The New York herald., 1873-09-17
THE INSURANCE FAILURE.

tre810cnt
Secretary of the Eclectic Company
| The Cause of the "Colla psc''-Dishonest st
Agents and Careless Medical Examin-
| ers.
! HERALD reporter called yesterday on the
| President and Secretary OF the Eclectic Lie In
surance Company to obtain their side of the story
OF the extraordinary collapse OF this company. Mr.
George B. Satteree, the former President OF the
Eclectic, was out OF town, but Mr.. Benjamin F.
BeeKman, who was elected President in Mr.. Sat
teree's place and declined to serve was found in
the offce OF the Merchants Life Insurance CON-
pany, 257 Broadway. Mr.. Beekman Is President OF
the Merchants Company.
Mr.. Beekman ald:-"I was merely appointed
President OF the Eclectic, anu refused to act AS
soon as found out that the company had not SUI
ficient assets declined to serve as President. Mr.
Stewart L. WoOdford reported the condition of the
Eclectic to me. The article in yesterdays HERALD
is perfectly correct and don't that there Is
any thing in 1t that should want to contradict"
"Do you think the assets OF the Eclectic are
sufficient to protect the policy y-holders Y' the re-
porter asked
~ think So" Mr.. Beekman replied "But here is
o gentleman, one OF the most prominent agents OF
the Eclectic, who can tell you much more than l
CAM
Mr.. Beekman introduced the reporter to this
u
forward manner. He begged, however, that hls
name should not be used.
A STATEMENT.
'rThe failure OF the Eclectic" he said twas un.
doubtedly caused by incompetent management.
There has been great deal OF wrangling In the
directOry there has been Barker party, and an
other party, and a third party, and no end Of
for the failure. other causes contributed to pro-
duce this result. You remember first came
the failure Of the the Great Great -. Western we and
of the public in life insurance companies. Then
they mad an enormous death rate. The average
risked, but the death rate OF the Eclectic was
nearly two per cent. During the history Of the
s27S, 600 in losses and dividends, which SHOWS that
the company has not been wholly without use."
"You spoke OF bad management on the part OF
the managers. Could you give me any instance 2"
well, permitting agents In the West to use the
funds OF the company
They had an agent In Chicago who never made
any returns at all, ana they never prosecuted him,
order to protect their business there In act, tney
were easy-too easy. They had heavy losses In the
West and great many OF them believe TO have
agents in not making any returns, the action or
the managers was certainly not criminal. because
every company allows the accounts OF their agents
to run up. However. II was bad management"
''whaJ will be the final result OF this colapsesn
suflicent win be used to reinsure the risks in
bulk. II the assets not sufficient, there will be
q loss for the policy and their respective
amounts will be paid back them In proportion to
their claims. The statement in yesterdays HERALD
Is very fair, very fair indeed. don't think you
can improve upon it,"
"How do you account for their enormous death
lossesH We're their medical examiners carelessY"
THAT was it, They have undoubtedly been very
careless In choosing
THEIR MEDICAL EXAMINERS,
particularly throughout the country In the city
1t Is very easy to find go0d examiners; but 1t Is
very difficult TO appoint from here good examiner
for a country town IN Wisconsin, for instance.n
The reporter next called on Mr.. Henry Rogers.
the Secretary OF the Eclectic Company. Mr.. Rogers
said, "l don't wish to say anything about It; but
this you may state, that there was no fraud aud
tnat there were no delacations In the company.
We don't expect to resume business. The Receiver
will wind M all our affairs and produce all that
can be produced"
What will be the result in your opinionW
'Oh it would be mere guess work on my part II
were TO tell you A life insurance company Is
more dimcult to wind up than any other nstitu-
ton, because there are so many complications
The Receiver might possibly by able to reinsure
the risks"
How do you account for this failurer'
II think our frghtfu death losses in the last
eighteen months have contributed to the failure
mole than any thing else. Added to this, there
was
GENERAL DEPRECIATION
oil life insurance business during the same time.
Growing out Qf the adverse action Of the large CON-