The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-09-27
officials Charged with Making n False
Report To the state Superin-
tendent Of Insurance.
STATEMENT BY MR.. HENDRICKS
WHO REFERRED THE CASE To THE
DISTRICT ATTORNEY.
Latter VIII Submit the Matter To the
October Grand Jury Dying
Cashier whispers n Name.

ALBANY, n. Y, Sept. 26.-Superintendent
of Insurance Hendricks has made public
the following statement concerning the
Traders Fire Insurance Company. OF New
York:
Under date of Aug. s. 1900. the SUPER
intendent referred a preliminary report on
this company to the attorney general and
that official, on the strength of such re-
port, made application TO the courts for
the appointment of receiver. Harry A.
Hamburg, OF New York. was appointed TO
act In that capacity. AT the time of refer
ring the preliminary report above men
TONED the attorney general was advised
by the superintendent OF insurance that
the department would make further ex-
animation into the companys affairs, pri-
marily for the purpose of verifying the
correctness OF it's annual statement for
the year ending Dec. 81, 1899. Such an ex-
animation was completed under date OF
Sept p, from which is shown the fol-
lowing discrepancy between such statement
and the findings of the department exam
liner:
1.-The result discloses the fact that the
statement Of Dec. 81 last, as sworn TO by
William A. Halsey. president and Theo-
dore Sutro. secretary, was grossly false in
every essential particular. The cash re-
turned as being I'm bank at the close of
December the statement gives at S4679.
This sum was in excess of the true balance
In the bank. The exact amount OF the ex-
cess could not be stated definitely, as a
close verihcation of this item from the
companys books was rendered almost inn
possible, owing 10 the slovenly manner in
which the same were kept. The amount due
the company on account of gross permiums
in course of collection on policies issued
within three months of Dec. 81 was given
in the company's annual statement as
$123 795. The true amount of this item Is
shown to be SS4,S3S.
I'm reporting its liabilities the company
gives as the amount of the outstanding
losses Dec. 81 SASH on account of net
losses and claims unpaid. The net losses
then outstanding were $S3340. The un-
earned premium fund was reported to be
S19.l22 on Dec 81. tt is found that this
item was $3.50 097. The sum stated as due
for reinsurance, S3.770, is erroneous. The
amount actually due was $30.730
Summing up the companys condition
as of Dec 81 last IL appeared that they
were in possession of total assets amount
ing TO SS27, 437: total liabilities. except capt.
tai, sS26, 25s; capital stock paid in. 200;
capital, sl9S, S19. Thus ii will be seen that
instead of having an unimpaired capital OF
SzooOOo and surplus over capital anc all
other Liabilities amounting 10 S10.SiS, as re-
ported on Dec. 81. 1889. the company's capt.
tai was impaired to the extent OF about
100 per cent. of the same"
Superintendent Hendricks, under Sections
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 to begin GRIM
inal proceedings Hereunder. District At
torney Gardner and Assistants Osborne
and Unger to-day held conference behind
closed doors for an hour. The state SUPER
intendent Of insurance was with them.
They took UP the matter OF the alleged
frauds In the Traders Fire Insurance Com
pany. Subsequently the district attorney
said that he had decided to have the mat
ter submitted to the October grand Jury,
which will be sworn In Monday.
The Evening World to-day prints q state
ment credited to the widow of David Alli-
son, the cashier of the Traders Insurance
Company, who died Saturday. Mrs. ALI
son is quoted as saying that her husband
whispered to her as he was dying the
name of the man who knew the condition.
of the Traders Insurance Company and
was responsible for the framing of alleged
false reports of the company's financial
standing. Mrs. Allison also says she viii
go the stand and disclose the name Of
the man her husband accused
The Traders Fire Insurance Company Of
New York was formed I'm February. 1885,
with capital stock OF 5000 Most OF tho
directors of the company had been under
writer's at Traders Fire Lloyds which had
operated since 1892 under a so-called Par
sons charter. In 1886 the State Insurance
Department and the attorney general Of
the State began proceedings attacking the
validity of the Parsons charters. the cases
being argued on their merits before Justice
Russell, of the New York Supreme Court,
in December 1897. The decision was hand
ed down in June. 1898, and was adverse to
the charters. Previous 10 that time. how
ever most of the Lloyds' organizations
operating under Parsons charters had
either gone into liquidation been con-
/ verted into joint stock fire insurance COM
panies. Adams. Lockwood a. Forman. at
torneys for the underwriters at Traders
Fire Llodys, became the managers of the
Traders Fire Insurance Company. which
was formed largely through the efforts OF
Charles McMurran. The company REIN
sured all of the outstanding risks OF the
Llodys, and for this reinsurance received a
premium of about $lSl,00O.
The board of directors of the company
was made up follows: Benjamin +.
Tracey. George A. Helm, Warner Miller.
Levi p. Morton, James A. Roberts. Howard
Gould, William T.. ID. Stokes, J. Seaver
Page, Theodore X. Pembroke. J. Jennings
McComb, John Jacob Astor. William T..
Baker, Chauncey NJ. Depew. William A.
Halsey. r. s. Sutro, ID. Sidney Appleton.
John s. Silvers, Charles w. McMurran,
Theodore Sutro, James u. Beemer. Fred
erick Booss, John b. Simpson, Edwin
Gould, G.. w. Gall, j. q. Duke, William A.
Clark William T. Wardweli. Frederick
Sayles and Sheffield Phelps.