New-York tribune., 1886-07-10
INSURERS AND INSURED.
EXPOSING WILDCAT COMPANIES.

TALK WITH wgLL-KNowN INSURANCE BROKER
The attention Of s. T. Weed, OF the fire in
surance brokerage firm OF Weed Kennedy. was drawn
TO THE TRBUSEs article exposing the operations IN
Sew-iork City Of fraudulent companies aud agents ana
he was asked the OF tue charges made
"The facts set FORTH" he said, are very mildly
stated The failure Of the Anglo-American Company
was predicted long ago, and the only wonuer
was that 1t could hold up ts head 80 long as
II did, 1t was unblushng fraud from start to hnish
lts profession OF capital and its claim OF SoOo'ooo
in Government bonds were so ridiculous that no one
familiar with the methods fhones insurance companies
believed had muoh FL 0OO The secretary OF tue
company was vcn known be Judgment debtor to the
New-York Life Insurance Company and the conduct or
the managers in writing all kinds OF risks at any rate
whatever, and for any amount confirmed ithe worst
suspicious"
"YOu are familiar. believe with all the companies OF
good standing"
YES and OF bad standing too Our firm constantly
seeks for policies In good companies in all parts OF the
world. and II s part OF business hnut out these
frauds. The test ia applied to them IN great many
ways estimate them by their methods and their ocai
regulations by the responsibility and person history
of the men running them. quite as much as by theiF
sworn statements very discovered the dishonest
| character OF the Anglo american fraud. THE lkB-
UNss charge that the foreign fraudulent com
panies are the most dangerous is quite correct
but the story Is not half told. We
have often been solicited policies in the John
Bn, the Oak the Equity the Amicabe Fire. the Anchor
the City and Provincial the Patra Begica, La Glropde
EEtOile General OF Amsterdam and La Loyaume. but
we decline them all The solicitation comes from London
firms OF brokers assisted by people in this city ana In
Indianapolis In fact, Ibeevc that policies in companies
which should be called myths have emanated chiefly
from indianapolis people, whose pink circulars are sent
broadcast the country. They roped in many
/ haxa haar Of
this and other States policies issued By tnese bogus
companies policy taken by the Palace Skating
Rink OF Buffalo, which destroyed oy fire few weeks
ago in the Enterprise. OF verpOol The most pa1ent
inquiry fails TO locate any such company and the Buha
10 peope are still whisting for their money"
This man Anthony. who is in prison over in Jer
ser. operated quite extensyely, am told
Eyes and made many victims The company whose
policies THE TRBCNH mentions as having been circulated
by this fellow probably the Gironde OF Bordeaux II
has an existence and that about all that can be said IN
Its favor. to friends Paris about II. and their
reply compelled refuse its policies any terms.
But ani Informed that many of them ara hed Oy mer
chants IN New-IOrk Nearly all the companies nave
mentioned have been den unced by the underwriters on
O"th sues OF tue ocean "a lacking III az 80
respous0lty. People N London are continually senu
or the law. Last fall superintendent Mccall WAS Dusy
cohsn VINO oox WI. wosnt nH for all Kinds Of fraud IL
roped IN great many people and then quietly disap'
"Hov about the American companies Of doubtful
reputatOnW
They a good deal numerous than you can
have any idea Of In Philadelphia tner- IL "A company
called the Universal whcu nave decllnrd 70 patron
Recently cards come from the ID unless. OF
tue city. our Information concerning n Is IN
favorable The Colorado wildca have disappeared Inc
Arxentne OF Denver, promoted by people who afer
fleeing the public - Jar ~ possible win Arsenlnr pg
cies now Operating the English irands. All the IA
coast Il not bad. Warrington Territory has pro-
ducrd crooked affairs but California md oregon are
The laws those states very severe
IHE TmnUNEs reference Iowa frauds s mrcn toe
milt The bad egg ~ De- Mones TO when rrference
Is made probably the Monarch THIS company adYer
t-es n considerable amount OF p4id-up capl
tai. and mentions w"li-knOvn Na-st
broker a. stocknoder Upon mat carr 80,
bus ness have no doubt they succe.sul. bn
our Information Is strongly condemnaIory OF th'
COMPANY.
A. 10 the mutual system In fire insurance II admit
OF many crooked ways. Or course some or tue muluA
connanies AMI sound bur II Is safer u e h
newly organized mutuais alone fon would he sur
urisad how quickly letters soliciting patronage
mere come 10 us after they organized Indeed. 10 Il
unusual such letters before their organlzi
ton has bean effected That does not nece-rarli }
imply crOokedness bnt II Is bad -gn. II IL sometimes
between good companies ana un
safe ONES certain earmarks which apprr
ian 10 wildcat companies which cannot be mis- iakeu
rglBUNE- well timed IIefe ara 10 III
sands o. policies held by New York people IN irrespou
slnle companies from whom only small lo--es II any
can bA reccvered. fire u In itself sufficient mis-
fortune, but Il a must lose Doth rls property an'
hs insurance his hard. There Is no remedy eX
cent u the empOym-u OF -xpert- ASCERTAIN the ru
condition companies and 10 report them 10 the lnsur
.nce Department II strong policy II maintaine
there IL viii possible TO out bogus agents anu ex
pose bogus companies"