Democratic enquirer. [volume] (M'arthur, Vinton County, Ohio) 1867-1873, 1868-09-17


I.obiect of their regret and labor, but all in
vain. The sailor was seen no more.
g. -.
Extensive Insurance SwlndIing-Fl
Bogus Companies.
lFrom the N. Y Sun, Aug, 81
Several insurance companies have lately
sprung up in Jersey City and like i'll weeds
have grown. apace. They were doing a
roaring trade on little or no capital It
seems that in the latter part Of 1867 a man
named Logan bought up number of old
charters and started companies, one in the
fall Of last year, and several others in the
spring Of this year. They were styled the
mariners" the Merchants" the ''Me-
chanics, - the "Firemens', and the First
National" Offices were opened in Ex-
change place, and the ventures set ahoat.
There was no lack of energy and enter
prise. Agents were sent into every state
from Maine to Minnesota, and policies
were taken to large extent.
The public had no suspicion that these
companies were in any way connected with
each other, or that they were anything but
sound institutions. It is noteworthy fact
that no policies of large amount were issu-
ed in Jersey City or New York; but in the
Eastern and Western States, where the peo-
pie had no opportunity to investigate the
concerns, they were taken in and done for.
1t is alleged that one of these companies,
the Mariners" had issued policies to the
amount of $3.50, 900, and the others to
amounts ranging from Sl04,0 900 TO s400,-
600, the total being over a million of dol
lars. The profits of the Mariners are
calculated at $4,000.
The manner in which the cash capital
was procured to satisfy the Government
officers whose duty it was to inspect such
concerns was unique. An arrangement
was made with q New York money lender
to send his clerk over with bonds amount
ing to $780, 000 and these borrowed bonds
were shown to the officers and Immediately
taken back to New York by the clerk. For
this service the managers of the "Alari-
ners agreed to pay S2,500, but failed to
meet the demand at the proper time. The
consequence was that suit was brought
against the company, and an attachment
procured against the office furniture. 1t
takes, however, one knaye to outwit an
other, and before the effects were levied
upon by the money lender one of the clerks
in the office had the same effects levied
upon tc satisfy the demand of his bill for
salary. The office was closed two weeks
ago, since which no officers of the institrl-
ton can be found
Associated with Mr.. Logan were, it is al
legged, two relatives of his wife bearing the
name of Candee; and his wife's brother,
named Alexander. These men acted in
the capacity of officers of the institutions,
the two former as Presidents and the latter
as Secretary. Innocent persons were en-
trapped into the scheme. Thus, it is
stated that an honest, hard-working man
named bIcElery, who kept store in York
street, was offered 5000 year for acting as
President of one of the companies, he being
informed at the time that he would be only
required to sign his name to the policies.
He accepted the position, and was kept
busy for several days signing policies in
advance, as the parties who inveigled him
into the scheme were evidently afraid he
would smell q rat and back out II was
not long before his suspicious were aroused
by gentleman warning him that if he held
the position when the company burst up
he would be held responsible, and very
likely be sent to state prison. This was
enough. One morning he was non EST. He
took fright and ran away to Philadelphia
The names of two respectable and respon-
sible residents of Jersey City were an
nounced in cards as directors of one of the
concerns The gentlemen referred to went
to the Office, demanded the cards, which
they got, and took home and burned warn
ing the officials not to take the liberty of
using their names again. 1t is stated that
the charters were renewed at Trenton
through political influence brought to bear
upon the Legislature.
No losses were ever paid by these COM
panies as far as can be ascertained at
least none of any magnitude They did
not, it seems, condescend to pay their
honest debts One of them had in use a
safe on which 500 had been paid. The
owners Of the article sued out an attach
ment for the balance, but before the effects
could be levied upon one of the clerks, as
in the case of the Mariners, had obtained
q previous attachment for his salary.
Mr.. Logan was modest, and never ap-
peared as principal in any of the concerns
He was generally to be found at the First
National, where he assumed the simple
role of agent, and as such transacted bnsi-
ness. When the Presidents were inquired
for, some eyasive answer was given. He
was at Long Branch, or Saratoga, or any
place else, no matter where. No respon-
sible officer could ever be found. About
two weeks ago q. fire took place in Banks
street, Jersey City. The building was in
sured IN the Mariners, but when the poll
cy holder went for his money the officers
were nowhere to be found. Many losses
in the country were also sent in for ad-
iustment but it is alleged none were at
tended TO.
A short time since, clerk in the EN-.
ploy Of one of the companies was sent to
Jail for three months on account of having
attempted, during quarrel, to take anoth-
er mans life. His time was up last week,
and on returning to Jersey City and finding
the Mariners" shut up, he began to tell
what he knew Of the internal working of
the other offices. This agreed with other
accounts. Another young man came from
Chicago and held position in another
office for some time, until he found out
that all was not right, when he left.
The agents of these companies are still
at large. Probably many Of them are I'M
der the impression that they are working
for safe institutions and are sincere in their
efforts to push trade, although they there
by y.victimize the public. Persons in the
country should be ON the lookout for these
parties, and becareful aboutaccepting poll
cies from companies bearing. the above
names or hailing from Jersey City There
are some sound insurance companies in
the city, concerns which have been long
established and widely known. OF such
are the Jersey City, the State, the New Jer-
sey, and the Hudson County Mutual com
panies.