New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-10

Fran, the time the company was first organ
lied until IT practically went OUT Vi ~, h,,s,
after Midgley and Schenck had turned its pus-
ness over to the American Casualty insurance
and Security Company, the capital was lIicrenseu
from time to time until 1t reached over i'iIn ~,
dollars This first done IN lSoo' "leh Nlic
ca rital had been so impaired that the step was
found to be absolutely necessary 10 save .lls
company from bankruptcy; To TINS d dhcreasea
ca pitaIization was added a bonus of $4,000 pald
In bv the stockholders. With this increase ol
working capital there was dehcit 1or that M
year Of nearly $4,000. The next year there was wa.
a further addition OF capital. and the stockhoio-
ers put In $500 900 more to save the company
from failure At the end Of the year 1883 this
capital had dwindled down to S33o'S'3.
A STEADY AND INEXPIICA3LE DEFICIT
How II was that there has been deficit
since the company went out of business ana re-
insured its risks in the American Casualty COM
pany. the stockholders now are anxious to
know. Since 1880 the American Steam Boiler
Company has been out of business, yet for 1891
there was deficit Of nearly $4,000, and for 1892
q deficit Of over $500 They want to know also
vhv sI8 600 was invested I'm the shares of the
Nnrth River Bank long after the bank had
failed and was in the hands OF a receiver Ihere
was no notice of such stock being in the pos
session Of the company at the end or the year
1890 after the bank had failed, but IN the re-
mort of the State Superintendent of Insurance
for the following year this stock is put in as
mart of the assets II would seem from that
money into the stock Of concern which they
knew was wrecked. On that point the follow
ing extracts from an affidavit of a former mana
ger of the concern gives some interesting inror-
nation:
Albert g. voight being duly dcposcs and
follows: was connected wta the American s,car Boil
Company from its organization in 1Ss3 until
MAJ l. 1890 from 1889 until June 1881. solicitor;
from June 1884, until January lss9, general agent.
and from January 1889. until May l. 1880. one of
the managers OF the Wc-ttrl Department was thor
oughly familiar with the policy and mana cement OF that
company and placed for the management considerable OF
IFS stock a the Increase OF the capital lt
was controlled and its business managed and it, policy
directed by William f. MIdeley and V. II. schenck,
although W. X. Lothrop was nominally president Mr..
Lohrop had practically! nothing to do with directing the
policy the company or managing it, aHir> fror 10
the organization of the American Caaty Insurance ana
security Company Of Baltimore city V. Ii. sehenck,
the sesretary the American Steim Eoier Insurance
Company told that they were going 10 organize the
American Casualty and security Company Of
Baltimore City. and their request assisted them to
dispose OF the stock OF the company They request
m to take position In the n'w company and after
considerable delay In the organization OF Che COMPANY
left employment and became the American Casualty
Conplny's superintendent.
At time OF the failure OF the North River Bank III
November 1890 and TIE placing Of thai bank in tn" hands
OF receiver had a deposit there. have sine" eA
alc to obtain only 60 per cent of the amount Oh my u
ro-it.
THE CONNECTION WITH THE NORTH RIVER
A short time after the failure OF that BANK, abont
November 27 o. 1899. | had conversation with
william f. Md:ey and V. X. Schcnck at the onices of
the American Boie' Insurance Con pany, on tne
fourth Of the Equitable building, In this city, III
which Informed that that company had wthdfawn
its deposits aud disposed Of it, stock before the iauie
up there To Mr.. Midgley about the failure be-
cause / knew that he well acquainted with the
presdent the bank Mr.. Ccdncy and that the Amerca@
Steam Boiler Insurance Company had had It's deposit
there and also held stock OF bank ana thought h.
might b. able % give some Information cOhe hhs
the situation and the prospects for the depo'ltors
him about the failure Of the bank ana n asked
mo had some money there. | told him had ana ne
laughed and said caught We're you II
then said 10 HIM ''Well. You people had good dc,
down there. didn't your lie replied: 1--WE di have
but get IL OUT said; Ibid you get out eNofy
thingr' He reped "Oh have had ~ few
dollars balance there but nothing OF all ~ speak or
we aware Of the condition things SON" time ago
aud you say To anybody that makes any inquiry that
American steam Poicr Insurance Company hai dawn
out ts money and sold stock of the hank which II had
held and lost nothing by the failure In the mean time
Mr.. Schenck had como In Mdeiey Sain 70 schenck
"yeShs got caught La the Nsrth River BANK Schenek