New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-05
ANOTHER DEFALCATION.


MIS- SUFFERERS FOR MAILER AMOUNTS
The Insurance Agency of Alliger Brothers, OF
this city, been discovered Is IN default Tor very
large amount with the companies represented Oy the r
The principal portion Of the deficiency however Is III
the agcncys accounts with the Commercial Union Asur
auce Company OF London. The gentlemen at present III
charga Of the agency arc reuccnt as TO tue
amoupt due the Commercial Union Persons intimately
acquainted with affairs OF the agency, and who would
he most likely know the amount Of the dehc place
It at about 100000 From this sum- 1t Is claimed
there should deducted fully $4,000 due from agents
and in The course Of collection.
The United states agency OF the Commercial Union is
now in the hands Of the London secretary Of the COM
pany, s stanley Brown, and William Middleton Camp
bell member of the London Board OF Directors THESE
gentlemen arrived in this city Septemoer27 1t is
stated that Elijah Agcr suggested TO the company
few weeks ago, the importance OF his making VISIT 10
the home Office, and was agreed that he should
make the trip. On the Monday following his
departure from this city, the became alarmed
condition Of Affairs set forth in letter just re-
eeived from the NewYork agency whereupOn the officers
teegrapbed the banking house OF Morton BLISS d 20 10
take immediate possession OF the agency and investigate
tie accounts This was done the next day and on the
following Thursday Mr. Brown and Mr. Campbell LETT
London for this country. They consequently passed Mr.
Ager al sea. Since their arrival they have taken COM
pce possession Of the agency It's books accounts cash.
etc, and are temporarily conducting its bust
pess. 1t was stated by them yesterday, that
while the loss OF course heavy, 1t would
not in any way affect the policy-holders OF
the company much greater than the average
of annual profits realized by the company on ls
American business the present intention OF the
company to organize an American Board OF Control
which should have supervisory charge OF the companys
affairs this country. The active representative OF the
company would be cmpOye, at fixed salary and
through the Board OF Control more thoroughly under
The company's directions.
The agency OF Aniser Brothers established about
twelve years ago in this city has since that
time to occupy prominent position among the leading
Insurance agencies IN the United states. For
number Of years the firm did business IN PIN
st., but two years last May removed
10 the elegant Offices in the basement OF
the new addition TO the Equitable building, at No l2O
Broadway Tnis Office specially fitted up for the ac-
commodation Of the agency at the time the Dnld-
ing was constructed For several years the firm con
sisted of Elijah and Richard D. Aigcr and George w.
schoonmak-r. Nj schoOnmsker held oueOurth inter
est in the drm About year ago Richard d. Aliger Oh
tained the agency the Imperial Fire Insurance Com
pany, OF London, and withdrew from the agency OF All
ger Brothers The general management has been IN the
hands Of Elijah Ancer since the agency was esiab-
ushod. At the time he started for Europe,
the companies Represented by him and MI
scboonmaker the Commercial Union, of London
Gens Falls. OF Glens FAILS, New-lork Merchants Of
Providence, r. / and the Ianeuil Han and sha"mut
Insurance COMPANIES OF Boston
OTHER COMPANIES NOT AFFECTED SERIOUSLY.
In addition 10 the amount due The Commercial Union'
the agency indebted The other companies abov"
mentioned but FOR a comparatively small amount Aitr
the arrival OF the representatives OF the Com
49,. Erier1c u,rau.es was called AZ tine Office Of the
Ann he acco1ilts we're examined and II was decided
10 ieaye thc aenes in the hands OF Mr. 5rhoonna&er
until after tic return OF Nj Aiiger ihe olhtl pre-
led among insurance Yesterday tlAt Mr. sc1oh-
I.ak,r was only indirectly responsible for tue prcscu
condition OF The agency, aud ths opinion was shared Dy
NJ. Brown, the secretary of the Comm 'rcia Union,
said YESTERDAY that Mr. Aiiiser had f19yea inc imiNc
Inotest knovledge Of me condition Of The agency until
6optenbcrS 10 was still mystery what had been done
rtsnoi generally believed that Mr AIicer specialized
ON ". list 10 Was stated yesterday by tnOsc wLO have
been intimately acquainted Win him Tor years,
that he was very liberal among bis friends
self and invested his money 10 several enterprises
that aad doubtless proved unPl ohlaoie among theso
were the American Mirror sign Company, pa'ent
Saaakr ana o C.aoC T(s I i i9 v,,icest
county, on which. It was believed, he spent
o. General sIaies STAFF. ana recently made MAJOR.
lie ALSO trustee ot thc Peabody Home ahd a d
several insurance c0mn1uir IL S alegel ihai
d"ri frrlrnt Of the Brewers and siais,er insur,nca
Company, WHO, stated ia yesterday TRIBUNE 10
largely indebted 10 his company.
II is generally admitted even amone his friends that
Nj. Alnge, was closely ireseei Tor luhGs 10 meet ais
continually maturing eneae uents "lth BIS coUaheS'
and that he rc-oTted various means TO tide over
steamer day when his accounts were due. gentle
pian intimately acquainted with his manner of DONG
business stated YESTERDAY that in addition repeated
loans obtained fiOm his friends he Was IN the habit on
making lIolIl COlttthNs DN tUNn OF NUE. lli'I tlN
p1icynolders Of nis COMPANY, and ihen retaining a.
long as possible, such portion OF the premium as
was due other companies for a partial rein
fluance Of large policies The compensation received
from tue Commercial Union .colsisted OF It
commission on the premiums collected ANA a further
Iercont.e the profits on tie years business The
gross irciuums received ia 1876 ou business oie ~ the
United states amounted 20 fJ96s y amer deducung
premiums Tor reinsurance. The expenditures ior the
same time were SlGG 40, pOruou U which consisted of
s2gGzl paid losses; So9J31, commissions and
bToker4ge; and S35,32O salaries, etc.
REASONS ASSIGNED FOR TIE DEFICIT.
"a D. Al rrf.r
hss raised any money They admit their inability 10
explain what has been done with such a large
that mentioned as the deficit but they clam that part
of it has been lost with agents ana Win friends with
many OF whom he known 10 bs very huega.
His actual financial condition, however, has been
kept, apparently, from ms most intimate friends.
gentleman. who has ned close business and social
relations with linn for ears, stated yesterday that ne
lad not the rcu0tE knowledge OIL the True cause OF MI
AlgtIs trip TO England until after he lett the city, al
though hc parted with him the day he sailed II is
claimed by ms friends that tie company has been
Kept in possession VI information, all the tme of the
true condition OF the az ncy. aud that each mOnuIy
statement forwarded showed the amount OF tn deficit
81 that time They the amount has been gradually
Richard ID Anger brother OF T. Aniger, and formerly
his partner stated TO IBBUNE reporter last evening,
that he did not Know anything about TIC matter beyond
what he had heard Mr.. Brown, The secretary
Mr. Algcr has been at 81. Joan, New-Bruns wick,
nucl Of the summer adjusting the loss 0f the
companies rcpIe~ Dts aud theeiOIe had no know-
edge. he says OF his brothers business transactions but
from knowledge Of him. Is satisfied nat uis brother
can eAian VIZ. w ~ va ~ ~ Us go
10 Mr Alizer SAID mat Ms brother was man hlneu
larry free all vices lie dd not drink nor gamble,
neither aid he speculate. Richard Algcr was u the
opinion that his brother had been drawn INTO this di
Gully on account 81 his kindness OF heart,
Mr Alger l. ieeted 10 arrive IN this country next
Inc Commercial Union was admitted TO DO business IN
tits ISL According TO the last annual state
.T - Il fNN OF ~