New-York tribune., 1918-12-18
Liquidator of
German Risk
Firms Resigns
Harold Herrick, Appointee
of Palmer, Declares He
Was Hampered in Duty
Hands Tied by Red Tape
Dudley Thomas, Formerly
of Nord Destsclle Com
pany, Named as Successor

Because of what he terms the ham
pering tactics of the Insurance Division
Of the Alien Property Custodian's
office, which he says tended to delay
and block the liquidation of German
owned insurance companies in the
United States, Harold Herrck, former
president of the Niagara Fire Insur-
ance Company, who was selected by Mr.
Palmer as general manager and
llquidator for the enemy firms taken
over by the Alien Property Custodian,
has resigned.
Mr.. Herrick says he reluctantly
accepted the post six weeks ago with
the understanding that he was to be
given extraordinary authority to wind
up the affairs of the enemy companies.
He was under the impression, he said
yesterday, that it was the desire of
the Washington officials to cut red
tape and stamp out Teutonic influence
in the insurance field.
Soon after establishing himself in
Office, he says, he began to receive in
structions from the insurance division
as to how to conduct the liquidation.
In the beginning he did not regard
these instructions seriously, but they
rapidly multiplied to such an extent
that to obey them meant that his hands
would be so tied that he would be
helpless to continue the work OF
liquidation, he declares.
Clerk Was Wanted
AS soon as Mr.. Herrick saw the ulti-
mate trend at Washington, he says, he
sent his resignation to Mr.. Palmer
with the explanation that the restric-
tions placed upon him by the insur-
ance division left him no choice.
In discussing the matter yesterday
the Alien Property Custodian's Office
apparently did not want manager and
lquidator in New York, but a clerk to
carry out its instructions.
William c. Scheide, chief of the in
surance division, who formerly repre-
sented Prussian insurance interests in
this country, has appointed Dudley
Thomas to succeed Mr.. Herrick. Mr..
Thomas was formerly associated with
j. II. Lenehan, OF the Nord Deutsche In
surance Company.
owned concerns which have been seized
by the. Alien Property Custodian, OF
which eleven are fire and marine, two
are life and one casualty. The iquida-
ton of none of the seized concerns has
been completed.
The Alien Property Custodians office
recently rejected the bid of S576 500 by
the Chase Securities Corporation for
the International Insurance Company.
which was owned and controlled by
the Mdtzenbecher group of Hamburg.
This firm was sold at public auction
several weeks ago and later the bid
was rejected by the Alien Property
Custodian because of the failure of the
Chase Securities Corporation to dis
close the identity Of its principals, as
required by law. Later the company
was resold at private sale to Crum &
Foster brokers. of 95 William Street.
Formerly With Company
Sumner Ballard insurance editor of
"The Journal of Commerce" who was
president Of the company, has been re
elected president of the international
and placed in charge by Crum &
Foster He was interested in many
German concerns before the United
States entered the war, but declared
after the outbreak of hostilities that
"such stock of the international Com
pany as was owned by Germans before
the United States entered the war IS
now held here by myself and other
American citizens, except that one lot
is owned by an Englishman"
An official of the CAase Securities
Corporation told a Tribune reporter
that the corporation, when bidding for
the property, had two plans under con
sldcration. One was to iiquidate the
concern and the other to reorganize j.
and continue business.