The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-09-27
INSURANCE COMPANY'S FRAUD
Charged in the Case of the Traders
Receiver Is APPOINTED.

/ >
of Insurance Hedricks has ade public the
following statement concerning the Trad
er's Fire Insurance company of New
York:
Under date of August s, 1900, the sup
erintendent referred a report on this com
| pany to the attorney general and that Of
fetal on he strength of such report, made
appHcatio INTO the courts for the ap-
pointment of receiver. Harry A. Han
bury of New York was appointed to act
in that capacity. At the time Of refer
ing to the preliminary report above men
toned and the attorney general was ad-
vised by the superintendent of insurance
that the department would make fur
ther examination into the company's af-
fairs, priarily for the purpose of verify
ing the correctness of its annual state
rent for the yea rendirg December 81,
1899. Such a denomination was complet
ed under date Of September q, from
which it is shown the following discrep-
ancy between such statement and the
findings of the department examiner:
THE result discicses the fact that the
statement of December 81, last, as sworn
to by William A. Halsey, president, and
Theodore Sutro, secretary, was grossly
false in every essential particular. The
cash returned as being In bank at the
close of December, the statement gives
at $467s. This sum was in excess of the
true balance in bank. The exact amount
Of the exces could not be tated definitely,
as a close verifcation of this item from
the companys books was rendered al
20 fna 7ltF
manner in which same were kept.
1.-The amount due the company o nae
count of gross premiums in course of
collectfo non policies issued within three
months Of December 81, was given in the
company's annual statement at s12S, 1885,
The true amount of this item is shown to
be- sS4 1913.
I'm reporting its liabilities the COM
pany gave as being the amount of the
losses December 81, SASH,
on account of net losses and claims I'M
paid The net losses then outstanding
were $50, $40. Unearned premium fund
was reported to be s79, 122 on December 81.
It is found that this item was s199o6I.
The sum stated as due for reinsurance,
IS. no. is erroneous. The amount actually
due was $40, $50.
Summing up the company's condition
as of December 81. last, 1t appeared that
they were in possessio nof total assets
amounting to 1927. 437 Total liabilities,
except capital, $326,25s. Capital stock
paid in 100000 Aggregate liabilities $685.
256; impairment Of capital s1sS.s1s.
Thus It will be seen that instead Of
having an unimpaired capital of 5000 900
and a surplus over capital and all other
liabilities amounting TO s10.s1s as report
ed December 81, 1899. the company's cap
ital was impaired to the exetent Of about
100 per cent of the same"
Superintendent Hendricks, under sec
tions 611 and GA of the penal code. has
the district attorney Of New York coun-
ty furnishing that official with certified
copies of all the documents in the prem
ises. to begin criminal proceedings there
under.
Later today District Attorney General
Gardner and Assistants Osborne and
Unger held a conference behind closed
doors for a nhour. The state department
Of insurance was with them. They took
up the matter Of the alleged frauds in
Traders Fire Insurance company. Sub
sequently the district attorney said that
he had decided to have the matter sub
mitted to the October grand jury. which
will he sworn in Monday.
New York. Sept. 2s.-The Eevening
World today prints a statement cred
tied TO the widow of David Allison, the
cashier Of the Traders Insurance com
Dany. who died Saturday. Mrs. Allison
IS quoted as saving that her husband
whispered to her as he was diving, the
name Of the man who knew Of the con-
5ition Of the Traders Insurance company
and was responsible for the framing of
the alleged false reports Of the CON-.
pany's financial standing. Mrs. Allison
also says she will go on the stand and !
disclose the name OF the man her hus- /
band accused.