The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-21
LIFE INSURANCE MUDDLEs


formed tho subject OF story, but the machine
tons by which II effected have been hitherto
concealed. These have been related to the Grand
Jury In Newark and account OF them is full Of In
terest at the present time Some new facts are pro-
duccd regarding the National Capitals creation, and
the stages by which reached It's present existence
II chartered By Congress and after short season
OF business its risks werc roinsured when
Benjamin Noycs went TO Washington TO purchase
the charter he also bought that OF tho American
Life Insurance and Trust Company. The latter was
another child Of Congress, but bad never made It's
debut in tho business world. The two were virtually
owned by the samc parties, and were procured by
Mr.. Noyes through tho agency Of Mr.. A. g. Fay Mr.
Moves rcinsured New Haven corporation under the
National Capital, and the American Lfc was kept IN
reserve II any accident had occurred 10 the former
company-such as the repeal bits charter attempted
in the last Congrcss-thc old umbrella could have
rcappeared under the new cover OF the American Lie
Insurance and Trust Company
When the New Jersey Mutual got In trouble in De-
ccmbcr last, proposition was broached to them by
Benjamin Noycs, through a. G. Fay, with view to
selling this supernuous charter OF the American
Life. II considered very available
for tho New Jersey, and was estimated by Its owners
TO be $685. 900 for that purpose Az the request
OF President Stedwcil some loyal gentlemen visited
Washington for the purpose OF discovering the value
OF the Investment Mr.. Fay there exhibited II
10 thcm and among other things produced
the record OF series OF its directors meetings,
which had apparently becn regiously attended at
stated intervals in order keep tho charter alive 1t
so happened that In the minutes Of these "mcet
ipgs, n name was entered whose owner was known
a. that period to have been In Europe.
Of tho ncgotiatora and though Mr. Fay
generously offered TO produce aidaviis to show that
all the directors named had been present recorded
tho nrOn OaadU
ANOTHER BOAT TO THE RESCUE
Benjamin Noyes first addressed himself individually
TO the New jersey people about January !, 1877,
when he sent President Stcdwe y message TO the
elect that the National Capital would reinsure
the New Jersey Mutual upon o six per cent basis.
This proposition ed to one or two meetings between
the representatives Of the companies az the house Of
discussed IN ali is phases BY Messra Moves
strongly asserted tho ability OF his company to secure
tho New Jersey policy holders, but Mr. stsdwe
the New ' York institutions Previous to this an
effort had been made to re'nsurs the New
Jersey In me Tur1er ppesden Of ahe latter
While the National Capital proposition was yet In abey-
Mr. stcdwel made application tor reinsurance 70
the Globe and United states companies, Of tnis city,
both OF which finally declined. although a
contract with tho United States vas so nearly
effected that tho bonds, deeds and mort.
cages were prepared for assignment and blanks
iiIied out for the purpose The objections finally made
piica,lons which they feared might arise from suits
against tho New Jersey. A full meeting OF tho New
a a"a Mcss Us.D H. W. Baldwin, n NJ Aals.eaa
and H. H. Trcnor appointed committee
TO IA or Of ho
The rest OF tho proceedings now pretty vol UNDER
stood, and will be fully revealed within o tow days.
time.
!. was stated by a gentleman in tho HERALD re-
9 G. Lalnrop al tho OF the Hope and New Jersey
amalgamation, had been charged on tho New Jersey
chased policies This entry has been found in the
journal under date OF November H. 1873, aud reads
10 B nUDs IS s Of Hope policies which new
policies had boon ISSUED In the New Jersey, aud upon
which the aggregate amount OF reserve cut on was the
above mentioned. II Is one OF those entries from
which, in tho absence Of check book, little can be
discovered but much may be inferred Just above II,
uudcr date OF November IL arc Two entrIes:-
To Guaranty capital. zoo
To Hope Mutual special. 1000
been purchased with the companys own mortgages
ana which retired ut this juncturc from oil the
liability st-as indeed the entry Of $50, 600 to pur
chased policies is supposed have been-on account
OF tho examn nation and statement coming In the fol-
lowing December.
IMPORTANT MOTIONS BEFORE CHIEF JUSTICE
In the actions OF Charles Ross and vito against IN
Reserve Mutual tho Guardian Mutual and the Uni
versal, and OF William s. Carlisle and others against
the Guardian Mutual and the Universal ana several
individual attendants, which brought for
the purpose of recovering tho diverted and scattered
assets OF said companies and aside the contracts
OF reinsurance amalgamaton made between them
and in which the charges are generally msappropria-
ton by the former officers OF tho companies Of tho
corporate assets. Motions were yesterday made be-
fore Chief Justice Daily by Mr. W. j. Butler, counsel
for the plaintiffs each case, for order bringing In
Horny b. Picrson, tho receiver of tho Reserve
and tho Guardian, rs defendant, and directing
that the actions BIO thercpon continued and
TO final judgment The plaintiTs motions wore based
upon the that their actions brought before
tho appointment OF the receiver and dissolution of
tho corporation, and upon tho allegation that the
receiver colusivcy appointed IN an ir-
regular proceeding taken by tho Attorney Gen.
eral ut tho instigation OF tho parties who
now control tho assets Of tho dissolved companies
The motions were opposed by Mr.. Tremaine, counsel
for the receiver, upon the ground that the action Of
tho Attorney General In dissolvng corporations was
regularly taken without COLLISION and that IL super
seeded all action pending in other courts, Plan.
,,s counsel re'eu upon the wncS ,s
insurance companies arc mado subject,
giving to any court In which an action was pending At
10 order the continuing Of SAID action thereafter tho
| same II no dissolution had been dccrccd, which
statutory provision, the receivers counsel argued,
was repealed by the laws regulating life insurance,
citing in his support the late decision Of Judge West
brook the OF the Attorney General against the
/ Continental The Court reserved It's decision.
THE NORTH AMERICA
There also similar motion fnndo ny MT
William Barnes, late Superintendent oil Insurance. In
behalf OF volctta A. Bcdc against the North America
Ifc Insurance Company. Tho defence oil this motion
differed IRON that Of the others only in this respect
that the order appointing tho receiver OF tho North
America wns not Judgment or dissolution, but was
intended tho OF tho business undcr the
| management OF a receiver Among the arguments In
support OF the notion, II was urged thai, assuming
that tho order OF Mr. Justice Landon At Schenectady,
was properly granted u Is necessary under tho words
thereof 10 mako tho recover party IN this action,
| and all proceedings In Mrs. Bcdell's suit
! in tho New York Common Pleas stayed.
4 or attempted TO be stayed, ny justice OF
| another court without notice, until the
receiver is made party herein; that receiver has
no right to interfere litigation pending between
! tho parties PRIOR 10 his appointment, tho object OF
which litigation Is to settle the rights OF policy hold
ers IN the company and to adjust the amount Of dvi-
dcnd 10 which they entitled as members OF tho
company, and for other relief, and That