New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-10
ALLEGED INSURANCE IRREGULARITIES


CHARGES AGAINST THE PRESIDENT OF TIE PnENIX
INSURANCE COMPANY OF BROoKLYN-CHANGEs
IN~THR DIRECTORY, AND THOSE WHO INvEsII-
GATED THE ALLEGED IRfEG ULAKlilEs ELM
MATED.
Statements have been made lately OF lrregu-
aritcs in the rast management OF the Phcnix Insurance
COMPANY of Brooklyn. These statements, in effect, are
as follows In September, 1873 Frank r. Williams
an assistant bookkeepor of the Company, went
James s. Rockwell, then director OF the Company,
and member of ts Committee on Accounts, and PIE
scented some memoranda concerning certain aIeRco
irrcculari-es Mr. Rockwell received the memoranda,
and found that they implicated the President OF the
Company stephen Crowcll, by whom the Company was
founded % years ago. and WHO lis fret and has been
its only President
II was emerged on the memoranda that Ir. Crove had
borrowed fIom the Company $1,000 In eolo IN lsol,
when the premium was from $50 TO $40, and had re-
turned II in currency when the premium was only 100 or
40 paving 10 interest for It's use; that nr. Crowell
had purchased $4,000 worth OF the State
bonds Of Tennessee and North Carolina with
the Company's money. entering The amount
ON tie cash book loan 10 W. 7. Hatch q Sons, and,
when the bonds had fallen OFF in value, had had thcn
transferred to the investment account of the Company
that he had purchased at auction $4,000 worth @! the
Comp1nys stock which had sold to close estate
had drawn two OF three dividends the stock and then
turned it to the Company without interest; ard
that he had been using the C0mpan?s money In small
from time to time, the alleged irregularities,
however not aSgrtgatnc more than $4,000 or 10000
These disclosures being made Mt time Of financial
panic Mr. Rockwell decided 10 watch events until the
panic had ssdcd and he accordingly took no aggres
siYc action un the expiration of five Fix weeks, when
he consulted with four or five OF his fellow directors as
TO the best 10 pursue. As a result Of this
conference, Mr. Rockwell and Charles c. Belts
called upon Mr. Crowell. MIR. Crowcll admitted that he
"a had raaiI hasl r,I
lie admitted that he had purchased bonds and had trans
fer1ed them the Investment Account OF the Company,
but said they had advanced in value and had been
profitable investments Tor TIC GSmp3ny lie slso ,o al,
with the Companys money and aiterWard . tuin-
in Interest which however he offered 70 ay lie ao I'D
mei that he had from time to time used small amounts
S lr tnG 1rl and ai r. aecCuntS With the Company
al straight The srni-annnal examination OF Tie
AMI Committee Accounts Ooh place early in January,
1874 and thc Committee reported nat they found me
Company all respects sound ana that bad tie asfes
set forth in the statement ending WIN Dec. 81,
1873 which VAS made part Of ro the report pot
lucn;iy examined and with results that Ic To MS
discontinaance IL was discovered that Bedrii AM
Ciove the presidents sou were alproprane 10 them
selv, ebaics cOnni-" for reinsurance which the
Committee Thought belonged to tie Company. President
Crowc the committee say agreed VIII ihein cone hlls
the rebates. and said that If he had known what was
g'u, in that direction he would have stopped 1t him
l,.ut the middle of last January, when the stock
loers came in TO get their dividends Mr. Crowc aud
Pnander Shaw obtained enough proxies 10 control the
election. At the last meeting Of the Executive Commit,
Tee i'm March before the April election Mr.. Crowc said
to The Committee that Frank Williams. who had
made the DISCLOSURES should he discharged. re
Committee refused TO entertain this Proposition and adj
joIrued. During somewhat exciting conversation
which immediately followed, between Mr. Rockwell and
Mt Crowcl the former hastily offered 10 sell 100 shares
of the the compny's stock 1T 12o. Mr.. CroWc quickly
accepted his Offer purchased the stock and declined 10
allow Mr.. Rockwell 10 Withdraw, unless hc w"Yli promise
10 susrln him against Williams which g.. Rockwell Ic-
fused do. Mr. Rockwell was thus .'''t oit OF the
directory.
In the April election, Mr. Crowe through his proxies.
elimnat, from the directory eight OF It's noDirs VINO
were net In harmony with him. Among these were
Austin COrhin aud W. H. Kendall, who had already re-
riurd from tho Executive Committee. aud also Daniel
ID the Vie President, WHO thus lost lis Office and