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 q Most Brazen Game.

the New York County Cooperative Fire
Insurance Company, of $50 Broadway, Is
conducting its business at present, as
given by President NJ. kempe, 10 quite
an interesting one to holders Of the Com
pany's policies. who are likely to call the
attention OF tho State authorities to the
manner in which 1t Ia conducting Its
business.
President Kempe last Saturday stated
to one Of tho Company's clients, a local
fire loss adjustrr and an Evening
World" reporter that his Company was
practically insolvent; that there was an
indebtedn 'ss OF $4,000 due by the Com
pany on fre losses, which could not be
met, and that while he admitted the
Company's inability to pay losses It was
still accepting risks and receiving tie
cash for premiums
Still more interesting was President
kempe's statement that any money paid
In for premiums was used not to pay on
back losses, but applied to pay once
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
10 20 out or business.
President kempe was not at all reti-
cent in giving the above details, and
looked upon some OF the above condi-
tons 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 he had paid his premium, was
practically worthless.
clal stringercy Of the Company to too
n'eny losses and the refusal OF the CO.
operative members of the Company to
pay, assessments. He said there were
and out OF tnese not over forty could be
depended upon to pay their assessments
when fire losses occurred,
fU oat by t e ss cSi% 81 Irwin
toods 2ss to 80 Graham s Tsae
Brooklyn, for the payment OF a loss of
We're damaged to that extent by q fire
July last. June 20, 1894. Irwin q Denni-
son took out a fire Insurance policy In
the Company for 81, 100 through Y. d.
Hawkins, the Company's agent, at lse
Montague street, Brooklyn. who assured
them the Company was perfeetly sound.
and to Th iRs n they paid ;S9 premium
ceipt for the money Through q. Frank
Orr, u fire loss adjuster,. with Sedden 81
Rice, Of 2o6 Broadway, the firm made a
demand for the money.
President Kempe offered to settle the
$3.50 loss for $50. which is just $3.50 more
than the amount Of premium they paid,
was taken under consideration by the
firm until they near from the mortga.
gee. to whom. the loss was assigned.
President kempe did not dispute tine
pay. He said that the Company had
been in existence for three years, and
so gears Ssns FR Se the Rsrd times "G marry
losses and few paying-assessment men,
bers had virtually destroyed the organ
alton.
In Offering Irwin & Dennison $50, Pres
ident Kempe said, In the presence Of
the above named witnesses:
"If the firm wishes. however. We will
loss, but it will take sixty days before,
by our regulate we could make any
statement OF what the result was.
Anyhow We shall in all probability be
closed up by then and the firm would
get nothing. This $50 Is some OVERCAST
we have In the office, and advise that
It be accepted.
THE Company will not cancel the
firm's policy, because 1t would not change
the situation. We could not pay the re-
turn premium. Practically the policy Is
now worthless: We pay $500 office rent
the ONCE during business hours to
straighten out any complications that
ma, may come come up My own salary Is only
Sl2 week.
President Kempe was asked several
questions. to which he replied as fol-
lows:
las we are not closed up yet we are
still writing risks and receiving pre-
miums and Issuing policies. We took in
SIC for premiums only a day or two ago
What use would you make Of say.
800 premium paid on = Monday"
"Why' that would be at once paid on
III on Tuesday, say. SIS was paid in
for premium, what would be done
"Oh, I'd use that for ONCE expenses:
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 small
losses. But our expenses must be met
first. There is no danger that so many
premiums will be paid In one week." re-
piled Mr.. Kempe.
Treated with His Employers Money
John LAWYER. a driver. twenty sight years old.
Of 80 Bowery. was held for trial in Essex Mar
ket Court to-day. While in the employ OF
Frank Schleider. a furniture dealer. Of ia
Forsyth street. LAwler collected SIS and, ep-
prOpriated the money to his own use. l.awler
said lie met some friends and used up the money