The New York herald., 1876-12-21
LIFE INSURANCE..
An Entertaining Process in Winding Up
the Continental.
IS THERE COLLUSION ?

Perhaps the most astonishing part OF the failure or
the Continental Life Insurance Company is the method
pursued in winding up its afairs The suit which
brought for dissolution IN the a policy holder
really instigated by the officers OF the
themselves. No consultation had with the
State Insurance Department, but since bankruptcy
inevitable 1t thought best to embrace
II voluntarily, the better 10 protect The interests
ofthc stockholders. 1t appears somewhat singular,
too IN this .'mutual that owners or capt.
stock amounting 500 900 should have completely
ignored the OF 20 900 policy holders
owned reserve OF over s. o0o,o 600
The company having dissolved ITSELF pro-
ceedcd TO appoint suitable receiver in the of
John J. Anderson, an intimate friend OF President
Frost Meanwhile the inquiries of the In
Superintendent completely dsregarded
and he IS virtually given 10 understand
thar he need not meddle with the matter at all To
bring about this position OF security from outside par
ties the most powerful influences brought to
bear upon the proceedings IN Albany. With commend
able spirit, Superintendent Smyth has nevertheless
pushed on his motion the removal OF the present
receiver, though met at every point with
heavy opposition. Alter hearing at Albany
Judge Osborne recently ordered the case
TO a referee, and appointed such Mr. Dc Witt of
Now York. Mr.. De Witt to have begun labors
here monday last. but notice OF an appeal
given on tho Saturday preceding. and on Monday
Judge Pratt OF Brooklyn, granted stay OF proceed
ings prior the session OF the General Term, be
held in Albany on the second Tuesday in January
ANDERsoNs ADMINISTRATIONS.
Mr.. Anderson has now been in Office nearly two
months and not one word of information has he gwen
regarding the companys conaition. He says that lie
cannot determine the liabilities OF the corporation
without a specific computation of the value OF eacn
asked Why he not gratiiy the creditors with an
1875, the Continental claimed total assets OF
So, 30 ASA l3 and the policy holders want TO know
how much OF this sum has been lost and how the re-
mainuer is invested
Receiver Anderson, in a statement to the HERALD
representative professed to be cutting down all
penses OF the concern to the lowest dgurc. he has
largely reduced the clerical Iorce In the oce and
OF the given by the actuary for the deay IN
making up the value OF the policies that the
Der of assistants was limited In view Of this
handsome economy people OF an inquirng turn OF
mind led to wondor how much OF this valuable
saving clerk hire will be expended for counsel fees
and the ike. Apropos OF tlis matter 1t has
been rumored that tse ever thouehtui managers
of the Continental consderate enough before the
dissolution TO set aside $20o000 for legal and other
penses that might be incurred in the delicate process
Of ''wnding up E"
Receiver Anderson. whose exclusive business Is, of
look alter the interests OF pocyholders,
has taken seven long weeks in which to say nothing
Owing the stay proceedings before mentioned ne
will now have three more weeks oil Immunity from
outside in reference The whole tight made by
receiver and his friends appears TO be Tor time, and
''timc,' they say, in worldly parance us money"
FRIENDLY CONCERNS
One OF tho interesting topics in the present nsur
excitement is the relationship OF the Continental
TO the New Jersey Mutual and the understanding that
lies between them The charges OF coliusion. which
srenuously denied by the officers, yet more
ana more often repeated Evidences Of an aiiiliaton
OF interests are daily increasing, and presumption
is rapidly changing to belief Many people who
personally interested. or at least well informed
In the matter, assert with positveness that the
Continental IS in some way playing into the hands
OF the New Jersey Mutual They claim that tins Illicit
combination entirely accounts Tor the mystery SUR
rounding the Continental failure and the winding OF
affairs OF course, II such Is the case the evident
object is the stockholders OF the nsovept
poraton al the real expense Of its policyhoders AS
has before been published in these columns, the past
histories Of the concerns have been entwncd in
many ways. and the principal officers OF both have
long been OF the most friendly intimacy.
With remarkable unanimiiy tho agents OF the Con-
tInenta have consented 10 represent the New Jersey
Mutual and all the country tho latter bidding
Tor tho formers business.
PREVAILING UroS A GENERAL AGENT.
There have been few where the Continental
agents did not willingly comply al first with the pro-
posa TO their business 10 the New Jersey CON-
pany Such an example Mr.. c. H. Frost the general
agent OF the Continental in Chicago Mr. Frost, who is
young man, came on here by request, wish the
other agents of the company, shortly after the fall
ure He appeared be very much exaspcratod
about the condition oi affairs as he found them and
went to Barnes X Hanover counsellors At law
to talk over his grievances with Them The after cir
cumsances, as tod to the HERALD representative by
these gentlemen on in substance as Mr FROST
strong his denunclaton of the Continental
management, and declared he would see that
justice done to his policy holders
lie said that the officers OF the company
terribly frightened, and as an instance
of this condition OF things Mr. Frost gave an account
of private interview he had mad with the President,
Mr.. L. W Frost. This officer. he said, seemed TO be
afraid for his personal safety and was in high state OF
excitement During their interview knock was
heard the door and the cxctable President sprang
INTO closet saying to the Chicago AGENT
..For Gods sake, don't let anybody know that am
here"
Mr. Frost related to tho attorneys that the business
OF the Continental be transferred TO the New
Jersey Mutual and that all but three OF the general
agents, himself OF them had gone over 10 the lat
Ter company. He remarked that he had received
good oiIer, but stated his decided opposition TO the
transaction.
GRAND TRANSPORTATION.
shortly after the OF the above interview Mr..
Frost returned to Chicago When the referee was sp-
pointed the receIyership question: Messrs. Barnes
X Hanover communicated with Mr.. Frost upon the
subject his policy holders and their interests. In
reply they received the following letter.
orFcE No 1a7 wAsuiScroN srRrtr
CucAGo, Dec. o. 1876.
Messrs BARNES & HASovER. New YORK
DEAR SiRs-I delayed the road longer that ex
pect found oi the 29th ut.
find that holders do respond oicr 10
the power attorney which sent them. which did ask
any until the claim collected from the
they will be willing. enough OF them. TO tee suf
cent employ attorney. have therefore returned
those been received. will write You VI find
tha have need OF attorneys in New York. Thanking
Tor Your kindness, am. very truly, e. u. FROST
II Is perhaps needless to say that Mr. Frost is
representing the New Jersey Mutual having appar-
emily abandoned the s.high erected thoughts which
nc ut nrst entertained
LEGISLATIVE PROBLEMS.