The sun., 1891-06-28
MERzBACnER,s DEFALCA7IoN.
A Talk In London with Hts Partner nn'
Other Men who Know About It.

A Talk in London with His Partner IN,
| Other Men who Know About It.
Copwfoh. 1881, " TBx sus Printing aud Pxbiishin
| Hssoctdtfon.
LONDON, June 27.-The New York news
papers which arrived this week containing &C.
counts OF Julio Merzbacber's alleged defalcs'
tion to his partner In the South American
agency OF the New York Life Insurance Com
pany have been eagerly read by American bus.
mess men here. and have caused n sensation
In insurance circlca. joaquin sanchez. Merz-
bacher's partner. arrived from Barcelona on
Thursday. President Beers OF tho New York
Life Ia also here. as is Merzbacher himself
MIR. Boers and Mr.. Sanchez have been at q
small hotel. and 1t is known to very few that
they are In London. All efforts this week to
see President Peers In regard to the attacks
upon Merzbacher and the New York Life have
proved unsuccessful until this evening, when
Lie received The Nun correspondent.
II have soen NO other reporter" he said.
since the Merzbacher affair was made pub
lie. and anything. consequently. that is pub
lished MS emanatlng from me is false"
President Beers refused personally to 20 into
the question Of the alleged defalcation.
Mr.. Sanchez" he said, will bs able to give
you all information upon the subject. He has
conducted himself throughout this entire
affair like an honorable gentleman. That
there is any dsialcation to the New York Life.
however. Is absolutely false. and the stories
that have been published in New York news
papers to the effect that there Is defalcatjon
on the part OF Smith. our London manager. or
Samuel Dinkelspiel our London agent are
manufactured out OF whole cloth. Our London
department is one Of the best conducted OF our
agencies"
Mr.. Sanchez was very outspoken. asked
him: What Is Mt the bottom Of this matter p
The animus is very apparent" said Sanchez
Ito any one who is familiar with the internal
Affairs Of the New York Life Insurance Com
pany. Like every great man, President Beers
has enemies and these enemies have taken
advantage OF his absence to attempt to do him
an injury. 1t is q conspiracy headed By dis
charged employee OF the company"
Who is this discharged employee ?" I asked.
That am not at liberty to say" replied
Sanchez This is an old affair that has been
raked up to injure Presiden Beers. Tho de-
falcation was to me persona ly and not to the
company Perhaps momentsrily there was q
defalcation to the New York Life. but
before the company knew OF It 1t
was made good. The facts of the mat
ter are these: Merzbacher and I had
the spanish-American agency Of the New York
Life. He remained in New York and attended
to our interests tbere. kept the books. and had
control Of the finances while travelled abroad
and was absent sometimes as long as two
years Whom he made his heavy losses in
Wall street he used tho money held by our firm
to cover his shortage. but when the time lme
for our settlement with the companyI was
able to pay every dollar. To do this used
every available asset in my possession. and he
gave mo 100000 OF his own.
II, oho,, son n;,, kt- -,
had "A large income from my policies that WAS
paid yearly. In settling with tho Now York
Life sold them my interest In these policies.
This is a process that is gone through with In
all life Insurance companies continually, and
there was nothing unusual In my using these
renewals as nm available asses; 90 the firm OF
Merzbach"r Il Sanchez douG not owe one
dollar to the New York Life. OF course. It 10 q
natural question. why. II my partner
took my money. 1 did not prosecute
him. and President Beers has been accused OF
compounding felony in not bringing Merz-
bacher to justice. The fsct Is that tho officers
Of the New York Lilo did their best to induce
me to prosecute Merzbacher, but said to
them. II you wish to prosecute him you
must assume the loss that have made good
to you.'
II had several reasons for adopting this
course. In tho first place. II I had prosecuted
him should not have got tho 100000 that hs
Eavo me, and In the next, It would have injured
M busin ,ss II there had been public scandal
connected with our firm. l did not wish to
imneril my interests for revenge"
is there any chance OF his being prose-
cuted now 2" l asked.
That cannot say" replied Sanchez II
was very Indignant about the letter he cabled
to New York. but cannot afford to waste the