New-York tribune., 1906-06-13
SURETY CO. CENSURED.
DEFENCE BY PRESIDENT.
State Insurance Department Report
Finds It's CamtaI impaired.

IN statement made public yesterday by the
rev York Insurance Department. the Empire State
surety company was severely censured because Of
its bookkeeping methods and the company was
charged with having its canital tr,naired Ex-Con-
troaer Grout refused TO receive ANY more bonds
from this company for city employees when he was
Nohroher' on the ground that the company had
outsanding risks in excess Of its capital The In
surance Department report shows the company TO
have assets Of sSs5.71. against $685. 2ls report
ed Instead Of a surplus of s121.s74. as claimed by
the company Il is shown that there is an excess of
liabilities the assets of sos, ,O56 So The ex-
aminers say they confined the inquiry ascertain
ing the financial condition of the company on De-
cember 81. 1905.
Some Of the charges made in the Insurance De-
partment report were follows:
The company has credited and charged itself in
3 sne annual M statement with Sas;eoI lS being the
cash and other securities conveyed 10 the COM
have been eliminated from both sides of the state
ment.
-: The e system of keeping the premium reserve in
accurate and deficient in the record Of termna ton
tions and reinsurance md co-surety effected and
accepted Owing to the involved condition Q, 5hese e
was necessary arrive at the company's proper
liability under this heading
A memorandum accompanying the report says
that at meeting OF the stockholders OF the COM
pany. held on June last, it voted to increase
the capital stock of the company from $4,000 to
$4,000, and that the department approved Of the
company's act. The officers OF the Empire
State Surety Company John g. Jenkins.
chairman of the board; William NJ. Tomlins,
tr.. president; Edmund II. briggs, first vicepresi-
dent: Moses May, second vice-presdent; Frank
jenkins, third vice-president; Walter J. Moore.
fourth vice-president; Daniel Stewart secretary;
Clarence c. Jenkins assistant secretary; J. H. Nc
Farland treasurer, and Elwood T. Baker assist
ant treasurer.
Mr. Tonnlins said vesterdav:
It is true that the examiners of the State Insur-
Department found our assets of December
g.. 1906 to be sss5l. instead Of N6Ss 2s, as given
/ in report 10 the department, and that they
found impairment of s55,O56 instead of net sur
however were due 10 our bookkeeping, and no
longer exist. Collateral deposits security for
and this was contrary the methods Of bookkeep-
/ ing required by the Insurance Department 10 De
followed Our system Of bookkeeping has been re-
organized and the situation is now clear as a peL @
Our capital is $4,000 and the surplus about SZoooo
DO these figures include the $4,000 new stock
which. II was recently announced, TO be issued
at l5O adding sl25ooo 10 the surplus?" was asked
Yes answered Mr.. Tomlins The stockhold-
ers have authorized the new stock issue
How long has the Empire State Surety Company
been in operation2
Five years"
so that the Insurance Department examiners
did not a year ago. raise objection to your system
OF bookkeeping?'
We'll they don't come around regularly. we
never know when they are going to come, but they
have so much to do that sometimes they don
long ago that since their last examination o
our company, but when il was made We were
! business in bonding accident burglary and al
! the other lines of insurance.