The New York herald., 1871-01-10
N s u r A N G. E.
Tho Farmers and Mechanics Life Insurance
Company in the Courts.
Petition Of the Attorney General-Superintend
ent Miller Doing the State Some Ser
vice-0rder OF Judge Barnard
Appointing Receiver.

The HERALD few days ago published exclusively
che proceedings IN the matter Of the people OF the
State, through the Attorney General. against the
Great Western Life Insurance Company. We again
lay before readers this morning another startling
exposition OF The fraiity OF those insurance CON-
panies and the reckessness with which they enter
upon transactions Of great magnitude and the sud-
denness with which they fall from the pinnacle or
an assumed anu false prosperity to utter ana
ruinous Insolvency. Tie history we present
this morning OF the transactions OF the Far.
mers and Mechanics Life Insurance Company is even
more elaring with proof OF incompetency and
rof actual disregard the part or the company OF
the rights OF the pocy holders anu creditors OF the
institution than that exhibited In the proceedings
taken by State Superintendent Miller against the
Great western Lie Insurance Company, 10 which
we have referred. AS In the latter named case the
Court appointed a receiver over the property so OF
che defaulting company yesterday, In the matter
OF the Farmers ana Mechanics Life Insurance
Company, Judge Barnard has appo onted an able and
experienced receiver In the person OF Mr. James II.
Coleman. and so the matt stands at present The
policy holders IN the meantime may rest assured
chat their Interests Will be closely watched over and
protected by Mr. Coleman.
e. THE ATTORNEY GENERALS PETITION.
SUPREME CouRr-CIrY AND COUNTY OF NEW
YoRK.-In the MateT o. the Fdf ners ana Mechanics
The petition of the Attorney General OF the sta:e OF
New York on beha + OF the people OF SAID State
provisions ana requirements OF chapter 4s3 of the
Laws OF 1850 section !, the superintendent of the
insurance Deparm ut has made the following com.
municaton TO your petit oner:-
THE CONDITION AND AFFAIRS OF THE COMPANY-MR
MILLER REPORT.
INSURANCE DEPARTMENT, ALBANY, Jan. g. ISL
TO Hon NJ b. LnAMPLAlN, Attorney General state of New
DEAR sInEHavns recently made personal examination
LIE LIE lnsnrsn,e cGmDa OF New York and having from
company insuacea to einsafe It's Outstanding risks
hereby communicate such fact to you In the
Ey duty .1 and ioT the pubic FSci to-
and the ia Which rs BUSINESS s'Sas Sas
been conducted The company in September
qaes depo with the r rs
@ sasance BUSINESS Sessions %9 regular or ordinary
monly known as the cooperative system
have been enormoqls asproportionate to the
dDne but the annu rendered the de-
false result an mres to the ratio Of expenses well
as disclosed the that order the volume OF
So done by & the company a. shCwn BY its
Per OF false or fictitious entries made In the books OF
she once OF the company. These entries
fact OF The aoce or any appao oe
having ever been made or the paymento premiums
a l ae books as
COMPANY
This and all similar practices whenever indulgei shall
nSeavor TO discover. Disclose Several
claims appear have existed company for some
sime. which. although allowed TO re-
nain unpaid ion, time after Contracts appear
nave been made with agents with great the In
eress OF the company CIV or guaraneeinS salaries and
commissions which could possibly
BY this and other vicious ractices the company
emineny successful 10 ,ncurin large unit OF ab
nes without reseryins Anything 20 meet them. 1t Is a
startling fact that books o. ths company an ex
pendfture since It's or rEanzll q period of
fifteen months, u advertising printing and
stationery alone Such Iecklessness expenditures and
such want OF thorough system bookkeeping
deveioped in the examination OF this company would only
lead to one result premature insolvency
The annexed schedule contains statement the assets
books aud affairs OF the company II this fails
prove strictly enc, believed that
be diminished and the liabilities increased by continued in
vesgation further teve opments
favorable statement TO the company which will
rant me In making Most respectfully yours, &C.
GEORGE W. MILLER Superintendent.
FARMERS AND MECHANICS LIFE INSURANCE COMPANY.
United States bonds Observation-Disclosures. 80. S77 7s2