The daily gazette., 1880-11-29
WILMINGTON. DEL. MONDAY. NOVEMBER 20. 1880.

I
He made an examination Of this Com
panys business at the request of the
Company but no other Insurance Com
pany had yet asked him to make an ex-
animation Of Its affairs. Mr.. McFee
said the affidavit was made by a LAWYER
OF Millersburg, Pa, who was suggested |
by Mr.. Muir as suitable person to ex- |
anime the Dauphin county land.
MIR. Muir was then recalled. He said |
as result of bis examination he rec
commended the commissioner to take
steps to close up the company. His con-
clusion was that the Company had been
founded on fictitious basis and was
unworthy of credit. He said he had
once adjusted one Of the losses of this
Company, which was unsettled at the
time OF his examination. lie conversed
with the Secretary about the matter, and
that official said the proofs of the loss
had not been received. Witness, how
ever, saw the proofs in the office next
day. The Secretary sal the defense
was that the premium bad not been
paid to the Company. The policy had
been placed by all agent named Robert
Crane, Of Philadelphia, on a property
known as the White Deer Mills, in
Northern Pennsylvania.
Mr.. Muir said The gross amount Of as
sets presented for examination was
$3.50, 900, but BY the examination were
cut down to $31 ,383.17. The liabilities
we've S20,251.45.
The witness further said he had been
| In the insurance business for twenty
| five years, aud on being shown one OF
the Insurance Company's policies, show
ing that in case Of loss the insured
shsuld bear one third OF the am unit,
said he hal never seen such a saving
clause in any other stock or mutual
policy.
| On cross-exami nation he admitted to
MIR. Lore that he never examined any
po Icy with view to seeLg if it Coli
tained this clause. He said In relation
to the proof Of the Pennsylvania loss
that Mr.. Myers, the first day, said it had
moi arrived, but the next day showed 1t
to him, saying it had arrived durin; his
alb ence.
lie said he had thrown out SIS, 900
Of premium notes as cash assets, but
ad nitted that premium notes we're the
principal assets OF mutual companies.
He said, after much hesitation that there
WIS no difference between the Com
peny's statement and what they claimed
as assets. He was aware OF the fact
that the Empire Passenger Railway
Company stock, since his examination,
had sold as high as SIT per share when
he threw ID out 1t had nominal value
of So per share.
Among the notes outstanding which
he threw out were one of Brights and
ona of Tantam's which he admitted, in
response 10 question by Mr. Lore, that
he rejected without inquiriDg into the
character or financial standing of these
men. He said in regard TO these notes
that al an Interview with Bright, Tan
:um, Mr.. McFee and Paris T. Carlisle
at the Girard House, Philadelphia, he
m 4de this proposition: That if Mr.. Bright
would satisfy Mr.. McFee the notes were
given tor q proper consideration, in
proper and regular transaction, were
good for their face and could be COLI
Verted into money on reasonable no.
tice, he would recommend that they be
admitted.
The witness at first said Mr.. Bright
refused this proposition, but afterwards
Mr.. Bright said nothing in regard to it.
NOT A PERSONAL EXAMINATION.
Being asked if he had examined the
Pennsylvania land mortgages which
formed part OF the company's assets,
MIR. Muir said he had not. he did not
know where the Clinton county land
was located, and had only general idea
of the location of the Dauphin county
land, though he had lived tor five yeals
in Harrisburg,
TIE WRONG WAY TO CALCULATE.
MIR. Lore-Can you tell, from your
examination, how much mutual busl'
ness the company had in force and how
much stock business
f Witness--I cannot remember.
A statement was presented to him
, showing that the company had mutual
, risks amounting to $1,934,017, and stocl
risks amounting to $216.SeO.
Mr.. Lore-What is the ratio Of assert:
= to risks in leading Insurance Companies
f Witness-I never made any examina
ton of that character. This is not the way
the companies make calculations.
ABOUT THE EXAMINATION.
: Mr.. Lore-Did not DR.. Tsntum tel
YOU to make thorough examination o
, the Company's affairs, and if you saw
ANYTHING wrong TO tell hin of itP
Witness-I believe he did.
Mr.. Lors-Did you do SOY
Witness-I am not positive but thinh
| said 10 him that some things needed
cooking into. called his attention to thu
DauphIn County mortgages, but don
remember speaking about anything else
= Mr.. Lo-e-Did not Mr.. Blight alst
D ask YOU to make thorough examination
aud let him know if there was anything
wrong2
Witness did.
Mr.. Lore-Did you say anything u
him about it7
Witnsss-No-
Mr.. Lore-Did not DR.. Tantun allud'
= 20 the attacks of the Euery Ereninq as
reason for desiring thorough examlna
Lion?
Witness-I believe he did.
THE COMMISSIONERS EVIDENCE.
John X. McFee, Esq, Insurance Com
missioner for this State, next testified tina
l. he examined the affairs of the Delawar
Stat. Fire and Marine Insurance Com
,any. al the Company's request, ON tn
n the 23d, a4th and 2sLh OF SeptemOe
1879. He employed, as an assistant l
'. the examination Mr.. VIM. Muir, VIII
was recommended by Mr.. Davis, VIC
!, President OF the insurance Company q
q North America, aud by the lnsurant
i commissioner Vf Pennsylvania. In th
At examination the particular attention Q