New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-17
LOCAL MISCELLANY.
AN INSURANCE INVESTIGATION.


Am ELIMINATION or THE BOOKS OF THE ECLECTIC
LIFE ORDERED BY THE RECEIVERS.
Philo II. Ruggles, the receiver OF the
Heetc Mutual Iie Insurance Company, has requested
J. n seWel, accountant, to examine the books anu
aoeoups OF the Company from the time of its organt
ton about FIVE years ago. Mr.. Rugges told ThisoSb
rcportor yesterday, that IL the available assets were
only slSo00O, stated by the officers OF the COMPANY!
the public well the policy holders were enu'eu "
know where the money had gone He had yet learned
nothing definitely. and would be likely TO 40 90 Ior
several days. The Company started with eapt SV'A
Of sl50.O0o and the official report TO the stae ouP
tendent IA January last. stated the avaiao'o c"s e
IT $4,000, and the gross liabilities at Se'VVV Wn'oh "
euded sufficient sum to reipsure their risks TINS gave
q ,u,rlns OF al 900 in January, while on Monday
stepln Barker one OF theirectors, made andavt that
there was deficiency of about sloO'ooo
The reporter made inquiry at the once OF tue MOT
han,s, Insurance Company which has been concerned
with the Eclectic business transactions ana learned
the following facts Last Spring, Geo. b. satterlee,
President of the Eclectic Life Insurance Company COM
muu,oated with the officers of the Merchants Company
I'm an informal manner, expressing desire TO close up
The busness of his Company, and TO reimburse their
risks In the Merchants After considerable negotiation,
arrangements were made by which the Merchants
aereed 20 reimburse all the Eeectes policy who
cou,d pass satisfactory medical examination, at the
same rates at wbc they then insured the Eclectic
Company paying to the Merchants the difference in
equity Under this arrangement the Merchants rein
sured about 400 risks, and received a balance OF
$500 in equity from the Eclectic. As the latter
Company were greatly in need of money in
closing up ther business, Mr.. satterlee requested
the officers Of the Merchants to deposit bonds and mort
cages with the State Controller instead Of the 100000
bonds then his handle. This done, the bonds
and mortgages having been examined and approved ny
The Stale Appraiser The United States bonds thus re-
leased were sold at the price ruling on the DAY they
we're received, aud the proceeds handed over TO
Mr. satterlee. May last, Mr. Beekman requested
become tue nominal President OF the Eclectic Com
papy, beng urged that this would facilitate the con-
sQlSatiOn OF the two companies tie took the position
with the expressed understanding that his relation
would be only nominal, as he could give neither time
attention tO its business. He was told that only
500 required the Company 10 settle It's analrs
In August Mr. Beekman han reason TO doubt the cor
of this statement, made partial examination
books OF the Eclectic Company, and found tat not
wOud be required 10 settle the indebted
the directors and resigned the Presidency the ground
thai accepted under false representations HIS
resignation accepted, ana a motion was made soon
after receiver by Augustus E. Masters IL was the
opinion OF the Merchants Insurance Company that IL
was an uDwise movement TO put the Eclectic Com
pany iutO bankruptcy, and that they would
eventually pay very nearly all their labhl1tles
Inen aud careesness the part OF their medical eX
alsiRers Their losses from deaths last year we're Slt
BOO or two per Of all their risks. The average death
rate ~ the old and large companies is not over l5 per
cent anu that Of wellcOnducted companies. no Older
than the Eclectic very much less IL was not believed
than an investigation wOuld disclose anything worse III
the management of the Company than culp1ole care