New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-02
QUEER INSURANCE METHODS.
THREE COMPANIES INVESTIGATED.
THE CHIEF EXAMINER CoRRoBoRATES DAMAG-
ING STATEMENTS ABOUT EACH.

Chief Examiner Michael Shannon and Deputy
Examiner John A. Horan, of the State Insurance
Department, have been busily engaged during the
last week in investigating the affairs of the
Guaranty Mutual Accident Association OF New
York, the Security Mutual Benefit Society OF New
York, and the Mercantile Mutual Accident So-
ciety of New-York, all doing business on the
assessment plan. Their final report was sent to
Albany yesterday, and Mr.. Shannon said, when
asked in regard to the revelations of his investga-
ton, that he could give nothing TO the pubic
until it had been submitted 10 his superintendent
at Albany.
When the following statement, however, was
handed to Mr. Shannon he admitted that 1t was
correct: THE effects of the Guaranty Mutual
Accident Association have been sold out by the
Sheriff, the total result of the sale amounting TO
less than $500, while the liabilities for unpaid
losses and other claims amount TO about $4,000.
"The Security Mutual Benefit Society had
contract with the Massachusetts, Benefit Associa-
tion Boston assessment concern, whereby, IL Is
alleged, the latter company was to pay the losses
of the former during certain period after June
IA. 1880. The Boston company refused TO pay
the losses, which amounted to thousands OF dol
lars, and the Security Mutual Benefit is in de-
porablc condition.
The Mercantlle MUTUAL Acclucnb cooituS h"'
considerable unpaid losses on its books, with lit
tie if any, cash TO pay Them Its total invested
assets on January l, 1882 amounted to only
1915 SO, while its total actual liabilities amounted
to over 81 800.
"The New-England Mutual Accident Assocla-
ton. an assessment concern in Boston, has been
scheming to take over the membership OF the
three companies, without making any provision
~
already incurred by the three"
The sale of the assets Of the Guaranty Company
was brought about last Monday by John K.
Abney. a lawyer at No. . Wall-st., who made
the following statement in regard to it yester-
dav: Il received claim for 81 900 about two
or three months ago against the company. My
client had become disabled by an accident and
was entitled to 81 900 his policy. l obtained
Judgment against the company and put It's exc
cution in the hands of the Sheriff. He levied
upon the assets of the company but they sold
for less than 5000. The board Of directors had
been changed recently and ] had been told that
the new management would pay the indebted
ness of the company and carry on its business
To nv surprise however, they allowed the sale
to take place. | have done nothing as yet toward
collecting the balance due on the judgment"
The Guaranty Company occupied room al NO
165 Broadway. That room is now let. A notice
on the door says that the association has removed
to No III Broadway. Inquiry there brought out
the fact that the present representative of the
concern is Carlos Forcntine. The former presi-
dent of the company, George II. Fitzwilson, when
seen. said that he had organized the company in
1856. had lost money during his connection with
it. and was out S25 900 when he had left it, " Dur
ing that time" he added, several members came
70 me and offered to pay money to have their
nolicies transferred to other companies. These
offers I always declined In March, 1899, X
Pitcher Woodward and w. b. Hardy, of Wash
innton. came TO examine the books of the Guar
anty. They found the face liabilities to be about
$50. 900, which could be settled for $4,000. a
transfer was made, and they relieved me OF all
responsibility OIL condition that should renouncc
all of my claims against the company and use my
influence TO have them elected officers in the
company. This | did From that time l have
had nothing 70 do with the company
p Woodward, who is now at the head OF the
Mercantile Company, in Aldrich Court said that
nm November IL ne and Mr. Hardy had agreed
with George II. Fitzwilson TO take charge of the
Guaranty Company and to assume and pay all
liabilities d" In the contract, lie continued,
there was a clause to the eneot thaJ 81 ,OOO
would cover all the liabilities. We received no
itemized account OF the affairs oi the company
After examination of the books we found the
nabilitics TO be about $4,000. | then took the
contract annulled IL, ana sent 1t back To MI
FitzWilson, and sent him tile keys of the onice
Since then / have had nothing to do with 1t;
| sent my resignation to Mr.. tItzwllson to read
TO the other members of the board IL was re-
turned | sent ii back again. Three weeks
a1terward was asked to attend new meeting OF
the board, which | did not do. Since
that | have received circular re-
ouesting the stockholders 10 transfer
their policies to the New. England association"
The Mercantile Mutual Accident Society was
founded in 1881 and began business in Albany:
Although a small concern it may fairly be called
an active one, for il has occupied three separate
Offices in Broadway within n little more than a
month On Friday it removed its effects from
Aldrich Court Buildins. Next week the society Is
10 occupy Office in that building. Z. Austin
Dali, a brother OF the agent for Aldrich Court,
is mentioned as one of the new officers elected
at a special meeting held about ten days ago.
j. r. Dun, the secretary, resigned at that time
Albert X Moore, lawyer. of No. 10 Broad
formerly secretary of the Mercantile Com;
pany. said when seen, that bis brother had
resigned from the company. and he himself had
become a director. This office he had resigned,
however. after one month. An application was
received" he said, " from New-England com
pany for the business Of the Mercantile, Com
pauy A meeting Of stockholders was held, and
attended by less than 300. II was decided then
to transfer the insurance claims to the New-Eng-
land company. .
Ncw-Engand Mutual Accident Association, could
not be found at No III Broadway where they
formerly had an office.
AZ the Office Of the Security Mutual Benefit
Socicty al No o33 Broadway. the reporter found
DR. Wilson the medical examiner who said that
the Security had issued no new policies since las1
fall when 90 per cent of its members transierIeeu
their insurance TO the Massachusetts, fcneht
Association Of Boston. II was true that the IN
snrancc examiners had gone over the books OF
tbe society lately. The society had been trying
for two or three years 10 get the examiners 70 40
this There were no unpaid death losses at the
time of the reinsurance OF its members In he
Massachusetts, organization
The last published report OF the State Insurance
Department gives these suggestive particulars on
the standing Of the Security Mutual Bcneht 30
ciety on December 81. 1883: Cash assets on
hand S2,sIs 1s liabilities, consisting Oh losses
adjusted and unpaid losses unadjusted and losses
| eqc gn0