New-York tribune., 1890-05-27
ON THE VERGE OF COLLAPSE.
STATE OF THE MANHATTAN MUTUAL FIRE
INSURANCE COMPANY.
ONLY $50 OR $40 on HAND AND UNPAID LOSSES
AMOUNTING TO s2ooOo-oUEER METHODS
OF BUSINESS-THE ATToRNEY.GEN.
ERAL LIKELY TO ACT.

ERAL LIKELY TO ACT.
Insurance men have recently been viewing the
course of the Manhattan Mutual Fire Insurance
with considerable interest and an equal amount OF
suspicion. This company, WHICH has its chief
office in Goshen, Orange County, has cor
responfence Office" in the Trinity Building, No.
III Broadway. Although it is small company.
il has by its course recently attracted no little
attention TO itself. II has been seizing on risks
which such risks that ordinarily careful
companies would not touch them, according to
the story told TO Tribune reporter by leading
fire insurance man:
Losses kept coming in, but the money with
which to meet them did not. The officers gave
time drafts to meet the losses and these drafts
were not paid when they fell due, the holder Of
of them sent word TO r. A. MAXWELL Superin-
tendent Of the State Insurance Department This
three weeks ago, and he at once sent two OK
his examiners, Michael Shannon and John A.
Horan, to make an investigation of the concerns
affairs. They went TO Goshen, the nominal
headquarters but found nothing there except the
charter
They then made an examination of the books
in New-York, which was finished yesterday. They
learned that Of the premium notes amounting 10
SJ2, ,000 which make up the capital stock of the
company, $50, 900 had been cancelled contrary TO
law. The statute provides that in case any
notes are surrendered, the pro rata on the notes
of the losses up to date shall be deducted This
not done. The assets of the company are
uncOllected premiums of from $4,000 TO $1,000,
and $50 TO $40 in cash. Their Liabilities are
unearned premiums of about S25,O00 unpaid
losses of about 100000, and miscellaneous In
debtcdneSs OF from $4,000 10 $4,000. If tho
outstanding premium notes can all be collected
the losses will be entirely covered. These losses
are at present in the hands Of a number Of at
torneys, who will probably bring suit. William
l.. Muller has charge of one case in which over
81 900 is involved
Mr.. Shannon went to Albany at p. m. yes.
terday to lay his report before Superintendent
Maxwell. The Attorney General will probably
take action at once.
The Manhattan Company is the successor Of
the Orange County Mutual Fire Insurance
Company, which was organized at Goshen in s3s.
In 1855 a new mana cement got hold vi the COM
pany and gave it its present name. The charter
was a much more liberal one than could be Sc
cured now. Ii prescribed that bushes, could be
begun when premium notes amounting to SJO,OOO
had been secured At the first OF TINS year stll an
other management took hold of the company.
c. II. spencer. OF Minneapolis, Mimi. was made
president, but the real head OF the organizatlon
Is ID. II. Wagner, formerly OF Eau Claire, WIS,
the vice president and manager.
The last official statement OF the company 10
the Insurance Department reported as lis net
available assets : s,31S, made up Of S2,U29 Ut
cash in bank ana Sl6,349 premiums IN course OF
collection. is liabilities were mode up MS 1oi-
lows. Net amount OF unpaid losses ana c.all',
S6,OJ5; unearned premiums. 81 i,Os4; saiarles,
! Office debts etc, Sl,2,y; total, S2l,ilo' net
| deficit, 81 $40. The statement o1 income, now
ever is given at S49,05. and expenses at go ~
! showing an excess of income Tor TIE year Oh
! 81 030. The risks written III 1859 were pIaeeu
! at 81 lt10.3JO The report shows some dlscrep-
| ancies which have excited unfavoraple continent :;
| In the income account the gross amouh1 oI
| premiums received is placed at S'2,o2o ueduc'
rebates, reiusuranccs ana Ieturleh picihlumino' m
S22.gsS: net income III cash. St',oo :.
In another part OF the report tlere -
a return of So, los as gross premiums charee'
and of Sli.OSi in unearned premium ac~ouh', :.
discrepancy of $50, $50, at the very least Oh 'ho
side OF deficit .l,,. :, ,,.o.
Al the once of the company yesterday IL "d'
said that all who were authorized 10 speak VIZ
out of tie city Mr.. Wagner. the manager. now
over returned last night from a tilp 10 lhe "csgg
on private business. ana ne made compete 9euta'
| nf tho report that the company was ~ "A pad con-
Gitinn lie said: The Manhattan Mutual Is III
e,er,. way in n better condition than IL was on
Iannary ,. when | became lis manager. l nave
had a long eNpericnce as an insurance man ana
NJ once sci 10 work 10 place the company on q
frm footing | have weedcd oMt premium notes
80 ~ considerable amount Instead of having only
U2o mr. $40 cash on hand we have 81 1000 IN
c,.b and cash items OF this amount apouC
~ 600 is cash II is also untrue that we nave
taken n poor class of risks.