The New York herald., 1877-07-03
FIRE INSURANCE FAILURE.

SUPERINTENDENT sMYTH FINDS THE ROYAL
CANADIAN INSURANCE COMPANY DEFICIENT
AND REvcKEs THEIR cERI1FIc%TE-THEIR
LOSSES BY TIE ST. JOHN FIRE.
[BY TELEGRAPH TO The HERALD.
ALBANY, N. ". July 2. 1877
Superintcudcnt Smyth visited Montreal on Tuesday
with bis deputy, Mr.. John Mccall, Jr, and mado
thorough examination OF tho various Canadian CON-
pauies doing business in New York State. Aliwere
found in thorough condition future liabilities
except the Royal Canadian, and the following lis an
abstract OF the report Just ready for publication upon
that company
The superintendent OF the Insurance Department.
aided ANA assisted ny the Deputy superintendent,
having made exam nation int0 the Affairs oil Tue
Royal Canadian Insurance. Company, regrets exceed
that IRON the result OF sucn examination II Is MS
duy " revoke the certificates OF authority heretofore
issued by the superintendent TO The agents oil said
company this State 10 transact business ior SAID IN
surance company.
The examination shows tho assets and liabilities OF
the company brought down to June l. 1877, with the
liabiiilics added in consequence OF tho late IRE IN
ST. John, N. b. the ls OF June 1917, as foows:
STATEMENT OF ASSETS AND LIABILITIES
AssSs invested n Canada al par vaiue $50 $50; AZ
market value, $252, O73; he most important among
these beng stocks IN The Bank OF Montreal o $46 900
par which sold IN market at $I5 7So and Canadian
Bank OF Commerce stock at SIC, 900, whicn sold AT
s24 050 in the market, most Of the other stock
selling below the original par value. The invest
ns .nS as so%S
Harlem New York Central Railroad bonds at par,
but eachng S0sl.650 IN tho market The premiums
in course OF collection amount TO $l27 9OS 50 and
other Increased the amount 10 ST. 1885, 470 80
rae liabilities amount to 81, ,7o7,2 ,207. among them
beng $lS4 1856 losses, besides $40 900 OF fire
losses IN tho recent ST. Jonn disaster r. the total show
ing impairment of capital Of $500 900,
Inc superintendent iouna tho books and accounts
OF the company perfect order and the officers aud
OF the company business inen OF high stand
Ing and moved by motives OF honesty beyond question.
But in making This report has discretion, the
Attorney General OF the State OF Now York having
response to request Tor legal opinion as
10 tho construction of the laws bearing this
subject decided that It is the SuperntendenIs duty 10
revoke the certificate gwen TO uuy compeny not IN
corporaed by the laws OF this State, whenever from
examination ne shall come 10 the conclusion mat
the affairs OF said company are in an unsound coudi-
tor and to excluae auy company when finds that
its affairs such unsound condition, whether from
impairment OF its h0me capital or otherwise.
WHAT rs SAID IN THE NEW YORK OFFICE.
As soon as the news was telegrapbed TO the branch
Office in this city from Albany that the company had
been suspended by superintendent Smyth account
Of impairment OF capital Manager William J. Hughes
Immediately started for that city lay before MIR.
Smyth statement showing the actual nding Of the
company far the United States is concerned In
conversation with Mr. Dinsmore and Mr. Hughes,
brother of tue manager. they stated as follows to
HERALD rcportcr:-
ue my AusuTopCe OoiuPdHy was etaTteu
in 1873 at No. 100 ST. James street, Montreal with
capital OF SO OO0 Of when nfeen per been
paid up. The following the Board OF Directors,
which is composed Of many OF the prominent Canadian
capitalists :--Messrs John Ostell. President; j. r.
Thibadoau Woo President, and Mcssrs. Andrew Will
son, W. Frederick Kay, NJ c. Mullarky Andrew Robert.
son, Hugh MscKoy, Duncan Mcintyre and j. Barsa-
lou There about twanty1ve hundred stockh0dcr rs
Tho originN oince IN this city was at No. "a William
street. and was removed to No. PSI Broadway on
May 1876 Hero an exclusive hre business has beel
Conducted, but IN Montreal marine risks have been
prscs Eugene Koliy, OF Eugene Kelly Co., bankers
john y. ood, OF Wood, Payson & Colgate, merchants,
anu W. H. Fogg OF CHINA and Japan Trading Com
pany, limited. All the premiums received IN the Uni-
ted States have been invested by the trustees III this
city, and held for the protection OF the policy holders
in the United States
The loss OH the Gre at ST John to our company is
$4,000 The loss will fall on the Canadian stock
holders. he tOaI amount OF the assets OF the CON-
pany the lst oil last January 29S, 70l 20 TO
which mos be ADDED the 1vc per cent assessment ou
$4,000 900 capital which has sDce been called
quircd tor tho ST. John fire. We have
made money TINS country and kept it
nere although our statement OF assets are ncorpo-
rated with those 0i the Office Our assets in the
United states are set down ut market price. II you
louk statement published the LIST OF January
Guiding $36S 675 OF United States bonde Our
surplus IN the United States liabilities
$369, ,4S7 TO- In addition to this must be
taken the ol $780, 000 surplus accrued SINCE the
Isl OF January 80 you see,'' said the officers that
on our side of the house matters In most excel
be cannot say, but this is certain-that tue Mon
treal people good for all their liabilities"