Daily Republican., 1880-11-29

"bogus" books the books containing
expired policies.
W. K. Cleavsr, swOrn.-I did mo-
know my name was used as an incorpo
razor, bat was aftsrward director al
was Mr.. Ash and withdrew for the same
reason a. he did.
|. Thomas Price, sworn. (yhe testi
moRy of this witness WAS similar to the
foregoing.
Al I.20 O'Clock Court adjourned IN
til 2 o'clock.
AFTERNOON SESSION.
Court assembled at 3 o'closk.
William Muer, sworn.-I have beer
connected with insurance companies
for 25 years in Philadelphia and New
York; in September, 1879, i made an
lAves tigation Of the affairs Of the Della
ware State II. & N. Ins. Co, at the re-,
guest of J. R. MoFee Esq, Insurance
Commissioner, they employed me as an
expert. Messrs Bright, Myers, Tan.
tam and McPes we're present:
vas unable to determine from such
books as the company had what
the company's condition was.
found no record Of Assets upon the
books ; the largest items of assets were
IN bonds and mortgages, amounting to
$50, 900; | did not see any marketable
securities in the shape Of Government
or state bonds; folded In the mortgages
were assignments, and most Of them
we're not recorded the result Of my
examination was that / advised Mr..
McFes to disallow an item of $50 acres
OF land, and an item OF bills receivable
which had besn given to the company
by individuals and were all overdue /;
Myers said the bills were given by
parties for stock, and were as good as
gold; they amounted to nearly $l2, 900;
the premium notes were exhibited by
the officers as assets and were given to
the company as q basis on which to
pay losses they had no negotiable
value, and only became negotiable in
case Of losses, and stand as security for
losses which may occur; on my recon-
mspdation they we're not considered as
assets :, the next item offered was the
Office furniture, and the commissioner
thought this ought not to be allowed.
Ths item Of accrued interest on premi-
ums amounted to $3,05l.51 and was
thrown out because it was not due and
might never be; the only things which
could be converted into ready cash
would amount to between $500 and
$400; the commissioner also threw out
the four moltgaseS on the Dauphin,
Co., Pa, land on all affidavit of an at
tsrney who had been employed to find
cut the value of the property.
Certified copies of these afidavits
were here produced and offered in evil
dence but were obj jscted to by Mr. Lore
until Mr.. Mo1ee took the stand and
identified the papers.
Under cross.examination Mr.. McFse
stated that he had made the examina-
ton at the request of the plaintiffs and
that no other insurance company had
ever asked that their affairs be ex-
amined into.
On Mr.. Lore continuing the objection
the affidayits were ruled out.
Mr.. Myer, recalled.-Ws threw out
the land in Dauphin county on the
strength Of the afidavits l recommeD-
1ed the commissioner to take steps to
close the company up as it seemed to
brsstoundei on a fictitious basis and
of credit. | remember that
In going over the bill Of unpaid claims
noticed that the loss of the White
Deer Mills in Pennsylvania did not
appear, and knew that had sent
The claim myself the day before.
asked about it and Mr. Myers, the
Secretary, told me he had no know
edge OF it; the policy Oh the Mill l
link called fr $1,000.
Mr.. Lors-What we're the assets
,laimed by the Company
Witness--Some two hundred and fif.
y odd thousand dollars think.
"What did you allow them?"
"We found the cash assets to be $3l.
1917, against which were $40, ,25l.55
liabilities, leaving net total Of $ll,- ,
)60 in cash assets"
Witness was here shown a policy Of {
he insurance company, containing the
,lause that in case Of fire. the insured
vas to receive only two thirds Of the
oss and would have to bear ons-third.
Ie stated that in sll his experience he |
/ ad never seen clause like that in an
policy.
The Court--I do not think that Is un-
usual The Kent County Mutual with {