The New York herald., 1876-12-06
Searching Amid the Ruins of the InSOl-
vent Continental.
STORY OF A HOPE STOCKHOLDER.
How History Repeats Itself in the
New Jersey Mutual.
INSURANCE SPONGES.


The nature OF events since the dissolution and the
actions OF the New Jersey Mutual strongly
mented upon rs evidences OF very sharp practice II
not Of fraud. Those who best informed about the
affair readily assert that either COLLISION exists be-
tween tho two companies elso the dcuson is
spondngly great. At any rate, phase has been
reached In the history OF the transaction where nothing
short Of full disclosure OF the iacts will suffice The
history Of life fertile with OF
wrong dealing to permit an indifferent reckoning OF
charges like the present fair and earnest nvesiiga-
tion OF them Is demanded by tho rights OF too oft
abused policy holders, and is impcrativcly demanded
by tho welfare and existence OF HE Insurance
itseli. II Is rumorcd on alr authority, that one
journal Of this city which began inquiries into the true
meaning OF the Continental failure induced to stop
its work OF investigation upon the plea that would
ontal loss or public confidence, which, under the
existing oppression, might prove ruinous. Such
plea could originate only from who either
shorts'ghted else have personal for tear
ing honest inquiry. Insurance who have the
best interests OF their business at heart cannot object
10 IL On the contrary, such have loudly commended
the course being pursued by the HERALD aud gladly
welcome tho prospects OF a cleansing investigation
They know, botter than they like admit, how much
their business Is tainted with rascaty and how
greatly u 10 IN need OF purlhcation. They know,
TOO, how vulnerable business TO and
how the dishonesty OF some engaged in II
fleets indirectly upon the integrity OF all Tney un-
derstand the dependency OF pOcy holders upon ihcir
agents. and dcprecato the absence 0t stringent
laws 10 govern the transactions. They tho ard
VI the press roofing out these evils ready
10 assist ts representatives by all honorable means
and aside from all motives OF jealous rivalry Ii
unnecessary speak OF the gratitude OF policy holders
Tor uny disntcrested cnorts their behalf Nneenths
O them ignorant Vt the nrst principles oil Ito
surance and wholly IT tho mercy vf the lr-
responsible agents. knowing this easily learn abuse
their advantage. Perhaps more rascality and fraud
cah be perpetrated under tho guse or Legitimacy IN
insurance than any other branch oi comm ercial
pursuits No devices arc beyond the cunning of
honest insurance agents, and while rou time time
glarng exposures OF tncr dark ways have been made.
the real extent OF tho prevailing corrup-
ton hardly DO surmised. Even OF
this ciass OF agents themselves are not conscious
OF tho fu amount Ut their wrongtong In the
lncnt 0t competition ,hcy draw but liant line OF
dcmarcation between shrcwdnsss and dishonesty and,
regardless OF possible contingencies will enIer iuo
contracts which they iuini. Unfortunately
this 10 not coulned 10 agents only, but exists the
tonS Often the stockholders themselves ure nlade
tho tools OF rlckstcrs III control An instance OF this
nature To the of the writer yesorday and,
II true, may be regarded an example OF the ire
sponsibillty which prevails In some managcnents.
srockHoLDEK's STORY.
II Is an account OF some amulgamntng schemes IN
which tmo New Jersey Mutual Life formerly in
VOWED and will be found OF peculiar interest tho
present tnie The events themselves we'll rcmenl-
Dercd by the public but the detailed operations by
which the results were attained known only tho
tho information to the writer OF the original
stockholders and director Of tho Hope Lilo Insurance
Compsny In tho second capacity he WAS Of course,
appears TO have been ring OF othcr olccrs who held
control anu about whose conduct much is lett
misc. The story Is Illustrative OF the mysterious
Acts OF insurance manIpulators and wreckcrs,
and has IN many ways direct bearing upon
the present OF the Continental transitlon.
Tho Informant relates that the Hope Life Insurance
Company, of which he was stockhoder and director,
organized years ago, with paid up capt.
tai OF SI25 00a Tho ncuvy expenses which arc al
ways connected with the rst establishment Of
suranee business SO led upon thor during tho
rsl vx3af IN tho
stock $25O,O00 Of which about $2lo 000 paid
The business went on increasing, but the income
not proportion 10 tho outlay, and IL became
evident that new remedy must b. found and
applied. At about this time Mr.. Frost the president
OF the Continental madc offer TO absorb the Hope,
and pay stockholders par for their stock but
this offer was never consumnated The proposition
then to absorb the Craltsmen's Lilo Insurance
Company and the directors and stockholders
formed that they could hus savo themselves by
ing something like $3.50 600 Of the Cratsmcn's assets
Al tins time Mr.. Plummer was president OF tho
Hope, Mr.. Stout WAS the vice president. Mr.
John :. Anderson was treasurer and DR.. Brady was
the examining physician Mr.. Stout, who has since
boon connected with the New Jersey Mutual Lite,
ths principal negotiator tor the absorption Of tho
Craftsmen's. Mr. Anderson was also attorward
neclcd with the Now Jersey Mutual, aud
cevcr OF the Continental BY these men tho ncgota-
tions with the Craismen's wore continued and lnuly
indorscd Dy tho directors. Under The arrangement
certain moneys were pad 10 tho president OF the
Cratsmen's, BIT. Lambert, In consideration OF the
transfer Of business and assets
ABSORPTION WANTED.
But the results Of thus amaIgamaton werc not SO
profitable to tho Hope had been expected On
She contrary the company soon found itself III
= worse predicamcnt than before Tho officers
amagsmatio with the New Jersey Mutual Lie
Tho proposition was put before the directors OF
soon commenced which resulted IN the agreement
that In consideration Of tho payment Of $2UOOO tho
srss 70 me Hope o thus ns x
according the inlOrmants belief 20 tho Prcsi
dent OF the Now Jersey Mutual and tho balance TO
lhs Stockholders, being premium OF 500 900
the entire amount OF their stock The Hope had tncn,
according this s,ockhooer's story assets OF about
$3.50 OU0 but no CASH ne believes that tho $500 1000
was taken IRON tho treasury Of the New Jersey
Mutual 10 pay tho prcsidcns aud stockholders Of
The The S New Jersey MutuaI's treasury when the
Hope came into Its management Tho former
OF tho Ne% jersey MUTUAL H pammer Decs%" s
president Mr.. Stout It's superintendent, Mr. Anderson
It's treasurer aud Dr. Brady one OF the directors Tho
igamaton not carried TO It's full extent Inn
mcdiatcIy because they desired to find out which Of
the concerns could with most iacity swal-
Hope asked by the officers OF the New
Jersey Mutual TO pay into its depleted treasury
money, which was to 10 returned 10 them at the
end year. THIS agreed TO, and the stockhodcr
relates these gavc his check for his share
Q, nS @ sos amoan ., p. ,n % Ssy N ao.ar
should reinsurc tho Hope and, accordingly tho stock
holders Of the latter gwen cortcates IN payment
Tor their stock, which have not 10 this day been paid
VALUABLE CERTIFICATES.
The following exact copy Of the form Of these
certificates ior which tho Hope stock was exchanged:
Ma Amount, =
raK Insurance. COMPANY.
NKwARK. N. j.. May !, 1873
This IL to certify that - having assigned -
shares issued hlm BY tho Hope Mutual Life Insur
Company New York, In conformity with rcsolu
passed Directors Of New Jersey Mutual Lilo
Company April 1879; aud whereas said Hope
Mutual Life Insurance Company having transferred its
the business and sne New Jersey Mutual Life In
Company Is hereby understood and agreed by
che New Jersey Mutual Life Insurance Com
fasarans. s", s Company win pay said sam
whenever the Board OF Directors Of said New Jersey
Mutual Lie Insurance Company shall, by rcsou-
on OF said Board dsermne and declare that the profits
derived by the said New Jersey Mutual Life Insurance.
the business Assets transferred by
said Hope Musual Life Insurance Company shall
I4OuO0 aud until the retirement OF this cercnte tho
said shall be entitled such rates interest the
OF g. the Board Of Directors OF said
New Jersey Mutual Life Insurance Company by rcsoiu
ton said Board shall from nj declare
and allow thereon. JOHN j. ANDERSON. Treasurer
ID. q. WHITMAN. Secretary.
The informant has but little hopo OF any return for
the certificates he possesses He asserts that shey