, 1880-07-30
Owing to the Incompetoncy Of
the Men Who Mall
aged 1t.
The Mutual, Policyholders I'm
able to Meet the Heavy
Burdens.
The Hopeless Insolvency Of the Compa-
ny purpose1y Suppressed by Its
Officers.
It Ia Finally Brought to Light by the In
vestigationa Of a Committee.
Special Dtpatth to The Cattaeo Tribune.

spsetai Dispatth to The Chteaqo Tribune.
PHILADELPHIA, July e0.-A more complete
wreck than that of the Lycomfng Firc-insur-
a,lce Company It would be hard to find even
In New Yurls, md its utter ruin Is due solely
to Tie Inconlpetency Of officials whose stand
nrtl OF financial integrity, while high enough
to prevent tllcll from adding to their very
moderate Income from the Company, was
still low enough to allow Of their presenting
to tho insurance Commissioner Of this State
statement so utterly ut variance With actual
facts rs to form I'M excellent foundation for
criminal prosecution; and yat the wreck Is
unly tho inevitable result OF trying to do IL
cash business with heavy expenses upon
paper capital.
The Lycoming Fire-Insurnnce Company Is
located iii Muncy. littte interior town ln tho
northern pnrt Ut tho State, On the philadel-
plita g. Erie I.aiiroad. 1t was Incorporated
In March, 1870 aud began business Iii tho
following month. For twenty years 1t had
prosperous existence AZ a mutual coInpatly,
10 the charter WIS passed authorizing 1t to do
business OIL the cash plan as we'll. The
premiums arising from casli insurance were
u be puId into common treasury,
Fl!Usl WHICH ALL LOSSES AND EXfKSsI:s
were necessarily 10 be met. But, the tnst
policies not being liable to assessments, all
deficiencies III income must be supplied by
assessment upon the notes of mutual policy
holders. The Company branchcd out into
an extensive ngcncy business all over tho
country, asl5 nff went well for awhile until
the Chicago fire entailed n loss Of $500, 900.
From tllat time the Company twas regarded
with suspicion by conservative State 1aslr-
ance Departments, an.I was soon prohibited
from doing business tn Massachusetts. ThDy
still continued doing business elsewhere In
the United Suites, and ut the beginning of
the present year lad Il large amount
at risk In the State of New Yurk
and all over the West, but tho business Ind
been done at heavy loss, all OF which. by
tie terms OF tic supplement- 10 the charter,
felt upon the mutual Insured.
| 4 special cotlElittce OF tho policyholde;s,
WIN nlade MI Investigation on the 14tl,, 18th,
| and 1Gtli Of the current month, nude n cul-
cniat1on Of tile results from the LIT Of Jall-
nary, 1915, tu 1st of January, 1880, which
showed Tint the gross premiums received
\ during those five years for casfl risks
amounted to ,3s5, ut total cost Of
Hill, ,57l, leaving sl,;Iai, ,7s5 rs >
| TIT: MET lScoME.
from cash policies, but the loss on suc poll
l Giles during tic iive years was S1,If3,117U,
milking the uctllni net loss to tho Company
on the business s:s,l ,5o5, or about $4,000 u
s.i, w. ~ , "n'I' '. nv" % ~ no '''st ny aSseS,
'heills Oh the n'ntaal policy'loiuefs.
The close Of the year 1870 found tho
Company completely and hopelesly In
. '..s S.,o .a' 1o.a s., ~ .e es. ~,
though even upon tint showing the net
amount of unpaid losses, to say nothing of
| tha ,,u.orppI nrr,utnms. ,y,ts ,rr.trr ti,on
~ an.,,. n..'ts Tn', H.. .,"ost;o,, -
the cnsst asse's. ine Hts1. anvhIlo't ~
thu Examining Committee or ING pol
icylsohters uf Centre County was
,,,,-r,nt ~ tIta .,,,t ~ 1,.r.,nl,,r I,vt H..