Rensselaer Republican, Volume 23, Number 42, Rensselaer, Jasper County, 18 June 1891 — A GREAT DEFALCATION. [ARTICLE]

A GREAT DEFALCATION.

New York Life Company Loses from $300,000 to $500,000. Their Spanish-American Agent Get* Away With It—He Probably Lost the Money in Stock Speculations. Julio Merzbacher. the general agent of the New York Life Insurance Company for the West Indies and Spanish America, is a defaulter for thousands. The news of the defalcation was made public on the 12th. The robbery was discovered by Merzbacher’s partner, Joaquin Sanchez last December, when Sanchez returned from a six-months’ trip through South America. Merzbacher, when accused by his partner, made a cleans breast of the affair. Then notice was sent out to al ( the agencies of the New York Life Insurance Company in Spanish America, that Merzbacher had retired owing to il| health. The amount of his stealings is not known. It is estimated at from $300.030 to $530,030. Thenfficerso? the company admit that It is over $150,000. Sanchez and MerzI baclicr wore employed by Col. A. C. DlckI in son, who up to five years ago, was the general agent for the New York Life Insurance Company for Mexico and Spanish America. Mr. Dickinson acquired a large fortune in his agency and retired from the company. Then his business was turned over to Messrs. Sanchez and Merzbacher The general agents of a big company like the New York Life have almost complete control of the business that passes through ! their hands. The New York does a business in the West Indies and Spanish America which aggregates between $20,300X00 and $30,003,000 annually. The premiums on these enormous sums wereal l payable to Sauchez mad Merzbacher.

i . ' ■ ■ - Merzbacher was frequently in New York while Sanchez took long trips through Mexico and South America to solicit new business and establish new agencies. It is said that whenever he came to New York Mcrzbacher used to frequent tn* brokers’ offices in Wall street. He, it is stated, was a heavy speculator. * He was not always successful, however, and last November, during the panic, became com pletely swamped. It is thought that he then began to retain for his own needs the various sums remitted him by his subagents throughout Mexico and South America in order to retrieve his fortunes. The officers of the company refuse to give any information a's to the exact amount of the loss the company has sustained through Merzbacher s defalcation.. They admit it is over $150,000, but say that the eompany will lose nothing, as Mr. can be held responsible for his partner’s stealings, besides, they say that 4he renewal ■ premiums on the enormous amount of insurance Merzbacher secured will go far toward wiping out, the loss.