The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-09-26
FALSE SWEARING
Is Alleged in the Case Of the
Traders Insurance Company.

Albany, N Y, Sept. 26.-Superintend-
ent of Insurance Hendricks has made
public the following statement concern
ing the Traders Fire Insurance company
of New York:
.sUnder date of August 8, 1900, the
superintendent referred preliminary re-
port on this company to the attorney
general, and that official, on the strength
of such report, made application to the
courts for the appointment of a receiver.
Harry A. Hamburg of New York was
appointed to act in that capacity. At
the time of referring the preliminary re-
port above mentioned the attorney gen.
eral was advised by the superintendent
of insurance that the department would
make a further examination into the
company'S affairs, primarily for the pur-
pose of verifying the correctness of its
annual statement for the year ending
December 81, 1893.
Such an examination was completed
under date of September q, from which
is shown the following discrepancy be-
tween such statement and the findings
of the department examiner:
1.-The result discloses 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 $4,679. This sum was in excess of the
true balance III Dirk. Inc exact dAIlOQAt
of the excess could not be stated definite
ly as a close verification of this item
from the company's books was rendered
almost impossible, owing to the slovenly
manner in which the same were kept.
1.-THE amount due the company on ac-
count 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 $123,-
795. The true amount of this item is
shown to be $S4,SSS.
I'm reporting its liabilities the COM
pany gave as being the amount of the
outstanding losses December 81, $44, 81
on account of net losses and claims un-
paid. The net losses then outstanding
We're 3,340. Unearned premium fund
was reported to be $79,122 on December
81. 1t is found that this item was $780,
O67. The sum stated as due for re-
insurance, $3,770, is erroneous The
amount actually due was $40 TS0-
Summing up the company's condition
as of December 81 last, it appeared that
they were IN possession of total assets
to 1927 ,431. Total Liabilities,
paid in, 100000 Aggregate liabilities,
1926. 256. impairment of capital, $198S19.
Thus it will be seen that instead OF
having an unimpaired capital OF $zOV;Ooo
and a surplus over capital and all other
liabilities amounting to $10,S1S, as re-
ported on December 81, 1883, the COM
pany's capital was impaired to the ex-
tent of about 100 per cent of the same.
Superintendent Hendricks, under Sec
tons 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 certi- !
fed COPIES of all the documents in the |
premises to begin criminal proceedings |
hereunder.
The Traders Fire Insurance company |
Of New York, was formed in February,
1885, with a capital stock of 100000. |
Most of the directors of the company |
had been underwriters at Traders Fire
Lloyds, which. had operated since 1882,
under a so-called Parsons charter. In |
1896 the state insurance department and |
he attorney general of the state began |
proceedings attacking the validity OF /
the Parsons charters, the case being
argued on it's merits before Justice Rus
sell of the New York supreme court in /
December, 1897. The decision was hand /
I'd down in June. 1898, and was adverse
20 the charters Previous to that time,
most of the LloydS organiza-
ions operating under Parsons charters
lad either gone into liquidation or been
into joint stock fire insurance
Adams, Lockwood & Foreman, attor-
leys for, the Underwriters at Traders
fire Lloyds became the managers of the
Traders Fire Insurance company, which
vas formed largely through the efforts
# Charles McMurran. The company re-
insured all of the outstanding risks of
he Lloyds, and for this reinsurance re-
;eived a premium of about $1S1. 900.
The board of directors of the company
vas made up as follows: Benjamin F.
Tracy, George A. Helme, Warner Mil
er, Levi P. Morton, James A Roberts,
Howard Gould, William E. D. Stokes.
T. Seaver Page, Theodore K. Pembroke,
7. Jennings McComb. John Jacob Aston.
William T. Baker, Chauncey NJ. Depew, |
William A. Hasley, e. s. Sutro D. Sid
ley Appleton, John S. Silvers, Charles
J. Mc1urran, Theodore Sutro, James G.
3eemer, Frederick Booss, John B. Simp-
ION, Edwin Gould, G. W. Gail, J. B. |
Duke William A Clark William T.
Frederick Sayles, and Shelf
ield Phelps.