The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-27
HALLIARD'S INSURANCE co.
REORGANgZdTION AZ 1T ~ PROPOSED
TO THE 3e STOCKHOLDERS
MIssisE Bends Not Found-Mortgage~ that
are WorthIess-Firy Per Cent. OF the stock
of the Crippled Concern TO bo Cancelled.

MIss,sr Bonds Not Found-Mo-tease~ that
are WorthIess-FIny Per Cent. OF the stock
of the Crippled Concern 20 he Cancelled.
The financial condition OF the State Firo
Insurance Company OF jersey City has been
impaired to such an extent by tho mismanagc-
ment OF John Halliard. who was until recently
the President Of the concern that its directors
and stockholders are ut present undecided
whether TO continue business or 60 into liquida-
tion. Tho company was originally organized
under a special charter In 1869. with capital
stock Of 100000. Mr.. Hnlard became its
President and its nffars wero intrusted almost
exclusively to his personal control. On the
suspension OF the Mechanics and Laborers'
Savings Bank. Of which he was also President.
State Examiner Van Camp investigated the al
fairs Of that concern. and the result disclosed
the fact that Halliard was defauter TO a con-
siderable amount. Suspicious were thereupon
very naturally excited and rumors circulated
affecting tho solvency OF tho insurance CON.
pany. and nm inquiry into It's condition wns be-
gun Immediately The books we're apparently
regular. and represented that the assets wore
largely In excess OF the liabilities.
Among these assets wore municipal bonds OF
Jersey City. Harrison. and Bayonne. aggregat-
ing In face value tho sum Of $27 500. and sew
eral mortgages either executed by Halliard or
assigned by him to tho company. The bonds
had always been kept in strong box in tho
Hudson County National Bank on Washington
had access Ses to- 10 them. When ZEN NJ. V Van Camp %
wishing to Inspect them. sent for them. they
were missing and have not since then been
found. nor has any satisfactory explanation OF
their disappearance ever boon offered. Mr.
Halliard asserts that some OF them wore sold.
and the proceeds accredited to the company
but there is no record of any such Transaction
others OF them. ne alleges, were his own pri-
his report upon which his Indictment for per-
jury Is based. he swore that they cOnsti-
tuted portion OF tho assets OF the institution.
The mortgages arc almost entirely worthless
ns the property on which they were given is
encumbered with prior mortgages or mechan-
surplus.
Alter these various lost or valuoless securi-
ties were deducted from tho assets, i was dis
soon after this exposure a reorgan zation Of
the company was effected by the election Of An
Secretary. and Hugh W. Mckay. Patrick Reilly.
Benjamin Edge. John Wenner, John CravAn
Edward Watson. and Even O. Kennedy as
ITO overcome the deficiency" Mr. Reid tho
secretary said yesterday, plan OF reorgnni-
zation has been proposed TO the stockholders
OF which tho principal features are that flity
per cent Of the existing stock shall be- cancelled
and preferred stock to the amount Of $50 900 in
s25 shares shall be issued. This will place us
in IA good n condition ~ before HHlliard car
ried out his speculation schemes. II will leave
us with n surplusage. including the rensur-
ancc fund. OF t25 900. Our nssets to-day are
t92 900. and for 5000 we can be reinsurcd.
Tho troubles OF the company are not at
trbutahle to any lack o' business. but solely to
the conduct Of Hnlard. The stock kholdera will
have to determine what they will do. but Ms yet
they have done nothing further than to appoint
| u committee. consisting Of Director Cravan and
Counsellor West 10 examine the mortgages
held by the company and report upon their
| condition. Tho characters OF the present
| directors and tho immense wealth which they
| represent should guarantee security to every
one Interested"
John Hdliard. John Van Worst. and Edward
| Hope bought stock. for which they gave their
I notee ana while they paid seven per cent. on
tho latter they secured ten per cent on the for
| msr thus realizing n profit OF three per cent
| When these notes became due they were gen
| orally renewed. although now Van Norsts stock
| has been forfeited and Halliard's shares hy-
pothecated