New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-18
INVESTIGATION INVITED.
WILL MR.. BEERS OFFER TO RESIGN
MANY RUMoRs ABOUT THE NETWORK LIE

MANY RUMoRs ABOUT THE NETWORK LIE
NONE AssAIL ITS soLvENcY
Pho Yorl, LIE Insurance Company has request
ed Superintendent Pierce to make an ihNest'saio
its affairs on account Of the scandal growing ouV u
the Mcrzbacher affair." 1t IS announced thiO 0"pi'
tendent Pierce Will appoint An examiner tooay' anu
:. &c a,sn remarked that President william II. Beers VIII
coon offer his resignation though 1t may not be accept
cd Archibald H. WEIGH the second vicepresldeht ol
the company gave out the following ANNOUNCEMENTS
yesterday ,,,, ,rr
D Inc Com1any in view Of recent charges and crit,
clsms has requested the Insurance ~. n,onanv
na, sncb exnmination certain members OF the
BOARD Of Trustees have issued the .ro,,gh
to the pn6c N accoTn,s connected with the span
shAmerican Department OF the Nc~ tin,ated de.
sce w S5cbcz g. Mer7bncher had been charged as
disbursement previous to December 81 ls9o r., e sS
zen Oh Hyanced Commissions TO agents was not IN
Guided in the assets of the company Cd Ssnu onr
IoyI, aod ry dated January l. 1891 S115041
to0 81 is correct and that no deduction shoqu o. LIN
| tberefrOm by reason OF any denclehcS III I'll" 'P
American uepa''" WILLIAM L. STRONG. Chairman.
wILLIAls F 1 apTs T EpwARD 5 < GIBBS.
JUN w. OF the Board OF Trustees.
An Investigation Of this kind will occupy seVeral
| months But another investigation was conduc@u
|
NJ Banta the cashier Of the company Is SAID 10 nave
odo eevera wears ago against the management THESE
ccrsatons were Of q sensational nature as they ap
neared in print They were published anu sent u VIC
tustces who investigated them and dismsse1 thefh aS
unsustained The first charge was that the manaSo-
rent of the company had written up S3Oo'Vo'ooo VI
insurance in the previous six years, ana that Oh III"
.roun+ Sol 900 900 had not been returned, and Know"
adce Of this withheld from the trustees Ihe secohu
charge was that the surplus was Sl,'oooSz III low
hut had diminished from that time on account oi lalo
| management to such an extent that II an uheAp0'.
ri.e in United States bonds and New-fofR anu hioOn
| 10, Citv bonds had taken place the company "ouiu
| have failed. . Ill, a. h,vo
| - so,oo serous accusations. lie charged INC
| nresidont of the company with perjury III s"e''''s
| - .ba trutbfulness Of reports that were not uue'
with having sums Of money for backmall 10 suppleS
o,rce If tbe corrpany's methods, and directing 'hau
sucb snms be charged to the cash account III o'uo'
avoid their inspection by the Auditing committee VIZ"
In, ,l,e law that prevents a trustee from handlhg
| ,ho tocIts and bonds owned by the company "lul
| eend,Dc large sums OF the cOmpany'S money 10 va"
| ctreet for investments without having lnaue .,o
rroncr records in the companys once WIN speouiaV
inc in wall street and paying enormous sums ior ooOi
| ing legislation at Albany. There "eie oVN' 0''~' o0'
hut these will do for samples
| n,4nted COPY of the charges could not be oothheu
yesterday. but Colonel William Il. strong VINO was
| chairman of the investigating commlttee' sd'u "''V
| carcful examination was made ana tha1 tney "cIo
moi sustained John Clanin, another member Oh u'o
,,+,oe ,vos ouoed as saving that the investigation
| took Mace about four years ago ana lasOeo doou'
| brc weeks There were seven men on inc com,
,,,tne and evcry charge was carefully examined ana
dismissed "a croundless. The committee came 10 the
conclusion that President Beers had managed the COM
| many we'll and that 1t would be wise 10 re'aan MN
There was however, considerable argument over 'r'
Banta Some members favored his dismissal out tnc
majority believed that he should be retained Oh dc-
| count Of the strong interest nc Hdu S"o"" !" Inv
| fare Of the company
Roth Vice President Welch and william b. Horn
blower were disturbed seeing published report
fiat they had denied that the so-cilled Bana charges
were made or that investigation Of them had peen
made They said Shat they had misunderstood 'he
questions asked of them In letter ME- ho'ii0'o"''
| said
never have heard Of any dedication by a man o.
lbc name of Davis or If have 1t has entirely escapcu
memory do not tn d WAS Oh" ge nj Knowing
about these charges They had reference to tlllsac
rbnv vern fnlly eHanincd by committee composed OF
some OF the abcst members OF the b0ard OF
oe tnSnn tbe whole matter was submitted to me for
an opjnon: | conferred fully with General Ben!amn
~ Ijt"w as associate counsel with myself with regard
I mater. we went over The testimony together
and concurred In the result that mere was 4 %
tcrIity Of the officers Of the company the honest
and iudcious management Of the business.
II was said by an officer Of the company that the
Data charges were really nterrogatores and were not
so sensational as they appeared when condensed In
newspaper STYLE But none of the officers would say
ANYTHING about the statement which Mr. Banta Is
alleged to have made that he declined to withdraw
his charges and that President Beers must resign OF
90 t. the pcnltentlary. Mr.. Bana was not at his
Office yesterday.
The natural outgrowth Of the stories of the day
was ono that President Beers wOuld resign his Office
at a meeting Of the trustees to be held the first o.
July. But it was reported that Mr. Beers contem
| plated making a bluff" He is said to control five
cighs of the proxies Of the policy holders who cleo
the president. and Is, therefore, the company. Blu
among these rimors there not one which came
from a crcditaLle source which cast doubts on th'
sOlvency of the company. There was a strong lie
lief that cOmpany's methods would be changed II
| the south American department.
Julio Mcrzbacher has at last been heard from. lit
sends a dispatch from London, saying that he lief
! | this city on December g. accompanied by severl
. | friends and with the knowledge and consent Of tn
! company In regard 20 the alleged defacaiOn. h
says that he appeals 81 the company. lie says tina
he has been unfortunate I'm spcculating In Wal
street and lost heavily in the panic last foil Bu
he assigned all his profits, past present and future,
his partner. Mr.. sanchez. Mr.. sanchez, in return, rs
sumcd Mcrzbachcr's liabilities OF which there wer
+ none except 20 the Spanish-American department o
the company. He saws that he Is living in Londo
superintendent Pierce has ordered Department Super
in+pndcut shannon conduct the examination.