The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1900-09-27
FALSE STATEMENT.
Made BY officers of the Traders Fire
Insurance Company.
CASHIERS DYING WORDS
disclose the Identity Of the Man Re.
sponsible for the Padded Report.
Several Wealthy and Prominent
Now Yorkers Directors in the Com
psny-crimipal Proceedings VIII
Follow. s5,!it

ALBANY. NJ. r. Sept 2s.-superln.l
tendent OF Insurance Hendricks; has
made public the following statement
concerning the Traders Fire Insurance
Company OF New York; ~
Under date !of August S. 1900. THE
superintendent referred a preliminary
report on this company to the attorney
general and that on the strength! OF
such report, made. application to the
courts for the appointment. of "a re-
ceiver.t Harry A.. Hamburg. of New.
York.. was appointed to. act in that ca
paclty: AT the timei Of referring the
preliminary report above mentioned
the attorney. general was advised by the
superintendent OF Insurance that the d.
partment, would make "a further examl-
nation into the, company's affairs prl-:
marIly for the purpose OF, verifying the.
correctness of Its annual statement for
the year ending December 81, 1899:
"Such an exanination'was completed
under date OF September 81. from which
is shown the; following discrepancy be-
tween such statement and the findings
of the department examiner:
Statement Grossly False.
THE result discloses the fact that the
statement Of December 81 last, as.
sworn to by William. A. Iaisey, presi-
dent, and Theodore sutroS secretary,
was grossly false in every essential par
ticular. The 'cash returned as being in
bank at the close of December, the
statement gives as $3.50. This sum
was inFexcess Of; the true balance in
bank. The exact amount OF the aex-
cess could not be stated definitely, MS
close yerification OF this Item from
the company's books was rendered al.
most impossible. owing to, the sioveniy
manner in which the same were kept.
The. amount due the company on &C
count of gross premiums In course Of,
collection on policies issued within
three months Of December 81 was CIV
en- In the company's annual statement
at sl23.795. The true amount of this
Item Is shown to be sS4.S3S.
How it was Done.
I'm reporting Its liabilities, the COM
pany gave as being the amount OF the
outstanding losses December. 81, 1851
on account OF net losses; and claims un-s
paid. The net losses then outstanding
were sS3,340. unearned premium fund
WIS reported TO be s79.122 on December
81. 1t is found that this Item was
$685. The sum stated as due for re-
insurance, sa.77o is erroneous. The to-
tai amount actually due was s2O.73o.
Summing up the. company's condi-
ton as OF December 81. last. II APP
peared that they were In possession OF
total assets amounting to s327. 437. To-
tai liabilities. except capital. s326,256.
Capital stock paid In. $500. O00 Aggre-
gate liabilities. S526.256. Impairment OF
capital. s1ss,Sl9.
Thus twill be seen that Instead of
having an unimpaired capital OF $780,
900 and surplus over capital and all
other liabilities amounting to sl0.S1S, as
reported on December 81, 1893, the COM
pany's capital was impaired to the ex-
ten Of about 100 per. cent. OF the same"
Prosecutors Attention Called.
Superintendent Hendricks, under
sections eli and GA Of the penal code,
has brought the matter to the attention
OF the district attorney Of New York
couny. furnishing that official with GER
titled copies Of all the documents In the
premises to begin criminal proceedings
Hereunder. s-'5
The Traders Fire Insurance Company
of New York was formed In February.
1893. with a capital stock OF 5000, 900.
Most of the directors Of the company
had been underwriters at Traders Fire
Lloyds. which had operated since 1892
under so-caIled Parsons charter. In
1896 the state Insurance department
and the attorney general of the state
began proceedings attacking the valid
ity Of the Parsons charters. the case
being argued on.its merits before JUS
tlce Russell, OF the New York supreme
court. In December 1897.
An Adverse Decision.
The decision was handed down in
June, 1898. and was adverse to the char
tiers. Adams. Lockwood 6. Forman.
attorneys for the underwriters. at Ira
ders Fire Lloyds. became the managers
OF the Traders Fire Insurance Compa-
ny. which was formed largely through
the efforts OF Charles McMurran. The
company reinsured all of the outstand-
Ing risks OF the Lloyds. and for this
reinsurance received premium OF
about $lS1. 900. c.
The board OF directors OF the company
was made up. az follows: Benjamin F.
Tracy. George a. Helme. Warner MILL
er, Levi P. Morton. James A. Roberts.
Howard Could VIM. E. D.. Stokes, ].
Seaver Page. Theodore X. Pembroke.
]. Jennings Mccomb. John Jacob AS
tor. william T. Baker. Chauncey NJ. De-
pew, William A. ,Halsley, E. S. Sutro, D.
Sidney Appleton. John s. sIlvers, Chas.
w. McMurran. Theodore Sutro. James
G. Beemer. Frederick Boosc, John B.
Simpson. Edwin Gould. G. W. Gail. ].
B. Duke. William A. Clark. William T.
WnrIwnll E-nIarick c,,,i,, 49,, co..