New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-05

THE SENSATIONAL OUTCOME EXPECTED
FROM LLoYDs DECISION.
INDICTMENTS IT IS RUMoRED WILL FOLLOW
CHARGES THAT AGREEMENTS ARE DATED
BACK IN ORDER TO SECURE FREE

INDICTMENTS. IT IS RUMoRED. WILL FOLLOW
CHARGES THAT AGREEMENTS ARE DATED
BACK IN ORDER TO SECURE FREE
DOM FROM STATE INSPECTION.
All Pine-st the home of insurance is stirred
by rumor that the arm OF the law is reach
ing for an irresponsible element included in the
general designation Of Lloyds. and that Grand
Jury indictments are hanging over the heads of
suspected persons whose methods have excited
doubts for some time in the minds of those in
the standard insurance corporations. Hurried
consultations behind closed doors, nervous
thumbing Of law books and anxious queries from
worried underwriters were the story repeated
yesterday in many offices around which legal
lightning is believed to be playing just
A sensational outcome is expected from the de-
cision to be handed down by Judge Truax Of
the Supreme Court. in the case instituted
against one of the Lloyis by the superintendent
of the State Insurance Department. through
Eugene Richards. Deputy Attorney General. The
fate Of many fire Lloyds hangs upon this de-
csion When the word passed along the line
yesterday that an adverse decision coming
and that a number of concerns would be in
voved in the meshes of the law there was con-
sternation.
THEIR RAY OF HOPE.
The individuals and firms whose business
methods are questioned by Lloyds of standing
and the regularly incorporated companies are
not without a plea for exemption from prosecd-
ton by the State Insurance Department, ac-
cordng TO Isaac Vanderpoe, Deputy Superin-
tendent. who said last evening: "All action by
the Department against those Lloyds whose
methods are open to criticism depends upon the
construction placed by the Attorney-General on
hit oh 10
tanned in Chapter $50 of the statutory revision Of
the insurance laws of NewYork. This enact
ment exempts any individual or partnership or
association of underwriters known Lloyds or
as individual underwriters which. on october !,
1892 lawfully engaged in the business OF IN
surance within this state and not required by
law 10 report to the Superintendent of Insurance
the Insurance Department, or subject to their
supervision or examination.
HANGING ON A PHRASE.
Everything hangs on the phrase lawfully en-
gagged The Interpretation which the court
makes of that will decide what Is fraudulent, IL
legalmnd sham in the organization of those COM
panies under suspicion. The number of insur-
ance concerns which have suddenly sprung up.
like mushrooms in night, is surprising. espe-
cially in view of the fart that nearly all claim
to be founded on some formal agreement among
a few persons in 1892 to form themselves into
Loyds This claim of having organized In 1882
is necessary in order to enjoy the immunity
from State supervision provided in the act OF
October. 1882.
FRAUDULENT DOCUMENTS.
The suspicion which has gained ground in the
fire insurance world is that the extraordinary
number Of newly organized companies is the re-
suit of false and fraudulent dating Of the agree
ments to make them read 1882. in order TO OBJ
tain the franchises. AnG 1t is also charged that
the names appearing in many agreements are
wholly fictitious and represent individuals who
never existed save in the Imagination OF those
who now doing business on the strength OF
the ante-dated agreements.
These documents. so necessary to securing
franchises which will permit fire underwriting
without State inspection that might be emDar-
RAISING to the business. have been purchased by
some well-neaning organizers of new companies.
1t will make trouble for these when the fraudu-
lent character of the agreements is shown
Efforts now being made TO persuade the
Grand Jury to indct persons who are charged
with preparing and selling bogus Lloyds fran
chises 1t IL in this phase Of the situation that
a danger threatens those reputable business men
who have unknowingly purchased the bogus
agreements.
DENOUNCED BY ESTABLISHED LLOYDS.
The Lloyds Of standing and influence. including
companies backed by prominent citizens. are pro-
nounced in their condemnation Of irresponsible
underwriters who are sailing under Lloyds coll
ors. The law of 1892 provided immunity for es-
tablished Lloyds. but never contemplated pro-
tecting concerns which have sprung up on the
strength of bogus agreements said 10 have been
signed in 1892.
The advantage of freedom from State inspec-
ton 1t is pointed out, has enabled irresponsible
underwriters to conduct an insurance swinde
that is monumental in its proportions. Insolvent
associations. II is charged. are flourishng In the
city with rates Of assessments which are In
sufficient TO provide for the payment Of the
promised amounts on the certificates AT ma
turty.
LOCAL BUSINESS COMPLICATIONS.