Daily Republican. [volume] ([Wilmington, Del.]) 1874-1890, 1880-11-30
THE LIBEL CASE.
Wilmington Insurance men Trniy
tell all they Know Against Their
RtyaI-more Testimony About
Land DC.

Land &e.
Specially Beportsd for tho Republican.
NEw CASTLE, Nov. 29.-Whsn the fifth
edition Of to.day's REPUBLICAN, cloted
the libel suit of the Insurance. company
ag ainst Ctoasdals was still on trial
William q. Gibbons, q director OF the
PArms srs' Mutual Insurarc Company
Was on tho stand, and Counsel we're ar
guiug over the admission in evidence
OF a report made BY their Insurance.
men in Wilmington, Of which the wit
ness was one, as TO the affairs OF the
Delaware State Y. K u. lns. Co.
majority OF the judges decided
against the admission OF the report,
either in written or printed form
The defense took an exception TO tLt
ruling.
Mr.. Gibbons, resumed.-The conolu
sion the COMMITTEES OF investigation ar
rived at and 80 reported was that the
Delaware state Fire 4 Marine insur
ance Company was unsound, unsafe
aud utterly unworthy the confidence
and, Go -operation,of the home companies
This report was published in the Every
Ryoniug, and In the Delaware Tribune
(the weekly edition OF Il. E.) in Novem,
| tsr 1878; the investigation showed the
assets to be mainly mortgages; the
general reputation OF the company fOr
iiuancial soundness is not good, their
DO lcies not being regarded as Of any
good whatever witness said tbs Pusey
x Jones, Co. carried $l5o, 900 in fire in
suranoe, tut he would not receive q
policy from the company; the Farmers'
Mutual Company does not do business
| in connection with the Delaware state
Mutual Fire & Marine Insurance Go.
Cross. .examinod--I DO not know who
authorized the publication OF tho re-
port of the investigating committee !;
1t was not with the assent of the Farm
ers' Mutual one Of the counsel em-
ployed to work up the proof Of the com
pany's standing by the company was
6eorge II. Bates, ESQ.,, counsel In this
case and stock holicr in the Every
Evening Publishing Co. | am also q
stock holder in that Co.
Witness was then subjected to a rig.
id examination with references TO tue
practice In co-iHsurance, and admitted
that it was usual when tive companies
held joint policies that If one did not
pay tho loss would fall upon the insur
cd and not upon the other company,
Except in case OF the matter going be-
fore Jury" Witness was aske1 TO
give q single instance OF case in
which the Farmers Mutual co.insuTei
with another and had TO pay more
than its share OF the loss, and, ar or
much equivOcation, he answered that
he had never known such an occur
renee.
The witness stated that NO member
OF the committee had called at the
fte Of the Insurance Company when
ths investigation was under way an
Invitation was extended by the com.
pany to visit their sfice, but the com
mittee did not avail itself OF the invita-.
tiOn | made no personal investigation
OF any Of the assets, and the report was
made wholly from reports made to the
committee by counsel, and therefore
know nothing OF my own knowledge !;
In oo.insurancs there is a clause in the
POLICIES Of the Fsrmers' Mutual, which
prohibits it from paying more than its
share.
Redireot--In making the report, |
had no object excepting to serve the
Farmers Mutual Insurance Company.
Mr.. Bates, who assessed the committee,
only examined records.
George Richardson. sworn Il am a
Director OF the New Castle Mutual In.
surauce Company, (Witnsss then do.
tailed the operations of the investigs.
ting committed Of which he was a mem.
Der, as Mr.. Gibbons had done) the
result Of the inquiry was that the con
dition of the company was unsound,
during the years 1877, rs and '79, the
general reputation Of the company was
that 1t was not sound financially in q
Mutual Company, the premium on Mu.
tual polices cannot be- taken and ap.
piled to stock policies.
Cr0ss.examned-I made no personal
examination Of the affairs of the com
pany the report was not published
with the assent OF our company We
made no report as to the value of the
promissory notes
George W. Stone, sworn aud testified
In substance as had the two foregoing
witnesses. He said also that the in.
vsstigation was caused by an article
which was published in the Baltimore
Underwater, and ths reputation Of the
Company is bad and he would not in
sure in 1t.
Under cross examination Mr.. Stone
stated that he made no personal inves.
tigatiOn Of the Delaware State Mutual
+. X NJ. Ins. Co.
William Candy, sworn.- | am Pres.
iient of the Delaware Fire Insurance
Company and held that office when the
investigation took place, the reputa
ton of the Delaware State Mutual +.
4 M. Ins. Co. Is bad. am also Prasi
dent OF the Wilmington Savings fund
Society which has investments in bonds
aud mortgages to the amount OF 81 .000,.
900 /; We take the policies Of all good
insurance companies as collateral so |
curity the Secretary OF t5e Society is
under instructions not TO taxi any Of the |
mortgages of the Delaware State Mutu'