New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-06
INSURANCE COMPANY INSOLTENT.
SUPERINTENDENT PIERCE REPORTS TO THE
ATTORNEY-GENERAL THE EAST RIVER
MUTUAL OF LONG ISLAND CITY.

Albany. Jan. 5.-The Superintendent of Insurance,
James f. Pierce. yesterday made Export to the
Attorney General regarding the East RIVER Mutual
Fire Insurance Corporation Of Long Island city.
The company examined by the Insurance De-
partment I'm November last and condition Of
affairs found which has resulted in the action taken
by superintendent Pierce. In his letter to the
Attorney General Mr. Pierce refers to the fact that
he has seen tit to use discretion with which the
law invests him In not publishing previously the
report OF the Department ex lminers. which Is dated
November 26 1895 When asked whether he wished
TO give his reasons for exercising the discretion
given him to not at once make public the contents
of the report upon the examination Of the East
River Mutual, Superintendent Pierce said:
My only object in not reporting the company 10
the Attorney-General AZ once. and al the same
time make pubic the port upon "Nainhai!o vas
to enable the officers OF the company 10 eXtihyusn
It's Liabilities with as itile loss to Pohcy -noluets
as possible. Ample Opportunity, so ar as tn1 -
concerned, has been gwen IN" company W.thiH
whi,1 t. insure its NIX las coiis c-,iers
"ho would be amply protected in ne event OF q
the States My attitude N takinf MS sround was
in "A measure strengthened by the prOtcSiatOns o.
ne company otlcers thit me '%itniheiS IIporo orc
sperts among others that the assets and Liabilities
were not fairly stated. The company mas been
las b!ity To pay It's debts and voluntarily 'idudate.
t1able 10 eject a reinsurance OF IT'S Iisks IN me
cancellation notices reguesiins return OF tns
N
policy contract obligates the company, where a
policy is cancelled a. its rogue H. 20 return 10 me
canned unon the surrender Of the p}lgy me Law
of the state requires this TO be done. yet com
plants are constantly reaching me from all points
thai policies sent 70 the company d, !'s IsqueS
for cancellation are cancelled bat the unexpirett
premiums thereon not returned. This. or
course constitutes reputation Of its contracts by
the East Rive Mutual rs Wei As further VIOLA
many instances totally d!sreg irded 1t IS one OF
the last OF series OF organizations ehectsd III
years which either by taking advantage or defects
rtaint!cs IN the Jaw providing Tor the lorna
practice Of the grossest deception IN the execution
OF papers or submitting Of evidence in connection
with Incorporation proceedings. have succeeded in
obtaining charters from the state.
In their report the examiners show that without
charging the company with 4 liability for unearned
premiums It's liabilities amount TO sl07,sn This
Includes its capital stock Of $4,000 which. they
say has TN tho ordinary conduct Of the corpora
tons business become minsle1 with its general
assets" The assets which offset the liability
amount TO but s7olj2. As its total assets amount to
bur s7ol52 the question is where is the SoOe"
capital stock the law requires the company to
have.
The following is Mr.. Pierces letter on the subject:
Hon. r. +. Hancock. Attorney General, Albany.
Dear Sir: beg 20 report 70 you for such acton
as may bc necessary under IN" requirements OF
rae statute the Eas' rive MutHal insurance cor
p1rtflon of Long Island cry. y. y COPY 9l
il you will that this corporations capital stock
was never pad u iu abe manner required by law
M has cNceeagd IT,. poHers in 2sS!@y9es p, aG2i
King. ana thar rs debts and liabilities are largely
II h,,. In his efse exercised thr author.ty given
me under Section 70 ~ th. INSURANCE Law, ana
heron inc.oscl hlve done ms n orarp 20 10
cnabl. fhr company either To fec rensnrance
% '.i',r', no. ne assIrei M. untx6 rel premium
upon the same II pas nag oyer '"i iibs~ r 49,