The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-02
RECEIVER ANDERS0N'S ACCOUNTS.

FENCE ON THE REVERENCE BEFORE MR..
WILLIAM ALLEN BUTLER--wHAT WERE THE
SHORTCOMINGS OF THE INSURANCE. DEPART
MENr IN ITS TREATMENT OF THE CONTINENTAL
LIFE.
Mr.. Robert Sewel attorney for John J. Anderson
tho former receiver OF the Continental Lie Insurance
Company, will to-day present his brof to tho referee
William Allen Butler. The pith OF Mr. Sewes argu-
ment is gwen below In condensed FORM The cxcep-
tions filed to Mr.. Anderson's accounts wcrc:-
Frst-fo sum OF BOAT 30 paid out by the receiver
Wndcrho orders OF the Court The facts Of this case
as recited In tho argument are:That Patrick Lyndo
paid IN ,112, and carly In October petitioned the
Court that the sum should BIO returned to him, the
ground that the time received by tho officers
OF the company the company insolvent An
answer was interposed by Mr. Anderson, denying the
allegations OF the petition information and belief
and particularly denying that the money paid
after the proceedings for tho appointment OF receiver
had begun The tact that that answer could not be
found counsel claims TO be quite imnatcria, because
the evidence is positive that tho inter-
posed and an argument was had al tho Special Term
OF the court when 1t was peremptoriy ordered that
the receiver should pay the amount Mr.. Anderson
served notice Of appeal and applied to the Judge,
then sitting in Brooklyn, for stay OF proceedings
his was Denied and nothing remained tor tho
but TO pay the amount loss which, it Is now con-
tended no ought to bear himself Tho appeal has since
been argued at the General Term, but Is not yet
cded. Counsel argues that II tho General Term had
reversed the order, and Mr.. Anderson had not been
able to procure the return Of tho money from Lypdc
there might DO some pretcnce for the claim But tho
receiver used due dgence In ascertanng the rights
OF the fund.- and could not DO expected obey
tho order OF the Court which appointed him, after
he had exhausted every method OF obtaining stay
Ia IN inc or nh min
hundred dollars, which is objected the basis
the counsel claims should be ovcrrucd on the Same
basis. The application made the Same grounds
and having exhausted his powers Of defence upon the
frs. OCCASION the receiver did that any benefit
would accrue to the fund by further litigation In re-
fusing to pay the latter sum-
PAYMENT OF COUNSEL FEES
Standardization is made in the matter of counsel
fees-s5o0 TO George W. Miller, 1000 Daniel Ma
gonc J 81 500 10 William Fullerton and one quarter
Of 81 900 to Scwcll and Pierce onchaf Of ST. 100
to John L. HILL Tho objection to the payment OF such
fees by the receiver tho ground that the fees were
incurred in litigation in which the estate
had interest whatever. The counsel SAYS
In reply, that, in the first place, there was
no evidence whatever to show that Mr.. HIPS
add sewoll and Pierce's services werc rendered
in tho litigation or the Attorney General The same
may DO said OF Mr. Fucrton's ice, whio those OF
Mcssrs Miller and Magone coniessedy contracted
was done under the orders Of the Court. Mr. Andcr-
son believed that the litigation at the instance
Insurance Department by the Attorney General
purpose OF appointing receiver supcrsede him was
proceeding instigatcd by tho Insurance Department
sworn and had gvon other facts than the mere allie
CATIONS TO sustain the idea. These facts the
rous insolvency OF the Continental for years past
the departments griavous neglect of duty In ex
aiming the same, and the personal intimacy OF tho
officers OF the department with the officers OF tho Con-
tincntal The receiver applied TO the Court in good
faith for leave defend this action and 10 employ
COUNSEL which was granted Counsel urges that It is
piece presumption say that on the evidence
that order was based upon false made
by Mr.. Anderson.
THE INSURANCE DEPARTMENT ARRAIGxEp
Mr.. Sewell then pursues his argument the action
and motive OF the Insurance Department nstgatiug
the proccedingsto overturn Mr.. Anderson. He asks
sis not that the State Insurance Department
had neglected its dutyy Hero corporation
insoivent for over SIX years. and during all that
not tyro in the life Insurance business who not
take up report Of the Continental Lilo Insurance
Company at any time for the last years
strae the face OF The report absolute
and yet the Insurance department has It's eyes
IT'S statements to pass muster when everybody
who know anything ut all about life insurance knew
that tho items OF deferred premiums and money in the
hands OF agents and cash In bank absolute and
complete falsehoods. There no time within the
last five when the Superintendent of Lilo lnsur-
anco, by mere visit 10 the Office OF the CONTINENTAL
could not have crushed the shell OF that apparently
solvent company and have broken to pieces The pre-
ience Of solvencv which was only apparent upon tho
papers rest Mr. Andersons from the charge Of
false statement In his petition solely on these grounds
ohoose to ss, DO
may indulge in vituperaton and abuse; as
Tor me. when tho facts OF the are
30 plainly IN favor OF my client and when
by taking up the figures of tho Insurance Department
can demonstrate on their lace that that department
has been derelct to Its duty five years. re-
train from saying anything about tho persons con-
ncctcd with tho department., their connection with
Tho counsel then proceeds to consider at greater
length the action OF tho Attorney General and tho
appointed in brought by stockholdor against
tho corporation, which was adjudged insolvcnt
and dissolved in that action. The Attorney
done In the action which Mr.. Andcr-
son was appointed receiver was a nudity; that tho
Court had no jursdctlon; that the piaintii had no
capacity to que and that no power existed anywhere
except at his motion to wind up the Continental Lilo
Insurance Company. Counsel argues that Mr.. Ander.
sou could not properly stand by and his title TO
the rcccivershp attacked in another district OF the
Supreme Court II II was right to defend it at all IL was
right tocarry II to the Court of Appeals nothing abort
OF which could settle the question. II yet put
at rest, and though Mr. Anderson had escaped the
quarrel his successor might havo To continue IT.
THE CONTINENTAL AND SEw JERSEY
ThirdThe objection relates to exceptions and speci-
with the New Jersey Mutual Life and tho alleged
sponsbility OF Mr. Anderson for some of The assets
which had BEEN before his appointment as receiver,
turned over the latter company. Prior to his APP
polntment contract OF reinsurance entered into |
by the two corporations, by which certain sum Of
ihe New Jersey Mutual Counsel says that In discus
sions upon the subject IL had been that this
VAS All illegal contract, but such an assumption was
insustained by any facts and unwarraulcd by tho |
NV the contract on lis lace was legal. There
vas no amalgamation between the two |
companies, but reinsurance OF an insignificant
portion OF the outstanding risks OF the Con tnenal
Tho New Jersey Mutual In payment for this reinsur-
ihcc received part cash and part Old debt winch
owed the Continental IL was sought TO make Mr.. |
anderson responsible for some portion OF these
titles, transferred before his appointment because |
turing MS rcceivcrshp some or tho traced
hrougn MS hands as having been sold by vcrmiiye |
Co Tor account OF Mr. Daniel J. Noyes Counsel
gued nat TINS was one OF many personal transactions
d inc KIM between Anderson and Noyes, and there
told the bonds for Mr.. Noyes he mad any |
knowledge that they had ever been In the pos |
session OF the Continental II there had been d,s-
honest purpose In the transaction Mr. Anderson could
sasy have covered up all tracks by sending the bonds
10 some other city Tor disposal In open market The
whole CLAIM was absurd, and insgaed by the natural
desire Of the policy holders and tho public 10 make |
gOmcbOdv could thoir mn nda imam ,na,na,..