The New York herald., 1872-09-22


1t Will be seen from the foregoing statement that
the company have not any assets in excess of Its
liabilities, and deficiency Of over two hundred
Thousand dollars is found to exist. But whatever
contracts the moribund Company may have out
standing will probably be made good by the opera.
tiOn OF an Ohio statute, which holds the stock
holders OF q company liable, not merely to the ex-
tent OF their investments, but for twice the
amount Hence the shareholders are assessable
upto the sum Of 100000 beyond the capital they
own This company was originally constituted on a
SUBSTANTIAL BASIS
on the 1st OF July, 1s7O with cash capital of
$l,oOO,oOo and the 1st of july 1871 1t paid ten
per cent dividend. But in the disastrous fires in
Chicago and the Northwest its Liabilities amounted
to $979,0OO. An assessment of half u million was
made on the stockholders, and from that time until
January, 1872 1t has been in a struggling condition
Moreover, it has sustained heavy losses since De-
cember to the LIST OF June. as the ratio OF fires
throughout the country has been at the rate of
OO,0O0,0O0 per annum against the average OF
$6O,O0O,0OO OF previous years. The agent of the
company arrived here yesterday from Chicago and
made the following
to representative of the HERALD:-The rein
surance fund, he said, as charged by the Com
missioner, is fifty per cent OF the previous years
receipts The body OF the business will expire
during the next five months. and the new manage
ment which came into existence during the past
ten days, as the old officers unable to grappe
effectively with the difficulty, confidently assert
that the actual amount needed to take nm ali ont
standing policies Is so much less than the figures
given by the Commissioners that the company can
carry Its uneXpired policies to maturity ana then
have good portion of its capital remaining. The
company now propose
until the heavy transactions put on the books i'm
mediately after the Chicago fire shall expire,
thereby reducing their present reinsurance fund
moderate scale and in more limited aed. II will
be seen by the official statement that the company
have available assets to about million one hun
dred thousand dollars and their liabilities are
about one million three hundred thousand dollars:
but included in the liabilities renewal fund of
nearly one million dollars. The company claims
that about half OF this sum is sufficient and by
ceiling Of their policies at short rates will still fur
ther reduce the amount necessary for reinsurance
With this aim in view the following circular has
been Issued
OFFICE ANDES INSURANCE CoxrAsr,I
An order dav been issued by the saperinend
on the stockholders of this company, be paid within
stock You are hereby Instructed NOT to issue any peW
policies nor transact any new business for this company
now being considered
The just liabilities, unless unusual losses upon the
any customers prefer to cancel their policies
counting the e Expired and ae
SW e n the @s Saes 70 in hand or to
cancelled policies must accompany the drafts.
business ransaced to % Sy account account cur.
rent and remittance of balance.
JAS. p KILBRETH, President pro tenn.
A special agent Of the company will be in the
city on Monday, fully authorized to look after the
company's business and endeavOr to make some
arrangements as suggested above.
OPINION IN INSURANCE CIRCLES.
The representative Of the HERALD, after obtain
ing the above facts, called on several gentlemen
deeply interested in the insurance business OF the
county, who are desirious OF maintaining the
strctest accountability and reliability OF their in
stitutons Tor the amounts they undertake to in
sure Inc prevailing opinion was TO the effect that
the company had in some careless manner misman-
aged affairs, and the officers mperilled the safety
OF the $1,5000O0 placed in their custody. Dlshon-
esty was not even suspected in the administration
Of afiairs but degree OF Indifference to the
plalnest rules OF business must have prevailed
that almost amounts TO cupable negligence
The rdSco OF this company, which started under
such splendid auspices with directors OF high po-
sition among the business men OF the West many of
whom were shrewd, successful merchants viii
have the effect OF shaking the blind confidence of
the public In boards OF eminently respectable non
entities, who slumber and doze while the worst OF
squandering mismanagcment is going on. II will
also have the effect OF Increasing the vgor OF state
supervision and the sooner weak companies with
insufficient capital are placed under proper check
the better for the interest OF the public About ten
days ago not only the management OF the company
was changed but the agency was transferred to
another firm. Yesterday the
SUSPENSION OF PRINDLE MANGAN,
OF $50 Broadway, was announced. These gentle.
men were formerly the agents OF this company,
and also Of the ALPS Insurance Company, OF Erie,
"a, and the Alemaine, OF Cleveland. The suspen.
sion was accelerated, 1t is sad by the withdrawal
OF the business of the Andes Company IL was
runored on the street that defalcations to the
amount OF from seventyfve thousand TO one hun
dred thousand dollars had taken place IN the ac-
counts OF this young firm, which has been only two
years In business. representative of the HERALD
called at this ONCE and found everything In state
OF confusion. Mr. Mangan acknowledged that
the firm had suspended bat the snspen.
sion was only OF temporary nature
and full and satisfactory statement would be
made on Monday. He denied that there was any
defacatiOn, and the liabilities would be easily COW
cred as soon as the accounts were properly ad-
jused. Mr.. MOrgans father Is an afiiuent gentle
man. well known in business circles and the Pres-
dent OF several corporate companies. The ruIaor |
which Obtained general curreRcy. hP SAID, was |