The New York herald., 1876-12-02
LIFE INSURANCE.
Singular Phase in the Affairs of the
Continental Company.
WAITING FOR A STATEMENT.
How the Business is Being Transferred to The
New Jersey Mutual.
ACCUSATIONS OF SHARP PRACTICE.

|
The Continental Life Insurance Company Of this
city was declared nsovcn upon the 25h day OF Octo-
Der last, and Mr. John j. Anderson appointed its
receiver This appointment was confirmed by Judge
Gilbert upon November 4, and the company is pre-
sumaby dissolved. Meanwhile, those interested have
been anxiousy awaiting the RECEIVERS statement Of
The condition OF affairs Of the concern he found
.hem The failure of great insurance company like
the Continental Is deplorabe at all times alone
account Of the direct losses occasioned thereby, but
also OF the dangerous dstrust 1t creates the mind of
the people concerning the whole business of insur-
ance occurring, this dissolution has while the bust
ness affairs of the country are IN precarous
dition, the effects all the disastrous. Tho
public pulse stand but little tampering with at
present. and tho loss OF confidence in any onoquarer
IS likely to be intensified TO greater and unlocked for
evils.
1t Is easy therefore, to understand tho impatience
OF the Continental policy holders and the necessity OF
an early explanation OF It's affairs The receivers
for delay given elsewhere in this article;
but while they explain his situation the premises
they are far from satisfactory in their prospective
character. They indicate indcfuitc delay cstab
lishing the true condition OF the company, piece OF
Information that IS very much desired. Mr. Anderson,
too has himself TO consider in this business for there
is q considerable element among the Continental
entire favor This opposition has its development In
the motion tor another appointment which is
under consideration, and upon which r. V. De Witt
has been empowered to testimony For
some time past has been prevalent
! in lie insurance circles TO the effect that couson
| existed between the defunct institution and tho New
Jersey Mutual Life Insurance Company by which the
latter 20 the risks of hc former II is
serted that the suit by which the Continental de-
clared insovent brought at the nstigation Of It's
own managers, with the prcarranged understanding
that business should be transferred the New Jcr
scy Mutual in such manner 10 profit the stock.
holders OF both Whether true alsc-and
desirable that the fact should bc revcaedthe very
existence OF such productive Of evil and
another urgent for the immediate disclosure Of
the Contncntal's condition. The theory Of the
Swallowing up" process has its foundation many
plausible grounds In the first place It nowhere do
MED that the New Jersey Mutual is seeking and
obtaining the business Of the Continental in
localities and in large amounts that former agents OF
the Continental have become the agents Of the New
Jersey Mutual in numerous instances, and that prop
ositous from other mpanies have every been
refused by these agents 1t Is alleged that Mr.
Frost, the ex-Presdcnt OF the Continental, was
connected with the New Jersey Mutual II Is known
that Mr. Anderson connected and that the
receiver and the exPresicent strong personal
friends It further asserted that this transfer OF
risssls motive for tho delayed statement from the
receiver Of the Continental Numerous applications
have beon made that oico for paid-up policies
cordng tho terms OF the company's contract, but
have been refused, BECAUSE the says,
he has power TO sign such paid-up policies
| AN EXPLANATION NECESSARY.
or course the competitive absorption Of the Conti-
nen,as business by other companies is TO be expected
and Is emincntly proper. 1t is perhaps allowable
suppose that the officers OF the New Jersey Mutual
declare their organization Offering superior induce
ments to Continental agents But II, many appre
bend, there Ia q bargain and sale between the
1 two companies, II only be for OF
mutual profit aud detrimental to the interest of
| business 1t Is not necessary that detailed
understanding should have been had and proven
| but a tac,t submission 10 the proceedings by
the companies involved quite as significant and iDu
rious its consequences. An action OF this sort,
or the lehtest suspicion oil such an action.
| Is cankerous the welfare OF lie insurance. II
true II should be exposed at once. and II ialsc 1t
should be quickly dsproved so that no unnecessary
loss Of confidence be occnsioned As Will appear
from the interviews and statements contained in this
article there strong contradictory evidence on both
sides Tho whole matter hinges upon the disposition
o the legal reserve which attaches 10 tho Continental
policies This reserve will amount to several millions
OF dollars on all the Continental risks together
| Ia alleged that by the supposed understanding this
amount Will be saved 20 the the company; On the other
will claim whatever reserve there is due upon the Con-
tlnenta policies assigned TO them. though their opin
| ions are firmly expressed To what the
allowed will amount to- There is doubt in some minds
as the legality all instances OF these assignments
OF old Continental policies To the New Jersey Mutual
and many disbeevc that they are intended to be So
As before stated the New Jersey Mutual is pushing
its interests in the procurement oil the Continental
business in all parts OF tho country The writer made
! some investigation OF the
OPERATIONS iy NEWARK,
where the New Jersey Mutual have their headquarters
He discovered every effort TO obtain these trans
fcrs was being made and with considerable success.
ha aycnt q IL A..
Osborn. has now become The representative OF the
| New Jersey Mutual, and with the aid OF others is ad
vsing and influencing the Continental policy holders
transfer their old policies ior new ones IN The New
Jersey MntuaL Tho following letters have recently
been received by policy holder of the Continental in
Newark They will serve TO illustrate the pcrsstency
with which the New Jersey Mutual is pushing its So
| iicitation--
DEAR sR-pease call on me tas below, as early as pos
sss bringing with you your policy in G' eo%pip Ssr'
| NrwArK. Nov. 10, 1876.
The next letter headed .IAst Notice. though the
| writer subsequently, altered the decision
DEAR sR-In order to avail Yourself Of the offer made
sasss pS'y tho
day before one o'clock or on Mcnda IRON nine to Ave- at
| CONTINENTAL HorKl. NEWARK. Nov. II. 1875
DEAR siRowing the storm shall remain here until
Tuesday before which time will be necessary for
you . si wafrlSsS 10 Market street. room
Dnaa SIR 6nd il necessary remain 40.
Please call With yeur policy fyou
|
Nov %. 1876. r. A. WHITING.
Tho above letters, excepting the last, are the
regular letter heads OF the Continental Lite and
| signed by agent OF the New Jersey Mutual The
last written upon the back OF circular from
Lewis A. Osborn. the contents OF which append
and which is Lcaded s'Bring your policy with YOU"
/ OFFICE or NEw JERsxY AeEScY,i
| No. Oil BKoAp STREET.
| NEWARK, ~ j.. Nov. 20. lS7G. !
| DFAn SfR-Ip nj with circular I
take that have taken
In connection with Cont
mental Life Insurance Company of New York Without
going particulars at this Time Will adj that gentle
men ullv the premises wi.l be
oace on Wednesday, Thursday and Friday Of this
the mentioned Please call on nf those
DAYS and bring your policy with am. truly.
| LEWIS A. OSBORN.
Such notices the above have been sent to great
number Of the Continental policy holders IN Newark,