The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-29
(Communcatcd)
(Irrom the New York Herald, December
IS, iS94)
PROBING the WRECK.
Grand Jury TO Inquire Into the Failure
Of The American Casually
Company.
MANAGERS ARE ACCUSED.
Henry B. 6eecher's and Vincent B.
Schenck's Official Conduct
To Be Investigated.
THEY MAKE ANEW VENTURE.
Il is the Independence Insurance Com
panh capital and Surplus
S,OOO,OOO."

The statement attributed to Receiver
Severyn b. Sharpe, of the defunct Ameri-
can Causalty Insurance and security
Company, that the assets Of that corpoTa-
ton would pay a dividend TO IN cIeu'-
tors Of only about twenty per cent, mas
led to an Investigation into the mana%e-
ment Of the business affairs Of the com
pany by the firm OF Beecher, Schench X
CO., its general agents As result OF
the Investigation William T.. MiIgeley,
the president Of that company, who was
also vice-president Of the American
Steam Boiler Insurance Company was
arrested On December lith, on a warrant
issued by Justice Grady in the Iomos
Police Court.
Nidgeley was charged I'm the complaint
which was made by John tOlSon, iudi-
tor of the Long Island Railroad CON-
pany. with misapprOprating the sum OF
81 900. the property Of the American
Casualty Insurance and Security com
panv, which h. secured from the llrn
of BeeCher SChenCk a co. and used 10
pay on loans Of the American steam
Boiler Insurance Company. Mldgeley was
held for examination i'm $1,000 bail, when
H. has been unable 20 furnish, and spent
Christmas i'm the Tombs.
That the stockholders Of the detunct
insurance company intend TO follow up
their investigations into the maulsement
of that company affairs by Beecher,
SchenCk n Co was shown yesterday
when eX-District Attorney De Iancey
NiColi visited the District Attorney Of
flee and made a formal complaint against
Colonel Henry =. BecCher and Vincent
B. Echenck. members Of the firm of
BceCher SchenCk q CO.. charging them
with completely i'm the wrecking Of the
American Casualty Insurance and Sc
Curity Company
\ complaint rmholving the facts I'm
connection with the failure OF that com
pIuy was drawn mp and viii Doe sub
mitted 10 the grand JUICY ON Monday
and witnesses Will appear before that
body The story or the failure of the
American Casualty Insurance and Sc
curity Company was published cNclu-
Sively i'm The Herald, of November 3'
1899. and was d revelation TO the insur-
ance world.
An EXTENSIVE wRECh.
The American Causalty Insurance and
Security Company was organized % as
sumo the risks OF the American steam
Boiler insurance Company, that company
being in difficulties. AS was told by Ihe
Herald, the entire cas' capital or
81 10000 together with a su4 plus of $4,000
and S200V besides, was completely
wiped out and the company was bank
rupt. Mr. Severyu Is. Sharpe was APP
pointed receiver of the company. and
be has ever since been trying TO straight
en- out It's affairs
one OF the directors of the Casualty
Company was Arthur Is. Graves. prosl-
since failed. Among the assets of the
bank Receiver Hugh j. Grant found ter
shares oil the stock OF The firm OF
E.Dcfer. SCheuck a Go. ta cDrpoutioul,
which he sold at auction for 50. The
par value OF the stock was 81 900 share
4 quantity of the stock of the steel
Boiler Insurance Company, am Oftrhuot
lf the Steam Boiler Insurance Company
was sold for $40 share
When the American Casualty Insurance
and Security Company was organized
Henry T.. Beccncr was partner in the
n.m of Beecher * Benedict. an old and
Weu-kuowu firm OF insurance brokers.
Mr. Seelye Benedict of that firm. was
not satisfied with the mautG- .u.ul OF
the business of the insurance company
and dissolved partnership with Beecher,
buying out his partner interest lu me
firm. and selling his interest iu the .tueil-
can Casualty Insurance and Security
Company. to- the newly formed firm OF
BeeyheT Scheuck x co. Henry b. Beech
err and Vincent T.. Schenck now 10 bust
ness under the firm name of Beecher AZ
co.. in the Continental building, at 40.
A. Cedar street. They occupy rooms 81
q %, ON the ninth floor
The glass doors OF their main Office are
decorated with the SIGNS ON one side of
the metropolitan Lloyds OF America and
the Indemnity LlOyds. and GA the other
with the sign OF the Independence In
surtuce Company of New York city.
The organization Of the independence
Insurance Company has been watched
with interest by iusurdu'e men generally.
and railroad insurance men ln particular.
The company has been extensively adj
vertised i'm insurance new papers all
over the country, and has been making
glowing bids for business but the con
nectiou Of Beecher, Scheu. X x Co. With
il mas not been generally known. Al
though not yet ready for business, the
company has made brilliant offers for
charter business business given in adj
vance Of the date OF starting January
81, 1895.