The times. [volume] (Richmond, Va.) 1890-1903, 1894-11-14
WILD CAT INSURANCE.
MORE ABOUT THE CONDUCT OF THE
PROVIDENT COMPANY.
Dir. j. r. Hatcher Writes to The Times FL
planning His Connection win inc
Coneen-yirginin's Lax Law.

The insurance men Of Richmond are
hopeful that with the light Of the his
tory OF the Provident Insurance Company
and similar fraudulent companies before
Il. that the next Legislature OF virginia
will take steps in the way of safeguards
10 protect the public from such dishonest
schemes by way Of making II more am
cult to SECURE charters for amy and every
sort 81 enterprise that IS presented
Fortunately. the losses TO the citizens OF
Richmond and the state OF Virginia ny
The Provident Insurance Company are
small. but there is no telling how IaTse
number Of the citizens OF other states
have been swindlcd by reason OF ine idN'-
~ OF Virginia laws IA TINS respect
Ii would be an interesting story JuSt a.
this time 10 know the exact INGENIOUS
adopted 10y the IroVtdeut Insurance CON-
pauy IN the conduct oi IT'S aIIdlis dI!u ''e
Character and number OF its sufferers.
The alleged forgery Of the former sec
Rotary 81 name by the use OF fdc sllhle
stamp after he mad left me conlpa..y' II
true shows that they would not stop az
any measures that would pIinS 'heh
profit
SO MONTY HIRE
EXCEPT that the "Providcnt" apparently
iii "a large business through its general
agent al Chicago, without any show OF
money az this end OF the line, their
methods up Ia the time OF the withdrawal
OF their Richmond secretary We're appa-
Tcntly such as prevail IN other Offices
n any rcmlttaue cS came to Richmond
they were received by Fly at some other
place than the office. Although headings
were raised on the ledger of the Office
against Fry and Hayner, there was never
amy charge made against them for money
drawn, and 10 was q puzzle to those who
knew this he" Fry lived in good style
and paid his bills.
Us nile here he occupied a second floor
ut the corner Of Main and Fourth streets,
and had Jap for his cook and house
servant.
1t is believed here now that the sup
posed break between Hayner the general
agent with his brOthcT-in-law. Judge
Fly and the subsequent Importation Of
Frey, the secretary from New YORK, the
later departure OF Fry and the 1inal dis
appearance Of Frey. were all steps of a
precOnceiVcd plan 10 get from under
when all the money TO be made out OF it
had been secured and the crash had
come.
An insurance company doing business
for six months without a loss would, un-
der ordinary conditions, accumulate q
considerable amount OF money in pre-
miums.
one of the methods adopted by wild
Cat' companies is 10 do a rustic luck
business IN this way, taking insurance
at any rate they can Eet, and when loss
comes 90 Stdye of payment as far as pos
sihle. cancel the policies on hand by pro-
rating the premiums for the time ihey
have run. and withdraw from the field
with clear profit of the entire SIX
months business.
NIL ANoTpEr.
Another plan Of method OF making
money out Of insurers described by one
who has investigated wildcat insurance
methods IL for the company TO have a
general manager I'm city remote from
The home Office through whom all the
applications come ana through Whom al
the policies are sent The general man
actr handles all the money. and by using
% duplicate set Of policies and duplicate
set Of books. makes the bulk OF business
appear cancelled ON the home office books
while the policies are really IN force while
the premiums have found their way 10
The inside pocket of the general manager
When the crash comes the supposed true
records Of the company make no showing
yt The handsome amount of money gath
cred iu ry the officers.
The former secretary Of the Provident
Company remarked In conversation that
Hu unusual amount OF the policies were
returned cancelled.
Mr.. HATCHER
lIr. J. r. Hatcher, who was mentioned
as having been affiliated with the com
puy defines his position I'm the follow
EI-or Times: ! notice i'm your issue of
the l.tu instant an article on the PrOyi-
dent Fire Insurance Company.
Allow me 10 express my thanks 10 your
paper for irs very fair treatment of my
self iU the article lu question. Your
statement that II was more sinned against
than SHINING is uuquesuonahly correct.
with IFS uroycrbial love Of fair play and
justice. taken correct view Of the
situation
In Justice 10 myself and friends. ! beg
leave 90 make the following statement
with reference to my acquaintance with
the PrOvident Fire Insurance Company.
/ was never agent for the company, and
hai no connection with its business /
supposed from representations that the
company was doing a legitimate business
ana was responsible and backed by ample
capital
AZ the solicitation Of -. L. Fry and
George II. Frey with whom l had be
come Acquainted. / endorsed for them
note which they had discounted for their
benefit. which note have been compelled
90 meet ! did this merely as personal
favor 20 the parties. and because ] sup
posed that they were responsible and
would meet the note al maturity.
To my sorrow / find that | have been
imposed upon by two unscrupulous de-
signing men. Since they have left this
city I have found out that they have
been engaged I'm this or business OF a
similar character for several years. Nh.
Frey merely left the KEY to his otilcA
with me when he left on the 2l Of Oeto-
1er. / bad nothing 10 DO with the bust
ness Of the frOViicut Fire Insurance
Company. nor any control over its effects.
was and still am kept from my office
by the serious Illness Of my wife, hence
my absence when your reporter called
] will take pleasure i'm giving your paper
any Information in my possession with
regard to the ProVlcnt Fire Insurance
Company Dr its promoters. Fry and Frey
which YOU may desire to obtain. | sin
Certly hope mat justice may overtake
the parties and that they may be severely
punished Tor the fraud which subsequent
developments show they have DraCticcl
upon an uususUcctn@ ana confding public
Very rcSHtrtfuHy.
j. T. HATCHER.