Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1909-12-07
INSURANCE
SCANDAL PROBE
PLACRs PHOENIX or RROoKLYN
~ RAD LIGMT - MADE
FALSE REPoRTs.



NEW YORK. n. r.. Dec. The
Phoenix Insurance company % Brock
lyn Is under investigation for iFFeg-
nlaritles which are believed 10 have
impaired It's surplus At least si.0O0.-
600 and to have resulted In groanas
for possible criminal action.
Superintendent Hotehkiss Of the
state department today laid the mat
ter before the district attorney. II
10 charged the president has ovar-
drawn his salary; that be has nnloaa-
ed doubtful securities ON the com
pany, and THAI he has used the com
pany's assets aa collateral 10 secure
his own private speculative accounts.
Nor DO the directors escape cenaure.
In formal statement issued last
nlght Superintendent Hotchklaa says
he does not believe the capital of
the company ls impaired, and shna
far he lacks evidence that its socnr-
tiles are not intact, bat he Admlfs
that the present investigation 10 stllI
uneompleted.
Annual Reports False.
George P. sheldon. q member Of
many clubs and chairman Of the laws
and legal committee OF the National
Board Of Fire UnderwFitorn. has been
president Of the Phoenix since 1897.
and II Ia charged that andeF his md-
ministration annual reports Of the
company made 10 the Insurance. DE-
partment in 10 years. and probably
longer, are FALSE In more thAn one
particular.
Under the Law the insurance De-
partmeBt 10 required 10 examine All
life insurance companies Al least once
In every three years. Mr.. Hoteh-
kiss advocates an increase in the ex-
aiming force so that Insurance COM
panies other than life companies may
be examined at least once every i've
years. Mr.. Hotchkins says the PhOs-
nix company. which Is a are concern.
had not been examined for nearly 20
years.
"wash Sales" Of Securities.
The insurance department alleges
THAI II nnds the Questionable sacuFl.
ties originally sold to the company
BY Mr.. sheldon have. year after year.
passed through wash sales. and By
this method have been concealed IN
the annual report. Speculative ac-
eoants have been maintained By Praa-
idsnt Sheldon. according 70 Mr.
Hotehkiss, Ia 81 least one brokerage
house. and the assets Of che PhesnlH
have been put up 80 collateral 70
cover his operations. u IL charged
also that for several years the pres
idents salary account has been over
drawn and nov Is paid up IN fall 10
October 1. 1910.
In the last ~ years. II is alleged.
members % the state Insurance de-
pantment Nhose duty Il was TO super
wise the company. have accepted col
lateral loans from Il. In amounts
varying from s40. eco to eI0e. zoe.
The Ph0enlx Insurance. COMPANY Of
Brooklyn does q IRE riHk business.
IL incorporated for 1855. eco. and
h credited with = surplus Of "a
| ote.f53. Directors are George p
. Sheldon. Frank J. Logan. William J.
Logan. John cAFtledRe. George NJ.
Hard. Edward C. Converse. George
, InEerham. Benedict L. Gresahul and
Charles r. co4teF.
3 Mr.. HOtebkias says that. 10 the
> judgment Of the Insurance depart
: msnt. directors Who have permitted
> President sbaldon 10 Do 40 he has
! done are equally liable.
D Leans % Supervising O@<lala.
u might be said. Hotchkias stated.
: that the Phoenix Insurance company
. vas really George P. Shslaon. and
: that the directors seemingly neTeE
: have objeeted 10 his OperatlonA
3 Among the loans to onleers Of the