The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-01
INSURANCE. NEWS AND NOTES.

Insurance agents at Troy, \. y, have
agreed that after December 1 they, will not
issue or sign a policy until they nave re-
ceived the premium in cash.
The plate-glass insurance companies have
agreed to issue their standard form OF
policy on Jan. l. They have ADOPTED rates
for a number of States West ana south.
The proposed association of fire insur-
ance COMPANIES for the Eastern field, some
what on the lines of the Union in the West,
has been effected, but particulars have
not yet been given out.
Maud III. Hanna has sued the Security
Insurance Company, of New Haven, for
so, 900 damages. The company caused hef
arrest, she AYERS, both in Chicago ana IN
New York, and In bouh citles she escapeo
punishment.
W. +. Gorrell, former Western agent of
the Home Life, and Charles d. Nugent, a
subagent under him, are now on trlal at
Chicago on q charge of conspiracy to de-
fraud the company by alleged counterfeit
ing and forging OF application
for insurance policies. 1t is charged that
Gorrell and Nugent made out applications
for parties who could not secure insurance
in any good company. 1t is. charged that
they changed the Objectionable answers Dy
inserting those that were more favorable,
and thus secured commissions which they
otherwise could not have obtained.
The property at the southeast corner of
Broadway and Pine street, New York.
which comprises but q trifie more than half
a city lot, has been sold by the John An
derson estate TO the American Surety Com
pany for $500, QUO, which is the highest price
ever paid for Broadway property, being
equivalent to $3.50 a square foot, The Amer
lean Surety Company has already pur-
chased the adjoining property on Broad
way. with an l. in Pine street, and will, in
conjunction with the New York Trust Com
pany, put up a new tWelVe-Story ONCE
building, covering the entire site at a cost
of about $~1,500,oO0.
George Mcdonald, president, f. M.
Schweringen, secretary, and W. Ii. Steven
veStment Company of Missouri, were found
guilty in the federal court at Chicago of
using the mails to further a lottery scheme.
These men raked in S60.000 n month by
selling $1,000 bonds, secured by wind, to
whoever would buy them on the installment
plan. The bonds matured by a lottery
scheme. The court said that the company
has been in existence two years and had
5O,023 applications. According to the con-
tract OF its organization, the projectors
have received over 500, 600 from the $40
preliminary fee. and they have paid out
S206,0N to their bondholderS. Sentence will
be passed Dec. 4.
Deputy Superintendent Of Insurance Shan
non, Of New York, on Monday began an
investigation OF the affairs Of the United
States Mutual Accident Association. 1t has
been charged and denied that a consider
able part of the company's income has
been diverted to the treasury of a New
Jersey investment company which held q
contract to manage the agency business OF
the association. 1t is said that a New
Jersey corporation, which was known as
the United States Investment Company,
with a capital of 100000, made a contract
with the United States Mutual Accident
Association, on Jan. l, 1880, to manage the
associations agency department. The in
vestment company was to receive the net
membership fees and 20 per cent of the as
ssmen and annual dues, and in return
was to furnish 1000 members each year.
The investment company took an assign
ment of Secretary Pitchers contract, by
which he received a dollar per member
each year, and relieved the association of
all payments to MIR. Pitcher. The United
States Investment Company was succeeded
Io+ar hy tho Investment IOmnqnV of New
Jersey, which latter Institution was CAPT.
talized at 81, 100000, and has paid an annual
dividend for the past two years of 8 Per
cent. The Investigation now in progress
will bring all the facts in the matter TO
the surface.
The United Life Insurance. Association.
of New York city, has been defeated in a
suit in the Supreme Court, before Judge
Lawrence, upon a technicality. 1t was
upon the claim Of Anna Byrne for 5000
| Aug. 2, 1891. He had been insured lie the
association since May Is, 1887, and an an
| nual premium of SIS was due May 10 pre-
| ceding his death, which it was conceded
had not been paid. An act passed in 1876
provides that a company must give thirty
despite the fact that the company had not
given the required notice, it refused pay
ment on the ground that the contract had
been violated by the nonpayment of the
premium, and it's lawyers moved to dismiss
the case. The lawyer for the plaintiff asked
for a verdict at the direction of the court,
OI lis klOuINA lldN lIC lllItd lEtu IOI
complied with the statute. The court per-
mitted the defendant to put in eVidnece
on this point, but. the company was unable
to prove that il had given the requisite
notice. Judge Lawrence accordingly d.
rected a verdict for the plaintiff, giving the
full amount of the claim. The company
moved for a new trial on the testimony of
q physician that Byrne had q cancer of
the stomach, although Byrne had given
the usual certificate that he was we'll
after paying another premium on which he
had defaulted. Judge Lawrence denied the
motion on the ground that the physician
would not be permitted at a trial to divulge
what he had ascertained from an NINA
ton of a patient.
The collapse of the American Casualty
Insurance and Security Company. of Balti-
more, whose head office was in New York
city, caused more urprise to the part Of
the public outside of the insurance interest
than it did to that interest itself. In insur-
ance circles something of the kind has been
apprehended as likely to take place for
some time past For two months past the
air has been filled with rumors that the
company was in trouble beyond power of
repair. On Wednesday last it's directors
decided to place the corporation in the
hands of receivers, and this was done on
the following day. when proceedings were
ton filed in the Circuit Court by Alexander
H. Robertson, as counsel for Edward Aus
ten, vice president OF the company, DIR.
Isaac X. Tremble and George y. Sheldon,
stockholders. The petition stated that the
company is insolvent; that It's New York
agents " IL large sums, and that the
c~ompany's Indebtedness will exceed 500. 600