New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-06
RETIRING CORPORATIONS.

REASONS FOR TIE WITHDRAWAL OF IliE NETWORK
GUARANTY AND INDEMNITY COMPANY-TnE
WORLD INSURANCE COMPANY WINDING Up ITS
AFFAIRS.
The retirement of the New-YOrk Guaranty
and Indemnity Company has excited comment In ner-
cantie circles The officers of the company stated that
the withdraw Of the due TO the following
resolutions OF the Board of Directors:
R1soIred. That in view OF the present condition Of
financial GLlgs an the tendency OF Judicial decisions To
enhrr1's the acton OF this ecnp,ny IN Ter s charter
tnuc all business that is clsSed "a banking under The
TtGI se 3S Tie it s Tf ' of s 10 III"
Rcsotstd That the officers are directed 70 commence at
the liquidation Of all loans, adNaiccs AN dcpo~t@
aud To c1ss The SPEEDILY as They deem CONSISTENT
with the interests OF the COMPANY and When cOaed to
give notice To the departments above named.
The officers sgil that the Courts had decided
that the Company was not entitled 10 q commission
the custody OF merchandise they had theeforede-
tcrmined to retire. Elsewhere anons banking men II
stated that the primary cause OF the liquidation 81
the Company due To Improbable loans sOuteIn
aud other poor securities which the Company hal taken
as collateral for loans.
Again. tile decisions OF the Court OF Appeals in regard
the legal ownership rights to personal property
crcan lise such grain cotton, &C. in store have had
too effect Of rem lcrinX 0us on warehouse receipts ex'
coed gly procarous, aud is at time the most
profitable part of the business OF such corporations
Thus deprived OF their SPECIAL facilities, the Company
found private enterprise could successfully compete
with them, AMI therefore determined retire. the
CompaD, was organized in 1863 to meet want then
cxi-tiu the commercial world, by afOrdns the rcqui
site facilities required by the holders OF the vast accuu
atim Of commodities in warehouses. which represented
an inmt usa aggregate OF value, and set almost
available security for The cash nj accs needed for The
purposes Of trade Tie cash capital was 5000 900,
originally taken In Of $4,000 each by 40 OF the
most prominent merchants and bankers Of the city.
A. statements have e NAL That another lie in
surauce company besides the Standard Ii III T0nbl In
quny made e>teIday OF il.uance ~, n, who made
tnr following .tatcnrnt the World Late nsunee Com
Pmy of NJ lG0 Broadway ~ diziug the position In
winch II has SU'od without shi'nt capital IS ~ihdiuS
up business far possible prIposing Ia retire alto
gcthcr If IL transfer all it, risks. Til Company made
an arrangement with the Ncw-Jersey Mutual Company
To transfer the risks provided the policJ -hoid
will agree II not the policies will rcuiain
rs before ia the World Company. Persons employed
by the World Company said that this was pursu
uscDf the nuaIoia condition OF the Comp ny Mhlr
II Is slycnt At present, yet II any deaths win heavy
losses 10 occur the re-t would be disastrous Tue
statement of the Company shows that the Immediate a-
btics 1924 964 49, and the surplus of assets
that figure il Sl9.2Bi. There arc nbout LOO policy
holders, with uTgraae of 81 100000 TIe company
has IN cx-,enn sinc- January, S67, and has met
with serious Losses The officers Dr.. j. NOycs, PIesi-
dent, aud +. r. Muigan, socrctary.