Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-12-01
AN INSURANCE BUBBLE.

fho Southern Fire Insurance Comma
ny-SOme Fall Swiudling Detected
The Company Goes Up and the SWIM
der Arrested.
Since the war Nashville has been ,be
heater of several insurance swindles. Re.
ore the day, even, Of the carpet-baggers,
class of adveuturing swindlers came
along, and got charters from the Brownlow
Legislature to carry on business of varion,
kinds. Insurance was ore of the varieties
that offered an opening. 1.-THE Cunber-
land Valley Insurance Company" FIRST set
out, got few hundred dollars and burst.
None of the pieces were left. 1t findered
to atoms. We now have to chronicle the
failure of another, called the Southern
Fire Insurance Company, chartered by the
Brownlew Legislature in 1866, and set on
foot for swindling purposes, doubtless. 1t
Is now receiving The wages of its iniuuity.
The Southern" was more AGATE than
some of the contemperaneous spawn. It
was named "Soulhern"-it was framed
upon a liberal plan-good and responsible
old resident citizens we're induced ts con.
meet their names with it-aud il was han.
tised as a genuine and honest institution,
Robert Thompson, as good a name as
adorns our commercial list, was its first
President. r. H. Thompson, another
gentleman who is without reproach, was
his successor--both leading business men
il this city, and both upright and punctuaI
men. The Institution fourished as few
SO young had done. 1t rapidly ex-
tended lie business throughout Ten
nessee, and into Georgia, Alabama,
Mississippi and Arkansas. The President
being daily engaged, left the business in
the hands of the subordinates, the princi-
pal of whom was one John r. Berry. from
Indiana, who, it seems, held the purse.
strings and pulled all the wires. He ap.
pointed agents, gave directions, and car.
ried forward the business of his confeder.
ates. he Issued policies for cash and
notes, received the money, and was gen.
eral iactotum Of the concern. He went
on swimmiugly. Bat premature call on
the policy holders for more money. ex-
cited their suspicious and they entered
into an investigation. This has proceeded
in this city for several days, resulting yes
terday in the filing Of bill for winding
up the concern, by Judge B. L. Ridley
and Hon. Charles Ready, of Murfrees
boro, and Judge Baxter, of this city. Upon
this bill they obtained writs of Injunction
and attachment, and the appointment o.
a receiver. The following is brie
synopsis of the bill:
The bill charges that in 1866 the Legis.
lature chartered the Fire Insurance Com.
pany, and provided that the person,
named in the charter, to wit: John r
Berry, Robt. Thompson, Wright aud Tvner
: should become a body corporate and
polite, who, with others thereafter, TO be
come stockholders and policy holders
might organize and become directors O
said company. That they should hay,
power to elect directors BY themselves
I That they met, and without consultation
with the stockholders, re-eleciei them
{ selves, and without giving bond proceeded
TO the appointment of irresponsible agents
That these agents proceeded to Irave
. through the States of Tennessee, Georgia
North Carolina and Alabama. and re-
celved notes and issued policies of in
surance to the amount of 100000, receiv
ing OF cash premiums at least 100000
= That the charter provided that the direct.
Ors might invest the assets Of the com.
pany 10 any property or thing which they
In Their discretion, might regard az most
advantageous to the policy holders.
Ihatthe charter further provided that the
| directors might issue guarantee notes to
the amount of 100000, which we're not
10 be used unless the assets of the com.
Pany were deficient. The bill charges
that ). K. Berry was the principal man.
ager Of the eOnCern-that he was the act.
ing secretary, president, treasurer, and
executive committee; was not worth one
dollar; had failed in other establishments
OF similar character in Indiana, and
had inaugurated this policy for the pur-
poses Of fraud and speculation.
Iha; the said Berry drew the charter and
engineered II through the Legislature
iraudulently. That he practised a fraud
IN the election Of the directors: that he
practised fraud in executing his guaran.
tee notes TO the amount Of $4,000, when
he was rot worth l40 cents that on said
note, thus executed TO the company. as 4
guarantee note, he has received six per cent
interest. And his only object in executing
this note was TO increase his salary. Thai
hehad received in this way, to be paid out o.
The cash premiums paid IN by the stock.
holders, st least $4,000 per annum as hii
salary; that the whole amount of cash pre-.
mlums paid into the Office by the policy.
holders had been absorbed in the payment
OF the salaries Of officers, and that the
grerter part had been received by Berry
who was or discharged the duties of Presi.
dent and Of Secretary add Treasurer, and
Executive Committee and all, and received
the salaries Of each, amounting 10 a fabl.
lOus sum, aud that in this way the cash
premiums paid in by the policy holder:
had been absorbed.
The bill further charges that the term
Southern" had been adopted as prefix &c
encourage Southern people to take policies
when in truth it was a Northern carpet BAG
concern, composed Of bsnkrupts, Northern
bsnkrup's-there being no Southern man
in the company. That frauds had beer
| pTactiCed 10 entries On the banks aud
especially in ante-dsting 40 entry as of 81
September, purporting TO withdraw as Of
that date the guarantee notes, executed by
Berry and Thompson, and Others, when in
truth and 10 fact, the same was not signed
Dy the President until SIEGE his re
turn from New York, a few days agn
The bin charges that the whole thing is
bogus-capital, as-ctts, men, charter, and
alI-and is a most ridiculous and shallow
swindle, aud tina! every man concerned in
praclicing such a fraud upon a gallant
cOEfdinG and unsuspecting people, ought
not only TO be held liable for his fraud,
bnt ought TO receive the penalties Of the
North Carolina whipp:Dg-nost for the sin
and folly Of his frauds The bill seeks to
attach all the assets in the keeping
. Of the company, the books and
notes aud cash on deposit aud the
private property of Berry, d asks for the
appointment of q Receiver and an injunc-
ton as 10 all the suits, wherever instituted
against the policy holders, and that the noles
, of the policy holders be delivered UP 10
be cancelled, and especially that whatever
private property the defendant Barry may
taye may be attached, and especially 'H3
= black horse and buggy" bought with the
, proceeds Of the premium cash paid by the
policy holders.
Col Peebles, OF Williamson, We learn
has been appointed Receiver, and ha,
taken possession Of the Office, The key o
the safe, the policy notes, etc, etc.
4