New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-19

Viewed in the light of the receivers report,
there was a terrible irony in the title OF the
American Popular Life Insurance Company. a
preyions official report, that of the State SUI
perintendent, last April, after an examination
of the affairs of the concern, had prepared the
pnblic to contemplate an extraordinary history
of fasehood and swndling. The receivers re-
mort gives fuller details, and adds some blacker
touches to the picture. The company was
barely eleven years old, and seems to have
been continuously ins0ycnt. Throughout It's
career the process of cooking accounts" has
been carried on and the story of its affairs
which it presented for public view, was al
ways one of apparent prosperity. Its show of
assets seems to have been at all times largely fic
titous, and especially so of late years. Various
devices were rcsOrted to by which the unreal
assets were reated-such as the borrowing of
stock and bonds and mortgages for brief in
tervals, the pretended purchase of large
amounts OF different stocks the accounting
cash of worthless checks and memorandums,
and false entries as to uncOllected premiums
supposed to be due to the company. Ex-
cent in the dexerity with which these
matters were concealed by cross entries, there
is nothing specially new in this sort of per-
formance; there have been many such bubbles
pricked in the exposure of other wickedly
managed companies. But, in one respect,
the American Popular struck out a new path
in swindling. 1t created very large number
of dummy" policies; the State Superin-
tendent reported 1,034 of them; the
Receiver has found 2,806. These were
never really issued they represented
no genuine transactions or actual assurances of
lives. But they were duly entered to make a
show of business. The premiums on these
dummies were also entered and went to
swell the assets as in process of collection.
When the end Of each year arrived, these pol
icies were cancelled, and then again revived,
so that the delay IN collecting premiums
was not apparent Oh the books, as the policies
seemed TO be ever new.
The opinion of the State Superintendent in
respect to these transactions has been so
forcbly expressed that it saves the need of
much comment. He reports as to some of
them, that they were "papaby fraudulent,
land made solely for the purpose of
"getting credit for inadmissble items"
OF the issue of dummy policies. he says
"No excuse Is or can be made by
the officials for this outrageous proceeding,
"the whole method being deliberate swindle."
In respect to the responsibility of the officers
for these frauds the Superintendent is, indeed
exceedingly explicit; he says that he will, if
he can, Gin the course of his duty, cause
"such proceedings to be adopted rs will
"bring them to suffer such punishment
4" as they appear to have so richly deserved"
In view Of the fact that the president of the
company, DR.. Lambert, is about to be put on
trial for perjury in making oath to the an
nual statements. it is, perhaps, well enough
to await the decision of the court before
the guilt of these sWlndles is fastened where
1t properly belongs.
The queerest thing about this company is the
method by which it was accustomed to vindi-
cate its claim to be called popular" In a
series of circulars issued III successive years,
the concern described its prosperity in glowing
words, the result of peculiar system.
It's risks were graded according to the
supposed longevity of the families to which
| the insured persons belonged. This longevity,
or the want of it, was asccrtained by observa-
tons on the persons themselves, and was
specifically deduced from the color of their
eyes and HAIR, the measurements of the head,
the facial angle the space between eye and
ear, and like peculiarites. The State Supern-
tendent rather roughly designates these things
and the estimates of the prosperity of the
| company that were based upon them, as
! " the most absurd and ridiculous fables" The
company claimed that III consequence Of its