The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-15
TIE INSURANCE INVESTIGATION.
Cross Examination Of Actuary Romans Charges
that the Mutual Life Insurance Company
Did an Irregular Business-Testi-
mony Of J. E. Buhle and English's
Editor The Latter Charges
that Over S1l,OOO,000 is
Not Accounted for Him.

The Legislative Committee on Grievances, in.
structed to inquire into the matter between Ste
phen English and the Mutual Lie Insurance Com
pany, met yesterday at the Metropolitan Hotel Mr..
Herrick IN the chair. The first witness called was
Sheppard Homans consulting actuary TO the var
Gus companies, whe testified as to the condition OF
the New York Mutual Life Company, with which he
had long been connected; he had never known
Winston personally to cash proxies but he had
known proxies cashed by McCurdy in 1869; while an
onicer Of the company witness never voted,
believing it wrong for officer to vote;
at the time OF the election of Childs Mr..
Winston collected proxies to vote and defeat
Chds, but he declined to use the proxies,
and Childs was elected; William Moore,
trustee left of the list of trustees by Winston
because he was in opposition to the company;
Winston had power TO put any one in by voting
proxies; 1t was Winston who left him Off; Moore
was not pnlicy-hoder and opposed the dividend
system insisted on by the officers OF the company;
witness described the various plans adopted to
distribute the surplus of the company during his
connection with it, the average interest per an
mum for invested money has been fraction over
six per cent; there is no such thing as profits In
mutual company the dividends are merely returned
to the policy holders; it is the practice OF the
American companies to pay q percentage
to the agent on the amount OF the premium; the
return of surplus to policy holders was pro-rate
according to the amount OF the premium paid; the
post-mortem dividends were withheld Tor nine
months and he saw by the annual report they are
still withheld; he knew OF cases where the company
refused to pay them up to the present; one is
Mr. Hopkins. OF Baltimore, who has not been paid,
although the committee ordered 1t paid; witness
asked Mr.. Winston to pay it, his answer was not
specific; 1t was not paid; II he had access to the
books he could give other cases where post-mortem
dividends were not paid; the total income and
ratio OF expenses of the company are calculated to
deceive the public and are not correct, and
know OF no other company where this
method is pursued; the report for 1872 OF the
pany was properly given, and would not deceive the
public; in his opinion proxies should be limited
to one YEAR IN ne natipn % tas
stockholders; the Widows and orphans, the
United States, the Guardian and the New York Life
Companies permit this; when Winston ordered
that no pOstmortem dividends be paid l consid-
cred it was to shield MN from his Illegal mode Of
the account believed 1t Illegal and considering it
an attempt at coercion refused TO audit It; this
10 Inc ce ar It ap o
a plan OF dividing the surplus; maintained it was
unsafe and incorrect, and so informed the Presi-
saying i their flrst was incorrect William T. Dodge
called for experts to decide whether witness or
the professors were right. Elijah wright and his
associates decided against the professors and
commended slight modification of witness plan
in their next division Of surplus they violated the
has endeavored to rectlfy at an expense OF
Sc COOS witness protest against such division Is
on file in the office; the witness was questioned
and stated that All participated except the
secretary IS sa the testimony taken Ss By
p1Sss by MINER the Company It may
use it to the detriment of the New York Mutual
Company; had known English about five years;
was not present at an alteration between him and
MeIu nfyh 10 nrfn n An hn
prevented from being present at the Miller investi
CATION of the affairs of the company; the commit
tee did not fully eXonerate Winston in the negota
ton of the Eeastead loan; the majority report
complimented him; moneys were advanced to the
/ and an attempt at concealment was made by stat
ing tnat 1t was cash; Isaac 6. Pearson, OF the
made the charge Luclen Robinson and others said
| that the company were using influence TO get an
insurance superintendent appointed; u was not
| charged that this done to shield them for NAL
| appropriation OF the company's funds; had heard
that McCurdy and Winston had entered into a con-
spiracy to give out that stephen English was mad;
saw this in Newark insurance paper; witness re-
signed on the sixth day OF December last, con-
sulting actuary for the Mutual Life; never recon-
mended q reduction of rates by the company, nor
SAID they ought to be reduced. This closed the
Quoted by Mr.. Sewell for the Mutual Life company
John Oliver foreman OF J. NJ. Bradseet Co..
shat shey o pea e E1gs we re-
us ii we printed any libels in the Insurance Times;
they would WOULD ,,,o.,o, ,nos. 80 oru,na,
| were produced; copies were shown him which he
recognized; the one from Sewel Pearse was
| admitted well two others from counsel,
representing George w. Savage and W. +. Phipps,
/ who, it is alleged, English lbelled also; all the
letters read, and witness stated that in con-
] sequence the firm yefused to print the INSURANCE
/ Times.
! the Mutual Life Company, as bookkeeper, testified
as to the Heastead loan, but his evidence was un.
important: he testified that he had often. heard
/ charges against Winston prior 10 those made by
1 English: among the charges was
FsrsThat the loan TO Heastead of $4,000 illegal
@ dpossa Dollar
Fosr0-That certain drafts which not cash were
carried as ,, cash
siTta--Ihe restoration Of Mr.. Bradfora's policy.
Soue-ln reference TO the suspension OF Mr. Winston's
salary,
| sition Witness saw them produced once when oppos
ton was ANTICIPATED but they used.
on crosse Examination witness said he had heard
hard things said ABOUT English; that he was a
| pretty hard case: others say he is more sinned
against than SHINING; the Mutual Life think he is
| a pretty hard CASE had heard 1t stated that
Miller, the expelled superintendent, mad a salary
OF SIS 600 from the Mutual Life il is currently re-
| ported and very generally believed; had never
heard OF deficit of many millions In the company:
witness has been IN opposition to Winston Tor many
years owing TO faiseheods regarding my character
spread by Mr.. winston under his oath; he said wit
| ness stole a private account belonging to him,
which was a lie, and he told him So
| James A. Mowatt, OF the Insurance Times stated
oath that he was the author of the article init
mating that Sll COO, 600 had been lost by the
| conpany lie offered TO show by their own re-
ports that such were the figures. and in the article
he merely asked Tor an explanation, which he had
| no doubt, Mr.. McCurdy could explain it, as an ex-
pert witness he considers that the sll, 900 are
/ not accounted for in the companys report: he
suspected that IL could be accounted
| for in some way; | would not aud
company, nor insure in one with only los assets
| to IN Get Its ilabllitiesi they nave $4,000, 900
loaned within hty miles OF New YORK, ana Tor house
| property it IL risky, as great ire like Boston
would sweep II away.
Joel O. stevens Under Sheriff, was sworn and
stated the process under which English was i'm his
custody; he produced the papers in the case
which were put IN as evidence, as also The two
orders OF arrest issued al the suit OF Frederick
4 Winston.