Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-04-30
ESPECIAL TELEGRAM TO THE DIsPATcH.1

are trying hard to help him out of his diff
Guilty.
ESPECIAL TELEGRAM TO THE pIsPATcH.1
PHILADELPHIA, April 81. M. Fos-
ter, Insurance Commissioner of Pennsyl-
vania, arrived in this city tonight to look
into the affairs of the American Life Insur-
ance Company. This afternoon telegram
from Commissioner Foster to George Thomp-
kins, of 1901 Chestnut street, whose business
it is to make examination of Philadelphia
insurance corporations, announced the
necessity Of making an investigation at
once, and the two experts are expected to go
to work tomorrow.
The financial community was startled to-
day by the statement furnished by Com
| missioner Foster of the assets of the Ameri-
can Life, and the collateral upon which the
company had loaned money to the amount
of S716,767 SO. Inquiry of the principal
bankers of the city showed that there was
total ignorance among dealers in loans and
collaterals as to the majority of the concerns
that appeared in the schedule of assets, and
distrust of the remainder.
UNMARKETABLE SECURITIES.
The manager of one of the leading bank
| ing institutions of the city, after looking
over the list of collateral assets, said: "We
would not loan any money on such Sc
curities as appear here with the exception
| of the few shares of marketable stocks, be-
cause we know nothing of the most of them
| and too much of the rest, None of these Sc
curities can be marketed. Almost all of
them are not listed in the Stock Exchange,
| and it would be impossible to find pur-
chasers in case it should be found necessary
to dispose of them to make good money
loaned. No reputable bank or trust COM
pany loans monev on doubtful collateral un-
less in the case of some regular customer or
an individual in good financial standing
with whom there is little risk"
The President of a leading national bank
dismissed the list with the remark: eve
never did loan money on such collateral and
we never will. You will hear the same from
any other standard bank. For myself
know absolutely nothing about the COM
panies whose securities appear in this list"
UNKNOWN IN FINANCIAL CIRCLES.
Remarks of similar tenor were made by
the officers of every bank visited. Presi-
dent MacFarlane, of the American Life,
refused to clear the mystery surrounding
the companies on the securities of which
his corporation has advanced so much
money. and several of which have offices in
the Fourth and Walnut streets buildings. He
merely saw that they were all solvent and
reliable concerns and not in any jeopardy
that he knew of. Nobody in this city ap- |
pears to have heard of the Macon Gas Light |
and Water Company bonds, and suburban |
railway stock, Hydro Carbon Gas, "''Black |
Warriors" ''Southwestern Mining Com
pany," and American Land and Cattle
Company" are yet to be introduced in lead
Ing financial circles. Of the Equity Gas
Light Company, on the bonds of which. the
American Life loaned $3.50 900, Thomas
Cochran, late president of the Guarantee
Trust. was until recently president. Dell
Noblitt was president OF the American Land
and Cattle Company.
The publication of the last annual state
ment of the American Life resulted to-day
in startling decline in the price of the
stock. Five hundred shares, which had
been held as collateral, were offered at the
regular auction sale of NJ. Thomas & Son.
Two hundred shares sold for $40; 100 for
S11 so and 200 for S13 so.
A BIG FALL IN THE STOCK.
1t was the stock of the American Life
that President MacFarlane said he had put
up as collateral for his loans. After the
sale of the 500 shares the auctioneer an
nounced that he had other lots to offer, but
they were limited in price. The limit in
one case wasB 80 and in another par, or 80.
There was no bid.
1t was stated that the sale of 200 shares at
10 was made by the Bank of North America,
not the Bank of America. The last preyi-
Gus sale of American Life stock was at Ga
and recently bids were made at &c.
Senator MacFarlane, in spite of the wear
and tear of i'll health and business compli-
cations, was at his office in the American
Life Insurance Company building at an
early hour to confront and combat the peril
Gus condition of his credit and to assist in
steering the insurance company, of which
he is president, clear of any threatening
complications. The Senator has a great
many friends. A number of them visited
his Office bright and early with the intention
of afording any assistance in the present
emergency that might lay in their power.
TRYING TO HELP HIM OUT.
The most important fnanciers who were
closeted with the embarrassed President
were George F. Work, Secretary and Treas
urer of the American Financial Associa-
ton, and Louis E. Pfeiffer, President of the
Bank of America. For couple of hours
preceding the noon hour close and secret
consultation was held on the fourth
floor of the building between President
MacFarlane and the directors of the COM
paDy, the most active of whom, and those
who have been taking steps IN the present
difficulty, are Charles G. Robson, Walter
E. Rex and George W. Hall. Mr. MacFar-
land did not amend his statement made on
the day before that he was unprepared to
meet his obligations, but he said that friends
were contributing money to help him out.
and that, if his creditors would wal. for him.
his credit might yet be placed in
condition to survive his obligations.
the day he was in and out of his
office, making flying trips to banks and
brokers and returning to consult with his
friends at the Amarican Life building. He
and Mr.. Work made several visits to the
Bank of America, which is credited with
deposit OF the greater part of the cash assets
of the insurance company.
Secretary Wilson, of the American Life.
said that there was no extraordinary run on |
the company by depositors, and that only
few hundred dollars had been demanded of
them during the day, and all checks pre-
sented were paid. Most of the depositors
are connected with the company or the COM
panies which figure in its assets and the to-
tai deposit account is not much over $780,
BOO.