New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-06
INSURANCE DIFFICULTIES.
ELIJAH ALLIGER'S DEFICIT
THE AMOUNT ABOUT $50, 000-How 1T WAS con
IN.


The announcement i'll THE TRIBUNE yester-
day morning Of the large deficit in the accounts Of
Alger Brothers, Of this city, created much excitement
among insurance men. The irm had been known Tor
years all parts OF the country as one OF the eadhE
insurance agencies Of this city, and s credit was gener
ally regarded as lrst-class
II was learned yesterday that the balance due the
Commercial Union Company OF London, according 10
the statement for last July, about 7l7l000 From
This should be deducted about $4,000, due from agents
and further for commissions on net profits OF the
American business for the current year. Ills
latter sum cannot he ascerained FOR some time
but il is estimated that the total deficiency
will not exceed S1jOOOO Elijah Aliger II under bonds
to the company Tor $4,000 The gentlemen at present
in charge the agency Say, that the chief regret OF the
officers Of the company not much on account OF
the money lost the betrayal of confidence by Mr. ALI
ger wnOn they had implicitly trusted Iney emphaticay
DENY however that they had the slightest knowledge or
ntmatOn OF the true condition OF the agency nntll last
July. Information came to theh AT tnts tle rom :"
confidential source that the Hh was u. NC "
NEGOTIATING temporary loans the street and tha oher
SUSPICIOUS transactions were taxing place here. IhCy
Sill dld not imagine, however, thal 'he ae'ill N. IN
default, and tnis knowledge did not come I'd theh uh
ing immediately called, ANA within Two or lhlte
hours il wac ARRANGED that Nh. Brown and Mr.. Camp
should starr or this city by the next steamer which
they did arriving here september -
The company npoy cd Auditing Committee in this
monthly 10 appears however it is stated that the com
mittoe missed INTO the belief tnat there were laie
The books OF the firm. did not exist Inc annual
sworn statement. the Insurance Department OF tins
state, made by Ir Aiger. saOw large amounts a.
premiums in due Of collection. The statement
December ST. 1876, gives tins item ~ 81 ,OOZ: Tor
IS75 IL Is SGI3l45 According 10 the books OF ne firm,
lt is stated the cunt only small traction 81
these 10 the monthly statements rendered me COM
pany true balance from the agency was shown,
Iut the company led TO believe the amount due
was either bank or had not been collected, or was
Otherwise equally IL was Thought desirable that
the American agency should carry bank account Tor
considerable sum, be prepared Tor extraordinary
losses and this IL supposed, the true condition
the account. Instead OF which, as 10 now appears,
Al.er compelled repeatedly to resort TO neeO-
tatous Of sbOIt-tne loans and other expedients IN
making Up LIS accounts.
air. schoOHmaAcr stated yesterday, that the total
amounts due American cuuranlts, were a. follows:
Fantu Han Omuauy, Of Boston, $4,000; NhaNuui, OF
Boston, ~ go; Merchants, OF Providence, $1,000;
making q totl a. $500 Instead OF OWING the Glcue
Falls Company, the company owed the firm balance az
500 Much sympathy expressed among insurance
yesterday, Tor DIR. SchOOaIaheI Who was NOT e-n-
Cit bu directly accountable Tor tIc present
condition Ul aAilis.
Mr. Anrer d. Secretary Of The National Board Of Fire
UNDERWRITERS he has taAcn active part IA tie work Vi
the assucItion "a hummer OF ysafs. and has been
advocate of the systcn establishing nNeu ratrs
OF insurance.