National Republican., 1880-08-16
pEoEITEp poL1cr-nonpER ERs.
Combination Formed to Close Up tho
Affairs of the Lycoming Fire Insurance
rn,nnauw

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A Combination Formed to Close Up tho
Affairs of the Lycoming Fire Insurance
Company.
An organization has been formed among the
Washington policy-holdeTs of the Lycoming
Fire Insurance company OF Muncy, Pa, for
the purpose Of resisting the heavy assessments
recently made against tho mutual policy
holders. At recent mooting, which WIS at.
tended by about forty policy y.holders, Mr.. U.
n. Ridenour was chosen president, with Mr..
William Mclean vice president and Mr.. Will
iam Lamborn secretary. The purpose of the
organization is 10 cooperate with similar
body previously organized by the policy
holders Of Centre county, Pa, aud at
the meeting Of the Washington policy holders
the following resolution adopted by tho Cen.
tire county association WAS cOncurrcd in
Resolrcd That the present committee be con
tlnucd with power, ~ connection with committees
appointed 'by meetings OF pJlcy.hOldcrs In other
counties or places 20 take such measures as IN
their Judgment Will lost conserve the interests Of
The poHcy;holder IN procuring an immediate liqui-
daton and closing out OF tho affairs Of the Lyconing
Fire Insurance company.
A resolution was also passed to confer with
the Centre county committee and, In cIsc any
attempt should be made TO force the collection
Of tho assessment against any one policy
holder, TO combine together, employ an attor.
uey aud cndeavor 10 have o receiver appointed
to settle tho compauy's affairs. A recent ex-
traordinary assessment Of twenty-five por
cent, levied by the company, led to an invcs-
tigatiou Of the affairs Of The company and the
formation of a protective union among the
pOlicy-holdors. A committee appoiuteds in
Bellciont, Pa, fully investigated the affairs
OF the company, anU from their report IL APP
pears that the officers of tho concern grossly
misrepresented its financial condition iu the
last annual report Following is brief state
4.
committee. The last annual statement Of tho
company, mado on the Slst OF December, 1879,
in accordance with tho laws Of the state of
Pennsylvania, showed q surplus over and
above all liabilities aud expenditures
OF $5i, 1920, condition of affairs which
rendered the recent heavy assessments,
aSgregating thirty.one por cont of the
premium notes, inexplicable. 1t was found
upon investigation that this published
statement was incorrect, tho important item
Of an Indebtedness OF 1889 2j2 OF being omitted
Fhe investigating committee found the COM
pany to be in arrears Ia the amount OF $780,.
3SS.i5 OH the 1st Of January last, and that this
Indebtedness has increased until 1t now
amounts TO about S350OO0. 1t was also found
that during the last five years the company
has lost annually the sum OF $40, 900, notwith-
standing their repeated representations OF
continued prosperity. The unhappy financial
condition of the company is attributed to
the cash plan Of insurance, which was
| adopted by the company, in connection with
| the mutual plan, in 1851 IL is stated that the
company continued to misreprcseut the ar-
| fairs Of the company, In the hope that the tide
would turn in their favor but the regent fire
at Milton, Pa, in which the company lost
| $4,000, put Gu end to the delusion and made
1t imperativcly necessary to levy heavy as
sessmGnt upon the stockholders. TLcrG is
much feeling among tho pOlicy-hOlders in
| Washington, who consider that they have
been swndlod Most of them have gone into
tho company during the last four or five years.
during which the company has been actually
losing heavily instead Of being in Il most pros
porous condition, as represented to the pub
| lie. Some of these policy-hOlders arc now un-
able TO pay the heavy assessments levied
| against them. Mr. j. Russell Barr has been
acting rs the agent Of the company here, but
none of the policy. holders appear disposed to
J hold him responsible for the deception prac-
| ticed upon them. Mr.. Barr had no better
means for knowing the real state Of facts
than the policy holders. When he received
instructions TO levy an assessment of twenty
| five per cent. on pOlicy.hoders ho immedi'
atcly resigned, as, according to his statement
he did not have the heart ~ approach in the
role of collector tho men to whom he had
been in the habit of making the most glowing
| representations concerning tho condition o
the company. The company has placed til,
pa pers in the hands of an attorney in this city
for collection. Meanwhile steps are bcin,
taken by the policy .holders to close up tn,
affairs Of the company.