Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1892-03-13
INSURANCE SENSATION.
TIE FEDERAL AUTHORITIES AFTER The
WEST VIRGINIA FIRE AND MARINE.
President 7. n Garvia Arrested on a U. s.
Warrant and the 0f,srs Anar Secretary ].
L. E.1erk.n-A C-roas Safe q Affairs.


days past, and concerning which the
town has been full Of gossip.
Yesterday matters came 20 head.
Mr.. T. NJ Ga-vin, the President Of the
West Virginia Fire aud Marine Insur-
ance Company, Of Wheeling, is under
arrest on a Federal warrant, issued by
United States Commissioner b. j. Camp
bell, charging MIN with using the mails
for improper purposes, and like war
rant, as yet unexecuted, is In the hands
OF Deputy Marshal George w. Robin
son, for j.. X. Elderkin, Secretary Of
the Company Mr. Garvin has been re-
leased on his cwu recOgnizance, the
time for the hearing not having been
fixed. and the officers are looking for
Elderkin. who was expected % arrive
IN this city yesterday, or last night, but
who has noe made his appearance al
last accounts
The allegations made in the case, by
local insurance meu, are interesting,
not 90 say startling, and imply serious
condition Of affairs, il true. The allie
cations are, In substance, as follows;
Mr.. Ederkiu came here sometime
late In February, and employed Mr.
Garvin In a legal capacity, 20 organize
the West Virginia Fire and Marine In
surance Company of Wheeling, with
capital stock Oh two hundred thousand
dollars. Mr. Elderkiu put down his
name, ia the application for charter,
for 90 shares Of stock, and Mr.. GaTVin
and three other gentlemen each took one
share OF stock, the three latter AZ the
request OF Mr.. Garyin, who desired %
formally comply with the law Ia getting
up the Company, Mr.. E.derkin having
assured him that in case the four local
fncorporatOrs did not desire % remain
I'm the Company, the stock would be
taken off their hands. The charter
WIS granted March I'd, and on
the following day Mr. Garvin
and Nir. Elderkin met In
Dir. Garvin's Office and elected the five
incOru0ratCrs as Directors. Mr.. GarVln
YVES then elected President, and Mr..
Eiderkin Secretary. MIR. E.derkin eX-
hibited 90 Mr.. Garvin Sundry papers,
purport.ug 90 Sc mortgages aud other
securities, representing "a large sum,
and a number o, policies, which had
been already printed by Mr. E,derkin,
or some one for him, were signed up.
These policies, singular 70 relate, do not
state where they were issued, although
the Inference is left, from reading them,
that they were issued In Wheeling.
On the 4th OF March, one day after
the organization at the Office OF Mr..
Garvin, the following financial exhibit
was issued and extensively circula-
ted
Loans on real estate, secured BY mort $500,
gage ...-. .-..---.. .-.. - 49,
Loans secured by coliatstal........ ..-. 2ll-5
stocks and bond. --.-.-..-----. .--.-.-. -
Cash. .-.. 49,
Stock notes, secured. ................-. $50
r,.l ............ $4,000
On the first day Of March, three
DAYS before the organization Of the
Company, aud one day before the
charter was received, policy No.
5.079, for $1,000, was issued
through a Chicago broker, upon the
Elson Glass Works, Of Martins Ferry,
which policy is now In the hands
OF the United States authorities in this
cftv. This fact seems 20 show that
policies were printed and sent out be-
fore the organization Of the Company,
or before 10 had a legal eXjStance, and
that good money was paid by those de-
string Insurance, for such policies.
Letters received in this city from the
Flndlay, o., Glass Company, and from
Buffalo, Y. Y, show that Insurance
was sought, in the name Of the West
Virginia Fire and Marine, i'm those cities,
ID. q Il. A. IN hn H.
ing of the Company OF local people, be-
fore the policies were placed. Business
cards. issued oy the Company, bear the
following list OF officials and Directors,
which seem 90 De different from the
Board elected Pa this city: T. NJ. Gar
vim. President: Or Frank Hunt, George
1, Emmiuger, j. x. E,dcrSin and Hon.
WIN. II. RAYMOND. The Company has
no office i'm this city. but President Gar
Vim states that Mr.. Elderkin asked 20
have desk room in his office, temper
Rrilv. until quarters could be secured
elsewhere, aud Mr.. Garyin was asked 70
look out for sucl quarters. None nave
been secured, however, and, rs stated
the policies DO not show that they were
issued 10 any particular place. ABOUT
al the Insurance officials IN this Guy
have been summoned a. " Illnesses IA the
case. for the hearing before Commits
siorer Campbell, and some very inter
estlng testimony win DO doubt be taken.
Iu talking about the case yesterday a
leading insurance man SAID;
"A good deal Of insurance, placed
right in this city aud vicinity, will not
bear inspection. have In my mind al
present one manufacturing concern,
which has three policies which are prac-
tically worthless Ia the event Of loss.
One was issued during the present
month. by Company which was re-
fused a certificate by the West Virginia
authorities the first Of the year, and
which has no legal authority to 20 bust
ness. Yet the party ia question has
paid q premium for IL, aud relies uDon
IL in case Of disaster. The whole thing
needs an overhauling very badly and
the state and Federal authorities ought
20 start II at once"
President Garvir, Of the West Vir-
pinla Fire and Marine, told a REGISTER
reporter that his connection with the
Company was purely a professional one,
esan attorney. He had been asked %
Get ND the papers necessary for a coar-
ter. aud had dCue so, putting down MS
name as an incorporation, and Inducing
his friends % 90 50, merely as a matter
Of accommodation. This spirit had also
sctuafed him when he became member
of the Board OF Directors, ana Presi-
dent ne knew absolutely nothing OF
49, sfFairs of the Company, aside FROM