New-York tribune., 1900-09-30
w. A. HALSEY EXPLAINS
SAYS NIESSRS. LOCKWOOD AND FORNiAN
MANAGED THE TRADERS
FIRE COMPANY.

William A. Halsey president of the Traders
Fire Insurance Company at the time 1t trans
ferred it's business, gave out the following state
ment at his home. in Newark last night con-
cerilius the damaging sceusations that have
been made against the G -lpany:
The Traders LIoyds Association. organized by
Mr.. McMurran. was administered by its general
managers, Messrs. Adams, Lockwood and For
man, for some years with apparent success, so
that when the Traders company organized
to take the business of the LloydS asso-
citation it natural that its affairs should be
conducted by these gentlemen.
The charter of the company contemplated that
the company should be managed by competent
insurance men, and the appointment of Messrs.
Lockwood and FOrman to the position of general
managers naturally followed.
None of the directors officers of the Trad
ers' company at all familiar with the in
surance business, and no one of them for mo-
ment supposed that there was the slightest rea-
son for suspecting incompetency or negligence
the part of their general managers. 1t had
peeII lOT some TIME ISCoSHlZeu HO"eNeIt IAdG
the business or the company was not prontaDle,
but its failure to make money was attributed to
unfavorable business condition.
1t the custom Of the general managers
to submit each month to the directors detailed
report of the business done by them for the
month then next preceding and, whenever re-
quired, to explain any portion of such state
ment that seemed obscure. In like manner. it
was the custom of the directors to receive such
reports and pass upon them after full discus
sion. In pursuance Of this custom. an annual
report TO the Insurance Department regu-
MeSSrS..
man and filed in the Insurance Department
The contents of the report made January. 1900
were fully discussed by the directors at the time
and | am quite confident that suspicion OF It's
accuracy never entered the mind of any officer
or director. Certainly none occurred to myself
and I executed the report as part of the routine
duties of my office without thought of future
complications or in fact, Of being myself de-
ceived, or Of deceiving my associates. 1t was
not until the monthly reports had been pre-
sented by the general managers during the
spring of the current year that any of sup
posed that the corporation was in financial
straits. In fact, we had always believed that
the business had been sufficiently hourishing to
keep the capital invested intact.
EXAMINATION OF THE BOOKS.
Our decision to liqudate the company's affairs
and discontinue the business was reached when
we learned that our surplus fund had been seri-
ously impaired. This was in March or April, 1900
1t seemed to the officers and directors that the
then apparent condition of the company should
be verified by an expert accountant, and for this
purpose expert employed and put upon
the books at once. 1t was at about this time
that the Garrett company made its proposition
to become purchasers of the stock, and general
managers Of the corporation to succeed Messrs.
Lockwood and FOrman. Mr.. Garrett suggested
that the examination by the expert then in
progress was unnecessary, and it seemed
probable that Re would be successful in obtain
ing from majority of the stockholders agree
mentS to sell their stock either absolutely at %
cents on the dollar or contingently at 40 per
cent, his request acceded and the expert
withdrawn Mr. Garrett at once took charge
June paid to the stockholders the agreed pur-
chase price for the stock.
1t was not until some time after this purchase
and sale had been consummated that my atten-
toa drawn to the fact that the condition Of
the company's affairs other than the general
managers reports had disclosed / was not ac-
quainted with either Mr.. Lockwood or Mr.. For
man prior to the organization of the Traders
Lloyds but was quite satisfied that they were
proper persons to conduct the business.
II is. of course. a matter OF profound regret
that the enterprise should have proved failure
TO the extent that makes payment OF its oblga-
tions problematic
1t is true that have consented to respond to
any call from the New-York District Attorney
upon notice as conscious OF evil intent
and am prepared to meet that issue at any time
I am quite satisfied TO rely upon my reputation
among business friends and acquaintances with
whom have had transactions over long period
OF years.
II has been reported that irregularity in the
conduct of the business is more than suspected
I am not aware that single dollar of Traders
Insurance Company money has been pilfered or
misappropriated If such should prove to be the
case, / shall be glad TO assist so far IL is in
my power in bringing the guilty party to pun
ishment / have Information TO any one
who may be suspected. nor am I at all familiar
with the direction along which the authorities
are conducting their examination.