New-York tribune., 1879-08-30
LOCAL MISCELLANY.
INSURANCE MANAGEMENT.


OLD DEFALcATToNs IN TWO FIRE INSURANCE CON-
PANIEs-RETnEMENT OF The ROYAL CANADIAN.
Superintendent Smyth, of the Insurance Depart
ment several days ago. in conversation at Albany
about the affairs of insurance companies made a
remarkable statement concerning defalcatons In
fire insurance companies of this city that had re-
maned hidden till disclosed during the present
month by an examination of their books by the De-
partment Iu one of these companies an old one,
Mr.. Smyth said, the defauter was the president,
whO during ten of the eleven years that he held the
office succeeded in stealing between $4,000 and
$50 900. Yearly the other officers of the company
had certied that the presidents books and accounts
were correct, and when he died. two years ago.
they passed resolutions in praise of his business
ability and commercial honesty, and voted his
widow as a gift 81 900. This assertion of Mr..
SmSths naturally caused much surprise among the
insurance companies, and insurance men have been
very curious to know the name of the unfortunate
company. The name was revealed yesterday, and
it proved to be the Knickerbocker Fire Insurance
Company, the oldest company in the United States
having been organized 10 1887. Its offices are in
modest brick building at No. 81 Wall-st. Peter
V. King is now the president. The defalcation
took place during the presidency OF Joseph H.
Townsend. Mr.. Albro. the secretary of the COM
pany, in answer to the inquiry of TRIBUNE re-
porter regarding the ueIalCdllOu, lebleTudyt
1--WE do not care to make any statement about
the matter. II there was anything wrong done the
thing is now riGhted.p 80,
HAS the $4,000 defacatiOn been made good T.
Nr. Albro was then asked.
1--WE have decided not to say anything about the
affair. But we will say that we can pay ITO cents
on the dollar on all claims against the company.
The company has a surplus small one, despite lts
losses last Winter; our securities are all In United
States bonds, and we own this bUiIding.n
90 Ii would certainly interest your policy-holders
to know whether the deficit of $4,000 has been
made up| ..
worthy relatives living. There Is 10 need even OF
your mentioning his name"
superintendent Smyth, in the course of his re-
marks on defalcations, also mentioned fire iDsur-
ance company that had suffered loss of $4,000
through a former secretary who had stolen small
amounts from time to time. This company, 1t was
ascerained yesterday, was the Adriatc Fire lnsur-
ance Company. 1t has an Office at No. 1S7 Broad
way. On August last its officers announced that,
regarding the fire insurance business as unproftabe
al present they had resolved to go out of business
and hat accordingly they had relnsured its r ks In
another company and were ready to pay all claims
against the company. The present secretary OF the
company, n. q. Rogers, has been In the employ OF
the company twenty-one years and bears an excel.
lent reputation. The defalcation was the crime OF
a former secretary. He repaid $4,000 OF the
amount stolen and gave his note for the remainder.
The policy holders will lose nothing by the defaca-
tion as all impairment of the capital OF the corpora
tion in any way has been made good by Its stock
holders
The Royal Canadian Fire Insurance Company OF
Montreal is closing up its business in the United
States Its outstanding risks have been reinsured IN
the Commercial Union OF London. The company be-
gan business in Canada in 1873 with capital
stock of 100000. In May. 1875, . opened
branch in this city. Charles NJ; Pe;k has been
the New-loTk manager, and y. I. Clse,
of Boston, the general manager for the
United States. The business OF the company
In this country amounted last year to about
1926. 900. Its surplus for the same year was
S203. $40. The total assets of the company are
about 100000. The amount of its risks III TINS
how not vat hpa
The company is said to have found the United
States business Improbable, and on this account to
have decided TO withdraw its branch offices. The
Canadian business it is understood will DO contin-
ned,