BEST'S INSURANCE REPORTS-FIRE AND MARINE.   203

INTERNATIONAL INSURANCE COMPANY —Continued.

"Best's Insurance News" for January 15, 1919), alleging that the reasons for his action. were: (1) That the Special Advisory Committee for Fire Insurance (consisting of Hon. Jesse S. Phillips, Superintendent of Insurance of New York State; R. NI. Bissell, president of the Hartford Fire Insurance Company; Otho E. Lane, president of the Niagara Fire Insurance Company; Benjamin Rush, president of the Insurance Company of North America, and Allan McCulloh, a New York attorney-at-law) had adopted a resolution advising the rejection of the Chase bid, " upon the ground that it would appear that the ultimate disposition of said stock, if acquired by said Chase Securities Corporation, would be to persons, some of whom have not been disclosed, and others of whom have been representatives of German interests which formerly owned and controlled the Inter-national Insurance Company of New York; " and (2) That the Chase interests contemplated liquidating the company, which was not " to the best interests of the people of the United States." The ,Custodian further stated that his investigation showed that the stock had been purchased and was held by American interests.

Management and Reputation.—As stated above, in November, 1918. the ownership of this company passed into the hands of interests connected with the firm of Crum & Forster, 95 William street, New York, which acts as general agent for the United States for the North River Insurance Company and the United States Fire Insurance Company, besides representing other smaller institutions in various capacities.

Sumner Ballard,, the former president of the company. was re-elected president. He is also the United States manager of the fire branches of the Skandinavia Reinsurance Company, and the National Insurance, Company, of Copenhagen, Denmark.

The securities owned are high grade. The security valuations are those fixed by the Convention of Insurance Commissioners.

Classes of Business Written.—Fire, hail, sprinkler leak.. age, explosion, automobile and tornado insurance.

Territory.— It is licensed in Ark., Colo., Del., 111., Ia., La.. Mass.. Mich., Miss., Mont., Nev.. N. H., N. J., N. Y., N. C., 0., Pa., Tex., Utah and W. Va.

Dividends.— It paid dividends of 10% each year up to 1914. when it paid 310%; none were paid in 1915, 1916, 1917 or 1918. In 1919 it paid 30%.

Offcers.—President, Sumner Ballard; vice-president and secretary, F. Kortenbeutel; vice-presidents. David G. Wake-man and Caspar J. Voorhis.

Directors.— Ballard. Summer: Forster, John A.: Haubold, R. O.; Hutchins. Augustus S.; Kortenbeutel, F.; Newcomb, Andrew- B.; Parsons, J. Lester: Ris, Albert; Rumsey, David: Smith, Albert A.; Voorhis, Caspar J.; Wakeman, David C. ; Wyatt, Henry J.

GENERAL REVIEW.

History.—This company was incorporated under the laws of New York March 6, 1909, and began business July 1, 1909, with $200,000 capital and $50,000 surplus paid in. In 1909 its stockholders voluntarily contributed $335,000 to surplus account; in 1912, $100,000, and in 1914, $50,000.

The company cancelled its entire business in force on April 1, 19'14, and up to 1917 wrote only a small business, which was simultaneously reinsured with the United States Branch of the Hamburg Assurance Co., of Hamburg, Germany, which company in 1917 was prohibited from trans-acting further business in this country.

During 1919 it increased the capital to $1,000,000. The par value of the stock is $100 per share.

In October. 1918, this company was taken over by the Alien Property Custodian because its capital stock was owned by the Hamburg Assurance Company, Hamburg, Germany and other enemy aliens.

In August, 1917, in response to a letter from our office inquiring concerning the ownership of the International its president, Sumner Ballard, wrote us as follows:

•" Such stock of the International Insurance Company as was owned by Germans passed out of their hands before the United States entered the war. and is owned and held here by myself and other American citizens, except that one lot is owned by an Englishman.

" The directors are now all American citizens, except one, an Englishman."

On November 21, 1918. the entire stock of the company was sold at auction under the direction of the Alien Property Custodian for $576,500. It was bid in by the Chase Securities Company. of 61 Broadway, New York, which is closely affiliated with the Chase National Bank, a very strong and reputable institution.

The day following the sale above referred to, officials of the Chase Securities Corporation were called before the representative of the Custodian and asked whether the purchase was made for its own account or for the account of clients. The Chase interests replied that it purchased the stock as a speculative investment for its own account. was prepared to pay the balance of the purchase price ($50.000 having been deposited with the Custodian at the time of the auction) with its own money; and that it was under no obligation to any person or interest to permit him or it to participate in the purchase. The Chase interests in-formed us that the representatives of the Custodian asked for a written agreement that none of the stock would be sold by the Chase Securities Corporation without the con-sent of the Custodian, and a letter to that effect was written to the Custodian by the Chase interests.

In the face of these conditions and agreements. the Custodian shortly afterward informed the Chase interests that its bid, which was the highest bid made at the public sale, had been rejected and that in accordance with the discretionary power vested in him, and to avoid further delay, he had sold the stock of the International at private sale to interests composing the firm of Crum and Forster, who were the unsuccessful bidders at the public sale.

This extraordinary action on the part of the Alien Property Custodian, and the re-election. as president of the company, of Sumner Ballard, who had represented its former German owners in this country ever since the organization began business, and was associated with them as a partner, naturally caused much comment and criticism.

A lengthy statement was given out. by the Alien Property Custodian on January 10, 1919 (and printed in full in