The New York herald., 1879-09-01
FIRE INSURANCE.

SUPERINTENDENT sMYrH ON THE REPORTED
IRREGULARITIES IN CERTAIN COMPANIES
TIE DETAILS FURNISHED.
ALBANY. August 81, 1879.
Superintendent Smyth. of the Insurance Depart
ment in response inquiries to-day relative to the
disclosures recently made to the condition Of
tain hre insurance companies In New York city and
Brooklyn replied that he believed the publication
was necessary in order to secure moro watchfuness
aud care ON tho part Of officers and directors Of
companies. He quito sure that the
publication had had largely that effect es-
pecially as it had proved that State SUPER
vision, an attempt to abolish which hap
PLY failed in the last Legislature. was keen and
yigilant enough. not only to insure the safety of
policy holders. but to detect irregularities in
panies which their own officers and stockholders
knew nothing of. He thought the warning would
be salutary also upon those officials who are now
tempted to fraud by tho apparent carelessness Of
superiors He repeated that tho publication had
done effective service in the warning and advice
which it conveyed. He had. however, received q
large number of letters from tho officers OF various
companies protesting that it unfair to leave
published the names Of tho companies referred to,
as the article thereby directed suspicion at
every other company and injurious to
those which had conducted their business up
rightly and without Irregularities. There was. he
said considerable justice in this. and he believed it
would now bo fair and judicious to publish the
suits of the examinations of fire insurance
made since January l. 1879, and first the names of
Under these circumstances the Superintendent per-
mitted your correspondent to draft from the notes
of his examiners the accompanying details of the
examination of the various companies referred to
in the late publication OF an interview with the
superintendent. 1t should be understood that the
four companies following include all referred to in
hiatt MT
ATLANTIC FIRE. OF BROOKLYN.
Tho defacaton of the cashier OF the Atlantic Fire,
of Brooklyn whose name escapes the recollection
Of the superintendent, but who is in arrest in New
York city. about $4,000. The company has re-
insured its risks in the Home of New York. and is
not transacting business. The company claimed
surplus before the examination in its report to the
department of S37.54 1S. while the examination
showed an impairment of $56.546 %. as follows:-
Liabilities including capital 4l6.l22 o4
ADRrATIC. OF NEW PORK.
There was q defalcation in the Adratic. of New
York on the part of Charles S. Hartshorn, former
secretary, now dead. amounting to about $4,000.
OF this $4,000 was made good by surrender in
part Of his stock IN the company, part in cash. and
the remainder IN ira, no.c % ,or si1' wn,cn ye' re- re-
risks in the London and Lancashire In urance Com
pany. and will not transact further business. Tho
showed surplus of 81. .10G Ys while the examination
showed not only wiping out of this surplus but
impairment of the capital as foilows;-
Assets. -
Liabilities including capital. 2s2.62l 50
Impairment t........................... $4,000 20
THE KNcKERpocKKR LrFs, or NEW YORK.
The funds OF the knickerbocker Life Insurance
Company of Now York were purloned by former
president Joseph L. Townsend. who IN now dead.
His pcculations extended ten years and were
never mistrusted discovered by the directors of
the Company or by the Auditing Committee which
passed his accounts. in accordance with the by
laws, overy quarter. The books were manipulated
by the president that the balances would
show correctly after the funds had been
taken. At his death the Board of Directors
gave his widow bonus of $1,000 and passed
resolutions euiogizing his memory and an-
nouncing that the bonus was given because OF "hs
useful and meritorious services" IL Is estimated
that his desalcations reached between $4,000 and
$50, 900. The last statement OF the company to the
department exhibited surplus OF sT7.sst 80. Tho
examination reduced that surplus TO s2ls GO, as
suming the real estate OF the company. No. - Wall
street. New York. to be worth 100000. The super
intonden will cause appraisal OF this property to
be made at an early moment. The assets and iabili-
ties reported by examination as follows:- =
iiabuities. Including capital ......... sSi 5y7 rs
BROADWAY FIRE on NEW YORK.
The Broadway Fire Insurance Company, of New
examined by the department with the result OF nd-
ing irregularities. This is true. but the ir-
rogularities were very trihing, the sum fully
restored, and the empioye who had committed
them, upon restoration and confession and i'm view
OF his having large family depending on him. was
Jr, himself recommending that mercy really
good policy. The company is in most excellent
condition according to the examinations of the de-
parmcnt and its officers of sterling integ-
rity. Its surplus all Liabilities. according to
the last examination, IL s2S5,l0 IA: its assets,
s5l1 .274 "a, ana it's liabilities. S226. l72 90.
CONDITION oF OTHER COMPANIES.
The following table shows the condition OF other
companies upon examinations recently made com
pared with the statements made by the same com
panics last winter as to their surplus:-
Suypt,S At Erdrnind-
Jan. L. 1879. ton.
Commercial. ............. $l70.523 25 $93, ,663 II
tilobe... 12',i1G 16 49, ,S66 80
Manufacturers and Build
ers'..................... 202,2sl "a 193.4G 10
Sterling .................. 4v,231 70 3i.31O 40
Tradesmen s............... 1Sl,3Ol 40 16l, ,V99 SO
Westchester. .............. 171,170 "a 3sTg2 O6
The Emporium and Franklin have been merged.
They show united surplus OF sl43.259 As, while
the report In 1879 shows q surplus ON the part of
the Ennorium 10 the amount Of S3A AZ. aud al i'm