The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-23
INSURANCE CRAFT up STATE
0FghERS OF 0EB DG'TGHESs
EIRE GOnPtNT NTOIIER
Ghassss That sss gvsassss ERs Ls..es
we've Purr6pa~a % . lBasssuss ssus
PsaaFsy ~ ga~- Vslss wnuss nssa
- gSSrusNs eumm.1ater uuslsssss.

PSaagsv ~ gaep Vslws wRuas mssa
- HNS~wsses g~mwsatee uusmstsd
PoUaHEEEPsiR. April ~ state sap~V.
iaseud~ni 20 Insurance HOtchkisz tn.
night gave out a stat-msnt q an eHamina.
ton Into the Affairs 20 the D,Itchs~s FtFs
Insurance Company and oI is- pr-isc---oT
tho Duchess Insurance COMPANY. IN
which hc hnsta Irregularities IN the man
as-n~n, % the latter c"mpany. which
prior IN Is17. had hs~n odl~ereh ~ the
same T'eTsuns aud did business from the
principal once 20 the Dutchsas Fire In
sairaace COmpany. but which has heen
seriously impaired nv tho san Francesca
contA grafton
Snpt HOtehkiS~ said when he gave nu'
The s;sisTBsa' The present. c"u,paBv
tDuichS.. Fire Insurance Company, ~
FAR NJ w~ know - solvent hat tho mis-
ies~la ~ tho "ld company are pretty
seri"tIs
Is the ~ baiI"h s''rh AZ a. call roT act,on
"'is''ls II the Insurance Department."
Z lsAv. that fer "thers tn Judge re-
pl,.si Mr.. HoschkisA
The examination - the anair- - the
lHItchss-S Fire Insurance Company was
heEun 10y tho State Ihsnran~s D..pa rtneut
On March n T. IS st,ll ~ progress and
Wlll not IL cpmple'sd Tor q week or tsn
DAYS Supt lIuichk.sS's statement ~
IN brief as follows
III - claimesi that the elder COMPANY =
l'ss'-- in San FunciSr,, we're - great a.
=" wip" o'n IL capital aud surplus and
cUFnI+l - ." s.,ti. with ks- claimants
AZ m'H'h less than par Dor a time a re-
ceivsrShip was thr''at.na,l. lat IN the -ud
was hvoIdsd hy settlements nov claimed
to have h-s,n. ." an extent at least. iil-.-d
upon rals" representations Some claim
ants we're pad NJ cents On the dollar.
settlements icing made slirsrt suits
involving pussil'l. attachments were.
however. thV'.li-nsd. and il,e controlling
ndic~r~ devised plln Whereby "a IucaI
attorney and cor'sn q the directors
narrowed funds from hal tanks With
which funds loss cLaims were purchased
~ a discount hut ultimately paid for 10
claim. resulting Ia a salvage - the stock
holders ~ upward - soon THIS no
To the present time has been concealed
Tn" president of ia. I've companies
Lewis q, Vail ~ this city is charged with
carrying IN special arcounts various
sums paid by the neW company - the
Old for commissions on a reinSuTnnc-
rontrnct and with specializing actively
IN isos and 1870 on the credit ~ certain
s-cnriti~- which had h~en turned over
IN the local attorney above mentioned
In payment ~ the San Francisco claims
acquired by him
President Vail il accused II couc-alnR
other funds In his personal account
which he treated a. his own until ~.
Arrival IL the examiners other irr-R,i-
lartieS. " j. hsid. evid"nC-.i an intan-
lion on the pert 80 the affics.rs - the I'D
company aud certain ~ -. directors
10 s@lueStsr assets 70 the end tEat the
IRE condition - the Old cnmpauv might
not he known
Deception was further prlrt.s.sI upon
he Insurance Department. u - claimed.
By IA" president and other officers II
he neW company lat" IN 1910 by cutting
rom tn" minutes 90 the -N.srutivs com.
nitte~ a page pnrppr'inE to give me
~ n meeting ~ that com
nitte~ On August ~. iss The secretary
q the company testified that the exam
hers 81 III" department having called
'oT SUCH minute hook. which showed
IN agreement that II carried INTO effect
sOuld hav" impaired ~" usw company
rom the start and made j. impossible
or u To s-r'ir" ~ c-rtihcats 81 authority. ,
President Vail CtI' uu' such leaf. the vtc..- ,
Jge~id@nt interlin"'i the -an" With lead
'encil aud gave the same ~ fhe secretary 4
nth order. TAI destroy u This the score
airy did not do. bu' ~ r--ponse ia aua--
ions testified a. the facts and pruduc..d /
he leaf cut OUt u appears 10y COM |
.arison Of this leaf with the page IN th.. .
lew minute book then started that tbs. /
minutes Of this meeting ~ ~. sNecutIv. :
were mOdiiis.d ~ that time 81 I
Ia, tn" department was dsc-ived into /
'~ii~ving that a liability 80 upward ~ /
eo,faO which would have been shown
" the leaf ciIt out dad not exist
President Vail when confronted with
he cut out ledf denied knowledge oG the
ransaction and asserted that the re-olu-
ION there shown was never adopted
of the files 81 the cOmpany
developed the fact that these minutes
hown on the cat out sheet had been coD,ed
" the SECRETARY fro-n ~" original hand
writing OF President NH,i who when oOn-
ronted with such original admitted the
act
Tho work OF the adi'Isters Of the san
francisco claims ~ attacked and the
MANNERS are quoted as describing the
bookkeeping OF the old company a. IN
he utmost confusion. showing assets
mounting To bat ISL Tss ". when in their
,pinion such assets amounted to SiSs. Gs4.
NTH apparent liabilities other than to
tockholCsers Of approximately S1.sOO.
A suit has heen broaght by the trustees
c the old company asking for an account
ne and distribution Of assets Of the old
ompany. hut such s'iit apparently ig-
ores ~. 900 % assets IN the hands " the
peal attorney above mentioned
The superintendent % Insurance AZ
meeting Of the directors % the two com
anies held tonight directed that tho
rllstees % the old company Al once plscs
be liquidation Of its ass-ts in the hands OG
committee appointed Ut approved by
i'm to that end. Preaidsnt Vail being re-
uirsd to Fesigp az chairman Of such
rUssee~, and also that President Vail aud
No. local attornov ailoya u1autiunssd turn