The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-27
THE CONTINENTAL LIFE.
THE COLLAPSE OF n MISMAN1GED
INSURANCE. COMPANY.
Policy Holders Eager for reformation Ms to
what they Have Lost-Thcy Can Oct Only
Fart OF their Money Back by Paying More.

"
Fart Of their Money Back BY Paying More.
Mr.. John ]. Anderson, receiver Of the
collapsed Continental Life Insurance Company
entered actively upon the discharge OF his duties
yesterday. The oficos OF the company were
filled with eager inquirers from an early hour
The receiver said In substance: 81 am unable to
give you any Information yet, but will famil-
iarize myself with the affairs OF the company as
speedily as possible and will then be pleased
to answer any Inquiries" There Is much sur
mise regarding the ability Of the company to
secure its policy holders and liquidate its In
debtedness. The belief is general that this ap-
pointment OF a receiver was wise. Perhaps"
said one man, the company II not forced to
the wall might have drifted along for years, but
every year 1t would have grown from bad to
worse. The expenses were too heavy. These
will be cut down now by the receiver, who will
employ only sufficient clerical force to enable
MN to perfect the report be is to make to the
Court"
In the complaint OF Mr.. j. o. Hoyt, asking for
the dissolution OF tho company and the appoint
ment Of a receiver, the grounds for his action
are clearly set forth. Kidding the text OF legal
verbiage, he says: Since the first Of January,
1875, the course OF the company's business has
been very disastrous. 1t has lost a large amount
Of money by the failure OF insurance companIes
in which It reinsured a large number Of its poi-
cies; by the failure ~ banks In which 1t had de-
posted portion OF It's reserve by deprecia
OF the securities In which the reserve invest
ed. and by depreciation in the value OF real es-
tate. Consequently the company has not I'm It's
possession sum sufficient to form reserve for
lts outstanding policies, such reserve being csl-
Sulated according to the American Experience
Table aud four and One-half por cent. Interest,
but its assets fall fully 100000 short Of such
sum. Not having on hand the am cunt neccs-
gary 10 be kept Dy II Invested as u reserve upon
policies Issued, 1t has violated the provision Of
III.
act making 1t obligatory 10 retain In trust against
each policy "A certain sum Of money to be cdlcu-
lated upon the American Experience Table OF
mortality ana upon the assumption that four
and onehalf per cent interest will be realized on
Its Investments. This has made 1t unsafe for the
company TO transact any business whatever, be-
Ing liable at any moment to be proceeded against
by tho Attorney General and by continuing to
carry on business II was daily Increasing the de-
vent and unable to pay the ordinary claims of
Its creditors, ana has had to stand suit IN order
TO delay thy collection Of just debts In his affi-
daNit Mr. Hoyt says:
Since the last report the property has d.preciatel
The ret estate III Nassau street Is placed in the report
n Sapy i To-. SoSd S oo SS' 9e soa iSday tS $500
batk OF Now YORK. over t20Oo0 by the failure OF the
he depreciation of Securities and over by DE-
faeaon of ssents While the surplds claimed in Janu.
The question Of chief Importance TO policy
holders Is whether they shall continue to pay
premiums. The order Of the court appointing
business OF the company IN the receipt Of
premiums and the payment Of the necessary
expenses; lhe attorneys on both sides concur
appointment Of the receiver will constitute
special fund, not to be Included IN the general
assets, should the report to the court show de-
nclency. Ihe entire assets OF the CORPORATION,
they say. Is the property Of the policy holders,
ana 70 re ain their interest therein they must
continue to pay their premiums or their policies
viii lapse according to contract, and they viii
forfeit what they have already paid.