The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-02-22
.LECKY WILL
NOT Be MADE
SCAPEGOAT
Denies Responsibility fos.
Condition Of Insur-
ance Company.
HIS RESIGNATION
WAS VOLUNTARY.
Points Out That Directors Have.
Not Put Up $4,000 Additional
capital, but Have Repaid
Themselves $4,000 and
Added Only $4,000
to Assets.

nooert Lecky. Jr. gave out yester StS
day a statement In reply to an article
ABOUT the reorganization of the Viz.
sinla State Fire insurance Company
which The Times Dispatch printed Oh
sunday on informa tion furnished IT hy M
the State Insurance Bureau and an,
authorized officer of the company
IN that article 1t was stated that
directors had put UP $4,000 in cash s
10 carry out the plan of reorganiza-
ton. ~ - rs 3Si;
Mr.. Lecky says in his Statement:
however. that the reorganization OF II
the company rcpays $4,000 70 the
directors and adds $4,000 to the as.
sets oil the company" 1t is explained Il
that this $4,000 In question Is TO be "
paid back to the directors, or changed Is
from contribution to stock pur-N
Gha se-evidently with the approval OF Ii
insurance Commissioner Button, who
worked with the directors and In.
uorsea the reorganization plan.
In his letter TO the stockh olders. un. Il
Ger date OF February is last, in which
lie offered his resignation as vice
preside nt-his resignation as secretary
and manager going to the board Of
directors-Mr. Lecky said:
AZ the meeting OF the board of dis
rectors held Immediately following 1
your annual meeting. January &c last
all OF the officers and directors volun-
tarily offered to place their resigna-
ions before this special meeting, with
a view OF facilitating a reorganlza-
ton OF the company, and thus relieve
the stockholders of all cmbarrn Ssment Is
II such action was deemed advisable,i$
But nobody except Mr.. Lecky ne. r,
signed. the reorganization having beer
effected with Fritz Sittcrding8as vice.
president and Archie II, Harris 5secre..ss4
tary and manager
Mr.. sLeCkE'S statement in To- n 10
follows: ING
LecixE's Statement
The publication In Sundays Times
Dispatch by insinuation has so reflect. f
cd upon me that ! feel 1t my duty Il II
state to the public OF Richmond a. 1t
concisely as possible, all of the facts
as I know them and which are sup. 3
ported. e5
In 1oO4 the directors OF the Virginia
State Insurance Company contributed
$1,000. as ~ result OF the Baltimora n
and other CONGREGATIONS occurrinaa n
that year Later $4,000 OF this
money was repaid as special dividends. 4
leaving balance due to these direc-s
tors OF $4,000. s.
In December, 1910 for reason.#
stated to The stock holders Of the com
pnpy, In letter OF December ri ~
the directors, the increase Of the prem
iunis during the year was 10 great na95
10 cnuse nm Increase in the reserve
funds OF more than 100000, and thar
Increase, together with the losses nv
fire, which were not abnormal, Invader
the surplus, and each director. lny.elrI
included, contributed $4,000 to the
fund. PISS
The reorganization OF the company
repayS sal 200 to the directors and adds {
$4,000 to the assets tof the company:
Regarding the insinua,ion as to the
errors made. beg to say that none . -
these errors We're discovered as a. re-
suit OF any examination, except such!
IS was conducted by myself. and oil,
November 80 1909. this condition was
reported in writing, In a general LETT
ter treating OF the needs Of the com q
pany. in the following language :saS5
1T was only on last Friday that the
balance sheet to October 81 could be
prepared. and Immediately thereafter
I undertook the preparation OF the
annexed statement the losses we're
listed and the reserve books added and
calculated personally with the aid or
the clerks. The reserve figures shown S
are out OF balance with the premium
account OH the ledger. being greater
than all premiums written for thee
year. To arrive accurately at the re- Ri
serve figures. 1t will require an In Il
ventory OF all risks in force, but this q
work Will take more than two weeks
to complete. and the errors found will
so to the credit Of this calculation.
All of the items shown on the am
nexcd sheet Will have to be charged D
off as non admitted assets. although.
they have considerable value--this
amounts to $io,957.25.
The company was examined by the
state Of Illinois after the payment Of VI
the Baltimore loss; ii was examined by
the Virginia department In 1907 (. Iater5a
BY the Virginia department. indian
uary. 1910, and in January. 1911. Tbs II
results OF the January. 1910. eAaminR- a
ton were published broadcast bs ties
insurance papers OF his country. sis|o
Business Preserved. 2
Tho business Of the company has
hccn preserved, and we have only
retired from States that We're unprofit.
able, with the single exception of thslE
state OF New York. in which we could
not continue. because OF the laws OFFS
.hat state forbidding company or
our condition from doing SO. The reriE
tirelncnt from New York WAS as of 81
December 81. 1899 All OF the husi-ssg
ness in New York and Texas wassra -ssl
insured and one half Of the busincsisss
,Isowhere in the country, and oYarsSf
risk possible for us 70 rcinsure JrSs t5 SsssssgS
th!A contract was included SIS 81 sSss
Tie business OF the compan saa
been maintained. and undeT datttsaa SSss
Inn,arY 81. 1910. the directors OF fSSssSsss;y