Two cabinet members tonight were reported ready to resign their posts in connection with the discovery yesterday of irregularities in the Phoenix Insurance Co., Austria’s largest underwriting organization. They are Friedrich Stockinger, Minister of Commerce, and Prof. Dobretsberger, Minister of Social Welfare and Corporations.
An official communique issued last midnight said that an examination of the company’s books had revealed insufficient reserve funds and that the premium reserve as shown by the balance sheet was misleading.
A communique today announced that policy holders would not suffer less.
Following disclosure of the company’s difficulties, the Government issued decrees designed to protect policy holders by creating a special pool of funds from all insurance companies. The decrees also order termination of special and collective agreements held by employes who, together with agents, will have to accept lower salaries or commissions.
News of the Phoenix difficulties has created consternation in Jewish circles which fear that, as a consequence of the current anti-Semitic feeling, Jews still connected with the firm will be the first to suffer. It was recalled that following the death Berliner, his post was filled by an “Aryan,” Dr. Reiningheus, and the process of weeding out Jewish employes was instituted. Titular head of the organization is Dr. Vogoin, an “Aryan” and former War Minister,
The Jewish National Fund, agency which acquires land for settlement of Jews in Palestine, has had business arrangements with the Phoenix.
In the Zionist Executive’s report to the World Zionist Congress at Lucerne last August, the connection is explained as follows:
“The connection between the J.N.F. and the Phoenix Insurance Co. embraces the European Continent, North Africa, etc…..Up to the end of 1934 the total J.N.F. figures represented 84,000 insurance policies to the value of £P. 19,700,000. The payments to the J.N.F. of the Phoenix represent a total of £P. 59,000 net.”
The Jewish National Fund will in no way be affected by the difficulties of the Phoenix Insurance Co., it was stated to the Jewish Telegraphic Agency today by Dr. Israel Goldstein, president of the Jewish National Fund of America. Dr. Goldstein explained that the J.N.F. has no investments in Phoenix, its sole connection being that in some instances policies are written in which the J.N.F. is named as a beneficiary to a certain extent. Since the J.N.F. cooperates with the Phoenix in some European countries in connection with policies of this nature, it receives an agent’s commission which, as reported by the Zionist Executives, up to the end of 1934, netted it £P. 59,000.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
