The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-02-19
INSURANCE TROUBLES.

THE NORTH GERMAN FIRE INSURANCE COMPANY S
PROPERTY IN THIS CITY ArrACHED-PARTIcU-
LARS OF THE SUIT AGAINST IT.
In the early part of last month Alfred T. Richards
formerly assistant manager of the North German
Fire Insurance Company. brought suit against the
company to recover $4,000 damages for alleged
breach of contract. 1t is alleged in the complaint
that the defendants foreign corporation organ
lied under the laws of the Free and Hanseatic
State of Hamburg in the Empire of Germany.
and that in December. 1877 plaintiff entered into
contract with the company to act as their assistant
manager for period of five years from the LIST OF
January 1878, his operations to be carried within
the district east of the Rocky Mountains For his
services such assistant manager he to receive
salary Of $1,000 year for the first three years and
$4,000 year for the remaining two years. Plaintiff
alleges that the contract was broken by the de-
PENDANTS without cause to his pecuniary dam
age and loss to his reputation-in all to
the amount of $4,000. In their answer
to the complaint the defendants admit that
the agreement made. but that the terms Of
it broken by the plaintiff to such extent and
damage to them that they were compelled to dis
charge him.
On Monday last Mr.. Richards went before Judge
Blatchford in the United States Circuit Court, and
made affidavit that the defendants a company
had met with losses by reason of recent
fires in New York. and as he had no security
for his claim, and the company, he
alleged, were liable to remove beyond the jursdic
ton of the Court, he asked for writ Of attachment
against the company against such collateral or other
property of the company as may be found here.
Judge Blatchford granted the writ which was placed
POSSESSION Of the company's office at No.
202 Broadway, and afterward attached the funds
the esa 81
the company up to last evening was in the charge of
q keeper, without interference. however, with the
THE GENERAL AGENTS STATEMENT.
In regard to this affair, Mr.. Charles H. Ford. gen.
eral agent of the company. stated to HERALD re-
had been made with Richards but had been
violated by him in the first place. In this
such instructions as should at any time
emanate from the main office. That in July, 1878,
agent. and attorney. in fact, OF the company with
Instructions to take charge of the Office here, the
plaintiff persistently refused to obey instructions
given him, and he ordered his dismissal, acting
der the powers delegated to him. Following upon this
richards brought suit in the Seventh Judicial Court
sought to remove the case to the Court of Common
Pleas but the motion to this effect refused by
Judge Pinckney, and Judgment was given against
the company. An appeal then taken to the Court
of Common Pleas. where the judgment was reversed
Nothing further was done in that direction. Mr.
Ford further stated that the writ of attachment issued
by Judge Batchford appeared to be very strange
proceeding as the Court must have been aware
that under the insurance laws of this state the com
pany compelled to deposit with the department
in Albany S27O.000, in bonds and beyond this they
had sum Of over 100000 deposited with similar
departments in other States and with trustees i'll this
city. These sums were entirely beyond their con-
troll and, fact, the deposits specially intended
to meet claims of this description. In refer
ence to the plaintiffs affidavit that the company
had met with heavy losses through the recent fires
in New York, these would aggregate comparatively
small sums. and would be paid soon as the neccs
sary formalities were concluded; that the entire
liabilities of the company were $10S.00O, against
which there was over $3.50, 900 meet all claims.
To-day application will be made to Judge
BatchtOrd vacate the attachment. The fact of the
Office being in the possession of deputy marshal
does not interfere with the regular business, and
while there was some inconvenience from the fact
that the funds Of the company were attached, ar
rangements soon made by which all checks
and Indebtedness of the company were met without
DELAY,