New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-22
AN INSURANCE COMPANY UNDERMINED.

A RECEIVER APPOINTED FOR THE NATIONAL lIFE IN
sURANCE COMPANY or THIS CIIY-THE CAPITAL
SUNK AND THE LEGAL RESERVE IMPAIRED
Apphcation was made yesterday by Messrs
Van Wrinkle, Gambler JAY, attorneys for Joseph "ho
one Of the stockholders Of the National LIE insurance
Company OF this city, before Judge Faneher IN supreme
Court Chambers a. declare the Company BANK
rupt. and have Eli Beard the President, APP
pointed receiver TO wind M the AFFAIRS oi
the concern Tue application was made on the recon
,oendaon Of the state superintendent On Aug 80 tna
officer Concluded an examination OF the ah"ts oi Vh'
COMPANY and found that its capital stock aud legal re-
serve had become impaired 70 the extent oil $osoVO
The capital stock of the Company is $4,000 ana tue
legal reserve required by law added TO this would make
an aggregate of $4,000 TO make it sound
company within the requirements OF the law
According TO tins report the Company had sunk All
OF ITS capital, and encroached on the reserve Iunu
required 10 reimburse the outstanding pohcles' Inc
officers were informed that tile deficiency must
b, made good. The matter was discussed al
length by the directors, and the situation was
eanyassed thoroughly. The Company has been steadily
running behind for considerable time past, and III
view Of the present financial outlook, there seemed
little reason to believe that It's condition could DC
bettcred 10y It's continuing in business IL was therefore
seemed best that the concern should De
wound up. Judge Fancher granted The Application ana
appointed Mr. Beard receiver. Nj. Beard gave bonds
SlOOOQO the proper VI MS huSb' AN
stockholders will nothing 1t is believed That
the aesets Company such to enable the re-
teiver reinsure the outstanding policies for nearly
the amount for which they we're issued. IL is
not CHARGED that any peculaODs frauds have been
perpstrated Lack of business the excessive commits
ons paid TO agents. and other expenses the causes
which have baukrupted the Company. The receiver
Will make a detailed report as soon as possible.
The Company was organized in April, 1863, with paid
no capital of s5OoOo The officers Eli Beard, Pres
dent; John A. M0rmOre, Secretary One year ago,
because Of the refusal neglect Of ts officers 10 publish
statement Of it, assets ana liabilities the Company was
refused permission by the State superintendent Of
Michigan to transact business in that State Many per
cons believed that the bankrupt company was
the one with which Jay Cooke Co.
are connected This is a mistake. The bankrupt con
eern Is known National Life Insurance Company
of Eew-YOrk. Jay Cooke Co.'S is the National Life
Insurance Company Of the United States with It's main
office IN Washington and branch Offices ia ali the pm
cipal cities ia the Union.
+. b. Gambler, Of the petitioners counsel who served
the papers the VcePresdent OF ,tne National Lie
yesterday noon in conversation with TRIBUNE reporter
st night, said that this action against the Company
was begun in accordance with the petition Of James
Wild stakeholder, and pursued under the act Of 1858,
which provides that life insurance companies must have
enough surplus enable them 10 reinsure policy hold
ers; and this Company. owing 70 a deficiency OF
sioaOO in the reserve capital, not able
10 meet the requirements OF the law Tue assets OF the
Company ne said were S544OOO and the liabilities about
10000 including the amount necessary 10 insure risks
Under the revised statute IN regard 10 insurance compa
MES which violate their charter or are unable TO paw
their debts the proceedings are OF the same nature as
sut IN equity. this Company having violated Their char
ter owing shrinkage in the reserve capital This
sarinkage Mr.. Gambler thought was owing 70 losses
ooeasioned IN business by unfortunate invest
yuents aud large percentages paid 10 agents il
order compete with iOtber companies The question
then arose among the stockholders whether the def
clency shoud made up the business discontinued
Al the proceedings yesterday before Judge Fancher
MI Gambler stated that the attorney for the Company
appeared and declared it their intention moi
e. interfere. Accordingly a receiver was ap
pointed, who filed bonds III the sum OF 100000
As the COmpany's capital sufficient to satisfy al
the poey holders the entire loss thought would fa
On the stockholders, and II probable that the poll
cles would bc transferred to some other company