Evening Republican, Volume 14, Number 44, Rensselaer, Jasper County, 21 February 1910 — SCUDDER'S INSURANCE COMPANY GOES BROKE. [ARTICLE]

SCUDDER'S INSURANCE COMPANY GOES BROKE.

Concern That Was Coming to Rensselaer Closed Down by Order of State Auditor Bfllhelmer. W. R. Scudder and his Hamilton Life Insurance Co. are in the toils and the Rensselaer and Jasper county investors in the one man concern are quite certain to be losers of the amounts they invested, if, indeed, they are not liable with other stockholders for debts contracted by Scudder. Scudder came here a little a year ago and introduced himself as the president of the Hamilton Insurance Co., of South Bend. He was anxious to change the location of his company, take in a number of stockholders and arrange for an extensive business. He found some encouragement in and about Rensselaer. Just how much is not known, for the men who thought they would like to get in on the ground floor now wish they had waited for room in the attic and are not talking much about their investment. Scudder said Rensselaer looked good to him and that he would move his company here if sufficient encouragement could be procured. He was aided in the soliciting by some of the men who had become subscribers and on the strength of the prospect he arranged to rent the rooms over Roth Bros.’ batcher shop and they were partitioned to his order. Scudder paid about three months rent at the rate of $22.50 per month but there is now due about three months. These rooms have now been rented to Drs. I. M. Washburn and H. J. Laws, who expect to occupy them about the first of the month.

After Scudder found that his insurance company did not look very good to most people in and around Rensselaer he decided to go to another place and settled on Crown Point, where he is said to have found a number of investors. So far as known Scudder was not only the president but the treasurer, the secretary and all the directors. Of the company the Sunday Indianapolis Star says: The Hamilton Life Insurance Company, examined by H. W. Buttolph, former actuary in the insurance department of the auditor’s office, was ordered to cease doing business. It has been, to a certain extent, it is said, a one-man company. The president is W. R. Scudder. A petition for receiver for this company has already been prepared, but it will not be filed until the negotiations looking, to reinsuring the policy holders have been closed. It was found, according to Auditor Billheimer, that the company, which is an assessment company, had no reserve notwithstanding that the law would require in its reserve of about $20,000.

One death loss is still owing and there are other obligations whicfi are legal, but past due. Mr. Billheimer attributes the condition of the company to mismanagement. The report of the company last year showed it to be solvent.

The promoters of the company had started to laifnch a stock company. Articles of incorporation were filed with the secretary of state, but the company had not been licensed by the insurance department. Auditor Billheimer also gave orders that the men cease selling stock in this company, and that they take steps to surrender its charter. Mr. Billheimer would not commit himself as to whether there were violations of the law, but declared that no prosecutions would be instituted by his department.