The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-04-23
A RECEIVER APPOINTED
For the Argentine Insurance Com
pany, of this City and Denver.
Supposed Heavy Liabilities, for Which
Prominent Business Men are RespOn-
sible-What a Stakeholder Says,

| In the month OF May, 1880, the Argentine
Insurance Company was organized with its
principal Office in this city, the charter being
! issued to Jeremiah McLene, of Denver, and W.
@. Grubbs and E. S. Field, of this city. Mr..
McLene was the president, Mr.. Field the vice
president, and Mr.. Grubhs the secretary. The
company at once began operations, its plan
being very similar to that pursued by all fire
insurance companies, and for a time the pros
poets of the new organization seemed as flatter-
ing as were either promised or hoped for. Sew
eral gentlemen Of wealth in indianapolis were
persuaded to become stockholders, 20 per cent.
of their subscriptions being paid in cash, but
there being no dividends, of the men most
heavily interested proceeded to have the
affairs of the company placed in the
hands of n receiver, and Mr. George w.
stubbs, a well-known attorney. was appointed
by the Court and is now acting in that capacity.
The three business men and one attorney of this
city, who were induced to become interested in
the enterprise, think they will be compelled TO
stand good for the liabilities of the company,
which are represented to be heavy, although the
amount is not to be ascertained specifically as
yet. One of tho stockholders was interviewed
by a Journal representative yesterday, who
gave the history of the inception and develop
ment of the enterprise. Mr.. Grubbs was the real
| organizer and manager of the com
pany, and according to the state
ment of this stakeholder he represented
that the company could not fail to mako
money: that it was already doing phe-
nOmena business, and that the profits would
certainly be large. Upon the representations of
Mr.. Grubbs this gentleman took $4,000 in stock,
paying in 81 200 in cash, and he claims to be
the first stakeholder that paid any cash into the
ha Tn fne nf,f,lil al dor
for whom this gentleman spoke took 100000
in stock, and they will be responsible for about
$4,000, he thinks, in addition to what they have
already paid. the original incorporates were
credited with 1857, 900 In stock, but the only
cash capital paid in came from the assessments
upon these four men. This stakeholder, who
desires his name withheld, claims to have been
misled, and mentions among other thing the rep
resentation that the company had a reserve fund
of $4,000, when, as a matter OF fact, it
had not dollar, as was shown by subsequent
investigation.
"Was there anything very wrong about the
system of issuing policles2" asked tine Journal.
81 think not. The policies seem TO have been
tionabe transactions i'll that line; but whenever
IL became necessary to meet the liability on
some risk, McClene would go to bank In Denver,
and draw on Grubhs. after having previously
notified him. Grubbs would then draw on Nc
Cene, in this city, for the same amount, and in
this way they would gain time for getting in the
money necessary to meet demands. The bust
ness was run in this way, while risks were
being taken, and, of course, the liabilities be-
stockholders, VINO were responsible for the busi-
ness without knowing anything of its manage
ment An investigation was instituted, and
when the real condition of affairs became appar-
ent we at once asked for the appointment of q
receiver"
'What is the amount of your lahIties7"
Something near $4,000, l suppose We
have instructed the agents to take no more risks
and policies are being cancelled rapidly as
possible. Where holaers insist on holding their
policies reinsure them in some other COM
pany. IL will probably require at least three
years to entirely settle the business" Consider
able further talk had, but the
points OF it all are given in what goes
before. An effort was made to Mr..
Grubbs, nut no one except a boy was in his
Office who confirmed the statement that the
company had ceased to do business. Whatever
may be the facts as to the question OF msrepre-
| sentation made TO the stockholders, who now
see large liability staring them in the face, il
is certain that the Argentine is in the hands OF a
receiver, and 1T is also certain that the public
will not bo the loser by the unexpected and
unpleasant turn in The fortunes of the
company. The last official statement
flied, with the auditor of State Jan. of this year,
gave the assets of the company at 1896, 130.3l,
and the liabilities $25,4S2. 81.