Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-11-01

than year and half the receipts issued
from the Philadelphia office for the Mona
ton office were signed 'Kendrck & Dow
dell"
Early in 1912 Kendrcli and Dowdell quit
work for the Monaton concern and a year
later the Philadelphia Office was closed.
In 1918 Kendricll was the Republican
Organization candidate for Receiver OF
Taxes and was elected. One of the first
things he did after taking office was to APP
point Abner w. Dowdell a Deputy Receiver
of Taxes and put him In charge of Branch
Office No 3, at 1896 Market street. He Is
still there.
On Jaauary Is, 1913. Mr.. Kendrict was
elected fourth vice president of the Ameri-
can Assurance Company. which had offices
at Thirteenth and Spring Garden streets, at
a salary of $4,000 year From the rec
ords of the company ii did not appear just
what Mr.. Hendricks duties were to be, but
Reinhold r. Koch, president of the concern,
said the arrangement with Mr.. Kendrck
was made to facilitate the sale of stock,
The company was in weed Of funds be-
cause II had recently Purchased the busi-
nesses of the Empire Life and Union Ma
tional Accident Insurance Companies. a
large part of the American Assurance Com
panys business was obtained by purchas-
ing from other concerns that for one rea-
After KendriCk was elected fourth vice
president of the American Company stock.
holders received letters from him advising
them to increase their holdings.
An investigation of the American Assur-
ance Company was made I'm 1914 by Will
liam j. Roney chief examiner of the Penn
sylVania Insurance Department Frank j.
Cummiskey, first assistant examiner:
Charles b. Colbourn, examiner Of the Vir-
ms cttYuV, No.,
Galpln, examiner of the New Jersey In
surance Department, the inquiry being re-
quested by Charles Johnson, then Pennsyl-
Nania insurance Comm ssioner The in
Vestigators reported that though Kendrick
was elected fourth vice president of the
American Company, at a salary of $4,000
year, he never was actually paid by the
company, and on May 10. 1918, he wrote TO
President Koch stating that he would accent
no more salary after May 23 1915 The
investigators reported that the American
registry Company h I'd paid $3Si6 to Ken
drlck for the American Assurance COMPANY
The investigators were informed that Mr.
henurlck would make no claim for salary
against the American Assurance Comnanv
ana that the American Registry Company
would make no claim against the American
assurance Company for reimbursement for
money paid Kendrck the Registry Com
pany thus being left to collect from Ken
AHo ihNSSNlbdlOTS were tnuS satisfied
the american Assurance stockholders hav-
ing been protected. The deal between Ken
drlck and the American Assurance COMPANY
was thus virtually set aside by the investi-
cation.
The investigators. considering the Amer
lean Assurance Companys business meth
DDS, said:
An examination of the income and dis
Dursements of the company for the same
period of time, and a consideration of
the present financial condition will clearly
show that at no time when said dividends
were declared or paid was any part Of
the same earned, and that the aggregate
OF said dividends and probably any part
or the same, could not have been paid
except from its receipts from time TO time
on account Of surplus paid or i'm premium
received on account of the sale of new
capital stock 1t is. therefore, apparent
that said dividends were never justified
nor right; but, on the contrary, were
wholly wrong, and such action tended to
create in the minds of those TO whom it
was sought TO sell stock and to the policy
holders and the public a wrong impress
sion of the condition and prospects of
the company
1t appears, therefore. that the investi-
gators were not only dissatisfied with the