Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-11-14
TIE INSURANCECASE
INTERESTING FACTS CONCERNING
THE PRovlpENT COMPANY.
Laxity Of Virginia Laws Commented Upon.
Statements Of Messrs. Pepioc, Jor.
dan, and Hatcher.

No answer has yet been filed in the
Law and Equity Court to the bill in the
case OF Lynn Brothers. OF Selma, n. c.,
against the Provident Fire Insurance
Company. OF this city. The case has
created widespread interest In insurance
circles and has resulted in a great deal
OF talk concerning Virginia's corporation
laws.
it was learned yesterday by a Dispatch
reporter that a bill of inquiry will soon
DO filed In the suit, and that Messrs.
boswell & Chalmers. counsel for the
plaintiffs, will go ahead In their efforts
10 obtain judgment for the SLIGO claimed.
ar. Chalmers stated that when appli-
cation was made TO the office OF the COM
pany some time ago for a statement "a TO
'ne cohpanys assets, the same was given
and found to be satisfactory. SO far as
the figures went. Mr.. Chalmers said that
ne knew nothing as TO what the con-
Germs assets consisted OF.
MIR. MILLER'S RETIREMENT,
When Mr.. ]. II. Webb Peploe. counsel
ior Mr.. Polk Miller (who was presl lent
Oh the company for one day), was seen by
Dispatch man yesterday he said he
attended the first meeting of the COM
pany at Mr.. Miller's suggestion. and
asked Judge Fay. the missing vlce-presi-
ueht, TO give evidences Of the assets NJ
.he concern. Mr.. Peploe stated that the
Judge looked over a memorandum. which
nc look from his pocket, and referred 10
number OF alleged mortgages upon
western lands held by himself and hls
HSSOgiatng ~
MS client, aside and advised him to have
hothlnS TO do with the enterprise. and
All. Miller forthwith withdrew. Mr.. f..
II. Cloves, one of the directors. also re-
tirei at the same time. This left ONLY
one other Richmonder In the company
Mr. Charles VI. JOrdan--Who was the
secretary. having remained In the hone
OF securing his promised salary for help
ing In the organization of the company.
Mr. Jordan subsequently retired, with
out having received the sum due him by
the company, and he claims that after
that his signature was used by the con-
Germ upon its business communications
without his knowledge or consent Mr.
Jordan met Judge Fry at the Worlds
fatr, where. as published In yesterdays
dispatch, the Judge was connected with
the Washington State building. The
Judge then told Mr.. Jordan that he con-
temp.ated removing the main office Of
the ProVident from Chicago TO Richmond,
ana offered him the position Of secretary
at salary OF $50 per month.
MIR. HATCHERS STATEMENT.
Mr. J. Eldrldge Hatcher, the insurance
broker In the Chamber Of Commerce, who
has figured In the case, was Seen by the
Dispatch reporter yesterday. lie denied
entirely that the company had been sad
died upon his shoulders. He said he placed
several policies with the company that
of Lynn Brothers being among them
When the loss occurred :. was reported
TO him QiatcheD. and by him cOmmuni-
Gated TO the company. Nothing was heard
from the matter until - Edgerton, TO
whom Lynn Brothers had assigned, wrote
10 him QIatcher) again. The concern
then refused to pay the loss, because OF
flaw IN the policy, but afterward offered
to compromise the loss at 80 cents on
the dollar. Mr.. Hatcher said he advised
the trustee not to accept this. as the loss
had previously been fairly adjusted. lie
declares that after this transaction on the
part OF the Provident he had his other
policies In 1t cancelled and did no more
business with 1t.
When asked about having endorsed
some paper for Judge Fry, Mr.. Hatcher
said he had done so to the extent of about
four hundred dollars. and had no security
whatever This had been done In trans
fer OF interests I'm the company to another
Chlcagoan and a Norfolk syndicate Mr.
Hatcher says that on September 10Th he
went away from the city, on account OF
his health. returning October 5th only 10
find the Offices OF the Provident company
closed and all its officers gone.
THE VIRGINIA LAWS.
The leniency OF the laws Of Virginia
with corporations OF this kind has been
considerably commented upon since this
case developed. The statutes provide that
foreign insurance companies shall put
up deposit of per cent. of their capt
tai stock In either Virginia or government
bonds or the bonds Of the cities OF Rich
mOnd. Petersburg, Lynchburg, Norfolk,
Alexandria, Winchester. or Staunton,
while companies organized in the State
curities The plan for the Organization
0i these companies here IS a simple one:
rive or more men make, sign, and
acknowledge certificate In writing. set
ting forth the name OF the company, the
purpose for which IL Is organized, the
place OF It's principal office, and the names
and residences of its officers for the first
year. This certificate f. the charter. II
may be granted by the judge of circuit
or corporation court in term or in vaca-
ton.
When granted. which IS usually the
case, the certificate IS certified to the
Secretary OF the Commonwealth. and
when lodged IN his office the concern be-
comes a corporation with extensive
powers, the chief Of which. perhaps IS
the right or doing business in sister
States under that comfy Of law"
which Is so much abused. The fees for
obtaining charter are small: the cap-
tai stock may be paid for in land. labor,
services, franchises, patents. and other
nnl rrfth .lf4 90
than 800, II Is claimed. Il corporation
may be turned loose upon an unsuspect-
ing public. with an actually paid-up capt
tai OF $500" and organized under the
laws of the State Of Virginia.
The insurance company thus organized
finds easy prey.