The daily gazette., 1877-05-22
Delaware State f. & M.
Insurance Company.
THE CHARGES A GA INST IT'S INTEG-
RIIH-AN EXAMINA TION INTO
ITS FAIhS-EITDENCES OF
s Il SO UND AND DESER WING
INjSTITTTIOW f-
INSTITUTION.


an infamous character against the Della
| ware State Fire and Marine Insurance
Company, the principal Office of which is
! located at that place, and denouncing said
company as fraudulent institution. un-
deserving ofpublic patronage or business
support
| On investigating these rumors, a GA
zETTE reporter was enabled to carefully ex-
anime the books andaftairs of the Company
and to obtain from documentary evidence
of fundoubted correctness, the following &C
| count of the transactions of the company,
from its organization to the present time:
The company was chartered by an Act of
Assembly passed at Dover, February 23d,
1875, Messrs. J. Thomas Price, John T..
Cheairs, W. E. Cleaver, F. S, Dunlap,
George B. Money, Thomas Bird and Chas.
G. Ash being named as corporators. An
organization was effected on the 23d ofApril,
1875, when George b. Money, c. E. Rollins,
| G. A. Garrett, j. II. Myers, ]. Thos. Price,
Charles G.. Ash, and w. E. Cleaver, were
elected directors. On June 1st, following.
the directors organized by electing George
B. Money President and James H. Myers
Secretary and Treasurer. .,
The first annual meeting of the company
| was held on January 18th, 1876, and the
minutes show that the resignation of Geo.
B. Money as President was received and
| accepted by a unanimous vote. Col James
b. Henry, a welt known citizen ofDelaware
| City was chosen to succeed him, and is
still President of the company. The an
nual statement showed assets amounting
| to $153,O0O, of which $1Oo, 900 was in guaran-
| teed capital. and $50, 900 in premium notes.
| At special meeting. held in the following
June, losses amounting to SO ,415 66 were
adjusted and ordered to be paid. In two of
| these losses the insured parties palpably
violated the provisions of their policies, in
the occupation oftheir premises, potwith-
| standing whichfact the company paid them
their respective amounts in full, and re-
celved therefor letters ofthanks from the
gentlemen to whom they had thus acted so
fairly.
AT the last annual meeting. held on the
9th of January, 1877, thirty-six directors
were chosen, all of whom were policy hol-
ders in the Comphny on the mutual
plan. All of these gentlemen who
were not present were duly notified
of their election, and their names
were not as asserted in the article above
alluded to, selected without their consent,
in order to give an air of respectability to
| the concern. Mr.. John P. Hudson, of st.
Georges, who is charged with having de-
nounced the company as humbug and
| fraud, did nothing of the Sort and on a re-
cent visit to Delaware ity vigorously de-
nounced the author of the charge shame
less falsifier.
The minutes of the same meeting show
/ that the President was allowed $500, and
the Secretary $1,000, as salaries for 1876, and
no evidence whatever is found as to the Di-
rectors voting themselves $500 per year
each for their salaries, as charged in the
| above mentioned article.
The books of the company show the ex
istence of bona fide policies TO the mum ber of
| nearly fifteen hundred nearly all of which
are on residences or farm property. In the
applications for policies, all the items are
carefully specified, as to character of pro-
perty and amount of insurance desired and
an accurate and minute plot fthe property
designated accompanies each application.
The policy holders represent every town of
importance on the Delaware Peninsula and
include many well-known gentlemen of
prominence and influence in their respec-
tive localities. All these policies, with
veIy few exceptions, are fully paid up.
The accounts of the company are kept in
the most accurate manner. Each item on
each policy is carefully noted, while the ac-
counts with local agents are infinitely re-
fha of in IL
dental office expense-showing at a glance
the amounts received by agents, their ex-
penses and commissions. and the amount
forwarded by them to the company. ALI
letters received at the general office are
carefully preserved, and copies of ALI let
ters sent from the office are taken and re-
tanned.
The company was established with 3
guaranteed capital of $100, 900 representing
su ubscribers to the capital stock for that
amount, whose subscriptions are secured
by duly approved mortgage or promissory
notes. Col. James b. Henry, the President,
is a subscriber on the books TO the amount
of $500, Notwithstanding the company is
charged with having no security whatever
from him. The premium notes of the COM
pany amount to S15O,0OO and as they in
crease the risk on the stock is materially
lightened.
In the letter above alluded to several un-
maid claims are mentioned as awaiting
payment. the first of which is the ella i'm of
Thos. l.. Day & Co., of Henderson, Md
This claim was, on January 9th. 1877, re-
ferred to the Executive Committee with in
structions to examine all the eircumstan-
ces of the case, and to employ counsel, if
necessary, in1the event of fraud being dis
covered in the premises. In applying for
his insurance, Mr.. Day made out three
separate proofs of loss in which he dwin-
died his loss down from $500 to $4,000, and
finally to about $1,000. He placed his origi-
nal stock at $500, and his purchases of
goods at S5 ,464, making total of $S,964,
His sales he placed at 81 .43S. which would,
according to his own showing. make the
actual amount for which the company
is liable only about S15OO, and out OF this
amount about S13 worth of goods were
not covered by the insurance. The COM
pany also procured duplicate bills for a
Il. HuN.A HnunnN nNII