The Union times. [volume] (Union, S.C.) 1894-1918, 1896-10-16
BUSINESS COLLAPSE.
CITIZENS FIRE INSURANCE CON-
PANY GOES UP.
Mr!o NJ, NJ, johnson, of Marion, Who
Was! President, Makes Damaging
Statement Creditors Seize Availa-
bic Assets.

Last August the Citizens Fire In
surance Company was chartered in this
State and opened up an office in the
Kendall building in Columbia and
branchsd out for business. Mr.. N. M.
Johnson, Of Marion, was president,
having gone in with parties from the
North, The company is now in trou-
bio AMI it viii do no more business in
that city. ,'n
Messrs. Barron and Ray, attorneys
for Mr.. n. Nj. johnson, of Marion,
furnish the following statement for
publication in his behalf:
"A few months since Mr.. Frank w.
Anthony, an insurance broker of New
York City, prevailed upon MIR. John
son to assist in the organization and
conduct of an insurance company in
South Carolina, representing that he
had ample assets for the purpose and
that hewould also send an experienced
secretary, Mr.. L. l.. Winant, to Co
lumbia to conduct the Office here.
"When the Citizens Fire Insurance
Company was organized, the necessary
subscription to the capital stock was
made in the capital stock of the Rock
Island and Peoria Railroad Company
to the amount Of $500, 900. which was
furnished by the said Anthony. Mr..
Johnson learned from reputable
and responsible source that such stock
was readily marketable at par. He,
therefore, believed that the insurance
company was commencing business in
solvent condition, assuming that
the stock of the said railroad company
which had been subscribed to the cap.
ital stock was in the actual possession
of saiG Citizens Insurance Company,
was genuine. MIR. johnson learned,
however, only last night, that the stock
owned by this insurance company is not
the stock of the said railroad company,
as at present organized, but of pre-.
viously existing corporation, that owned
this railroad property before it became
insolvent, and that the same is now
worthless. Mr.. johnson had no ground
to suspect that fraud was being prac.
ticed on him, and relying upon the ac-
tual exhibition of the certificates Of
stock he united with Messrs. Anthony
and Winant in the organization and
business of the so-called Citizens Fire
Insurance Company.
1.-The real state of the case having
now come to his knowledge he desires
toinform the policy holders in the said
insurance company and the public gen.
orally of the same.
'Mr. johnson has not profited to
the extent of one dollar, whether in
commissions, salary or any other way,
by his connection with the said com
pany. While it seems that less than
$500 have been received in the home
office at Columbia, it appears that
over one hundred policies have been
issued by the company, and it is sup
posed that in addition to about 81 900
due by the agents in South Carolina,
if paid by the policy holders, that Mr..
Anthony has placed policies on, which
are over 81, 900, are duo to the company
for premiums. 1t is not known how
much of these premiums have been
collected by him. The giving of thirty
to sixty days credit is not unusual in
fire companies and this, therefore, did
not arouse his suspicious"
''Mr. johnson has informed the At
torney General of the facts as given
above, in order that tho State author
tiles may take such steps as they may
deem necessary and proper. He has
thus done all that he can to prevent
any further imposition in the name Of
the Citizens Fire Insurance Company"
The Office fixtures, desks, etc., have
been attached by creditors and en-
ployes.
WAS BOLD FRAUD.
The failure of the Citizens Fire In
surance Company of Columbia resulted
in the unearthing of one of the most
barefaced frauds ever perpetrated in
that city. but fortunately the rascality
was discovered in time to prev vent moro
people being taken in than have been.
The company was organized under
the very lax, not to say wildcat, insur-
ance laws of the State, and not only
had no capital, but not one cent of
money in bank to pay loss should one
have been incurred. It was O scheme
OF sharpers and they got Mr.. Johnson.
of Marion, in their net and used his
name to give confidence to the people
in the honesty and stability of the
company" and then the sharpers pro-
ceeded to catch oil the unwary IN their
traps that they possibly could.
The Citizens Insurance Company
went to Columbia and made a big blow
of trumpets as to what it was going to
do. T.. l.. Winant, the secretary,
rented an Office in the Kendall build
Ing Mt certain price per month, but
as the Office was not quito ready for oc-
cnpancy he offered premium of few
dollars on the regular rent if the office
was put in readiness for him Mt once.
This was done and the rent was paid
in advance, but that was the last pay
ment made.