New-York tribune., 1877-06-26


HOW THE CONDITION or THE ME1RopoLIrAN FIRE
INSURANCE COMPANY WAS MsREPREsENTED IN
THE ANNUAL REPORT--IAKGE LOANS POORLY
SECURED.
Unpleasant rumors have been atiOat for a
few days in regard to the management ~ the MetroP-
ten Fire Insurance Company. ana from gentleman
largely Interested in the company and who is IN posi-
tion know the truth, the following facts have been IS
certaned: In January last, by vote OF the stock
holders the company was placed in the hands of
ceiver Charles T. Appeby, President OF the Fire
mans Fund Insurance Company being selected
for that position. The last annual report Of
the financial affairs of the company was made
in January 1876 and ia this il was stated that The COM
pany held United states bonds for $122oo0 OF the mar
ket value of $4,000 On the presumed surplus Which
these bonds ade the company kept up for another
year when It's failing condition could no longer be kep
a secret and il was concluded 10 wind II M. sald the
gentleman who gave the information to IRlitNE
repartcr: "If / asked how many OF those bonds
went into the hands of the receiver should answer,
none ard If were further asked how many there were
on hand when that report made by the President,
should also answer, The books OF the company DO
not anywhere call for that amount OF GOyorninent
bonds II was false and deusive en-
try The only amount Of Government bonds that Tie
books call for was $4,000. upon which the full amount
had been borrowed. except carly in January, 1876,
when $50 900 in bonds sold for S36451 10 pay up
some money due TO the Metropolitan National Bank.
The receiver did receive Government bond OF
$780, upon which there had been loanei s95 23 The
books show also thar several corporations and persons
wele largely indebted to the company, who do not figure
at q in the Presidents annual statement The Graham
lie and Trinidad Asphalt Pavement Company. tie
Municipal Oxygen Gas COMPANY aud ne Union (hOW
knicherbCckeD Gasght Company appear ola tine bOohs
AS heavy borrowers. During tIe past year lOats TO
these companies largely increased. and the only coat
erals to secure the money their stocks and morte
only few Of which are available The loans 10 the Pave
ment Company al time were as high IS r60OC0 The
Knickerbocler Gaslight Company owes u tie Metro
poitsu Insurance Company 4654l3 So and accrued
interest"
IA ecent report OF the receiver made 10 the stock
holders, AZ pears the following suggestive paragraph
The former president OF tue company, Robert " c.
of ,b MeTopoIiiaa I,urnce company 6eions To-
tc company subject 10 amounts stated to be ownG
Globe Mutual Lie Ius Co.. loan on $40 shares $4,000
y. M1lgiu- lOai oA 500 shATes--..--..- iVuuo
Saaui14Sls m iD9 I'll fie nd n1fiue ins co. BIS.
. ' ecc % at inc iuo Of rc oais sogd On the took.
Of the Metropolitan Insurance Company ~ the inciydA
name Of L. ". {. Graham, and stii docs, except the 2Se
shares which appear - have been transferred 10 tIc
Manufacturers Fire and Marine Insurance Company.
TO lie company Dec 81, II & l532. Dene 80 per cent
OF The par value Of sad stok leSs TIE oa- thereon ar
above.
In answer 10 tie question, "How could this state Vi
affairs Il the Auditing Committee performed
i,s duty r the response was None OF the direcors
supposed there any thing wrong, and the president
composed the committee suit himself The secictsry,
samuel j. Young would make up report as tar s
authority extended, and the president would add L."
portion referring Tie secuTities lac claimed and eI
erciscd exclusive control over At tie time these
heavy loans were made TO tue Union. afterwsrd The
KnicKerbocker Gaslist Company, Mr. GraAaIn was IT.
DC sdent also aud hc claims that made nothing O
Of H. hJ made the loans what lie believed to be good
securities
-
TIE TRIBUNE reporters informant, has been In eX ft
euce since 1919 ana as long i attended to Legitimate
business q prosperous condition, Dut killed
by uisnanagciucnt Of its finances, tD very mild
term, for II the matter is pushed iy any one there viii
be something iOr o Grand Jury 20 inquire INTO"
Tie receive. when called uiUa stated that hc fully
pected 10 be able 10 realize 80 cents the dollar for
0clh0 lder and" SAID he. II the mort gage bonds
ol the RncAerbOcker Gao Light Company Jun out at all
valuable We may realize 20 pen cent