New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-25
INSURANCE FRAUD CHARGED
>,c-r,,rNrs AGAINST BEECHER,
scHENCK AND OTHERS.

THE ACCUSATIONS GROW OUT or THEIR MAN
,crvrvr OF THE AMERICAN CASUALTY IN
sURANCE AND SECURITY CoMfAN''
Gam. new light was thrown yesterday upon the
methods which were adopted to cover up the ro'-
ten condition Of the American Nasudit' ~
and Security Company and to make the INSURANCE
.hor,,ios think that its condition was SOUND
ho,ore the concern went to smash. The iniorHia-
ton was found in indictments when were Pieser'
ed against Henry b. Beecher william H. 'i"o
low Vincent r. Schenck and John w Taylor VINO
were members of the firm or Beecher' Schc"0h
20 when that firm acted as the agents
and real managers of the wrecked insurance COLI
Germ There two indictments against he'cae'
and Nidgley and one indictment against the o'her
two men The first indictment, In which all ioui
men are Interested. Is for misdemeanor LOT N'o'a'-
inc Section Gil OF the Penal Code and there are
seven counts In the Indictment. all based upon
the making OF an alleged false statement ~ t,'e
insurance authorities. under date Of December 81
100, Tho second indictment also charges Beecher
and Nldeley with misdemeanor IN voting 10 ~
clare a dividend of per cent on the SoV'V" cap'
tai OF the Insurance concern when the capi'a "au
been swept away by losses.
Midgley has been In the TomDs TOT more INA" I"
month having been unable to give 5000 bail on an
Indictment charging him with frauduiehty t""'
ferrng a check for $1,000. Beecher ana oc"e"cN
surrendered themselves at the District Attorney
Office yesterday afternoon, AMI were feledSci u"
g 500 ball each Ex-Judge Truax accompanied theh
into Part II OF the Court OF General SESSIONS where
Iudge MARITIME accepted the bail and ordered their
release Neither OF the two members or the pres
emf firm OF Beecher & Co would make any state
uent and their counsel said IL would not be wise
~ make any statement before there was an answer
TO the indictments
Mr. Beecher was bailcd by John Clahin. who
said that he lived at No. 81 Pierrepont-st Brook
lvn and gave as security the plot OF land, ZV'x
900 feet at Sedgwick-aye. and Perot-st valued al
ns 900, and free from ncumbrance
Nr Schenck's bondsman was David Hall, OF NO
III Colecc-ave New York. who gave the frame
houses and plot OF ground at No. 800 CoHege-aVe'
worth $1,000 and unincunb2red
n T. Bcccher is a Of Henry Ward Beecher
and has been engaged in the insurance business
,or ,wentv-0ve years He has a handsome home
q, yonkcrs and has been well known as a driver
NJ fourth hand teams. Ills son. Harry w. Beecher.
WAS the famous quarter back Of the Yale football
team Vincent T.. Schenck liz now In business with
Mr. Beccher In the Arm OF Beecher & Co, 1T NO
10 Cedar-st.
Tho first count In the first Indictment against
rho men declares that In maxim; the statement Of
december g. 1892. 10 the Insurance authorities
they gave as gilt-edged assets OF the American
Casualty Insurance and Security Company 800"
shares Of railroad stock. valued AZ 1l5@'. which
really dd not belong 10 the concern. but had been
borrowed FOR the occasion. on the day before ne
date Of the Official statement. 1t is declared. the
stock purchased through Il ufoktfi VINO r.
cc!,ed onecighth VI per cent OF inc ValDe 81 me
stock TO allow the company TO Keep bhe S,o.K i io
four days When the stock Was IN me
OF the company. y. Il. Graves ana Johh r. lde-
stock and certified TO II. and the stock was pacsl
TO the credit ~ the company as assets hen t"e
stock @as pledged to the 81 Nicholas bHRK Tor "a a
loan OF t3vll. and thft ipdn Wa PAU i ~. -
checks OF the insur - COMPANY. heeoher;
schenck co paid for The railroad s'2 },65, 1 ,h
sold them again. ana the arm received rom ,e we
Insurance company checks for S25'vp ana 'NV'"
Tke second count in the Indictment charges that
one item IN the Official statement was TO tho snect
that tho American Casualty Insurance and Sc
the Chatham National Bank, when The amount
was only 50 80 the balance being represented by
a note which had been discounted $50
The third count IS that cash amounting 10 $500
VAS stated be IA the hands % IN" general man
aver % the comlany; when the actual amount .,
The fourth count Ia that the assets Of the com
pany were stated TO include Svl.o3 In premiums
The balance IL represented by apparently bogus ap-
plea lions for Insurance by the 'hiaago Milwaukee
and 81 Paul Railroad Company and TWO street
railway companies In Minneapolis and -. Faul'
Tho ormer aPYIlcat,9n bears the ssnasu.eS yics.
president OF the railroad company has testified mat
he never sisncd the appc"ton ara ,,@' r. :, an
plcaucn is made me hasi. for ciam"i pre.nHi.s
railway companies the applications were not signed
at all. and were cancelled on the DAY el,er IN,
Official statement OF the company VAS made. and
the entire transactions looked Ike an attempt to
manufacture bogus assets charSe OF io's''!
may vet grow out OF these transa ctions.
The NTH count ~ that tn" amount OF Claims
against the company was stated to be 81" 40.
when the books showed liabilities amounting 10
81 az 10 and the face amount OF suits which had
been brought against the company was over NO-
u9oa
The sixth count is that the total unearned pTemi-
.si when the amount was fl.Jstu3A
The last count Is that the conlmissi due Beech
or schrnck e Co stated 10 be S!.5s when
they amounted TO i21s.gI
The principal complainant against the indic I'd
mon A. said to bc the Long Island Railroad '1in-
many which has "A claim " Sll6fH growing out ~
ne parkyille disaster II not said at the Ds-
fr!ct-Attorncys ONCE yesterday when the indicted
men would be called to plead 10 m" iuliciments.
rnbn ~ Tavor was said 20 b. In the West when
rho indictments we're found. but there vas re-
-, N ne might surrender himself today