five OF the Revised Statutes on Marine In
surance. which - ~ follower:
,.ssd din !" soniosmy Vi Si.i x. fourth .:sca isr
s pVoss " & Ss S ana ns x s 70
- a. az sous 81 % s
bers, orer spd above its prensiuma *
for is action in changing tho character Of the corpora
ton The scrip outstanding has been lawfully canselled
there necessity legal requirement for going
lquidati0n additional assets to the extent Of Eve hun
dred thousand dollars have been subscrbed-the law
regards subscribed notes valid assetand It Is not
. body, but the original instit,4ion ptrsuiDg it's
/ career like any moneyed institution which has made
| good the inrosds on its capital.
The friends OF the company hold that the scrip owners
as policy owners but specuators Others who have
bought the scrip like stock, In the market at discount
sometimes great seventy-gve and eighty per cent
In buying this paper they were fully Of the
di,ions under which issued by the company and
hence should bear the loss which entails without
| paint II is further stated that the present policy
holders of the company do not sympathze with the
Of the scrip holders, which would be
q strong argument against the claims Of the latter
In assisting the public 10 understand the nature Of the
dispute and the merits OF the scrip owners demand for
redress or their grievances the following copy Of the
wording OF the ecrp in question may be useful
This certify that John time entitled to
hundred dollars the invested funds of the sun Mutual
. Scmesnya Sa subject to se ~ rights e the company
ceie the hrs day In February of each suc
ceeding six cent per annum. provided that when
losses and expenses OF year shall premiums
funds company; and This cor
heae y 10 be surrendered for reduction at the time the
hciency being ascertainch
So stands the quarrel as TO tho sun C,mpsuy
Whether Mr. Barnes Superintendent OF Insurance nj
Albany, will feel obliged 10 compel the company 10 60
into liquidation, step which the adoption OF the
resolutions at the meeting yesterday would Indicate
not Objectionable the scrpholders remains to
be Indeed Is claimed by friends Of the com.
pany that he has grounds upon which proceed 10
such an extremity and That the Of the scrip
owners Ia only selfish whereby they hope 10 realize
something for the paper which they hold the cost of
the humiliation OF the Institution ff the companv Goes
on under the new regime the scrip is utterly worthless
IT'S holders know. IT, however, the company goes into
liquidation all s assets consisting OF real estate bonds
mortgages and the cash remainder after reinsurance
will toward the redemption liabilities iuciudnr
the scrip That the dispute result in bitter and
protractcd litigation would 10 be eyluced In Tho
determination OF many at tho meeting yesterday EN-.
ploy council TO prosecute their claims
Other Companies Affected.
To what sIent the present losses extended il
not fully apparent az yet The exclusively fire com
pancs are not regarded ussafe-wrth q very
few cxcep,ions-though the immense destruction