New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-10
A HALF A MILLION MISSING.
ARGUING FOR A RECEIVER FOR THE STEAM
BOILER INSURANCE COMPANY.
THE APPARENTLY DELIBERATE wRECKiNG OF
THE ORGANIZATION-HUGE SUNS OF
MONEY UNAcCOUNTED FOR, SAY


THE OBSERVATION-DISCLOSURES SUMS or
MONEY UNAcCoUYTED FOR, SAY
THE STOCKHOLDERS.
A receiver will probably be appointed within
day or two for the American Steam Boiler
Insurance Company the affairs of which are in
most peculiar condition. Application Tor the
appointment of a receiver made five weeks
ago to the Attorney-General but the Attorney
Generals office was too busy with the efforts
to re-elect Simon w. Rosendale Attorney-Gen-
eral to pay much attention to the appeal then
made on behalf Of a large number OF the s'ocK-
holders. The application for the appointment
OF a receiver was based on charges OF most
sensational nature. in which the officers Of the
company were accused of defalcation 10 an
amount considerably over half million dol
lars. The argument for the application was
made yesterday by lawyer representing the
Attorney Generals Office before Judge An
drews in the Supreme Court The judge took
the papers in the case and VIII appoint 'he IT,
ceiver within a day or two.
The Tribune has told exclusively n great por-
ton of the story of the wrecking Of this COM
pany by a few men. 1t has been shown that'
year after year. there were deficits in the COM
tions. there should have been a surplus. 1t
also has been told how the officers OF this conf
pany took charge of the American Casualty
Company and turned over the business OF the
former company to it. These statements are
made on the affidavts Of reputable men, ana
they are on file in the Attorney Generals Office
One of the most potent features of the apparent
wrecking of the American Steam Boiler lnsur-
tho
cits. They show the remarkably brilliant way IN
which some men can make money without 10
ing much work.
SOME METHODS SHOWN UP
The operations of Edward w. Midgley ana
Vincent r. Schenck respectively vice-presiuei'
ard secretary of the American Steam bohei
Insurance Company are coming out II 10
shown by the most careful work OF expert ac
countants that in period OF seven years oi
existence there has been a loss TO the company
of over $500 600 for which there is no ACCOUNTING
This would seem to be Incredible but the fig
ures in this case do not apparently tell an un
truth The company was capitalized in 1889 with
a capital of 500 O0O At the END OF the iiis'
wear there was a deficit This was natural for
a new company, and. as the amount was no'
large nothing was thought about it. At the
end Of the second year of the company : eXsl-
ence there was larger deficit, but stlll nothlhs
was thought of IT, as better times were PROMISED
by those who were managing the organization
In 1885, for some reason or other, the company
came out even, and the stocKhoiuers W. 'eu , ~
believe that there was something to the COM
many after ALL But from that out the annua
deficits continued to jump up into the tnou-
sands Of dollars. table Of the annuai aentiss ns
has been prepared which shows Just how the
comnanv Jared at the hands Of Midgley and
Schenck for the various years OF It's existence
rh.. ~ hla nv Years as follows: