New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-24
LOCAL. MISCELLANY.

THE NnSNANAGED CONTINENTAL LIVE
JANIS II. CoLGAIE's REASONS FOR m,iGNlN" HIS
POSITION As DEECToR-A 'sINGVLAR IEAN'AC-
TON IN BOHDs.
The examination into the affairs OF inc toh-
tincntnl Life Insurance Company continued yeatcr
day before William Alien Butler, at No 20 Nass''-'',
Jamcs B. COLGATE, the wcllknown banker. tcstilec "
resigned my position director of the Conncnhi Lle
in September lS72. was opposed 10 the RESOLUTION o'
increasing the officers salaries in May, lS69 ana /" we
creating OF the committed annuites account ipI 'i'
hencGt Of the officers These measures adopted by
the board agan. my vote. These things aud tie deposit
ing OF funds Loancrs Bank were among he reasons
why | resigned. The Ioancrs' Bank was "A lltte
'snavng shop with capital OF Slooo' anu
paying "A rental to the Continental Company
for the banking Office Of $1,000 rcr alh'uh
Justus Lawrence President OF the Continental. came TO
Inc and said that he learned that | had been Pf} ING
around among the bookkeepers trying to ma ont wheie
the bank account was kept. told lin did not IKE
ts way of Withdrawing the funds Of the company from
strong banks and putting the funds IN thc L"oa bN
without having offered any resolution To do So TIC an
swered that the funds would Ne deposited IN the Market
National Bank which regarded good but not Dahh
that would like to have trust funds deposited in' very
soon after this I found TO my Indignation, that
the trust funds OF the company were actuaiiy
deposited in the Market Savings Bank-a NUE.
rotten institution that afterward falied' ara pS
the failure Of which the company lost money maze
motion OF Jan 81 1872 that the funds then on deposit
with the Loancrs' Bunk be Withdrawn which was
passed | tie minutc-DOok, lacked on 10 inc
end OF this motion, amendment that the money
sbould be let with the bank at the discretion OF me
president. did not know anything ABOUT inns aheh'-
mcnt aud always insisted that the money should ne 't
with the United states Trust Company. u Hilton Heio
ncr said that Luther ". Frost aud he we're officers 81
tine Loaners' Bank, and that the funds wonid
be practically in the hands Of the company.
Another matter that my hearty disappr0baton WAS
the reinsurance OF the Empire Life. Up to the time OF
this transaction regarded our company a. very Soo'
but when tins 10 light say came to llgh because
it had been douc by stealth and without any resolution
of the sirecorI concluded they did not have any use
ior me any longer. The annual statement Of Dee. 81,
1871, showed real estate, 100000 and Oyor. This
Immediately aroused my suspicious, so | asked Mr..
Lawrence where all this real estate vas. IL replied
that.1hc building really only worth S5U0OoO hut
that they had lately pat a deck on 1t costing
some 500 900, and they htd clpda3-cd the rents
Afr ,.,tc ,aid in conclusion that "thc director, had
Dot yciy h.gl sense Of honor ~ regard 10 the e o. cue
psli.y iud.rs money. always looked upon these iuu's
~ sacred usi.,aui don't think they Cohcd upon tA2h
Mr. PaTrott the death claim agent, testified that the
.tgr,rirul of tne death claims 1873 slOl3dJ
sn, Of iue correct Hc could give 10 reason oF
tH- fasc statement except ina. 1t had Drch l"ut III
o.cr to deceive policy lie received as salary
II 500 year, besides commission Of 1.-Two per cent On
Inc amount he sic, dsd IN compromising.
M tackcr, the ,'uary appointed 20 ih{eS'sate Tue
asset. uf the NrW-jer~.y MutiI testified concerning
certain United state, bonds that had formerly belonged
len ;ur Continental ana had been given To Jeremiah H.
efriy.r by D.ur! j. Nuycs. lie Lad understood thdt
Mr. \,v,s at ;hr request N StcLWcii had given CrCk
ior 10000 10 me Chemical NATIONAL bhh' WIZ
the bonds had been hypOtnecated 10y eedWe Tor mat
amount. The bonds amount on TIE race 10 ABOUT
$4,000 These bonds, Is claimed by cJui-el, are the
- 300 in Cncd staus bonds that compose part OF
Inc -}l coo IN securities originally Transferred 10 'he
N-w.Jcrsey Mutual by the Continental
l. ilIl examined rs To Ms services ItuutIth
to nnu j. Anderson a. receiver. lie said that nc had not
been sufficiently pad Tor MS WORK. Henry A. IIo,"9
WA. Examined gard 10 some second mortgage buhGs
that had been -s5cd originally ~ On. 81 LOiS AtOi
and TeIrc Htutc Railroad TO MIS-. EiAibrih nome OF
Nnu,l.lr. " j. Mr.. Home sId That 50" placed tlc No
Juds for safe keeping with John H. La fdrEcja HW$t
i'm Wiuu,f. He returned her only three, SAY INK thdt
he had pledged the others win me LUaurtS bahN
ii .uriicd from the Endorsement Oh the DckS 81 tHc
bond tuat hey had been transferred by power 81 attJ
y 10 La Fargo, and Gy hn to the lJaitrs BANK dS col
atrl. ana finally b., the LoahcI.' Bank To the Conn.,
,.u A ~, collateral Mrs. Home said tHt II Fargo hid
hrra Ecepiug the bonds for her GS trust. one oi tue
COUNSEL Tor 10. police -A0dcIS remarked lldt tit trans
r. seemed To same handwriting as the sigma
ne, !! T,ic,I as trustee, the railroad company. Ms
Home believed Tat la Fargo was no" dead .
Wlau L. Grace stated 10 u 1Bii NJ reporter Ihat the
r,.,,J WAS false tlaJ Judge Fullerton had made any
,.iit-I with The NrN-J,r-cy Mu-ua-OHI or Writ'i-
am, me rrasuE why he lad not TUNED over tine flV-UoO
,s TINT h bad vet been served WIN copy OF the
nI1;cI ELpnael j. Noses has Written to ihc persons
Iupratrd Dy the testimony taken before l!laLi Alch
ii,r informing them that he does ACT WISH To lahc
amy arrests before Ca,n haG an opportunity IUt a
rlrIug before tic ror,. II they 10 not irt 40 como
buit y sip.ul. hg viii have tucG served II they viii
state wArr. tucy e found. lie las hHd 40 RESPONSES
up 20 tnc present uhc'