The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1910-04-19
s754,lI4 COLLECTED;
ONLY Slsl637 LEFT.
Robert B. Armstrong Accused in
Insurance Report.
DENIES CHARGES At CHICAGO
Private Secretary to Leslie M. Shaw
and Former Assistant Secretary
of Treasury Was Head of Consol-
idated Casualty Company.

Charleston, w. Va.-That the ac-
tive managers of the Consolidated
Casualty Company before its reor-
ganization here collected S757.114 in
one year and nine months, of which
only $191,637 remains, that they
made false returns to the Insurance
Department of this State, are some
of the charges contained in the re-
port made to the State Insurance De-
partment by John F. Roche, of New
York City, consulting actuary.
The actuary found that the entire
management of the company was in
the hands of Robert B. Armstrong,
president; G. H. Burras, vice-presi-
dent, and A. s. Mitchell, secretary
and treasurer, as officers, and Arm
strong, Burras, Mitchell and D. Fol-
ansbee as the executive committee
The company was chartered in West
Virginia about two years ago. The
administrative offices have been in
Chicago.
Armstrong was private secretary
to Secretary Leslie M. Shaw, and af-
terward became an Assistant Secre-
tary of the Treasury.
Three weeks ago, upon complaint
of State Auditor John s. Darst, the
directors turned the company over to
Darst for adjustment. The stock
holders reorganized by electing G. G..
McChord, of Louisville, KY, presi-
dent, and J. Walter Scherr, Deputy
Insurance Commissioner of West Vir-
ginia, general manager.
The actuary's report says that the
condition of the company's books was
such that a correct audit is 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 paid for, list
ing as a $4,000 asset Chicago real
estate that cost the company $11,500.
The actuary says that President Arm
strong drew salary of $1,000 a
month. ION June 80, 1909" the re-
port says, 1T was discovered that he
armstrong; had overdrawn his sal
airy $2312." Subsequently this "over-
draft of salary was charged to mis-
cellaneous expenses"
The report charges that in Deem
Der, 1909, H. w. Huttig, of Musca-
tine, Iowa, loaned the company a
note for $4,000, and this note the
company showed as an asset in its
statement to the Insurance Depart
ment and the officers took oath to
that effect.
Chicago, Ill.-Replying to charges
of mismanagement and Justification
of accounts made against Robert s.
Armstrong, former president of the
Consolidated Casualty Company, by
John F. Roche, a New York City ac-
tuary, at Charleston, w. Va, Arm
strong issued a statement, saying in
part:
The report of Mr.. Roche reflects
the hostility which the company has
encountered from its inception. For
practically two years there had been
apparently an organized effort to as
sassinate the company. These guer-
rilla methods of the competitors of
the company were encountered on
every side, and enormously increased
the expense of organization.
That the management made false
entries in the books of the company
is also untrue and likewise is the
statement that false returns were
made to the Insurance Department OF
West Virginia.