New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-28
THE DIRECTORS TO DECIDE.
AFFAIRS or THE EQUITABLE MUTUAL
FIRE INSURANCE COMPANY.
THE QUESTION WHETHER IT SHALL CONTINUE
op co INTO THE HANDS OF RECEIVER
TO BE SETTLED TO-DAY-A STATE
A,ENT FROM G. G. sHAYNE.

shall continue in business or apply lof '"e HppoI.I1
nent Of receivers. 1t is said that $5oVV o. ue co''
oanvs capital consists OF dummy notes when are
worthless and also that the directors VIII raise
this amount of money If the secretary ana treas
urer of the concern will resign. and also II James
p skinner & Co. the general managers ana uh-
derwriters be displaced Some time ago an expert
accountant examined the books OF the cofhpahH'
and although the result Of his investigation mas not
been made public. ii is supposed that enough oau
bonkxoerinp MAS discovered TO make change in
s,me Of the officers advisable Mr.. Walton. the
secretary said yesterday that the company was all
right
HIS CONNECTION WITH THE CONCERN.
c. c. shayne, one of the directors, made the fol-
lowing statement yesterday about the company;
went into the Equita5,e Mutual Fire Insurance
tbe pompanv assured me that everything all
right and every transaction strictly IN GoloiniiI.?
They no, only said that the 5000, had been paid in
but showed me the bank books showing GleiI' 90 "a
that amount. ana was also Iniorned . ihnrites
bank had given certificate 10 the STATE auHo' ~
that the COMPANY h3d iaaIe "a, DIn"ipe of 20,
operative. mutual insurance ana IuIIE pS'!rN -
Una on ni atTenGnj Two mceings~one when
elected director March 81. 1871 after me con-
fore Went 10 Europe. / received no nodee what
10 attend NEE, 'ns OF the BoarI o., ,s
very much pleased with the treasurers Iep5I. ne
bonds over $4,000; cash i'm the American Exchange
National Bank OF over $1,000, and in the Trades
Sl.lJ0 ana in addition 70 that over $500 Of Pre-
mums in the course Of coil cion wn.lh, "iaei n -
partmoni made the total assets over $4,000. with
total liability Of about $SNop "4cn giETs We, 60 sur
plus. according TO the statement OF over SIN-'V''
IT SEEMED EXTREMELY PROFITABLE.
made the remark a. the time TIA; the insurance
business was very profitable and was so much
pleased with the mlnagement of the aff2rs that
when it came to the nomination of officers re
nominated the Old treasurer; some other gentle
Gers We're eIccted ro.e ana made short talk and
among other things sad jhat ma Sui. . vs., ,I
that | did not want any one to suffer loss in this
corporation hy my neg.oct SAID That hohgs' men men
had no reason to fear an examination ana II ny
ganization the directors ought to know it, ana
moved that an auditing committee oil lhiee ~ % a.
pointed t. examine the books OF me Sc'nf&$ ne
treasurer informed me Mar mT G nvsolf We're
elected members of the Executive Committee win
me gS; the Executive ommse hcd after
the adjournment Of the Board OF l5rgc,oIS ,1
that the Executive Committee proceed 70 max
Of the company. and requested Mr. Dobbn make
the motion that expert accountant De ehlplo! "a
for asking the treasurer to offer the motion was
that | desired to have the motion adopted unahli
mously. he offered the motion; II was second iSl
and finally adopted. ! was selected TO engage Ine
expert accSnn,an NJ Mr. se b nrasents of banks
and Others as thoroughly reliable man. and be
BOUND TO LET IN A FLOOD OF LIGHT
Mr. J. l. Covngton ian Old insurance man Of the
highest reputeJ and myself were instructed 70
supervise the examination. l took the position
that every feature Of the organization and all
affairs of the business must be thoroughly eX-
amined into RumorS wsre Oelnf wad no bear
investigation. l determined that II these
light the Board Of Directors informed. the public
advised and the guilty persons II mere Wsre SS ~
Directors and public would have perfect Confluence
Il in Mr.. Seldom r. HOpkinss report If he found ana
company in good financial condition, il would ex-
ibe confidence the public had in the company
on the other hand. If his findings were uniaVor,,
by the facts and because Of any personal feel
ings Of prejudice My point was that everything
and correct Information. Upon this nave insisted
from the very outset ana | sun not me me sam
views If the thing were not al s;raigAt ana EYER
transaction according TO a strict construction OF he
deception and ' see that justice was done Sly name
appears on the policies issued by the COMPANY ana
connection with the company
UTTERLY AMAZED AT THE REPORT
Mr. Hopkins's report came thunderbolt to
me- and l believe to every other member Of tAe
board except those directly connected wiki the
transaction. We had previously known nothing o;
the deals with the banks. and supposed that every
draft had been paid as was my own dIaIi dItcr , !
received my policy. OF course. / knew II WouI3
with the banks 10 collect them but | believed
they we're ali paid within thirty sixty days after
being deposited in the bank. We believed the com
pany had been regularly organized, ana had done
conservative and profitable business ana, as az
ready stated, were very much pleased with the
We aid not know when We commenced the ex-
bank account was fictitious and the bonds borrowed
Now Ges ak TO [e msy be sua S5ush ha the
pany will be put on sound basis ana VIII OWL
ness is done. II 1t can according TO law II the tu
intent and spirit of the law cannot be complied with
noIices Peinsured From now on every transaction
will be as legal and honorable as supposed II mad
been from the beginning.
NO DESIRE TO PROSECUTE.
do not wish to say anything about criminal
prosecution until legal opinion has been expressed
upon :he points involved. / have desire 10
prosecute any one; l have no personal feeling
against any one connected with the company.
am simply performing an unpleasant duty. ! say
unpleasant" because ii Is not pleasant thing to
discover men in whom you had confidence doing
dishonorable things. but / think that who
will deliberately deceive business men and get the
use OF their for their own selfish ends ought
10 be punished. OF course. that VIII be for the
| think that the insurance law is very defective
No law ought TO be in existence in the State that
will permit companies TO be organized in such loose
manner, and nope that the iegisiature VIII take
hold OF this matter and pass laws which Will pre-
vent parties from organizns insurance companies
pany commences to do business IT ought TO have
the capital paid in unless individuals are liable as
in the case with the Lloyds
To show the good faith Of the directors, at a
nIedeeS themselves 70 raise S3l 500 If it were per
Missile under the law; that is. If the Insurance
eide that 1t is legal In this action the director.
do not intend to DO anything TO compound
stood that in this money was raised the com
pany vas 10 have new underwriters and that th'
be elected in their paces-practically reorganza
ton Of the company