| Show PHENIX INSURANCE COMPANY SCANDAL jj Investigation for Irregularities 1 May Show Impairment of Sur Surplus Surplus Surplus plus to Amount of a Million 1 PREST PRES SHELDON INVOLVED Said to 0 lEave Overdrawn Ills Anil iid Unloaded Securities ties tlc on llio Ilic Concern aw York Dec G Tho Phonix In Insurance company compan of ot Brooklyn n Is under t Investigation for or Irregularities which are arc believed to have imparted Its sur Mur surplus plus at least and mil to have havo re zo resulted suIted lulled In grounds for t r possible criminal I action I F Supt oC the tho state depart department mont ment today laid the matter maher before the tho district attorney I It Il Is It I charged the president has over overdrawn overdrawn I drawn his salary that he Ie has hall unloaded doubtful securities on the company 1 and ml that lie has used the compall s sas ji t assets as as aE fl collateral to secure his own 4 private speculative accounts Nor do dothe dothe dothe the directors escape esc pe censure In a formal statement issued tonight J Supt Hotchkiss does docs not believe bellevo the I capital of or the company com pan Is Impaired and thus hus far there thero Is no evidence evl enee that L I its securities are arc not Intact Int ct hut but Jie he heI j I admits that the th present Investigation J I is sun still uncompleted I George Georgc P Sheldon a member of or many clubs and chairman oC of the tho laws I and legal committee oX o the National Board of ot Fire Underwriters has been J I president of o the Phenix since 1887 I and it Is charged that under his lila admin administration administration annual reports of ot the corn com company cornI I pany pan made to the tho insurance depart department I mont ment In 10 years and Ind probably longer arc aie false In more than one ono particular I NO EXAMINATIONS II Under the tho law the Ute Insurance depart department I I meat ment is II l required to examine all lill life insurance companies comp at least once on co In InI every avery three years ears Me Mi lI Hotchkiss ad advocates adI advocates I I an nn Increase In the examining I I force that Insurance companies other than life insurance companies may ma be beI I examined at least once every live years ears I Mr Hotchkiss says SaS the Phenix com corn company pany which Is IH a tire lire concern had not notI been examined for tor nearly 22 2 years jears I The Insurance department alleges I that It finds the questionable securities originally sold to the tho company compan by b Mr Sheldon year ear after year ear passed I through wash rash sales and by b this I method have havo been concealed in the an annual j aunt nual report Speculative accounts have been maintained by ly b President Sheldon I according to Mr Hotchkiss In at least I ast one ono brokerage house and the assets Ii of ot the Phenix have been put up as col coi collateral I lateral to cover his operations It Is charged also that for several years the presidents salary account has been overdrawn and now Is paid up in full lull lullI fullI I to Oct 1 I 1910 I In the last 17 years It Is alleged members of the state Insurance depart department dep Ut UtI I I ment m nt whose duty it was to F 1 the he company have havo accepted collateral from it made ma e to them by President Pr President sl slI I I dent Sheldon in amounts varying from rem OOOO to The Phenix Insurance company of Brooklyn does docs a fire risk business is isI I J Incorporated for and Is cred credited 1 1 Hed with a surplus of DI Dl DIt t I rectors aro are George P Sheldon Frank FrankJ I J Logan TAgan William J Logan Loan John rin JO rinI 11 I II I I Cartledge George M r Hard Edward C I Converse George Ingraham Benedict BenedictI 1 I and Charles F Coster Costet I II I J I DIRECTORS RESPONSIBLE I II I Mr lr Hotchkiss says that In lii the judg judgment Judgment ment nent of tho Insurance department dl di directors I rectors who have bao permitted President I I Sheldon to do as ho lle has done ar are s equally responsible to the tho public It might be said Bald that the Phenix Insurance I I ance anco company was really George P Sheldon and that the directors have hae I J j seemingly never noer objected to his opera operations i Among Amont the Uio loans to officers of the tho n ne e department specified are the tho ii following To James Janes Pierce hi In n the period he lie was II state superintendent of ot Insurance e aggregating To Isaac Vanderpool Van In the period he was vas chief examiner of Insurance companies loans aggregating To Robert H IT Hunter In the Ole period he 10 was first firt deputy superintendent of Insurance loans aggregating To William H Buckley In the period perl d dhe he 10 was third deputy de ut superintendent of Insurance loans aggregating It was wag announced tonight that at a meeting of cir tim the board tx ard of directors to tolay toda today lay day da President Sheldon Was sas removed from rom office and that W y T Gray Gra fro ro morly auditor of the Continental Insurance Insurance ance aiice company com pan was elected president SHELDON IS ILL ILU Greenwich Conn Dec 6 George P Sheldon president of the Phenix In Insurance Insurance company of Brooklyn Is s critically ill at his home The Tho I here and Sis nIB friends friend fear he ho may ma not net nO l lI recover He is too ill to talk or even evon hear heal of ot business I Mr 11 Sheldon Is suffering Buffering from front myo nyo an Inflammation of ot muscular tissues of the heart It cart |
