New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-21
INDIGNATION AT THE DELAY.
FAILURE OF THE STATE INSURANCE DE-
PARTMENT TO ACT.
ITS DISREGARD OF THE LAW IN THE CASE OF
THE AMERICAN CASUALTY CoMPANY-fLAlN
REASONS WHY THE ORGANIZATION
SHOULD BE DIssoLvED-wHAT

BUSINESS MEN SAY
good MANY peculiar circumstances surround
the management of both the American S'eaI" po',e'
Insurance Company and the American C''"'''
Company. both Of which are managed by ,he s"'e
set Of men, as The Tribune set fortn III ''S '."''
Of the facts concerning the troubles vi oo'" ~
these corpora tons Both companies are III ''aio'''
difficulties and have been so for some time. one
OF the companies which Is the mother OF the other
the American Steam Boiler Insurance company!
ought now TO be In the hands OF receiver ""'e
the other company-the American Casualty 'o'i'-
pany-may soon follow 1t. Application was i''ue
before Judge Andrews, in the Supreme court q"
November o for a receiver for the Steam Boiler
Company The receiver will probably be appointed
in a day or two. when Judge Andrews can se' ~ H.
DIFFICULTY IN MAKING UP THE DEFICIT.
In the mean time the affairs Of the American
Casualty Company attracting the atten'io" Vi III
surance men, and they are wondering what "e ~
come Of the attempts to reorganize this co''f''' 60
nut II on its feet again will be. Some time ago "e
stockholders found that, through the pecu''a' '
ness methods of Beecher. Schenck CO.. 'he oap
had become impaired to considerable amount -
firm Of competent accountants, AFTER GUMS -
the books OF the concern. recently repor"u ~
meeting Of the Board Of Directors In hai.nore
that the impairment not less than s'Vo''"'
At that meeting the directors there vote" " ."'"
over their interests in the concern 10 comm =,
consisting of General Henry W. Slocum' Jonh Ia
Searles and Edmund c. Converse Genera' ''o ~,
was elected president Of the company IL" "e.N
ago but he did not accept 1t until just pe'o'
the political election Beecher. Schenek 20
manage the business of the company, ana ne''"'''
achsnck g. Mdeley are credited with the resron'
sibity for the financial condition OF the t"o "'"''
as The Tribune said some time ago ,
General slocum and his associates are not having
the success in securing the capital reauir'u 10
GET the company on it's feet IA 1t ought 10 oe'
,ot,.ar Ia hat Insurance
bssn anpealed to for assistance fear that any money
now put into the company would he wiped OUT
and that the hold of Beecher. Schenck Co Is 100
strong on H. One Insurance man said Yesterday
'.Thev are trying 10 build q stone wall around a
hole. and the prospect OF their DONG II uoe' "''
seem to be AT all encouraging
HOW THE SUPERINTENDENT Is CONNECTED WITH
1T ALL.
At the meeting In Baltimore the directors au-
m,tted that the impairment OF the companys capt.
tal wa. at least 500 900 Therefore. many people
ara wandering why the Insurance Department OF
this state docs not take some action looking 10
the dissolution OF the company. as the Ia" o"eouS'
Robert Sewall Is the attorney for the company
and he offered the resolution which announced
the impairment and provided for the appointment
Of three trustees to reorgAnize the association.
James Pierce the pre.snt suPer wam in ,b H
was not also until after Mr.. Pierce became super
intendent that the American Casually COMPANY
ness In this state The law and Mr. Pierce
duty in the Of both the companies mention Sd
are perfectly plain and threats are being mace
that the Legislature Will he asked this winter 10
find why he has apparently FOLLOWED neither I'M IN
Insurance law says:
appears the superintendent from any statement
made 20 him examination made b. him or by
any examiner appointed BY him that the capital stock u
any insurance corpor except life Insurance corpora
ton doing businsn in this State is impaired to the or-
ten, OF :. per cent thereof that Its assets are in
,cl.n, to Justify continuance IN business he shall
determine tho amount OF impairment deficiency.
and Issue written requpon 10 the corporation 10 re-
oure It's stockholders 10 make good the amount OF 'he
Impairment or deficiency within such period NJ he may
d.s,rna,e not less than thirty more than ninety
days from tho service % the requisiion.
IL the amount such impairment or deficiency shan
not be made good within the time spec Ned IN snoh
requisition corporation. domestic oofporatlon
shall be deemed and be proceeded hs"ins,
insolvent corporation by the Ai'fn"y-"he'"l IN
the manner authorized by law.
IL IL 4. foreign corporation. the superin-
endent shall revoke certificate Of authority issued 20
such corporation and shall cause notice thereof TO be
published in the paper for four weeks and such
corporation It's agent agents shall after such notice
discontinue the issuing Of any new policies
The capital OF tho American Steam Boiler In
surance Company was increased rom time 10
davts with the Attorney General. Is 10000 The
capital Of tho American Casualty Company is 81
ments Of its own officers it, impairment is $4,000
Insurance. men gay that Superintendent Pierce has
miled TO do niS duty in connection with both Of
frst things which they Will ask Of the incoming
iessisturx wifi Be an investigation OF this branch
Of the State government