The New York herald., 1877-02-10
INSURANCE VIBRATIONS.
Two Referees Now Graphing the Con-
tinental Wreck.
A MAGNIFICENT MUDDLE
High Times for the Legal Brotherhood
New Jersey Mutual Receiver.

II looks very much though tho affairs OF the Con-
tinental Life Insurance Company nigh, be "too much
refercnced" II is not supposed that much inves
CATION Of tho company's corrupt condition can be
had; but there is apparent danger OF conflicting
elements In tho investigating forces. After long
legal struggle tho referee appointed at the solicitation
of the Insurance Department has commenced his
proceedings. He has instructions examine into the
method OF appointment and conduct in office OF John
j. Anderson, but much In that line has already been
evolved by the Butler reference established by Judge
Pratt OF Brooklyn The department are pushing the
former case not because they have aught against the
receiver Mr. Grace but for the sake OF principle
They claim that an insurance company only be
put out OF existence by the power which created IT,
and arc therefore, obliged TO ignore the entire pro-
ceedngs OF tho Brooklyn Court, which acted upon the
basis that the Continental legally dissolved upon
the suit OF stockholder To nuiIify these iattor
proceedings must OF course result In the appointment
ola third receiver, and between such and Mr.. Grace
the question OF right aud proprioiy Of appointment
would have to be contested Mr. Graccs attorney gave
an intima,lon yesterday that the Dewitt reference
case would be protested the ground that his clients
appointment rendered such proceeding unnecessary
and futile. Some attorneys engaged in the Butler ref
ercnco also indicated yesterday that some
action would be taken In Brooklyn this
morning, which may hinder the progress OF Referee
Dewitt II appears TO be the general impression.
however, that the matter Will eventually be pushed
TO the appointment OF third receiver between whom
ana Mr.. Grace the final round must be fought
THE DE Witt kEfERENcx.
Proceedings before Mr.. Abraham V. Do Wit. were
begun at ten O'Clock yesterday morning the Office Of
Messrs. Redheld Hill. largo number OF attorneys
were present. including Mr. Henry Smith, represent
ing Us csSssr
cciver Grace Mr. r. G. Moses for Charles +. Hartwel.
Mr.. 7. Van pelt Tor Charles = warng, Mr. William
Barnes for Edward Young, OF Washington, and divers
policy y.holders, and Mr.. Robert Sewe for John Hoyt
Mr.. John j. Anderson appeared in person and stated
that his COUNSEL Judge Fuller, prevented by ndis.
position from attendance.
Mr. couder stated that his appearance was qualiaed,
and he moved an adjournment, as ne had not been
given sufficient time TO prepare for tho case
Mr.. Scwell also suggested aa adjournment both In
behalf OF Mr. Coudert and Of Judge Fullerton, from
whom he had letter declaring his inability to attend
for the reason before mentioned.
Messrs. Smith, McKeon and Moses desired to 80 on
with tho case, us too much delay had already been
accustomed In the matter
The referee decided to go on, as It did not appear
that Receiver Grace had any adverse interests 10 de-
Mr. Coudert then stated that he protested against
the entire proceeding as unnecessary and fute the
grounds that the appointment Of Mr. Grace had been
regular and 0bvinted tho whole difficulty
EXAMINATION or JOHN ..
John o. Hoyt was sworn and was examined by Mr.
Smith He testified that ho resided in Brooklyn; that
he was real estate broker brought suit against tho
Continental Lifo Insuraca Company for dissolution:
such action suggested by any onc he went to
Mr.. Sewcll and consulted with him papers the
were prepared a icw days aterward Witness
asked II he was able 10 state from memory whether
anything was contained in the first complaint ut the
time he verified It relatlye to tho dissolution
for u receiver; could not remember
whether tEoro was anything in tho compliant
touching upon dissolution; had read the complaint
carefully obtained the scrip representing fifteen shares
Of stock, in which possession he brought SUIT from
r. G. Frost. in August, 1915; understood that Mr.
Frost desired hun to take the stock, as IL would be
profitable to him; by getting In there stockhoder
II would afford HIM an opportunity Of negotiating
loans that witness understanding when he took
tho stock; tho par vnluo oil the fifteen shares
,5OU he said he would not have purchased II unless
ho thought he could get II Tor less than it worth
ho had no means OF Knowing what It was worth; wit
said that he had paid his price OF 81, 900
on the basis Of dividend, which had boon paid IN tho
preceding spring. did not know what the dntc Of pay
mcnt OF such dividend was nor how much paid
he paid tor the stock in currency; tho bills drawn
got div dcnds tho stock bought IT less the drvi-
dend, then past no never got the 81 900 back from
Frost IN any way, directly or indircctly he got the
stock in August and in about mon tn afierward con-
tempated the SUIT for receiver never went IN the
interim 10 consult with any oiliccr OF tho company
about tho stock.
VAGUE CAUSE FOR ACTION
Witness said he had heard various rumors adverse
to the company; could not name man who had con.
veyed any such rumor TO him; what he heard camo IN
general way principally IN tho matter Of two
three loans IN the ovcrcsmatc OF the company real
estate and by a reported loss the Loancrs Bank; on
these rumors he won't TO Scwcl Plercc hts previous
LAWYER was 5 A. Noyes, he employed sowell Pierce
business; obtained that impression from tho
papers, could not recall any prominent case which
that lrm appeared
Witness was asked where he obtaincd the following
phrase In his complaint :-"Bclng liable at any moment
To be proceeded against by The Attorney General at
the nstIgati0n OF tho Insurance Department yn Wit
thought he obtained the idea IRON his counsel,
Mr.. SeweiI; he did not know how much tho company
required 10 have hand by The laws of tho State
had taken active part In the litigation concerning
the Continental since tho action was commenced Tor u
receiver; he had had no moncycd transactions with
this company.
COMPLICATED FINANCES OF THE WITNESS
Witness did not think It was strange that the COM
pany selected him 10 buy that stock; he consid-
cred himself man OF property
Mr. Sewcll objected to further examining into the
private affairs OF the witness.
Mr. Smith replied that this was virtually cross
examination, and that they wished 10 show that the
witness not in proper pccuniary condition to
purchase tho stock the tlmo he did Alter con-
siderable argument both sides the witness was
asked without objectoD II he owned any estate ut
the time he made the purchase. He replied that lie
thought he did, but not certain. He sked IL
no time owned personal property and above
his liabilities.
Mr. SewcI again objected, but the referee decided TO
admit the question.
Witness answered that he could not say how much
personal property he owned just at that me but ho
mad all along been possessed OF properly the shape of
bonds and mortgages.
Owing to inc fact that the Butler reference case was
about begin IN which OF the counsel prcse mt