New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-27
A LONG INSURANCE CASE.
THE FRAUDS OF LORENZO DIMICk.
TRANSFERRING RISKS ILLEGALLY-woRK DONE
IN THE COURTs-MORE MONEY SPENT

Company marks another step in the interesting Hi-
cation which has been going on for several years.
arising out of the frauds of Lorenzo Dimck VINO was
for many years the general agent Of the Continental
Company at Buffalo a previous suit in the thtcu
states Circuit Court decided adversely to the
Continental Company, and the amount OF the Vefocus
already obtained against that company is considerably
over 100000 The first trial occupied twenty-ohe
court days and the last trial seventeen. The trials
especially the last one conducted the theory set
forth by the plaintiffs that the company was moi
ignorant Of Dimick's frauds.
Lorenzo Dimick member Of the firm OF CROSBY
& Dmick. who carried large business in insurlhG
vessels engaged i'm traffic the lakes and the large
western rivers. lie was general agent OF the 'oh
tincntal Company, and the firm Of winch he was q
member had the agency of the Union Insurance tom
pany of Philadelphia the Insurance Company OF inc
state Of Pennsylvania, and the Thames and MeTSey
Company Of England. Dimck though comparatively
uncducated man Of great strength of will, and
fairly dominated the affairs Of tho firm. He received
from the Continental Company a larger percentage
than from the other companies. and did much larger
business for II than for the Others. II greatly
to his interest to keep tho business Of the Continental
and he devised a scheme Of fraud by which that com
pany TO benefit
According to the testimony which has several times
been repeated 10y many Witnesses his plan this :
When tho Continental Company had a large risk on
vessel which had started on lake voyage. and lie
heard through secret intelligence that the vessel was
lost. or was in dangerous storm. he would transfer
by reinsurance part Of the risk from the Continental
Company 10 the other companies Of which his firm
was agent. lie was enabled Ia do this because the
voyages short, and the news Of disaster often
reached him almost the letter from a
local agent informing him Of the insurance
In the case Of the propeller 'kclcy for instance.
which foundcrcd in November l--3, he heard on the
afternoon Of the day on which the insurance
81 hat tha 81 had trred The Con
tncnal Company had a risk Of 80 900 the pro
pcllcr lie Immediately directed that the greater
part Of this insurance Ice transferred t. the other
companies. The Thamc, ard Mcr~cy Company re-
ccivcd $4,000 Of this Insurance. aud the Union and
Stat Of rcnnsy lvdnia companic, received $4,000
more leaving only $1,000 for which tho Continental
responsible. Richard Dimick. the brother Of
Lorenzo, had general instructions from his brother
that In OF lp>, the risk u the Continental should
be reduced TO 5000. In the case Of the Akclcy
the telegram announcing the lo-, fell into the hands
Of Dimoks partner. crosby. He inquired about tho
Insurance. and Richard Dimick. making ha,ty calcu-
lation. told him that S12OoO Of The risk had been
n-terrcd 70 the Thames ard M"rscy Company. Tho
other companic, were charged with $4,000. leaving
the Conncutal's risk ~ $4,000. Richard Dimick
afraid that hi brother would be displcascd he
cause the amount Of The Contincntals risk exceeded
$1,000. lie consulted h, brother. who tod him b.
put $1,000 additional "a the Thame, and Mcr,ey
In accordance with this direction.
The cOmpanic, pad the amounts thus charged
against them and the companies other than the Con
tncntal have Included IN their suit, the they
pad. on the ground that the frauGu-
l"nty mad" after tho Jos, had been reported 10 10
reno Dmich. In other ease, risks vessel, which
were lost were it j., charged tran sfcrrrd A. whole
10 companies other than the Continental. which orig
inally had the ln-Irinc" The vc~-c. Most II these
frauds occurred IN l--3 when IN" season par
tculaly incruent and many vessel, wcr" lost.
LORENZO Dmi's va. accused ~ these frauds IN
ls-5. and converted. 10 Wa admitted u bail.
pending appeal. ana vi, 10 Bufalo when the Court
OF Appeal rendered decision confirming the con.
viciion. lie rroivcd secret Information % the de-
c.ion. ana Immediately crossed over 70 canada. lilo
remained In That country until hts death. several
month, later. IN" civil suits were pressed after tho
close Of the criminal tual and first sent before
arbitrator. Later they into court, and two Of
the ca-c, have now been tried.
Tfcadwcli Cicvclnd. Of The firm Of Eyart,. Choate
4 Beamau. hl- had Charge Il tho invc.tigatlou on
behalf Of the plauuf COMPANY and Butler >tllman
& Hubbard have rcprc-cf tod me Continental Company
Mr.. Cleveland h1- devoted mach time ,lu and 81
ccnuty 10 the examination % the fact Ou. ~ the
CLERKS named NIckcf. Iu. ploycf crosby & Dim
ich- Office confessed to -orc pet il TIE trau-aeon
That clerk D. now drtd, but aft~rFard Lou.- T. N'f,
another clerk who va, a Wltnr-, on the h-t trial
al-o told 10 part The tory % tr fiaud. ~ q -iu
later date. Richard Diuck who had AZ first ic.ticd
that Dc NOT engaged 20 auy fraud. tod 81 the Trans
acu"n' ~ "W'h hi' brother liA been '"tiS'1. Nh
other clcsh al-o gave Information. The whole -cArn"
va I'' 'f'' NV '' ''''''f @" ''
i"f '
''' 10" "''"'"-' '''.' '''
'''"''" ''"' d" nav
P''''""N ''-'''''''' I'''''' '"' ~ ''"'' ~. "''"
also aclnog Td-cd that thoy now received salaries
N"H vi" lI'I'"' '''i'"'.' '"'' ''''''"'' "'"
ever, support u NF Wuch do uW'ntirY evidence.
..,,,. ~ :, lon fine o..-.-iou Of tl. Continental
company
The last trial va, conducted ou the part 81 the Con
tir.nf,l C,fit,n. ly Ilu Root whose eros. .,1riira
g.. ,t... d. t.
non 4" 'n' WIN wiz '''''""', IT, ''"e"' 7"
weaken va, extremely -hliiL
-,hcitle. ,,cr. admitted fu violence f th. Last trial
49,, ,
t""lHE inc hHih'i ~ i'.". "I ''.-"' ih Ii'' ''''
taken ty the principal local agent, Of he" Continental