New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-06-19
INVESTIGATION BEGUN.
THE AFFAIRS OF THE NETWORK LIFE.
NrszpAoHER HAD A HABIT OF ANTICIPATING
HIS PROFITS.

,trpzBAOHER HAD HABIT OF ANTICIPATING
HIS PROFITS.
Superintendent Pierce. of the state Insurance De
,+ment having appointed Department Superintend-
- Michael d. shannon TO examine the affairs OF the
CO. Work Life Insurance Company. Mr.. shannon
.s,,cav took charge of the compsny's Office yester
- He will be assisted by large clerical force,
u s che entire examination may cover period Of
a., ,nonths and it may cost the company as much
- coz 900; for under the terms, the company mas TO
- Cor the examination. II is believed that Mr..
rs,non will obtain the essential results in few
EFT" ITS No one has questioned the sovcncy of the
'ornnanv yet, and Colonel William L. Strong one of
w. trustees, said yesterday that he had examined
n eompanys assets, and found the figure S1l5ooooOo
,rsn In January to be correct.
The trustees recommended the examination, ana
"a the concurrence of President Beers, who sent
ssnstch from Europe commenting their decision
Archibald H. Wech, the second vce-president OF the
company said that the Insurance Department mad
been invited TO make searching investigation, ana
.ha, i, would have the fullest possible to all
,ts affairs He could not tell how long time the
examination would consume. but he knew mat IL
would be thorough and that the company would lie
satisfied with the result. He did not know wheh
PRESIDENT Beers would return home. None OF the
ocers seems TO think President Beers Will resign
his oeBoe as reported. But Colonel Strong said en-
n.,caIIy that the company would not allow him 10
resign even if he desired TO.
0Ths trouble is now over" said another omcer
aTh. examination will cost a good deal OF money
hut after it is over shall start out as ne"
company: we shall be born again.
Tho so-called Banta charges have beeh PreV.S
thoroughly exploded. Colonel Strong. who was chair
man NJ the investigating committee, gave tribune
reporter Yesterday full history Of the affair MI
Hanta sent what Colonel strong caheu
statement TO each one of the trustees. a.
routine meeting of the trustees
Beers aslicd for full investigation OF the statement
and the trustees appointed committee OF their own
ror,ters IN select the investigating committee The
,aser body was composed Of General benjamin H.
prlstow John Clafn, John n. Stearrs, C. Z. baiu"in
and Colonel Strong, chairman. General bieo" "o'O.
as counsel to the committee The Investigation laS'oN
about three and Onehalf months, the comml'ee iieoV
ing about four times a week and sitting about four
hours each day. Mr.. Banta and everybody mehuoneu
in his statements were examined, and the coi''ee
came 10 the unanimous opinion that the statement
was not sustained. General Bristow and william Is.
IIornbower attorney for the company fully cohcurreo
In the verdict.
When Mr. Banta heard the result he told Colonel
strong that he had acted from conscientious motives
and felt that he had discharged his duty to MS con-
science TO his God and TO the assured The trustees
had no friends to reward, and he wculd be eansnep
with whatever decision they reached The trustees
and President Beers desired to retain Mr. Banta, De-
cause he was valuable man, and, as Presldenl Beers
put IL, he none the less NGudUle Oh aO0Vuh' va
his " freak"
More heard from Juiuo Merzbacher yesterday
which shows that he has exercised his peculiar talents
in other fields. NJ J. Drucker, leather merchant OF
No l76 William-st., the victim in this case ana
he gave these facts yesterday. Merzbacher was en-
ployed BY Mr. Drucker from 1867 TO 1874 as conden-
hal clsrk and resident buyer He sent Merzbacher to
Paris and gave him interest in the business, but
had no partnership with him. Merzbacher Endorsed
paper for him and drew Mr.. Ducher for purchases
Merzbacher participated" his profits in the business
and when MI Drucker attempted TO get settlement
Merzbacher failed to give it. Mr.. Drucker summoned
Merzbacher to this city, and he owned up that there
was shortage in his accounts. But lie said that il
could have 81 900 he eXtrcate himself from his
troubles and regain some money he had lost. MI
Drucer advanced the $4,000 and that was the last lie
saw Of Merzbacher, who fed to Brazil
Mr.. Drucker went d Paris, and had to pay out
81 80 600 to settle up Merzbachers shortage. for which
Nierzbacher had rendered him responsible. This sum
also included the "a 600 he advanced 10 MerZbacher
Afterward MerzbacheT wrote from Havana TO ascertain
II Mr. Drucker would allow him to return If no made
mart payment TO him on his debts. Mr.. Drucker al
lowed him TO return, but declined TO say whether he
received any money from Nerzbacher.
II was learned yesterday that President Beers Knew
~ Nerzhachers shortage in the south American depart
Inent soon after MIR. sanchez had discovered IT, MI
Beers however, did not inform the trustees Tor some
time because told Colonel strong afterWard the
company amply secured against loss IN the AFFAIR