The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1900-09-27
FIRE INSURANCE FRAUDS,
President and Secretary OF Traders
Fire Insurance Company Said TO
Have Made Grossly False
Statements.


report on this company to the attor-
ney-general aud that official, on the
strength OF such report, made appllca.
tion to the courts for the appointment
Of receiver. Harry A. Hanbury. OF
New York, was appointed to act in that
capacity.
AT the time OF referring the pre-.
liminary report above mentioned. the
attorneys general was advised by the
superintendent Of Insurance that the
department would make a further eX-
animation into the companys affairs,
primarily for the purpose OF verifying
the correctness OF It's annual statement
for the year ending December II. 1899
such an examination was completed
under date OF September 81. from which
is shown the following discrepancy be-
tween the company's statement and
the findings OF the department ex-
aminer;
THE inquiry discloses the fact that
the statement issued on December 81.
last, as sworn TO by William A. Halsey,
president. and Theodore Sutro, sccre-
tary. was grossly false In every essen
tial particular, The cash returned as
being in bank at the close OF December
the statement gives at $4.67s. This sum
was in excess OF the true balance in
the hank The exact amount OF the eX-
cess could not be stated definitely. as a
close verificatlon Of this item from the
lcompany's books was rendered almost
Impossible. owing to the siovenly man
ner in which the same were kept
"rhe amount due to the company, on
account Of gross premiums in course
OF collection on policies issued within
three months Of December 81. was given
in the company's annual statement at
$l2S.795. The true amount Of this item
is shown TO be SS4,SSS.
In reporting It's liabilities the COM
pany gave. as being the amount OF the
outstanding losses December 81, SASH
hlA dNNpuht VI Htl ApSStS anu NlaiulS
unpaid. The net losses then outstand-
ing were $S3.S4O. Unearned premium
fund was reported to be S79129 on De-
cember 81. 1t is found that this item
was sl99,O67. The sum stated as due
for reinsurance. 1870. is erroneous. The
amount actually due was s2O7SO.
Summing up the company's condition
an December 81, last. it appeared that
they were in possession Of total assets
amounting to sS27,43 Total liabilities.
except capital, sS2s,256. Capital stock
paid in, O.OO0. Aggregate liabilities.
s52s.25s. Impalnnents Of capital, $685.
sIs.
Thus II win be seen that instead
Of having an unimpaired capital Of
100000 and a surplus over capital and
all other liabilities amounting 10 $40
SIS. as reported on December 81. 1899.
the company's capital was impaired to
the extent Of about 100 per cent OF the
same"
tions Gil and GA Of the penal code, has
brought the matter to the attention
Of the district attorney Of New York
county. furnishing that official with
certified copies OF all the documents
In the premises 10 begin criminal pro-
ceedings Hereunder.
The Traders Fire Insurance Com
pany Of New York was formed in Feb
ruary. 1895, with a capital stock Of
100000. Most Of the directors Of the
company have been underwriters with
the Traders Fire Lloyds. which had
operated since 1892 under a so-called
Parsons charter. In 1896 the state in
surance department and the attorney
general Of the state began proceedings,
attacking the validity Of the Parsons
charters. the case being argued on its
merits before Justice Russell, Of the
New York supreme court. In December.
1897. The decision was handed down
in June. 1898. and was adverse 10 the
charters. Previous to that time. how
ever. most Of the Lloyds organizations
operating under Parsons charterc had
either gone into liquidation or been con
verted into joint stock fire insurance
companies.
Adams. lockwood & Forman. attor-
neys for the underwriters and Traders
Fire Lloyds. became the managers Of
the Traders Fire Insurance Company,
which was formed largely through the
efforts Of Charles McMurran. The COM
pany reinsured all Of the outstanding
risks Of the Lloyds and for this REIN
surance received a premium Of about
S1S1 900.
The board Of directors Of the COM
pany was made up as follows:
Benjamin F. Tracey. Geo. A. Helme,
Warner Miller Levi P. Morton. James
A. Roberts. Howard Gould. William F..
D. Stokes, ]. Seaver- Page, Theodore
x. Pembrook. ]. Jennings McComb,
John Jacob Astor William T. Baker,
Chauncey NJ. Depew. William A. Hal
sey. E. S. Sutro. D. Sydney Appleton,
John S. Sllvers, Charles w. McNfur-
ran, Theodore sutro. James G. Beemer.
Frederick Boos. John 3. Simpson Ed
win Gould, G. W. Gail. ]. 3. Duke.
William A. Clark. William T. Wardell.
Frederick Sayles and Sheffield Phelps. |