The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-08
A Receivership Created Three Weeks
Ago in Local Court, but No Rec
ord of 1t Made Public.
HIRAM TETER THE PRESIDENT
HE HAS But LITTLE TO SAY OF THE,
CONCERNS AFFAIRS.
1t Was Operated Under an Old Char
ter Granted to w. G.. De
PAW in 1919.

The Union Fire Insurance Company has
gone the way of the Washington Fire In
surance Company. which was placed in the
hands of a receiver about a month ago.
The Union Company was located in this
city in 42S Lemcke building. Hiram Teter.
eX-state bank examiner, was president, and
Fred w. Alexander secretary. On Jan. IA
the company was placed in the hands of a
receiver, presumably in the Circuit Court,
although for some apparent reason the af-
fair has been kept from the newspapers.
Henry L. Smith was named as the re-
ceiver. When he took charge of the affairs
of the company he found the magnificent
sum of s. or 50 on hand as the assets and
since then has received So by mail. This
the receivership and claims amounting to
about $4,000 The fire losses unpaid amount
to about $4,000 and the unearned premiums
holders and ale valid claim against the
company, amount to about $1,000. This
does not seem very bright for the holders
Of claims against the company.
The company began business in 1895 under
a charter granted by the Legislature in 1S49
to w. c. De Pauw and others, of New
Fire Insurance Company. The charter is
very broad and has the advantage of be-
ing perpetual 1t grants the privilege OF
carrying on fire and life insurance. bank
ing, money lending and also the right to
conduct a business similar to that of a
trust company. For many years the char
ter was not in use, but later it was brought
out from its resting place and the Union
Efra Inc a
This company was for time in the hands
of Shanklin & Haynor. of Hammond, who
managed the defunct Washington Fire In
surance Company, but their management
did not seem to be satisfactory and the Of
flee was moved to this city.
The principal business of the company
was confined TO a class of business which
most first-class companies refuse to handle
at any rate. Country stores formed the
bulk of the business and some of these
risks are looked upon as having a very bad
moral risk attached.
The suit on which the receiver was ap-
pointed was filed by Duncan, Smith &
Hornbrook for client, the allegations be-
ing that the company was insolvent
There was no defense made to this charge
and the receiver was appointed Immediate
ly. He had. however, very little to receive
The charter of this company is one OF
several that are in existence in this State
at the present time, and almost without
exception they have at some time or other
caused loss to the people, They are gen.
orally very broad in their provisions and
are perpetual as TO time of existence. They
were all granted prior to the adoption OF
the present State Constitution at time
when the Legislature had the power and
the seeming willingness 10 grant any kind
of privileges to those who were in a posi-
ton to make the proper kind of a demand
The Washington Fire Insurance Company
operated under a similar charter.
Charles +. Coffin. attorney, was asked
last night If these companies were subject
TO all the general insurance laws of the
State in regard to making reports and
other duties. He said he could not see why
they should not be, but thought il likely
that no reports had ever been made or de-
manded for them. He suggested that the
question OF the continuance of these char
ters would be a good thing for the present
Legislature TO consider. Unless abolished
in some way they continue in existence anC
may be brought to light at any time as the
authority for some company to do bust
ness.