New-York tribune., 1874-09-24
PHILADELPHIA INSURANCE NOTES.

CONDITION OF THE PENN, NATIONAL AND CENTRAL
CoMPANIEs-REAsoNs FOR WITHDRAWAL FROM
NEw-YORK.
fFROM THE REGULAR CORRESPONDENT OF THE rRIBUNB.l
PHILADELPHIA, Sept. 22.-The officers of the
Penn Fire Insurance Company Of city, when shown
the article In today's TRIBUNE In relation 10 the re-
ported withdrawal Of their Company from New-YOrk,
said that il true. There small impairment In
the capital which would be made up the meeting Of the
directors held on Thursday The Insurance Com
missioner of New-YOrk. account OF this impairment
had directed suspension Of business in tnzt State The
directors prominent and wealthy business men,
and the Company was perfectly solvent. The 1st Of
September WAS the time when a company always
made the worst showing for the reason that
the heaviest part OF the years business
was always late In the Fall and In all policies Issued In
and November OF the preceding year. on ac-
count OF which the Companys liability bad almost ex
pred the full amount Of 80 cent for reinsurance
was estimated a part of its Liabilities. The officers
further stated that they did safe conservative bus
ness and always kept hand a considerable amount Of
United bonds end other securities that could be
instantly converted into money, in order 10 meet
sudden or unexpected demand upon the Company.
They complained action OF the National Insurance
Board which they said disposed prosecute com
panies refusing to join II. The National Board was
com posed of old and wealthy companies. and Influenced
State Insurance Commissioners to act in unfriendly
manner toward new companies which cut under the
rates prescribed by the Board.
The Secretary OF the National Insurance Company,
which was aso reported withdrawn from
ness in New-York said that the Company had taken
action its books showed that business
that State Improbable II would also withdraw
from Massachusetts It's expenses last year had
been $4,000 aud ts receipts only t59oOO There had
been official examination of the affairs Of the Com
pany for year; but the Secretary had objection
saying that a slight technical impairment OF
its capital Policies TO the amount OF s2S0OOO would
expire In the OF the next so days, and the
would then show large surplus the liabilities.
The Directors OF the National at their last meeting. de-
termined TO oin the National Board. and same
Of New-York Massachusetts, and Connecticut
The recent Investigations Of raising OF stock
tincates by officers OF the Central Insurance Company
creates OF confidence in all companies known
to have abundant capital and honest management. The
Central had neither When 1t started checks we're
drawn by of the officers banker who had not
dollar Of their money and these checks put 10
represent capital Afterwards when it necessary
TO show of TO the State Insurance Commits
soner twentyfOur shares Of railroad stock pur
chased at Of about o. 200 and each certificate
raised 50 that the original twentyfour represented
pretended value OF sl2sCOO. The fraudulent concern
went on transacting business without any genuine cap
ta aud was only exposed after $4,000 had been bOr-
rowed on one Of the raised certificates.