The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-12-30
IN gU q. "a Q e.
Tho lmpccuniosity Of the Great Western Niu-
tual Life Insurance Company.
The Application Of State Superintendent Of In
suranoe Miller for Reoeivsr-The Company
Acquiesco-The Motion Argued In Court
Receiver Appointed and the Affairs
Of the Company To Be Wound Up.

Life Insurance Company to show cause why q re-
cetver should not be appointed. Mr.. q, r. Meade,
on behalf Of superintendent Miller and Mr. Bird on
behalf OF the company. appeared In court. From
the remarks Of counsel It will DO seen that the COM
panyss affairs have became 80 involved that Mr..
Mnlefs interposition on behalf OF the policy holders
was called for, and, under the circumstances. was
most opportnne, although perhaps earlier
action would have been more desirable. The
motion for the appointment Of receiver was
NOT opposed, but, on the contrary, through their
counsel the company acknowledged that the time
Asd come when their affairs should be wound up
for the benent-such a. that may be-of all. 70.
celver was appointed In The person OF Mr.. Francis
II. Bixby-an appointment agreeable TO Oil con.
cerued With as little delay as possible MI. Bixby
wil BY circular. inform all the policy holders In
the company Of the state OF the finances, whose In
teeses VIII be protected throughout the investigation
far as 1t may be in the receivers power to DO 3d.
MR.. BIRDS REMARKS
to the Court were as folows;-
:. Your Honor may recall that on the return day Or
the order to show cause granted IN this proceed.
Ing; 1 appeared cared. here, and, REPRESENTING the
marked that Il the result OF an examIna.
toa 70 be made OF the company's affairs disclosed
the facs that the communication made by the Super
lntendent OF insurance was In substance correct,
that then Ind no doubt but hat the officers and
6tOCkuOlu0Is WOulu COIisouJ 10 speedy
and winding up OF the company. During the liberal
time allowed by the Court such examination has
been made, and am compelled BY the duty owe
this Court as one or lis officers to admit that ex
animation has failed to shake In the main the post
ton OF the Superintendent OF Insurance In respect
assets and liabilities Heretofore however. the
superintendent OF Insurance has always allowed as
this case 20 she suns as
81 Another hardship We think 2
mania al aucfiou nrIcaa fnstaoI oP ar cnaf
toiore. am lar, however from cOntending that the
present Superintendent OF insurance Should be bound
leading Of his terefore admit that
although Il IS harsh Tor the company to be made the
first victim Of this dsallowance, ye. still for the
intsndent 3 correct. Many Insurance Ok.
pany may DC entirely exhausted and still the the
company be solvent. They also contend that the
is unnecessarily low and should in Justice be at least
one and half per cent higher BE that as It may,
al that the officers complain Of In the premises Is
on the company until the LIST day Of January next
when, les annual statement being made
exact situation and either called In fresh capital or
else have applied for It's voluntary dissolution. !
DO not understand that the other side reflect at all
upon the character Of the officers Of tho company
Nor have charges OF wasiefuluess or extravaganza
been urged. The receiver W I'll knows that the COM
officers WIN cheeriully admit that their salaries have
not been pfincely. MIR. Bage, the president OF the
company, Is highly respectable and honorable cit-
zon-one who would scorn to connect his name with
any enterprise tending toward a swindle The in.
aolvency and winding up OF this company is great
dow TO him, but ne carries with him TO his honor
able retirement the respect aud sympathy OF ali who
know him. The Court should understand that by
our last Yearly showing the company was more than
solvent During the past year, however the losses
nave been severe, reaching 70 about 80 per cent OF
our e' entire capital SO that your Honor can SEQ ana
this community should understand, that misfortune
untimey end. buring the ve years Of is contina,
widow and orphan mas mad occasion to thank Tod TOD
for Its existence ana Its honorable payment OF Its
some Of the most exalted names OF this metropolis
and no higher tribute TO their worth
the supssace their TO -
governing my conduct to-day to wit:-.Take no pc.
sitton that cannot be justified by sound reason and
correct law Consent to the winding up OF the
policy and stockholders" Your Honor saw 1T to ap.
rected to state that that gentleman is favorably
known to our president and number Of tho drec-
ton, and that his appointment to the permanent
colversEip would be regarded as an evidence OF
capable and honest administration OF the affairs Of
thfs unfortunate body In the hours Of its dissolution
now leave the matter in the hands OF your Honor.
Mr. MEADE's REMARKS.
Mr.. Meade, OF counsel for the people, said that the
r n o. ehe
therefore, content himself with saying that no i'm
putation OF fraud or extravaganza was made
lieved to be honorable men. That he did not Oer-
ceIye how any one co1ld complain Of the item OF
$4,000 debited to the company for agents commits
sion, while the gross sum Of more than
$220000 had been allowed to IL for moneys
In hands Of agents, such commissions being
only the usual amount allowed by company to
agents, Fifty per cent has been allowed upon the
cost which is all it VIII bring at public sale, as must
be admitted. How company caa remain solvent
with It's capital exhausted he could not understand.
Thelaw provides for Its winding up when 1t had be-
come impaired to extent of twenty-five per cent Of
It's capital. In this case twenty-five Per cent in
addition to capital had been exhausted. Again.
four and one-haf per cent interest," rs now provided
by law, has been considered by many as too high q
rate to allow companies. In Massachusetts and
England the rate is but Jour per cent ana In the lat
ter country many companies have failed because
the rate Is too high, though IL Is true money is sell
dom worth more. Nowhere Is the rate 30 high as In
this State, and here only within the past few years.
and Ii may be well to consider whether our law does
not allow too high instead or too low O rate.
At the close OF remarks OF counsel the Court
granted an order OF dissolution, which was then
entered, both parties consentng to the continuance
OF present receiver.
TIE ttBAa E3lD ROBBERY.