The New York herald., 1876-12-20
LIFE INSURANCE..
Investigating the Affairs of Companies
in New York.
HOW INQUIRY is OPPOSED.
Sorry Condition of the Continental and
the Sec4ity


Jual stir lie insurance circles The feeling upper
most among them is more OF CONSERVATION than sur
PRISE, In view oil the loss OF confidence which the
double misfortune must carry with IT, Lille insurance
is OF the most vulnerable OF commercial interests,
and whole business is scnstvely subject to any
misfortune that may bcfai one OF It's institutions.
This wellestabshcd fact has for time pas. been
urged upon the New York Insurance Department
and the press an argument TO prevent inquiry
aud exposure oi weak corporations.
/, has been also put forward, Tor the
same object, that the present tme in
particular is unproptlous Tor such cations as
The whole country is in unsettled and exctable
condition. But IL is found that this objection pro-
rceds from those who have some critical interests to
parry IRON examination. The older and best eslab-
lishcd companies, while their business must perhaps
suffer for time, fully able, at any period,
TO bear all scrutiny. The officers OF several such in
sttutons have stated 10 the HERALD representative
that they have fear OF the little stagnaton which
may from the present Investigations They say
that they have suffered more from the existence of
irresponsible concerns than they from their
dissolution, ana they rejoice al the prospective
purgng which the whole business VIII receive
The real extent OF the opposition that has been
shown to honest inquiry by those engaged reckless
underwriting is but little understood and appreciated.
They have lost opportunity OF throwing the
eyes OF anu, step Uy nave fought
the progress OF exposure They have surrounded the
State superintendent with cunning devices solcl-
tations, and, aided by clever counsel have done all
their power TO inwart him in the accomplishment OF
his duties. Political influence has used wher-
ever possible, and honest men unwilllngly made the
tools VI these cvaders OF open truth. No stronger
evidence Of the absolute necessity of a thorough
Investigation or life insurance companies doing busi.
IN New York could be had than this
spirit OF hostility manifested the part
tain insurance officials The HERALD representative,
In the OF hs inquiries has discovered that this
opposition does spring from individual and distinct
sources, but that there is community of interests,
sort OF llcgitimato Insurance eague which have
mon purposes to attain and common transactions TO
up The league membership consists not only
OF the companies already dissolved but of others yet
30 bs considered.
wHAr WILL. BE DOSg
From all present Indication there will be no ren-
quishment OF tho examination which has Eccn coE,-
menced unit! the true status OF every company
represcn ted has been examined and the worthless in
sntutons exposed. Superintendent smyth is not as
some suppose laboring under The effects OF tempo
rary admonition. His active ASST stani. Mr. Mccall,
informed tho HERALD representative that the Insur-
ance Department had intended making these investi
cations for long time previous to the Continental
failure The delay on their part was occasioned prin-
cpaly by the serious Illness OF Mr.. Smyth.
When the work was ready to be commenced and an
approach made toward investigation OF the al
fairs OF the Continental that company was suddenly
placed in the hands oil receiver without any consul
sauon beforehand With the state Insurance Depart
opposition, TO remove the person appoin ted in
ihe companys interest ana pat in his stead who
would be satisfactory TO all the policy holders. This
still progress and. though many obstacles
have yet De overcome, 1t is believed by those who
are best informed IN the matter that the days Of Mr.
Anderson's premiership are numbered.
The Insurance Department, III pursuit OF its ex-
aninatons, has unearthed astounding frauds IN the
Security Company, ana IS slil employed IN vassns
the books oil the soncern. When that is completed
another company viii be taken up, and so ~ To the
end OF the list II is considered certain that there will
be other dissoluons ordered anu that eventually the
unsound institutions WIN all be sed out Nor the
work OF reformation 10 DC uone " thc
State Department unaidcd In The cases
OF the Continental and security there
are many separate combinations OF policy
holders who have organized to prosecute their liter
csts and the insurers IN other corporations are
fully examining the situation The tlrones oinquircrs
al life insurance Offices, the demands constaEtly L.adc
for the opinions ot actuaries and the letters
by the HERALD from all parts OF the country indicate
unusual activity OF the public nina upon the SUBJ
,ect. While these demonstrations are iraugat with
fear TO many irresponsible parties the reaDe cass Of
insurance men regard them significant OF good
suits and purcr ana better era OF business.
SECURITY REcEiyERshIP
Mayor Wickhan, the receiver OF the Security, is
much occupied al present with the concluding affairs
OF term OF ONCE that has appointed Mr. Samuel
Hurd to attend Tor time to his insurance duties This
gentleman Is the receiver OF the Third Avenue Saw
ings Bank Mr.. Hurd said to the HERALD representa-
tive yesterday that he fast becoming |
acquainted with the affairs OF the insolvent
company but no. much could be done
toward adjustment until the Insurance Department
had completed its examination OF the books He |
speaks rather discouragngly OF The assets oil the n
stuton and expresses ssonishment at the evidences
OF gross agenient which are being developed.
Mr.. Hurd says that the salaries paid to the officers
and employees OF the Security exclusive OF all COM
missions TO agents amounted 10 about $50, 900 per
year and that some officers were receiving from 50 900
20 81 900 year. who IN any other business establish
mont could not get one-hali that salary.
Mr. Hurd expressed TO the writer hts views Of the
method to be used IN The final settlement with policy
holders who had paid part OF their premiums in
notes These notes ned BY the company amounted
Upon December 81 1875, TO $l.6 633, 2o5 40 more
than opc-balt OF the entire amount OF assets MIR.
Hurd proposes as an equitable arrangement that these
notes shall be returned 10 the parties who gave them
part OF their dividends. HIS argument rs that If
the TO be first returned and pro rata
dcnd paid upon the remaining value of the policies tho
note givers would receive more IRON the company
than those who paid all OF their premiums IN cash.
ASSISTANT supRRSTESDEAT.
Mr. Mccall the assistant superintendent of the New
York Insurance Depart mt, been dcvoting vast
amount OF time and labor to the affairs OF the Security
II probable that he will finish his work by the end OF
the present week In conversation with tue writer
Mr.. Mccall said that H. nad found the books and
OF the company 10 be in exceedingly bad
dition. He says that the corporation was insovent
two years ago. and its officers have been fasyng
its accounts Ia hopes of weatLcriuy the Storm
OF policies issued by the company, aud
has discovered many instances whore contracts re-
ported be fore. have alsed. Mr. Mccall does not
charge the managers ot the security with official
rupton but Is fully convinced OF their official neglect
misrepresentation oi the company's true condition
Against the officers OF the Continental there AFRO
current charges Of corruption anu manipulation lor
sclf-emolument
INJURIES roLcy HOLDERS
The following letter is one oil a number Of the sort
that have received from xious policy holders
Nry YoRs. bee To- 1876
To Fpi1oR iiSpkipi-
Believing that reliable inform alton is be obsined
the columns OF HEgALn l. with other
policy holders IN hc ieiuuet Continental die Insurance
would respectfully ask what
pursue regard solicics may obtain
just share o wnat be found remain due
final settlement ~ tho concern. :. q. RlSSELlA
II may he said by OF Information TO such claim
the above ,hat organization OF dieren, bodies
OF policy holders has already Dccn made in order
obtain fair disposal OF the assets OF the Continental
and when tho division made, each claimant VIII
a share IN proportion TO the value OF his
Many circulars nave been issued by lawyers
ofh wlo u.sre Ia o. ppc