The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-06-22
BREAKERS AHEAD.
The State Investment i'm
Bad Shape.
Commissioner Wilson Says He In
tends to Prosecute Its Presi-
dent and Secretary.

Before the tapgle in the affairs of the
State Investment and Insurance Company
is unraveed, the president, George L..
Brander, and its secretary, Charles Blair,
may be forced to defend themselves
against criminal accusations, as j. n. f.
Wilson, the State Insurance Commits
sioner, says he intends 90 prefer charges
against them.
Among other things they are accused by
Mr.. Wilson of presenting a report on the
condition of The affairs of the corporation
which, to draw it mildly, was misleading.
The report filed in 1892 showed that the
capital stock of 100000 was considerably
impaired by iDjudicious management,
but as it was not impaired to the
extent Of % per cent or over, the insurance
Commissioner could not prevent the COM
paDy from continuing to Issue policies.
N. NJ. Rhorer, the deputy insurance
comm ssiOner, knew that matters were not
running smoothly in the corporation, so
when BTander presented his sworn report
this year lie proceeded to investigate it.
Brander's report stated that the aggre-
gate assets OF the company, at actual value,
were SOS. 63l 80, and the liabilities were
S3g4 $50 y. This would lead to the belief
that the company had not only the original
capital Of 100000 safe. but 1851 81
besides.
After an investigation which lasted a
month MIR. RhOrer found that the concerns
capital had been impaired to The extent of
S247, 442 10. It's assets were really $685.
AL SO, with liabilities Of S470,S74 %. Not
only this. but the company had borrowed
money to pay dividends. Mr.. Wilson SAYS
that on ascertaning this state of affairs
the State investment and Insurance COM
pany was ordered to write no more pol
lcIes.
Tie affairs of the company are tangled
up in insolvency proceedings in the
courts, and many policy.hOlders who have
claims for return premiums charge that
unlawful claims are being introduced il
order 10 reduce assets.
A month ago II. Matthews. who claims
that the company owes him SIS, 525: II,
Black, who claims $4,000; S. P. Holloway
and l.. P. Drexler. who claim $4,000, and
others, whose claims in all aggregated
S95, 000 letitiOned to have the company
declared insolvent.
Now along comes F. II. Williamson of
Denver and Attorney E. F. Bert holding
policies of the Worlds Fair Columbian
Exposition, and others with their claims
and startling charges against Brander.
Williamson in plant of intervep-
ton against the company being declared
insolveEt, sues to recover 1920 46 on n
policy OF insurance issued to the Denver
EoidHi ping OOUlDduN, he IefISu du attach
ment on the property before the petition
of insolvency v as filed.
Williamson charges that the filing of the
insolvency petition was the result of a
conspiracy between the petitoning credi-
tors and George L. Brander, the president
of the company. He alleges that Drexler,
Matthews, Black and others, who claim
that $4,000 is due them, were never credi-
tors or the company, and that most of their
claims are for money loaned TO Brander,
for which he hypothecated stock of the
company as security.
According to the Insurance Commits
siOner. the books of the company do not
show that it borrowed any money from
Matth ews, Black or Drexler. The COM
pany did borrow, however, and mortgaged
the building on SanS0me street, valued at
$4,000, for $4,000 in order to pay dlYi-
dends.
Williamson and the other creditors main
tain that the petitioners loaned money to
Brander on personal security, and that he
Is now seeking to load the COMPANY with
his personal debts by advising his debtors
TO appear as creditors.
On July 10 Attorney General Hart will
bring suit in the name of the State to
have the corporation declared insolyent,
The tapgle will proba bly, end there, as it
is likely the final petition in insolvency
will be disallOwed in the Superior Court.
a receiver will be appointed, and he will
look after the $4,000 owed the company
by the Firemen's Fund Insurance Com
Dany, balance due on mortgage amount
ing TO $4,000 on It's Sansome-street build
ing,