Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1900-09-26
IS BAD INSURANCE
TRADERS COMPANIES REPORT
FALSE IN EVERY WAY.
THE HANDS OF THE STATE
Concern Was Shaky From the First
Made False Reports to the
Examiners.

Albany. N. Y, Sept. 26.-Superintend-
emit Hendricks has made public the fol-
lowing statement concerning the Traders
Fire Insurance company of New York. :
Under date of August s. 1900, the SUI
perintendent referred to a preliminary
report on this company to the attorney
general and that official on the strength
of such representatives made application
to the courts for the appointment for a
receiver. Henry A. Handy of New York
was appointed to act in the capacityS At
that time referring to the preliminary
report above mentioned the attorney
general was advised by the superintend-
ent of insurance that the department
would make a further examination into
the company's affairs, primarily for the
purpose of verifying the correctness Of
it's annual statement for the year ending
December 81, 1899.
Such an examination was completed
in the date September 2. from which Is
shown the following discrepancy be-
tween the ~conpany's statement and the
hnding Of the department examiner.
"The inquiry revealed the fact that the
statement issued December 81 last as
sworn to by NJ. "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
S4,6I9. This sum was in excess of the
true balance in the bank. The exact
amount of the excess could not be Stated
definitely. as a close verification of this
item in the company's books was render
ed almost impossible. owing to the SLOW
emily manner in which the same was
kept.
The amount due the in
gross premiums in cource of collecting Of
policies issued the most OF December 81,
was given in the company's annual state
ment at 1923, 795. the true amount of this
item is shown to be $S4. S3s. -
I'm reporting it's liabilities. the COM
pany gave as being the amount Of the
outstanding loss December 81, it is SASH
on account of net losses and claims Nn-
paid. The net losses then outstanding
were $S3, $40. LEARNED premium fund
was reported to be $40. 1872 on December
81. It is found that this item was $199!0e7
The sum stated as due for reinsurance,
So, 40. is erroneous. The amount actual
ly due was 800 $50. orc
Summing up the company's condition
as-of December 81 last, it appeared that
they We're in possession of total assets
amounting to 1927, 437. Total liabilities
except capital 1926. 256. Capital stock paid
in 100000. Aggregate liabilities s526.256.
Impairment of capitals $193. S19.
THUS it will be seer that instead Of
having an unimpaired capital of 5000. 900
and a surplus over capital and all other
liabilities amounting to so. S1S as report
ed on December 81, 1899, the company's
capital was impaired to- the extent of
about 100, per cent of the same"
superintendent Hendricks. under Sec
tions GIL and GA Of the penal code hAs
brought the matter to the attention. of
the district attorney of New York coun-
ty. furnishing that official. with GER
titled copies of all the documents in the
premises to begin criminal proceedings
there.
The Traders Fire Insurance company
of New York was formed in February
1898 with a capital stock of 5000. 900. Most
of the directors of the companies had
been underwriters with the Traders Fire
LAoyds, which had operated since 1882
under a so-called Parsons charter. In
1895 the state insurance department and
the attorney general of the state began
proceedings attacking the validity of
Parsons charter. the case being argued
on it's merits before Justice Russell of the
New York supreme court in December
1897. The decision was handed down1fn
Tune 1898 n the company was advised
as to the charter. Previous to that time
however most of the Lloyds organizers
operating in the Parsons charter had