The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-05-08
INSURANCE SWINDLES.
State superintendent Harvey at
Last Awakened Up By the
Newspapers.


CAMDEN. May s, 1s91-Governor Alb
belts action against the spurious short
term orders, chartered under the laws of
New Jersey. has been Of such vigorous
character as to endaneer the liberty Of all
officials. high OF low, of the orders.
Warrants. In the shape OF capiases, will
be issued by Colonel George b. Harvey,
the New Jersey State Commissioner OF
Insurance aud Banking for the arrest
OF all the incorporators. supreme officers
and mino functionaries OF the organiza-
tons, operating under Jersey charters.
Many of these capiases are now being
prepared, and it Is expected that a num-
Der OF arrests will be made today. The
list of persons liable to be arrested In
cludes three or four hundred.
When Governor Albeit voiced his de-
cisive expression OF disapproyal of che
short termers" he meant TO exterminate
them from the face OF the earth. The
chicanery OF the supreme officers aud as :
sociates, 1t is known, made him cognizant
that the concerns were not only doing an
illegal business, but were tainting the
name OF New Jersey as a commonwealth
OF exemplary judicature and law
STATE OFFICIALS CONFER
After Judge Gsrrison's charge to the
Grand Jury in Camden on Wednesday,
Governor Albeit. the Judge and Com
l
and discussed the situation. Governor
Albeit placed the whole matter
in the Commissioners hands, with an In
junction to take action Immediately
against the concerns.
Commissioner Harvey then called upon
Prosecutor Wilson H. jenkins and in
formed him of the Governors orders. He
next had a conference with Lawyer John
w. Wartman Of Camden, who was en-
gagged TO act as counsel for the State.
Yesterday Mr.. Wartman settled down
to business. Commissioner Harvey and
his assistant, Watson Van Camp, lent
their aid. A list of all the short term or
ders and certified copies of their articles
of corporation had been obtained from
County Clerk Barber. From this list
Commissioner Harvey ordered writs OF
capias TO be issned against the officers
and local secretaries and agents Of the
orders, charging them with violating the
insurance and banking laws Of the State.
II was intended to have had the officers
of several concerns arrested yesterday,
but Mr.. Wartman found it impossible,
because so much time was taken In
drawing up the affidavlts.
BOTH CRIMINAL AND CIVIL SUITS.
About dozen afidavits have been
drawn up, however, and Mr.. Wartmau
will push big batch through this morn
ing, so that he can began the corralling
Of the financial swindlers. He says that
all the incorporators, supreme officers and
secretaries of branches will have criminal
suits brought against them. All persons
who have received commissions from the
orders will meet with civil suits.
at is settled" said Mr.. Wartman last
night. that no short termer chartered in
this State will be spared. We shall pro-
ceed against all the concerns, operating in
Philadelphia under our charters. These
writs of capias are for the recovery of
$500 penalty for violating the insurance
law. The Sheriff is authorized by the
writ to take the body of the accused, who
can only be released on furnishing bail in
81 900, the bondsman becoming liable for
the payment of the $500 penalty If con-
vietion is secured.p
When asked what method would be
taken TO arrest the short terner" officers
in this city, Mr.. Wartman answered that
he had not reached definite conclusion.
"Of course the regular way" continued
he, would be to take out reQuisltion pa
pers. The main object is to rid the State
of these pests, II there are any who are
carrying on business in this State under
Pennsylvania certificates we shall seek TO
close them Immediately. | am not able
to tell you what officers of these schemes
we shall arrest first. This would never
do, because we mean TO jump at them
hard aud strong. The preparation of the
affidavits takes some time. In order to
arrest the officers of the concerns it is nee
essary for some person who has been
swindled or deceived to make the charge.
Then the Commissioner makes his af1-
davit that the orders charter does not
allow it to do an insurance business.
When the affidavit is presented, the Su-
preme Court Judge grants an order and
the accused is arrested"
When asked how many short comers
were operating under New Jersey charters,
Mr.. Wartman answered that there were
forty-eight or fifty.