The New York herald., 1921-09-20
STATE TO UQU|DATE
TWO MOTOR RISK Cos.
U. S. Mutual Casualty and
Fire Concerns Affected
by Court Order.
UNDER FOUR YEARS OLD
Aggregate Excess of Liabil-
tiles Over Assets Exceeds
$4,000.
TO TERMINATE POLICIES
Superintendent of Insurance
Issues Statement-Assess-
ment May Be Made.
UNDER FOUR YEARS OLD
TO TERMINATE POLICIES

The United States Mutual Automo-
bile Casualty Company and the United
States Mutual Automobile Fire In
surance Company of Sc Broadway are
to be taken over and formerly li1ui-
dated by the New York State Insur-
ance Department. This became kntwn
yesterday when Supreme Court JUS
tice Lydon issued an order directing
the two companies TO show cause to-
day why the Superintendent Of In
surance should not take possession OF
the property and affairs of the COM
panies and liauidate them. The ag-
gregate excess OF liabilities over ad-
mitted assets of the companies is moro
than s123,0oo. Both companies are
under the same management.
These are the first automobile in
surance companies driven to the ex-
treme OF liquidation. The United
States Mutual Automobile Fire Insur-
ance Company was the first organiza-
ton of it's kind to be formed under
the amended statute permitting in
corporation with minimum of 900
policy holders instead of 1,500. Both
companies are less than four years
old.
The liquidation will be conducted by
the liquidation bureau of the department
in charge of Clarence C. Fowler. chief
of the bureau.
Explains order OF Court.
In announcing the action taken yester-
day In beginning liqui.a ton proceed
ings, State Superintendent of Insurance
Jesse s. Phillips issued the following
statement:
Supreme Court Justice Richard p.
Lydon. sitting at Special Term. to-day
issued orders directing the United States
Mutual Automobile Fire Insurance Com
pany and the United States Mutual Au-
tomoble Casualty Company to show
cause why the Superintendent Of Insur-
ance should not take possession Of the
property and affairs of the companies
and liquidate them.
The United States Mutual Automobile
Casualty Company was authorized to
commence business on August 10, 1920,
under the name OF New York Motorists
Casualty Company. In April, 1921, 1t
changed Its name. and the management
of the company passed to other hands,
when Eugene f. Perry became pres-
dent. L. II. Parker secretary. J. NJ.
Young vice. president and general man
ager and c. +. Skeehan second vice
president.
'The United States Mutual Automobile
Fire Insurance Company was organized
and commenced business In December.
1917 1t was authorized TO write fire,
theft and collision insurance on auto
mobiles. This company was under the
same management as the United States
Mutual Automobile Casualty Company.
This action on the part OF the super
intendent Is based on examination of
the two companies as Of August ls. 1921,
showing considerable excess OF liabili-
ties over their assets. In the case of
the United states Mutual Automobile
Fire Insurance Company the department
examiners found total admitted assets
of s45.430.S3, while the liabilities totalled
si17,377.1s. showing an excess Of LA
bilities over admitted assets OF $71.-
a46.30.
In the case Of the United states Mu-
tual Automobile Casualty Company the
examinati disclosed total admitted as
Gets OF s35.471.71, while the liabilities
OF the corporation were found by ex-
sminers to be sS7.213.24. showing an
excess Of liabilities over admitted assets
ot s51. .741.53.
THE superintendent further an
nounced that he would ask the court
officially TO terminate all outstanding
policy obligations OF both companies. and
that ali liability on policy contracts upon
the procurement by the policyholdcrs re-
spectively of new insurance covering
their risks. and I'm any event Of all out
standing contracts and obligations. will
cease and terminate as Of midnight.
standard time at New York. on the 26th
day of September. 1921. Formal notice
of the termination OF all contracts and
policies as officially fixed by the court.
will be given to all policyholdcrs and
creditors by mail and by publication In
a few days.
'In view of the material excess OF liza
bilities over assets. It is likely that the
Superintendent OF Insurance will levy
an assessment on the policyholders OF
the United States Mutual Automobile
Fire Insurance Company and possibly
in the United States Mutual Automobile
Casualty Company"