Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-09-08
EXTENSIVE INSURANCE SWlFD.
LING.
Five sGoEus Cen1paEies-A 5ai;s5os
E- Policies kss q ra.- e SiinyoSo OF
tEs- Concerns.


tEs- { Concerns.
Tssn ths Sev.Yezk sua, avs.,i
Several Insurance compap. IS hsYe iais'y
sprung up n Jersey CITY, end ise III uee.ls,
have gre~n apacs. They were doing
roaring trade on hstle or no capital. L.
seams that ~ tbs latte part oi 1867,
man named Hogan bought up number OF
Cd charters, sad started companies, ons in
the fall q las. year, and several others 10
tae spriag CT tais year. They were styled
tie Mariners" the Merchants" the
Mechanics the " firsman's," aud The
"First National Offices wera opened 10
Exchange Place, and the ventures set
stiset. There was no lack Of energy ard
snterprise. Agents were seat into every
state, from Maine 10 Iinnesets, and pol
cies were taken TO large extent.
The pu5lic had no suspicion tha' these
companies were in any way connected with
each other, or that they were anything but
sound Institutions. II 10 meteorological
that no policies of args amount were isxusd
in jersey City or New York; but in the
Eastern and Western States, where tho
people had no opportunity 10 investigate
the concerns, they were taken in and done
for. II is alleged that ons Of these con,
pan:cs, the " Mariners, had isaued poll
ciss to the amount Of $650,0o0, and the
others to amounts ranging from 100000
to $500, GEO. the total being over a millisn
OF dollars. The profits Of the =" Mariners !"
are calculated at $4,000.
The manner in which the cssh capital
was produced to satisfy the government Or
iicrrs. whose duty il is to ins poe, such con-
c.rns, was unique. an arrangement was
mado with Now York money lender 10
send bis clerk over with bonds amounting
10 100000, aad these borrowed bonds
were shown TO the officers and immediately
taksn back 10 Ncw York by the clerk. Fer
this service the managers Of the "Marin.
CA" agreed to pay $1,000. bat failed 10
meet the demand At the proper time Ths
consequence was that . suit was brought
against tho company, and an attachmen,
procured against tho office furniture. II
takes, however, one knave to outeit anoth
or, and before the effects were levied upon
by the money lender, one Of the clerks If
the Office had the same effects levied upor
10 satisfy the demand Of his bill for salary
lee office ives closed two weeks ago, cine,
when no e'icers Of tho institution can b,
| found.
The other companies have also shut up
~ith the exception Of the " Mechanics,
which still pursues the evil tenor Of It's " az
Associated with Mr.. Logan were, it i
alleged, two relatives of his wife, bearin
the name Of Csndce, and his wifs's brother
named Alexander. These mep acted in III
capacity of officers of the Institutions, th
two former as presidents, and the latter q
secretary. Innocent persons were entran
ped into She scheme. Thus, il is state
that mn honest, hard-workihg man name
AcElcry, who kepta store in York street
was offered 5000 for acting as president Q
one OF the companies, lie being informed q
the time that he would be only required I
sign his name to the policies. lie accepts
the position, and was kept busy for severa
days signing policies in advance, as th
parties who nvsielcd him into the schem
were evidently afraid ho would smell re-
and back cut. II was not long before hi
suspicious were ar uasd ~ gcntlema,
Nstnias E.ui lAat, I l held thu pcsitso,
when ihe company Nui~t IN, he would T.
he'd re- lens.b!c. aA3 very likely bs sent 1
state ~ son. Ihis Was enough. One morn
ia- hp sss non est T. n ts1k fright nn
Iau away q phisacjoh;a. The naines q
tno respee. ,bl, end responsible resident
81 Jersey City wefe angeuneed ia csedg =
directors ~ owe ct tie c38csfn. 1Me gar
tlemeu retlTf.a t. went 10 he eaiea. =
iutndol the cards. which they got, and too
ho;u, and burned. warning the officials IL
70 take the liberty of usin, their name
again. II IL statsI That the charters wcr
renewed at 1reatan through political infu
ence brought 70 beat opoa tie legislator,
NJ l5ssss we're ever paa nv those coz,
paniss, - far As can be ascsrtained, at lea.
nonc of any magnitude. They did not,
s,ens ,condesccnd . pay their honest d ebt,
One Of them bad in use safe on whic
500 he'd b-en paid. The owners of II
article sued out an attachment for the bxl
anec, but, before the effects would be levie,
uron, ena OF tho clerks, rs in tho case 0
tae Manners. had obtained q previous :,
tachmsnt for Lila salary.
Mr. l9san WAS modest, never anpe,rs,
, a. prinrinai IN any 0 the concerns. II
YES generally 10 he foend ct the FIRST Ma
tional. where he assumed the simple rot. G
agent, and AZ such transacted business. -
! When TIE presidents waro asked for, som
eYesiva answer was given. He was a
bong Branch, or Saratoga, or any plac
eis-, no matter where. No responsible off
CIR could ever be found. Abou. two week
: ego fire took place N Banks street, Jer.e
Cfty. Tie huildins was insured in Ia
Mariners, INT when the policy holder won
ier fi- mo8ey, he officer, We're nowhere I
~ ionna. 4aay losses in tbs country wer
also sent in Tor adjustment, but i. is allees
n0n- we're attended to.
4 shert time aimee, clerk in the cmplo
! q enc ni tas cenpsnics was sent to Jail 10
thrcc ncat5s ON account of having attempt
Cd, during quarrel, TO take another man
Aie. lis time was Up last wcsk. and Of
returning to Jersey City, and finding In
Mariners shut up, ho began to tell wha
hsknew o. the interna, working Of tbs 9th
er offices. This agreed with other accounts
Another young man came from Chicae,
and held position in another office 70
scme time, until he found out that all wa
no' -iglu, when lie left.
= The agents of these companies are stilra
large. Probably many OF them are unde
the impression that they are working 70
safe institutions. ard are sincere IN thei
o Efforts to push trade, although they ther.
by vicliml.e tho public. Persons in ID
country should be on tho lookou. for thee,
parties, and be careful about accepting mol
a leics from companies bearing the abov
n,mes or hailing from Jersey CITY. Their
are some sound insurance companies in mi
city, concerns which have long been s.,sb
lished and widely known. Of such ar. IN
Jersey City, the State, tho New Jersey an
the Hudson County Mutual companies.
o No parties have yet been arrested in cor
nsction with this extensive fraud. and it
not likely any will be. What is ever,
. body's business is nobody's business, an
50 the guilty parties 60 unwhipt Of iustic,
The Law Of the State il not dceui.s on N
question OF the right of the chancellor {
take hold Of the concerns and put them i
the hands ofrecsivers.