New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-26
DTVIDENDS WRONGLY PAID.
THE AMERICAN FIRE INSURANCE COM
PANY's STATUS.

a., orrtcIAr. EXAMINATION SHOWS THAT ITS
c.ptru. STOCK WAS IMPAIRED ON April. 30
1880 GO sa-rIvIDESDs DECLARED WHICH
WE'RE NOT EARNED ORDERED TO BE
MADE GOOD Policy HOLDERS
AND CREDITORS PROTECTED
Albany June 2s.-Superintendent J. +. Pierce' vi
the state Insurance Department to-day maze pun
uc tho result OF the Departments examination lnto
the affairs OF the American Fire Insurance com
pany of New-Yorl The examination was COZ"
Quoted by Deputy superintendent Isaac Nahue'
pool and his report shows that on April 30 the
companys assets were Sl.31S37s. The total iiaD'h-
ties except capital were N.Sosols "a; capitai s'ocN
500 90; total liabilities. including capital S''o'-
Ols a. The report in part says; ,.o.
The impairment OF capital stock April 80, lN ,:s
s "aS statement gave surplus Of N5i63 81 In
view OF the serious impairment Of its capital wi,hn
the following discrepancies in the annual return as
disclosed by this examination: rsh in nftre
s1 S5s 29 interest. not included In market values
% b. aafs 81 srSSs pss@%a d
ference in liabilities vas as iooSs M" ore
STA 66 o annual statement uns o, 1s premium
fund s7i750l "a: actual figures. S953ss ~ annual
nres' $500: annual statement interest accrued
on same. nothing: actual figures 9it o..
losses %s OF the company on December 81 last sl75
7ff fO) do not In my OPINION, represent
amount for which the corporation was obligated
on that date on account of It's unpaid losses Us
IN exccss Of the sum have given. The variation In
uncarned premium fund between the true amount
On Account Of same was brought about by increas
ing the item Of expired ana mark.d"" , on,
81 premiums reinsured by S54.22 II. large portion
OF this reinsurance eyer NoD was purely nct n
force was. therefore, S957S4 Co. .,
The condition Of the company on December 81.
,eai irlf ed the present examination, SHOWS
Asset, q" amSantias s3s o. liabilities ,PcI 6i
ins saP'sl' 80 500 s "a os '''' ''''
Notwithstanding The fact that the company,
,sas "a dIyidend OF per was declared on Janu-
ary T. 1895 and SEQ 900 paid to siockhoiers the
day following on December 81. Ss tnT G1p nvey
liabilities including capital. OF NSSSs US un
s o heyc bc"n ss 70 instead OF s5s 4 o.
turned in annual sts;enen, Tor mat gear G,bep @
ures given In statement to December 3D. 1893 10 be
correct. the company. capital s,ocK on dr n Tho
y was @ M paid 1890 dividends % 'tockhSas,
dividends TO this amount were also p"'u CURING
superintcndent Pierce has written a letter to tn"
president and directors OF the company IN "h'c" ne
says: Al,
Acting under the Attorney-Generars advice. !
beg to request that you take immediate steps LOOK
Ing toward the restoration to the corporation, OF
during the years 1894 and 1895 amounting to the
sum Of go on II IS evident that these dividends
Of The company but from It's capital stock. In
direct violation OF law 1t is not In evidence as {,
result OF the examination that the dividends OF
1893 were made from capital although the impair.
ment Of nearly 10 cent referred to IN the repor,
as existing on December 81 OF that year would
point strongly 20 this fact. have therefore con,
nned my request 20 the return OF the dividends OF
1894 and 1895. 49,
While believe the interests OF the policy holIcr
and creditors OF your company have been amply
protected by the reinsurance OF your outstann'ng
policies ana that the examination 81 your affairs
which I propose 10 have made during ihe coming
week will show little II any impairment OF capl
tai vet am constrained 20 h"liev" that you VIII
see the necessity " having restored 10 m" cor
poratlon 1T once the funds Improperly though IN
nocenily diverted from IL by It's stockholders In
the receipt by them Of the dividends referred TO-
even though their repayments create a surplus 10
the extent OF the sum so returned.