Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-16
ARMSTRONG IS ACCUSED
CHARGES AGAINST CASUALTY
COMPANY PRESIDENT.
Former Assistant Secretary Of Treas
ury Declares There Is
q Plot.

CHARLESTON. w. Va, April 10
Grave charges Of mismanagenient ana de-
Hnquencies are made against Robert B.
Armstrong, formerly assistant secretary
Of the treasury, in report made oy
John r. Roche. New York actuary, VINO
has made an examination Of the Consoii-
dated Casualty Company, OF which MI.
Armstrong was president until recently.
Mr. Roche declares that the active man
ayers Of the company collected $151,114 IN
tyenty-one months, Of which only $1Sl.-
637 remains. and that they made false
entries on the books of the company ana
false returns to the insurance department
of the state.
Mr.. Armstrong was made assistant sec
rotary Of the treasury by Secretary
Shaw, who had known him as a boy IN
Iowa, and served from February. 1903.
to March, 1905, when he retired to be-
come president OF the Casualty Company
Of, America In New York. which place ne
held until 1907.
,.s, Headquarters in Chicago.
The Consolidated Casualty Company
was chartered in West Virginia about Two
years ago. but the administrative of1cers
made their headquarters In Chicago.
Three weeks ago. upon complaint Of State
Auditor John s. Darst. the directors
turned the company over to Mr.. Darst
for adjustment. and he put Mr.. Roche TO
work on the books.
Mr.. Roche In his report says that the
condition of the books was such tnat
correct audit was almost Impossible.
Among the Irregularities charged IS the
cancellation of stock issued; collection OF
partial payments for which nothing was
issued; issuing of stock which was not
- n n H.
dollar asset Chicago real estate that Cost
the company $11,oU.
II is narrated in the report that Presi-
dent Armstrong drew salary OF SlVOo
per month. but June 30. 1909. IT was ois-
covered that he had apparently over
drawn his pay to the amount Of 1882.
The overdraft Of salary was charged to
miscellaneous expenses.
Armstrong Makes Denial.
CHICAGO, April Is. Replying to
charges OF mismanagement and falsih-
cation of accounts made against Rob-
srt b. Armstrong. former president OF
the Consolidated Casualty Company, by
John F.. Roche, New York actuary, at
charleston. ". Va. Mr.. Armstrong is
sued statement. saying in part:
The report of Mr.. Roche reflects the
bostiiity which the company has en-
countered from its inception. For prac-
ticailya two years there has been up
parently an organized effort to assas-
sinate the company. These guerilla
methods of the competitors OF the
company were encountered on every.
hand and enormously increased the ex-
pence Of organization. 1 have been
warned scores of times in the last two
years that the Consolidated and myself
would be put out OF business.
The statement of Mr.. Roche is un-
true and misleading in many particu-
lars. Without having access TO the
records, i should say that the item Of
income was approximately correct. The
impression is given that the assets Of
the company have been dissipated until
only $1sl,0 remained. This Is pal
pably untrue. The latter figure is ar
rived at by scaling down values and
throwing out Of consideration bank &C
counts and other good assets. The as
sets of the company are some place
between 100000 and e400,000, and the
difference between this figure and the
income Is represented by disbursements
properly accounted for"