New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-15
THE ORIGINS SAY IT rs All RIGHT
THE MANAGEMENT OF THE AMERICAN SURETY
COMPANY CALLED ~ QUESTION.

THE MkNAGENlNT OF TIL. AMfti' N SChNIi
CoMPANY CALLED ~ QUESTION.
In the ease of Rachel - Pollock against tho brook
lvi Cro-,town Railroad Company ID, question was rnb
uiitod 10 Ju.tic. Reach at he supreme Cont.
Chambers. Yesterday. whether the American surety
Company should be- accepted %, surety "n the Dc
a.uGauts appeal The principal point coHie'd'd i"'
AGAINST the company Wa that the examination "i
one If il, officer -hoVcd that large part a. the com
pauy', paid-up capital stock OF Fl.oooooo was ia
vested n ,ecurtc- moi authorized by Tire statute under
which m. company was created. ANA that nearly
5000 was invested on December H. 1-Do, ia the
stock Of corporation which mp to that time had no"
paid q dividend. II Therefore argued thnt the
superintendent Of the Insurance Department ontht NOS
10 have Issued license % the company, aad that Il
should not be- accepted surety upon undertakings
in The courts uut IL complied with thc provisions 81
the st1tuc. Other point, regarding the company, In
vestmcuts and financial showing were made, based
mon the examinations justice Beach reserved hi.
decision.
The American surety Company was Organized On
April H. Is4 and ha, it, Office at No. $50 Broadway.
It's cash capit }. ~ 100000, and IL financial state
ncnt Of December -. 1890. shows surplus o.
:lGa9l1 H. president Is ". L. Trenholm. vice
president Henry d. Lyman, second vicc-prcSidcnt
David h. sclcl,, and treasurer :. =. Covilic Among
the trustees are John Jas Knox, Cornelius y. BIZ,
John H. Inman. Thoma, 6. Platt. william Dowd, Mar
vc!le w. Cooper. joel l.. Erardt and i. ". Vanderbilt.
Mr. Trenholm, when seen at hi, home, 40. $50 West
seventy third ST. regarding the questions at issue, sid
." am surprised O find that thi, little matter has
attracted any attention, as it Is very familiar oc
currence for the officers Of the American Surety Com.
pany 30 be called upon To justify on judicial bonds.
do not know the amOunt involved In The present case
but il certainly cannot exceed $1,000, and the fact
that thi, company is objected to surety such
bond would seem to indicate Il very captions spirit.
There can De no foundation for the charge thar invest
ments Of the company arc not such as the laws an
thorze IT to make
Mr. sickcs, the second vicG president. made las,
night the following full statement Of the position of
the company: An assistant secretary and our acting
counsel appeared in court to-day and flied brief.
ansv cring tho exceptions 10 the suncicncy of the
supyshp under the bond issued In the case referred
TO- and ] understand that Justice Beach took the
papers and VIII render his decision In a few ddya.
the question involved is purely technical one.
understand II, and does not In any manner affect the
credit OF the company or tho validity OF is bonds.
IL true that the company his invested portion Of
it, funds IN TIE state Trust Company 10 the amount
OF about 800 900, stated. The president Of our
company is The vccpre-ident Of the state Trust Com
pauy and Is managed with great care, and has been
remarkably successful up TO the present time
It's stock was subscribed for by the American
surety Company at 100. and it is Row in demand at
200 Hence the Investment has been a very judcious
one for company. As to the question OF dividend
t. which ref renee made, can only say thlt the
company Is abundanty able to pay dividend Of 10
per cent on its stock from IL, net earnings, and
presume that the statute could be con
stucd as to contemplate the ability
OF a company 10 pay a dividend ~ well a the fact
of the paymcnt-or IN other words, If "A company hd-
acquired "a sufficient surplus TO enable II To pay a
dividend, il would como within the meaning OF the
statute a. a dividend paying corporation, hccau
a simple resolution Of IT, board OF directors at any
lime would establish IL as such. that | think
Justlcc Reach Will take this v,cSy OF the matter.
As 10 the objection that IL, superintendent OF the
IuCu neunP "a
license Ia the company. l only remark Tint the
company was authorized by the snPerintend,nt to
begin business under the law on April IA, 1854 and
so far as ] have heard, this |; the lrst time that
suca \ question has been rased.s