Morning journal and courier., 1883-09-08
NEW ENGLAND.
Massachusetts.

An Insurance Company's Accounts
 Startling Disclosures of the Condition
 of La Metropolis Company.
 BOSTON, Sept. For over month the insurance men have expected startling dis closures concerning the condition of the big French Insurance company, La Metropole, ,ot which the we'll known insurance agent, John c. Paige, of this city, is resident manager of the United States. The company was admit ted to do business in Massa- chusetts November 4th, 1879. The managers deposited $2Oo, 600 with the State treasurer as guarantee fund. The business WAS not large and May 3Oth its risks were reinsured in the Niagara Fire Insurance company. In order to withdraw the $200, 900 it was necessary for the residen manager to satisfy the insurance commission CT that the accounts of the company were all right. At the request of MT. Paige Commis- sioner Tarbox sent Special Examiner Plymp- ton to examine the company. This examination, by reason of bad book. keeping and other things lasted until Sept 9th and at great expense. The report showed numerous false statements. It is said Mir. Paige admitted the facts and protested against the publication, but without avail. This afternoon MT. Tarbox made his state ment public. The report states that the 1882 annual statement of the company was false in the amount of outstanding risks and lia- bilities, the actual amount at risk being $6,- 773, ,O41. O9 and the actual amount of premium thereon being $9O,957.94 more than the amounts returned The reinsurance Claimed as credit was given as $1s, ,1O1 ,993, with premium value of $257, ,278.45, whereas the examination found the true amount to be $7, 7,42s, ,64S of reinsured risks, with a premium value of $101, ,802.14, a difference of $1O, 0OO.345 of risk and $152, 2,476.31 of premium. The liabilities were under stated by the sum of $45,47s This statement, when made to the department, was known by the certifying officer to be speculative approxi- nation and not an exhibit of the financial condition of the company. Subsequently the company's true condition was made known to it's officers, but no information of the matter was communicated to the depart ment and the false statement was embodied in the annual report upon the credit given the sworn certificate of it's truth. After the examination was in progress and the detec- ton imminent the falsity of the annual state- ment was first disclosed to the department by the resident manager. It was further de- veloped that the company had by it's resident manager at the date of the examination 1OS of it's risks upon property in this commonwealth reinsured in companies not authorized to transact business in Massachu- setts in violation of the statute which pro- vides such reinsurance under penaltyof fine of $500 for each offense. The company has ceased to do business in Massachusetts. Provision has been made for the payment of losses and the cost of reinsurance of out standing risks. Its application for authority to reduce it's assets has been withdrawn. With itsdeposits intact it's policyholders seem amply secured.
 Manager John c. Paige says.to night that there has been no intention of fraud, but the discrepancies are all due to unintentional oYrcrs