Omaha daily bee., 1908-06-16
FINDS MANY LAW VIOLATIONS
Nebraska Mutual Has Odd Methods,
Says Receiver Wakeley.
"sr' HOLCOMB OWES $4,000.
Report FILED IN District Court Criti-
cises Account OF Assets and state
Aodito searle for lot
Closing Up Company.

Id a detailed report filed in district court
Monday afternoon Arthur Wakeley, re-
ceiver Of the Nebraska Mutual Fire Insur-
anoe company, which failed last fall, de-
clares the report Of the company made at
that time is incorrect; that large amounts
of listed assets are worthless or of doubtful
value; that some OF the acts of the officers
were in direct violation of law and that
state Auditor seafle should have begun in
solvency proceedings against the company
in June. 1907. Mr.. Wakeley says the report
Of Examiner Virgins, filed with the auditor
June "a, 1907, showed the company to be
insolvent. and that its liabilities exceeded
It's assets at that time by SIS, 0S2 40.
n receiver says It is to be regretted
the state auditor did not apply for a re-
ceiver then. as IL would have relieved the
company Of fire losses amounting to $50, 900.
The report crlticises the conduct of the
company and the condition Of its records
in certain instances.
Ex-Governor Holcomb owes Money.
The report also says Ex-Governor Silas A.
Holcomb. formerly general agent of the
company for Washington and Idaho, Is in
debt to the company to the amount of over
$4,000.
The report of the condition OF the COM
pany November 1, 1907, showed the liabilities
exceeded the assets S137,O64Oe, but Mr..
wakeley says this is not a true and correct
statement of the condition of the company.
OF the real estate mortgages listed as
assets at S11 600 he says some had been sold
and the remainder had been hypothecated
to the Omaha National bank to secure a
debt of $500 borrowed of the bank in
June. 1907. Most of the cash on deposit in
the bank was taken to cover the debt.
The accounts due from agents to the COM
pany for premiums and other collections
amount, according to the company's state
ment, to sh, 74i.27, but Mr.. Wskeley says he
will be fortunate IL he collects s15, 600. The
deferred and cash premiums carried as pre-
MUM notes amount to s62.5s7.94, but they
are mostly uncollectible, says the report.
Accounts receivable from William ". Har-
per of Montgomery, Ala, and p. B.. Arm
strong of New York City are worthless, in
the opinion Of the receiver, as are also
notes given for premiums amounting to
s9.O2692.
Returned Notes 20 Owners.
Original guaranty notes to guarantee pay
ment OF fire losses and expenses to the
amount Of $21, 306. q had been given to the
company, but Mr.. Wakeley says 81, 600 OF
piSS q pCOh SNuihNN W Nv OlAlNSib vi
the company to the makers, 'in direct vio-
lation Of law" He says he will bring suit
to collect the notes.
The office furniture, listed at 1881. A.
Mr.. Wakeley says, is worth about $500
end he rejects entirely an item of $l+5.Sl
as accrued interest, saying the receiver has
received no accrued interest. Supplies
listed at 5000 he declares are practically
worthless.
OF the 1,7ILH due from agents somt
of the principal debtors are Silas A. .Hol'
comb, formerly agent for Washington and
Idaho, $40, T2s.S 6; E. H.. Pierce, formerly STATE
agent for Utah, 1851. OS; James Z. Hendy
Chicago. N,5T.2; James w. Durbrow, New
York, $2,SS4.O4; Guy e. Thompson. Little
Rock, Ark, s6,099.52 Suit will be instituted
against former Governor Holcomb and the
others.
The method Of keeping the guaranty FUND
account is severely criticised. The report
says this fund was not kept separate from
the other accounts as required by law and
by a resolution of the board of directors
and while it Is shown s77,O2S.g was collected
for this fund 1t is impossible to tell how
much expense was connected to collecting
It and what disposition was made of th'
funds.
There are claims against the company
now amounting to 7 ,243.57, according Il
the report. These are mostly fire lost
| claims