New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-31
PLACED IN NEW HANDS.
GEN. HENRY W. SLOCUM PRtSlDhNl VI
THE AMERICAN CASUALTY CoNfAN''
BEEcurR. scurycK ( 90. TRANSFER THEIR IN
TEEEsTS IN THE CONCERN TO TE' s'Hhe
RAD MANAGEMENT SAID TO HAVE

! BEECHER sCHENCK ( 90. TRANSFER I"|'" IN
TEgEsT> IN THE CONCERN TO TRUSTEES
BAD MANAGEMENT SAID TO HAVE
NEARLY WRECKED THE COMPANY.
The American Casualty Insurance company
has barely escaped dissolution owihs W '''o
methods of its managers Beecher' 9c"e"ON "
Co. who will probably have little OF "o."'"s
TO do with the affairs of this company "''
after. The company secured us c""''e' ~
MARYLAND and fought for long time to bc
allowed TO do business in this state o"'"s'
ever, to the peculiarity of its charter Robert a.
Maxwell who was the Superintendent VI -"
surance up to the spring of 1892. refused TO
allow this company To come into 'he ''"'e
After Mr.. Maxwell had been succeeded by
James T. Pierce and certain legislation hau peeh
secured. the company was allowed to come in'o
New-Y York State and to do business here i"iS
company practically grew out Of The old Amer
lean Steam Boiler Insurance Company. and the
same men who were at the head of tha' '"'''
pany have been managing the American Casu-
atty William Edward Mideley was the wee
president OF the American Steam Boiler IN
surance Company and Vincent r. Sch"nck was
the secretary of the company. Mr.. Mdsiey WAS
the president of the American Casualty '"Hh-
pany until recently. and Schcnck was me sec
Tetary. and il Is said that he Is also men,p'r
of the firm of Beecher. Schenck x co. chargrS
have been brought against these two men re-
garding their connection with the steam b"her
Insurance Company. and "A suit is now pend'hs
before the Attorney General to have receivers
appointed for this company.
Eeecher Schenck x Coz of which firm Henry
Il. Beechcr is the head. appear as the manager"
Of the American Casualty Company. They
/ rfsip
cf the concern and about two years ago the
business OF the American Steam Boiler COM
pany was practically transferred to it. and
the policies then outstanding were re-nsured In
this company Since then Beecher. Schenck
* CO. have devoted most Of their time to
the business of the new concern. The result
has been that "A new prcsiden, has been elected
and a number Of new directors chosen for the
American Casualty Company. and Beecher
Schenck & co. have turned over their inter
ests in the company to three trustees This
was not done until after an investigation
showed that something Of the kind neces-
sary The agreement under which Beecher
Schenck & CO. operated the American Casualty
Company turned over 10 the firm as managers
30 per cent of the amount Of the premiums
| received.
ACCOUNTS SAID TO BIZ OvEEDR~wN.
some time that The company had overdrawn it's
account 10 the amount Of something Ike $3.50
OOO besides owing "A National bank rcarly slOo-
| O00 The real cause for the reorganization Of
| the company is due the kind Of business
which II has been doing for the last year or
two. Tho company. under the management OF
Bccchcr Schenck q Co. has made n specially
| lately OF railroad insurance. railroad compa-
nies would pay the company "A large premium 10
| insure them against damages from any pos-if
/ Ia ~ az accident
sengcrs. and In case Of such loss of life or ~
personal injury the railroad company would fan
back on the insurance company. which would
be compelled To stand the cost oi Ulals III court
as we'll as the final amount OF damages which
the courts might assess
IT is said low that there are no less than
s. 900 600 in damages for which railroad coinpa-
MES ara being sued. and which. In case of iudg
ment against q en-. the American Casually Com
pany will have to pay. The accumulation II
business II this sort WIN. high premiums were
paid. in the long run cost the company heavily
caused the stoc Ih pldcrs to object 10 the manage
ment nd nearly wrecked the company. For some
time insure nee men have been expecting that
trouble would come from this kind OF business.
The railroad companies which carried casualty
Insurance with this company were unfortunate
I'm the number OF accidents that occurred. and
the American Casualty Company found itself
loaded up with policies upon which several mill
ions Of dollars would have to be paid. TO such
an extent did these reports injure the standing
Of tn, company that on September - last Mr..
Midgley who was then the president Of the com
pany, sent out private circular letter To- the
company's agents. telling them that better times
were coming in the management Of It's Affairs.
| that "A new president was 10 be elected at the
next meeting OF the directors. on September %.
and that the company had given up the railroad
business.
NEW PRESIDENT ELECTED.
At that election Of directors General Henry
W Slocum. Of Brooklyn was elected president
General Slocum did not accept the office FOR
| some time IT not until after he had made
| "A thorough examination Of the books and had
| satisfied himself that with fair and square
| management the company would be success
| ful one that he would accept the presidency.
Soon after he consented to take the prcsi-
| dcncy Of the company the announcement was
made in insuranc" circles that the interests of
| Sccchcr. Schenck IL Co had been transferred to
| three trustees These trustees are John T..
Scarlcs. John II. Flager and George T. Shell
| don. II is understood that they are to apply
| the percentage of the business which would go
| to I;cechcr. Schenck & Co. To "A settling Of the
! accounts Of this firm with the company To
| add further to the strength Of the company
new directors were elected last Friday They
are Eugene g. Blackford Julian -. Farchild
| and Felix Campbell.
| Several Of the 81 )ckhodcrs at one time were
| considering the advisability Of having the COM
pany go into the hands of "A receiver 10 protect
| II from the results Of what they looked upon
| as bad management; but under the new man
agemcnt. 1t Is believed that the company will