The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-20
WHERE ARE ASSETS
THIS Is THE QUESTION ASKED
By RECEIVER OWN
MEL
TELL WHAT THEY DON'T KNOW
Affairs of minneapolis Fire and Ma
neaIutua1 Insurance Company
being Investigated With
Small Results.

H..
The time Of Judge Simpson was taken
up yesterday in an investigation of the
affairs of the Minneapolis Fire and Ma
rine Insurance company, upon an order
secureds by Ms, Dwinnell, receiver of
the company, directing the directors of
the defuHet concern to appear before the
court and. tel what they know of the
company,s business.
The Investigation yesterday showed
principally what the directors and Of
fcers 90 not know about the company's
eSfairs.
The matte. is important, tnxolYing the
whereabouts of 100000 worth of stocks
land mortgages, and 100000 worth Of
fnotes.
The cornpafy was originally incorpor
iated as straight mutual fire insurance
concert: Later the officers thought
some more money might be made if the
Scope of business was broadened SO that
marine Insurance could be written. Ac-
lcordingztol Receiver Dwinnell the follow
ing has been the history of the concern
since that conclusion was reached:
The law of Minnesota provides for the
Creation Of a guaranty fund when COM
panies WISH to write marine insurance.
In July, 1855, the present board of direc-
tors created such a guaranty fund. This
consisted ofenotes of $12, 500 each from
eight of the directors. 1t was necessary
for the state insurance Inspector to Ger
tify to the fact that such a fund was in
= existence before the state authorities
would permit the company to engage in
marine insurance.
Mr. Dwnnen wants to know where
these assets and 100000 of notes are. The
=
pany held out to the public that it had
a subscribed capital of 100000. which Mr..
Dwinnell considers are the notes, and a
paid up, capital of 100000, which he con-
siders the securities.
The investigation yesterday was fruit
less so far as giving any light upon the
condItlin of the company Is concerned.
None of the officers and directors exam
med seemed to know much about the
subject.
Mr.. Dwinnell says that he expected
such results. He says that he has been
unable to secure any information from
the directors and officers. and adopted
this method to see if they would really
disclose anything. He says that unless
he can learn something in this manner
he will be compelled to take oIner steps
which will be more fruitful.
There are 15,C00 policyholders Of the
company and the costs, says Mr.. Dwin-
nell, of collecting from them an assess
ment, which could not average more than
S. each, would be more than the
money realized. He has brought several
hundred suits on the assessment Of the
policyholders, but does not expect to
realize sufficient to pay many of the OBJ
legations of the company. --~----
The receiver also believes that Nee.
hold the directors liable on the notes
even if he fails to find them. He says
shat steps will be taken to attain this
tnd after the present investigation is
concluded.
There are Several close legal questions
Evolved in the receivership matter, and
4 is understood that this investigation is
fhe first step toward having the whole
thing determined.