The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-12-07
PHOENIX COMPANY
UNDER SU1PICION

-NNh i'I ~ lJtNs o. nc UDtulN lu-
surance company of Brooklyn is under
investigation for Irregularities. which
are believed to have impaired It's sur.
plus at least s1.000,00 and TO have
resulted In grounds for possible Grim
lnl action.
Superintendent Hotchkiss Of the
state department today laid the mat,
Ter before the district attorney.
1t is charged that the president has
ovcrdrawn mis- salary: that he has un-
loaded doubtful securities on the com
pany. ana that he has used the com
pany's assets as collateral to secure
his own private speculative accounts.
Nor do the directors escape ccnsure.
In formal statement issued to-
night Superintendent Hotchkiss does
not believe the capital OF the company
is impaired, and thus far there is no
evidence that its securities are not
intact, but he admits that the present
investigation is yet uncompleted.
George P. Sheldon, q member of
many clubs and chairman of the laws
and legal committee of the national
board of fire underwriters, has been
president of the Phoenix since 1887,
and II is charged that. under his ad-
ministration, annual reports of the
company made to the Insurance de
partment in ten years and probably
longer are false in more than one
particular
Under the law, the insurance dc
partment is required to examine all
life insurance companies al least once
in every three years. MT HotchkisS
advocates an increase in the eXamin-
ing force, so that insurance companies
other than life companies may be eX-
amined at least once in every five
years Mr. Hotchkiss says the Phoe-
nix company, which is a fire concern.
had not been examined for nearly
twenty-five years.
The insurance department alleges
that 1t finds the questionable securi-
ties originally sold TO the company
by Mr.. Sheldon have year after year
passed through Washington sales, and
by this method have been concealed
In the annual report Speculative ac-
counts have been maintained by Presi-
dent Sheldon. according to Mr. Hitch
kiss. In at least one brokerage house,
and the assets of the Phoenix have
pt'h Pul UP tpllilNlhl W tp'tt ii6
operations. 1t is charged also that
for several years the presidents sal
AIRY account has been oyeTdrawn. and
now is paid up in full to October l,
1910.
In the last seventeen years, it Is
alleged, members OF the state inSur-
ance department, whose duty II was
to supervise the company have ac-
cepted collateral loans from it. made
to them by President Sheldon, in
amounts varying from $4,000 to $10-
600
The Phoenix Insurance company of
Brooklyn does fire risk business is
incorporated for Sl,500,000 and is
credited with a surplus of S1,010. .453
The directors are George P. Sheldon
Frank ]. Logan, William ]. Logan.
John CaUtledge, George NJ. Hard. Ed
ward c. Converse. George Ingraham,
Benedict l.. Greenhup and Charles F.
CoSter.
Mr. Hotchkiss says that. in the
judgment Of the insurance depart
mcnt. the directors who have permit
ted President Sheldon 10 do as he has
done. are equally responsible to the
public. 1t mispt be said that the
Phoenix Insurance company was real
ly George p Sheldon. and that the d.
Tectors have never seemingly objected
to his operations,
Among the loans TO ol,cers of the
insurance department specified are
the following:
To To James Pierce. in the peri
was state superintendent of insurance,
loans aggregating $3S, 500
To Isaac Vanderpool, in the period
he was chief examiner OF insurance
companies, loans aggregating $780,
600
To Robert H. Hurley in the period
he was first deputy superintendent of
insurance. loans aggrcgating SCI 900
II was announced tonight that at a
meeting OF the board of directors to-
day. President Sheldon was removed
from Office and that w. T. Gray for
merly auditor of the Continental In
surance company. was elected prcsl-
dent.
Greenwich. Conn. Dec. 6.-George
p Sheldon, president of the Phoenix
Insurance company of Brooklyn Is
critically i'll at his home, The Naples.
here. and his friends fear he may not
recover
He is too i'll to talk or even hear of
business.
Mr., Sheldon is suffering from meyo-
cardltlsan inflammation or the mus.
cular tissles of the heart.