Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-09-26
TRADERS FIRE INSURANCE
New York Official Makes a Racy Report
Thereon.
Says the Concern Has Been violating
the Law-CrIminaI Prosecution
Probable.

Albany. n. Y. Sept, 26.-Superinten-
dent OF Insurance Hendricks has made
public tho following statement concern
ING the Traders Fire Insurance COM
pany Of New York
Under date Of August s, 1900, the SUI
peHntendent referred to preliminary
report on this company 70 the attorey
general and that Cficial on the strength
Of such report, made application to the
courts for the appointment OF q re-
ceiyer, Harry A, Hanbury Of New York,
was appointed TO act IN that capacity.
At the time Of referring the prellmin-
airy report above mentioned the attor-
Hey general was advised by the super
intendent Of insurance that the de-
partmout would make a further exam
nation into the company's AFFAIRS, pri-
mar.ly for the purpose Of verifying the
correctness Of It's annual statement for
the year ending December 81, 1899.
such an examination was completed
under date Of Sept. q, from which Is
shown the following discrepancy be.
tween the cOmpanys statement and
the findings of the department exam
liner.
The Inquiry dscloses the fact that
The statement issued on Dec. 81, last, as
sworn 20 by William A. Halsey presi-
dent and Theodore SutrO, secretary,
was grossly false n every essential par
ucuar The cash returned as being ln
bank at the close Of December, the
statement gives at 1853 This sum was
DO excess 0f the true balance IN the
bank The exact amount of the excess
| could not be stated definitely, as a close
yeuHcation Of this item from the COM
panys books was rendered almost Inn
possible, owing TO the sloyenly manner
IN which the same We're kept
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 C0mplny's annual statement at
sl231is The true amount Of this item
is shown 20 be SSiS3s.
In reporting rs liabilities, the com
pany gave as being the amount Of the
outstanding losses December 81, S4ihl
on account Of net losses and claims un-
paid The net losses then outstanding
were $3.50 Uncarned premium fund
was reported 10 be S19l22 on December
81 II IS found that this item was $780,
O61 The sum stated as due for rein.
surince $40 Is erroneous. The amount
actually due was S2O,13O.
Summing up the company's cOndi-
| ton az OF December 81 last IL appeared
that they were In possession Of total
assets amounting TO S39Ii3I Total la
| bilities except capital. $325256. Capital
| fn at q NIQ-
! billtIes 1925 256 Impairment Of capital
| SlgS.sl9.
] THUS IL win be seen that instead Of
1 having an unimpaircd capital Of $780,
| ClO and a surplus over capital and all
/ other liabilities amounting 10 SlO,SlS, as
| reported on December 81. 1899 the COM
| pany's capital was impaired TO the eN.
| tent u about 100 per cent Of the same
! Supt. Hendricks. under sections GIL
| and ga OF the penal code, brought the
| matter to the attention Of the district
| attorney Of New York county, furnish
| ing that official with certified copies Of
| an the documents I'm the premises To be.
| gin criminal proceedings hereunder
The Traders Fire Insurance company
| Of New York was formed In February.
| 1895. with a capital stock OF 100000.
| Most Of the directors Of the company
! had been underwriters at Traders Fire.
Lloyds. which had operated since 1892
| under q sO-called Parsons charter In
1895 the State insurance department
| end the attorney general Of the State
! began proceedings attacking the valid
lty OF the Parsons charters the case be-
| ing argued on lie merits before Justice
| Russell Of the New York supreme
| court. In December, 1897 The deci-
| sion was handed down In June, 1895,
| and was adverse 10 the charters, Pre-
| Nous 10 that time. however most Of the
| Lloyds organizations operating under
| Parsons charters had either gone into
| uduidatiOn or been converted into joint
stock fire insurance companies.
Adams. Lockwood and Forman. attor-
| neys for the underwriters at 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 re-insured all of the outstanding
risks OF the Lloyds, and for this rein
surance received a premium OF about
| $751;, 900.
The board OF directors Of the COM
| pany was made up as follows: Benja-
| min r. Tracey, George A. Helme, War
ner Miller Levi r. Morton, James 8.
Roberts Howard Gould, William f. d.
| Stokes. j. Seaver- Page, Theodore *.
Pembroke, j Jennings McComb, John
| Jacob Aston William +. Baker, Chaun-
cey NJ. Depew. william A. Halsey, f. $.
| sutro. ID. Sidney Appleton, John 5.
silver, Chas. W. McMurran Theodore
| Sutro, James G. Beemer Frederick
! Boos. John b. Simpson. Edwin Gould,
G. W. Gail, ]. b. Duke, William a.
| Clark. William T, Wardwell. Frederick
| Sayles. and Sheffield p. Helps.