The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-08-02
YOU PAY, NOT They.
Ways of the New York County
Cooperative Fire Insurance Co.
Rent, Salaries and Other Expenses
Paid, but Losses Never.
President kempe Cheerfully Gives
Away a Most Brazen Game.

The explanation Of the way in which
the New York County Cooperative Fire
Insurance Company. Of $50 Broadway, Is
conducting its business ut present, as
given by President NJ. Kempe, is quite
an interesting one to holders of the Com
pany's policies, who are likely to call the
attention of the State authorities to the
manner in which 1t Is conducting it's
business.
President Kempe last Saturday stated
to one of the Company's clients, local
fire loss adjuster and an Evening
World" reporter that his Company was
practically insolvent; that there was an
Indebtedness of $4,000 due by the Com
pany on fire losses, which could not be
met. and that while he admitted the
Company's inability to pay losses 1t was
still accepting risks and receiving the
cash for premiums.
Still more interesting was President
Kempe's statement that any money paid
In for premiums was used not to pay off
back losses. but applied to pay office
rent and office salaries. his president
Kempe'S among the latter. President
Kempe also said that probably the Com
pany would, at the next directors meet
ing. to be held early in August, decide
to go out Of business.
President Kempe was not at all reti--
cent In giving the above details. and
looked upon some of the above condi-
lions as being rather humorous He
also advised the client In question TO re-
insure in some stock fire insurance COM
pany. as the, policy he held, and on
which e, HI he had paid his premium. was
President Kempe attributed the finan-
cial stringency of the Company to too
many losses and the refusal Of the CO.
pay assessments. He said there were
100 members on the Company's books
and out Of these not over forty could be
led upon to pay their assessments
brought out by the demand Of Irwin, q
eoaas IA so Of . Tsitt
brooklyn. for the payment OF a loss Of
$3.50 to their machinery and stock. which
were damaged to that extent by a fire
son took out a hre Insurance policy il
the Company for IS. 100 through e. d
Hawkins the Company's agent, ut Is:
Montague street. Brooklyn. who assured
and to whom they paid $3.50 premium
receiving the policy in return and re
eeipt for the money: Through g. Frans
Rice, OF 9O6 Broadway, the firm made 9
demand for the money.
President Kempe offered to settle the
$3.50 loss for $50 which Is just $3.50 more
namely $3.50. President Kempe's offel
| was taken under consideration by the
firm until they hear from the mortga
| gee, to whom the loss was assigned.
President Kempe did not dispute tn,
justice OF the full claim. but said thai
II was simply a case OF inability tt
pay. He said that the COMPANY hsf
had done a good business for the frs
two years. Then the hard times, many
| losses and few Embarrassment mem
bers had virtually destroyed the organ
| ization.
In offering Irwin & Dennison $50. Pres
ident kempe said, in the presence o.
the above named witnesses: .,
"If the erm wishes. however, We will
send out an assessment call on III
loss. but II will take sixty days before
by our regulations, we could make an,
statement of what the result was
closed up by then and the firm woult
get nothing. This $50 is some overcast
we have in the office. and I advise tina
THE Company will not cancel tn
firm's policy because II would not chang
the situation. We could not pay the re
turn premium. Practically the policy i
and have paid $500 to a lawyer who is II
the Office during business hours Il
straighten out any complications tina
may come up. My own salary Is onl!
$l2 a week"
President Kempe was asked severa
questions, to which he replied as fol
lows:
"As we are not closed up yet we ar
still writing risks and receiving pre-
miums and Issuing policies. We took II
SIS for premiums only day or two ago.
What use would you make Of say
a 500 premium paid on Monday"
why that would be at once paid Of
the rent" he said.
''If on Tuesday, say. s75 was paid Il
for a premium. what would be don
with that"
my salary, for instance, and so on,
said President Kempe.
Suppose $50 was brought in Wednes
day what them"
Some OF that might go to pay sma
losses. But our expenses must be me
first. There is no danger that so man
premiums will be paid In one week." re
: piled Mr.. KeTpe.