Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-13
GONE WITH $4,000.
An Insurance Agent a Defaulter for
That Large Amount.
HIS PARTNER Is THE SUFFERER.
He Will Make 1t Good, While the Company
Loses Nothing.
THE THEFT DISCOVERED MONTHS AGO

ESPECIAL TELEGRAM TO THE DIsPATcH.I
NEW YORK, June 12.-Julio Merzbacher,
who had been the partner of joaquin San
chez in the management of the New York
Life Insurance COmpany's West Indian and
South American business, is a defaulter.
Six months ago the theft was discovered by
Merzbacher's partner. The defaulter stole
$3.50, 900, but the insurance company will
not lose the money. Merzbacher had an
Office in the company's building at 34S
Broadway for nearly two years. While he
was here his partner was working up busi-
ness in the SpaRish-American district. The
money sent by the Spanish-American
agency to the headquarters in this city
passed through Merzbacher's hands. 1t is
said that he speeulated in Wall street and
lost all his own money, as well as the
amount of the defalcation, in the panic Of
last year.
Last December Mr.. Sanchez came to this
city after a long trip to South America.
In comparing his books with those of Merz-
bacher, he discovered the shortage. When
Sanchez accused his partner of the defalea-
tiOn, Merzbacher pleaded guilty, but said
that by continuing the speculation he would
be able to meet the discrepancy in short
time Mr. Sanchez declined to assent to
that way of squaring things. A few days
before Christmas Merzbacher told his friends
that he was about to start for Europe on
business. He went away, and nothing has
been heard of him since. For two years he
had been boarding at the house of Miss
Sutherland. A circular was sent to the
of ba
saying that Merzbacher had retired because
of i'll health.
The Company Not Loser.
Vice President Archibald H. Welch, of
the New York Life Insurance Company,
told reporter to-day how the company will
not lose anything by Merzbacher's defalca-
tion. 'The amount of the defalcation," said
he, 1--WE have discovered to be exactly
S370, 900. Some people may think it very
queer that such a sum could be taken with
out discovery by US. You see it takes
very long time for the proceeds of the South
American business to be sent to u.s. Often
several months elapse before any money
reaches New York The business of the
South American agency is between S2,000,-
600 and 5000, 900 year. In so large a sum
the delay in the arrival of $3.50, 900 would not
attract special notice.
Mr. Merzbacher has taken. We have the
greatest confidence in Mr.. Sanchez, and
will institute no legal proceedings against
him. Six months ago the agency owed
1910, 900 to US, but now the Indebtedness
has been reduced to 1926, 900. The agency
is entitled to commissions on policies that
have been renewed. These commissions,
instead of being turned overto the agency,
will in the future be retained by the COM
pany until the amount of the defalcation
has been paid. 1 think that in two years
and half we will have been completely
reimbursed. We knew that Mr. Merz-
bacher was defaulter before he left this
city, but we took no steps to prevent his
departure. He was detaulter to his firm" "
Merzbacher Was Little Sporty.
Merzbacher was well known at the HoE-
man House. He was considered 'good
fellow by the habitues of that place. eve
were all his friends" said a clerk to-day,
''and we can't say anything against him.
No one here ever dreamed that he was
defaulter 1t is said that Proprietor Stokes
and the wicked Gibbs were often in Merz-
bacher's company. As a frst-nighter the
defaulter was conspicuous. In appearance
he was striking He dressed well, though
not hashily; was of medium size; had gray
beard a small portion of the front of which
was jet black, and in the summer wore a
costly Panama hat.
Merzbacher had been in the employ of the
New York Insurance Company Is years.
He and Sanchez were clerks of Colonel A.
G. Dickinson, who was the first South
American agent of the company. Five
years ago, when he gave up the agency, the
two clerks formed a partnership and sue
ceeded him Merzbacher was well liked by
the officials of the company. 'He was
superlatively popular man" was the way
one of them characterized him to-day.
Mr.. Sanchez started for Barcelona last
month on business for the company. 1t
was said to-day that besides the $50, 900 of
agency money, Merzbacher had appropriated
some of his partners personal funds. The
oe ,bis