New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-16
NETWORK LIES LOSS.
MANY RUMoRs AND CONTRADICTIONS.
SUPERINTENDENT PIERCE OF THE STATE DE-
PARTMENT OF INSURANCE VISITS
THE COMPANY

was not official but for the purpose Of talking with the
officers about the reported deiacaton Of Julio Nerz-
bacher lie learned from Vice President WEIGH that
the company had lost from 100000 TO 100000
But as the companys assets were S115OOO,OOO TINS
loss could not have any effect He had no In
tention Of examining the cOmpanys books, without
invitation from its chief officers, because he believed
1t to be absolutely sound institution.
There was considerable speculation yesterday over
the reason for Mr.. Pierce's presence here Coupled
with this there reports that added new interest TO
the revelations Of the defacaons Of Julio Mrzbacher.
Of the South American department Of the company
A charge was published that President Will
lam II. Beers of the company and S. L.
Dnkelspiel now a London agent Of the com
-pany, had "gambled" in Wall Street 1t was
related that President Beers, Mr.. Dinkelspiel and
Mebacher the best of friends before the defalca
ton known and 70 substantiate the charge that
they still intimate relations, dispatch from
London was produced which said that they were all
in London and friendly terms. and denied the
charge that Merzbacher defaultcr.
The dispatch as published was as follows;
London, June ia cable dispatch TO The Times
to-day says that the NewYork Life Insurance Company
reports tho defalcatOn by Julio Merzbacher, OF the
firm Of Sanchez g. Merzbacher. who It's Spanish
American agents that the amount Of the defacaton Is
5000, and that Merzbacher has absconded have
seen to-day President Beers Of the New York Life In
Surdnce company, MefZDacner nJHSeu, anu Sdnucl IL
and william Dnkespel. the agents Of the New-YoriS
Life. None Of them will say anything about the mat
ter except that it Is prepoterous falsehood insti-
gated by Merzbachers enemies. know OF my own
knowledge that Merzbacher far from being in hiding,
has isen prominent figure among the American busi-
ness men in London and Paris for the last seven
months and is now on most intimate terms with Presi-
dent Beers and the Dinhelspies In London He lives
at the Ian CHAM Hotel. whore most American business
men stop and in Paris he has always stopped at the
Hotel Continental, also favOrite American hostery
It has been known for months among insurance men
IN this city TINT Merzbacher was deiaulter. An In
surance man said yesterday "Why, one Of my
agents told me that he heard this story In spain SIX
months ago. Archibald II. WEIGH, the second vice
pre- sident of the company, admits that herzoachers
guilt was known to the company, and that President
Beers permitted the man 10 leave the country un-
touched. Mr.. Wech said bluntly that he did not
think that the company was under moral oblgatlohs
TO punish Merzbacher because the New-fork Lie
Insurance Company dealt with sanchez Mez
bacher as firm and not members of the company
and feeling secured against all losses, did not tlnK
it necessary to prosecute Merzbacher.
But the dispatch from London containing President
Beerss denial and the publication Of charges OF
speculation against Mr.. Beers put new face on the
matter. The officers Of the company were scarcely TO
be seen, with the exception OF Theodore NJ. Banta,
the cashier. Mr.. Welch said to Tribune reporter
that he had nothing further TO add to the story OF
Mcrzbacher's theft.
But what have you to say in reply TO the &C
censation that President Beers speculatcd In Wall
Street ?" asked
@The charge is false and malicious" the
answer.
DR.. Henry Tuck, the first vcepreSdent, declined to
DO seen, but he sent this note 10 reporter; 1.-The
charges with regard to Mr. Beers malicious and
false Mr. Beers has gone TO Europe on business for
% HE ct,etor vi re IA
no knowledge, do believe, that Mr.. Beers is In
association with Mr. Merzbacher. Neither do believe
that Mr. Beers has stated that Mr. Merzbacher's firm
was not indebted 20 the company. He may have de
MED that Mr.. Merzbacher was defaulter TO the com
pany iuasmuch as the company is fully secured.
emphatically deny that Mr.. Beers gamoies IN wan
Street.
frankly He authorized the reporter to say that the
hoe story of the dealcation had been told, ana tlat
In his opinion President Beers had been msrepfesened
in the London dispatch lie did not believe that Mt
Beers had denied that Merzbacher vas deiauler De-
caus, It was true that he was. lie olu not No"
whether President Beers was In London, but lie was
certain that Mezbacher there living as the dis
patch said he was.
Do you believe that President beers specui'eu III
Wall Street," asked.
al do not know How can tell what man OF my
acquaintance does as private Individual Coulu
not Wall Street reporter gamble without the kho"I
adce Of r. colleagues! We have an immense amount
of policies in Wall street. but say that don't kho"
whether Mr.. Beers speculated there. don't assume
m know what a man docs private Individual But
an, surprised that an explicit denial has not yet
boen received from President Beers. One ought TO
come soon.'
II was suggested that there was an Interior motive
in the revealing Of the defacaton and spreading
charges OF .eamblinC" against Mr. Beers. 1t was
III
company desired GUST President Beers his son-ln-
law. Dr. Tuck and his friend, Mr.. WEIGH, and for
that purpose had ventilated the defacaton OF Merz-
bacheF, which known in Spain six months ago
NO. SIR said Mr. Banta, that is not true. The
officers Of the company are In harmonious reatlohs'
When newspaper captures sensation. even If 1t
is old news does It not like to have the credit for 1t
and work It for all that IT is WORTH"
John " steams. trustee Of the New-York Life
Insurance Company. quoted yesterday as saying
that he did not believe that President Beers was I'M
pcated in the reported dcialcaton Of Merzbacher.
william F. Buckley, member Of the committee on
finance Of the company and C. C. Baldwin were also
quoted as discreditlng the stories about President
Beers and as expressing confidence In him. Mr. |
Buckley said that the dedication only drop IN |
the bucket as the cCmpanys assets were S1loOOOOVO
and It could reimburse itself out Of the renewals
Albany June IS epeciaD.-James F. Pierce the |
Of the Insurance Department, said TO-
night: visited the main once OF the Ne"-iorA LILO
Insurance Company IN New-York today, for a short
time Ny visit was not intended to De official one.
for the purpose of making an examination of the books
OF the company but merely to have chat with the |
officers Of the company about the reported dedication
saw Vice President Walsh and learned from him that
the sole trouble Of the company is connected With their
epanish business They have lost from S200OO0 to |
$500 900 by tho dcfalcatlon Of the agent who had |
charge of the business. But the company is rich |
one 1t has a surplus Of S15, 100000 or $4,000 0oO
loss Of 100000 therefore, cannot have any serons
effect up0n the company
"Wiu you order an examination Of the oompany's |
books n
81 have no intention Of doing so. because have no |
apprehension 10 the stability OF the company. 1t
hurts such concern 10 have superintendent Of the
Insurance Department enter ito doors without invita-
ton and begin an inspection Of its books. In my |
opinion II is an absolutely sound institution therefore
shall not make an examination of its books unless |