The New York herald., 1877-03-03
IRREGULAR LIFE INSURANCE.
The COntinental's Affairs Examined by
Referee Butler.
NORTH AMERICAS TROUBLES.
Charles II. Winfield TO Examine the Guardian
Mutual Life's Books.


The case Of fEthelbert Bclknap vs. The North America
Guardian, and Universal Lilo Insurance companies
will como up to day before tho Supreme Court Of
Kings county. Two orders roturnable-one issued
by Judge Dykman appointing William II. Leonard
referee and asking for receiver and tho other
by Judge Donohue the referee from proceed
ing Yesterday, John l.. Hill attorney for the plain.
tin. obtained an order from Judge Dykman for the
purpose Of obtaining certain proofs TO be used to-day
The is most important one and IS understood to
very nearly others than those who made
fcndants in the action.
That much vcxed question Of the New Jersey Mu.
tuais assets and tho presidents, Benjamin
Noyes and J. H. Stedwell II Is rumorcd, will soon be
brought to nn ISSUE At least OF tho officers named
Is now in Washington, whittier Judge Fullerton has
also gone with view Of hastoning the matter to an
end, it IS said, and giving tho assets to Receiver
Parker
The reference before William Allen Butler In the
Continental matters continued yesterday after.
at No % Nassau street. The hearing OF evidence
is being prolonged iurthor than expected, but Will
doubtless be concluded next week.
TESTIMONY BEFORE BUrLEA
Joseph 7. Sanger, former director Of the company,
was examined by Mr.. Moses with regard to certain
transactions OF the Finance Committee, of which he
was a member, as we'll as the Claims Committee. He
testified that he had knowledge OF Continental
annuities Of such being paid to the officers Of the
company addition TO their salaries; he held twenty
vo shares of the stock and In the 1874 and 1875
received about twelve per cent dividends; received
the regular dividends OF per cont from the
pany, but the balance was paid him by the private
attorney OF Luther W. Frost; he never received any
explanation from Mr.. Frost to why ho thus paid the
extra dividends; supposed 1t was his particular mode
and was all right.
Tho minutes Of meeting OF tho directors held in
February, 1878. read to witness, wherein state
ment Of the affairs p the company upon December 81,
1872. rendered. Witness testified that a mem.
Der OF the Finance Committee ho made investiga.
ton before the preparation that report of the secur
ties held by the company; made examinations at
all that would actually convince him that the state-
ment was true or not. These annual statements were
prepared by Secretary Rogers Witness shown
statement OF the company's condition at the end Of
ISL Ho testified that somo examination was made Of
ana he thought verified by some members OF tho
Finance Committed The original cost OF the Continental
building, on Nassau street, was enhanced Dy the
addition Of another story and expenses; he
did not think that at any time sinco the panic OF
1873 the building has been worth $S25 000 as estt.
ma sled in the annual statements; on tho debit side
OF the annual statement Vf December, 1871, tho only
Item that witness knew anything about was the capital
stock
Witness questioned at length with regard to the
loan account, with aSCertainiDg what
mad been making oans but he knew little
OF the matter He testified that AS member OF the
Finance and Claims Committee he received $40 for at
tendance at each sitting beside his dividends these
were tho only moneys he evor received from tho com.
pany.
W. r. Bogart testified that he director Of the
Continental for six years; resigned 1876 because OF
some information had received that pro mpted such
a course; he sold his stock 10 l.. W. Frost and money
paid to him therefor in November last hc received
5000 or his stock same as cost price; had recent
a
Claims Committee; never made any examinations OF
the annual statements made to the department. Wit
closely questioned regarding the purchase ol
the stock OF tho Empire Mutual but he little
or no information. He recevod q dividend on his
stock OF cent, and for threo four years
extra dividend Of five percent received no annuitics,
know OF any allowances made TO the oicors in ad
Minott Mitchell testified with regard to having
CURED certain property recently from Luther Frost
pieces OF real estate and shares of the Yonkers
| Gaslight Companys stock placed several loans with
actions With Frost or Rogers; had heard from 4. G.
Frost. within ten days, from Boston. So far as wilt
State heard Mrs. l.. w. Frost say yesterday morning
| that she did not know where her husband was.
Tho reference Will bc resumed on Tuesday next.
| THE GUARDIAN MUTUAL LIFE.
! Yesterday Judge Dykman appointed Charles H. VIM
| field reieree to examine into tho books and papers
OF the Guardian Mutual Lille Insurance Company The
Court also granted order to show cause why tenn
poray should not be appointed which order
Is made rcturnable this morning. The plaintiff
In tho suit H. c. Trenaine. and the defendants
| are the Guardian Mutual, the North America, the
Universal Henry J. Furber, George l. Montague,
| George I. Hope and others. The complaint alleges
that from tho mo OF its organization, 1852 up to
1874, The Guardian vigorous aud prosperous, but
that the Universal Furber aud others entered into
corrupt and fraudulent agreement among themselves
| 10 obtain possession OF the Guardian TO divert ita
property for their own benefit and TO wind up tho
Guardian. Through unjust and corrupt influence and
practices Oh the officers OF tho Guardian they OBJ
taincd control Of It's Board OF General Management
1t alleges that they induced tho directors OF tho
Guardian to approve falsely called contracts Of
k.ysv htn TTp-n 1ntoAe
rcinsuro tho GUARDIANS risks 10 the extent OF eighty
per cent in consideration of the receipts of It's good
the extent OF 81 42o, ,OOO the Universal thcreupon
form reinsuring the remaining risks OF tho Guardian
being the assets and reserve the GUARDIAN $6O7 256
OF the being transferred Part OF the scheme,
and d o.hsTs the forfeiture Of pocies whh
was TO be cnccled by causing such representations TO
be mado as would induce policy holders to
miums and allow their policies to 60 by
deaut II is set forth that cxtravagant salaries
paid and that Furbcr iraudulentiy appropriated part
OF tho reserve, and levied commission of ten or nf
per cent oil all policies no procured to be lapsed
or forfeited and twenty thirty per cent OF tho
serve Of other classes dsposing Of the money among
his associates he considered their skill. diligence
and energy aiding the conspiracy deserved officers
Of the Universal were is averred, put in the Board
| of Directors Of the Guardian, and through this
| coIlusion the policy holders were swindlod, tho
! ing RISKS impaired and the stockholders
and policy holders OF tho Universal enjoy tn" benefits
Of the money invested the Guardian 10 the
OF 81, 900, ,OO0 The Guardian has been insovent for
| more than year cannot DO restored Tho plain
TN nsks that the companies defendant be visited and
examined; that Furbcr other officers In both
pan les be Suspended, and II found guilty. removed;
that tho OF Insurance be declared null and
void; that the Guardian and It's creditors thor
money and property returned that compensation for
the injury be allowed; that II tho Guardian be found
hopccsslv insolvent q receiver bo appointed that
receiver takc charge Of the Guardians prop
erty aud such other relief be granted appears
meet
NORTH AMERICAS REFEREE
| Yesterday Judge Dykman granted an order, on ap-
plcation of counsel tor Ethelbert Beknap, appoint
ing Ola j. Chuscn referee. TO take tho aiuavit of
George L. Montague, Secretary OF the North America
Life Insurance Company, III the following particu-
lars relation the value OF the real estate OF tho
North America Company and the company's equity Of
redemption therein; In regard to the value OF It's