New-York tribune., 1900-08-03
INQUIRY INTO THE TRADERS.
INvESTIGA TION OF INSURANCE COM
PANY BEGUN BY STATE
DEPARTMENT.

The report that the Insurance Department OF this
State had begun investigation the affairs Of
the Traders Fire Insurance Company OF New-York
was confirmed yesterday by Official Of the De-
partrent. is said in insurance circles that the
investigation may disclose state of affairs which
will make It necessary for the management Of the
company to raise money to bring the assets techn-
caly equal liabilities.
The company went into liquidation months
ago after suffering greatly by the rate disturb
ances and some heavy losses in different parts Of
the country. It's business was retnsured BY the
North British and Mercantile Insurance Company.
AT that time 1t represented that the unearned
premiums of the Traders Company amounted TO
$4,000 Rumors recently reached the State Depart
ment that the amount exceeded that sum. and IN
consequence OF this and other reports investi-
cation ordered. In view Of the financial promi-
nence Of the company's directors. the knowledge
that inquiry into the concerns affairs was being
made aroused unusual interest The directorate
comprises Benjamin z. Tracy George a. Helrne,
Warner Miller, John ". Herbert. Controller James
A Roberts. r R. Forman ". z. D. Stokes. J.
seaver Page, Sheffield Phelps, Theodore sutro. c.
W McMurran, John StoHaksr STvers D. Sidney
Appleton, E. 5. sutro. WlIfuln A. Halsey Chauncey
NJ Depew, J. Jennings McConb. John Jacob Astor
George F Hawkins. Frederick C. Sayles, William
T. Wardwell, J. B. Duke. William A. Clark, G. W.
Gail, John g Lockwood. John Boulton Simpson.
Frederick Booss and James G. Beemer.
An official Of the State Insurance Department.
that investigation had been started because OF
rumors which had been brought to the attention
Of the Department The last statement" he said,
Issued by the company December 81 last,
showed surplus Of about $4,000. The same sworn
statement showed that there unearned
premiums to the amount OF Ss D0O in round num-
bers- This statement asserts that the company's
Indebtedness was backed up by nearly S250.000 IN
first class securities, Then with the directory the
company had, IN connection with that statement,
here red q he no fry for mir
being made the part Of this Department How
ever. the rumOrs brought to US convinced the De
partment that investigation should be made.
and begun yesterday. What its outcome
will be I cannot, OF course say at this time"
At the offices OF the North British and Mercan-
tile Insurance Company II stated that the
time they reinsured the outstanding risks Of the
Traders company it was represented that the
earned premiums amounted $4,000 The
curacy Of that statement" said one Of the ofcials
remained a matter TO be verified. We have found
the sum exceeded that amount by consid-
erable." Asked to the status OF affairs between
the two companies at the present time, this reply
made:
contract with the traders Company that ex-
pres at noon on Friday.
When asked the nature OF the contract It was
explained that the Traders company had certain
TO pay at that time. If IT paid that amount
the contract would be renewed. Otherwise it
would not.
When the North British company reinsured in
April 1t received about $4,000 account. It
stated that the gross unearned premium Of the
Traders company amounted to about $50, 900 From
this there 10 be deducted about 81 900 that
represented reinsurance OF Traders fire policies
by various other companies, thus leaving the net
unearned premium standing at s1s4OOO. The Trad
ers' company received 15 per cent rebate from the
North British company, leaving due 10 the rein
suring company about a56O0O OF this sum there
is In the neighborhood Of $4,000 still due and this
is the amount that must be paid to-day in order
continue relations with the North British
pany.
Accountants have been at work for some time
on the books OF the Traders company. having been
employed by the law firm OF Stimson & williams,
former directors and stockholders Of the company.
yesterday refused to make any statement regard
ing II. He said;
This is the private business Of my clients There
may be much in the affairs OF the Traders In
surance Company that is of public interest but
cannot give 1t out. I was asked counsel in
vestigate on behalf OF certain former directors
and stockholders who had been invited TO
20 the assistance Of the company. The investiga-
ton was made and the result submitted to my
clients What step they may take has not been
decided upon. 1t is possible may have
thing 20 say in q few days, but cannot do at
Dreseuf'