New-York tribune., 1901-04-18
FALSE REPORT CHARGED.
EXAMINER VANDERPOOL FINDS MAJ
HAITIAN FIRE INSURANCE
COMPANY'S CAPITAL
IMPAIRED.

IMPAIRED.
Albany April 17-Francis Hendricks, the state
Superintendent of Insurance. filed to-day IN the
Insurance Depart tment the report Of Chief ESaiie
Isaac Vanderpool his examination OF the Nam
haitian Fire Insurance Company of New-York Inc
report made under date of April 15 and says that
the company's last annual statement was false anu
that instead of having surplus OF sSSUD' II Id"
no surplus and its capital stock of $5OOon Was
impaired nearly so per The report also says
that the beginning of this year there has oeen
a further impairment of the capital stock. and that
the stock March was impaired to the extent Oh
ss per cent. The examiners find no justification
for the dividends paid on the capital stock last
year.
The officers of the company heard on this
report at the New-York office of the Insurance De-
partment yesterday. and. as a result thereof the
report was Immediately filed and made public
Superintendent Hendricks announces that an I'M
mediate reuuisition will be made the officers
and stockholders for payment of 100 per cent
of the authorized capital of the company, and that
further requistion will be made. calling on them
refund the dividend of s405O0 illegally paid IN
the year 1900
The report of Mr.. Vanderpool begins with the
statement that the examination was made to ascer-
tain the correctness of the Manhattan Fire Insur-
ance Company's annual report of December 81. lSoV
which declared that the company had surplus OF
$3S.013 55 The report then continues:
As the result of my examnason IN find that the
S. fss the Of as
s s Is 1hs gross
misleading statement, now on file in the Insurance
to show to the public through the medium Of an
Rneor h o6pion @ 'h Of ths as
sworn to by its officers deem it advisable to re-
and now published and in extensive circulation Is
ASSETS
Tho annual statement shows gross premiums
course of collection be s259 499 0S against which
comm Ge and brokerage 'e due Upon these out
standing items, which would leave the net amount
premium credits to be s2o2 AIS H. It was found
the exact sum Which should be credited the
| pany on this account under the provisions OF the
iected premiums. This is due to the fact that
,e kept Of in sefh ns a
premiums outstanding pertained to policies issued
January i, 1901 The premiums course Of coIiec
| ton therefore reduced Sl4S57 II
LIABILITIES.
The for ss p abs ea sms
the he @ a bens pon the
$50 81 The statement gives $50 o5s IS the sum dHe
| The rather serious discrepancy in this item OF
ported the Insurance Department and that found
| upon examination grows out of the treatment by
ecoHnt after taking credit for an saS Of
been made On Deeenber 81 1900 in the Erie Fire
an e. C%mpapy Of s1ff2o @ The ross
out of this transaction. which in brief was as
| Under two contracts of reinsurance, dated De
cemter. %. 1900. the Manhattan transferred on De
cemter 81 the Erie by way of reinsurance there
! in its entire business. excepting that written in
the last four months of 1890 and in force on s- De
not 70 assume any liability marine policies. nor
Was not 1os stated One Of the Contracts referred
to gave over all its term business, expiring in
the Erie all business expiring during the hrsI
eight months of 1901 In fxqg the 9neaTnsd pre-
| 1850 given the Erie. the Manhattan calculated tns
monthly basis thereby proporuonately decreasing
the unearned portion thereof on the other hand
! premium liability. which was comprised entirety OF
| II assumed TO have earned half of these pre-
mums an average of six months earned pre- pre-
HsffH liability 'lafiG Of D' And the
be s2l5930 81.
After further explanations Of the methods of com
putation by which the false report of the insurance
company was produced, the examiner gives table
| showing the assets and liabilities OF the company
and this summary:
Tetai iiabites except capital SIS 50
Joint stock capital paid up in cash SoooOo w
liabilities Including eaPisa, aSS ss 3 80 80
''i Percentage of impairment. as
| above as between December 81. 1000. and March /.
1901 of 40 per cent is due largely TO the increase
| in the item of borrowed money. as well as the.
| failure TO give the company credit for loan OF
500 600 made during January last upon the secur-
! ity of assigned mortgage for Sl5ooOO. coverinG
five hundred vacant lots at Clifton, Staten Island
| This loan was allowed asset under the
| insurance law by of the fact that the
| property securing the mortgage was shown to be
| Cnimproved.
| Toward the end of his report Mr.. Vanderpool
| says:
| I find nothing indicating that the Manhattan de
rived moneys arising from the surplus profits of its
| business with which pay dividends to stock
| holders in 1900. Notwithstanding this fact. how
! paid representing 10