New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-06-30
MR. GRAH4M'S EYPLANATION
HIS VIEW OF THE METROPOLITAN LOANS AND STATE


HIS VIEW OF THE METROPOLITAN LOANS AND STATE
MENTs
In respect to the alleged irregularities in
the former manage Of the Metropolitan Fire Insur-
ance Company, r. NJ c. Graham. its President, says
The report Jan. l. 1876, laid before full meet
ny OF the directors and expressed any objection
to 1t m part or in whole. one Of the most wealthy d
rectors made an offer raise 500 co., take the secut
lies out OF boxes, aud continue business To this Mr.
Graham objected. and it resolved to retire from
business and 90 into the hands OF a receiver"
Referring to the charge OF docored securities" Mr.
Graham says: "The old ledger which was kept oy Mr..
West until he pdr4lyzed in 1879, has evidently not
ocen looked into. the examination the results Of
which have been published, must have been made from
the loan AMI interest uoo which all the Old balances
were transferred, and winch kept IN the saIe Every
loan ana every investment made by me examined
and ulorsed by the Finance Commttc, consisting Ol j.
l. tirinam, joan H. Brad ord, aud ii. II. Porter who
no., ,,i, nortrl o1p,, thr corr. Ct but recommended
u.at a dividend OF 3l2 per cent be declared This was
pad. and amounted 10 S2IJ.OOO. Inc IA government
hjs r,,nIfr, ,y me a. ON hand Jan. l. 1876 were in
cuSro Of the Company, and were sold between hal
@ IA H. ssioer of Faxes ami Assessments.
Tie sale no that time made saving OF nine yer
cent. as Governments declined shortly aicrWTd. /
- IS ,ni,l,uyIIv Interested IN one dollars worth
of the loans made aud believed at the time that they
ycr. M good security. the total lndcbtcdn - OF
Gn K,lrrrrbSr.er G1slieht Company Is $4,000. o.
tis -JOOUO Is due to the Townsend Bank ana $4,000
ia tue Metropolitan Insurance Company. Tue hicker
Goi, Cnn,,a owns two blocks of lani, from second
ave. L. tlle East River, between Nine}-tlshh ana
Nnctyn.utlsts., with rct0r-uouses puritys,
and two large holders, capable OF delivering lOOOOOO
feet of gas per day The worss cost 100000 exclusive
oi the land. certainly regarded the loan Us gOod |
b.Iavc lie Granamite and Trinidad AspIiltum Pave
mtnt Company VIII repay their loan, rs h,y nave Jdst
completed d heavy contract Tor street paving"
Ina fply To the question, WHAT do you consider the
c9il, OF The collapse OF the company T. ir Graham re
sWoudeI 4 failing of in business aud heavy cutting IN
rates When the presidency IN 1907 the amount
Of risks was large and they extended all over the cOun
nv OF course we had large reservation fund went
To- work with view to reducing agencies and in tour
monrh s 5000 policies cancelled and S29s,OOO Ie-
tIt,Iir ON premiums In 1866 our receipts wee from
: 900 to $1,000 per day bat Tter the Port
Etni fire that year they shiunh 90 S0OO Ia
nua wear we made marine insurance alone
a NET profit OF Sl7l OsJ H. In consequence OF our eN
tenslye agencies aud heavy fires that followed close
mon each other, our LOSSES were helVy AT Portland
alone amounting to over 92JO'OOO. Bdd loans were
u11e be ore became president The company made d
ln1u OF ~ 900 on property at No 233 Broadway Oh
v.uaou ID wears ago OF 100000. That loan now eA-
ISIS ANA by reason unpaid taxes and Interest has
,tv,cel 10 over $4,000. Good judges DO not think
the property would bring under the hammer to-day
over $4,000"
and il ne made unfortunate investments lie does not
feel that hc Is The only man III Ne"loIA WHO mas cOHi
milted such & D.undef