New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-21
TRACING INSURANCE FRAUDS.
FURTHER DISCOVERIES OF CONTINENTAL LIFE MIS-
MANAGEMENT AND sWINDLNG.

FURTHER DISCOVERIES OF CONTINENTAL LIFE MIS-
MANAGEMENT AND sWINDLING.
The examination INTO the affairs of the Con-
tipenta Life Insurance. Company continued yester
day before william Allen Butler, AT No. % Nassaust
james T. Dudley inor of the building, testified that on
Sunday in the first part Of November Luther W. Frost
Rufus c. Frost, and James p Rogers came into the
building and went into the Presidents ROOM This was
after Mr. Anderson had been appointed receiver James
F. Rogers the Secretary took away bundle about the
size of three books In December Mr. Rogers removed
little book ard III January be went away with another
bundle The witness could not tell whether or not Mr
Rogers had the ledger casbook and JOurnal-referrcd
to s having taken out of the vaults by him for the
purpose Of inserting enries-n the bundle which Lie
brought in evening about o'clock
George W. CrOfut said lie had examined IN January the
cnyelopes in which the stock certificates OF the Cont
mental Ilic Insurance Company were kept while John j.
Anderson was receiver. They amounted TO about
S6 600 An envelope pinned to 10 shares OF Continental
Life stock, aud note made by Waiter k Blake, datea
Aug g. 1876, for SOG25, were shown TO the witness
The stock which had been issued to NJ H. Wynkoop, one
of the directors apparently used AS collateral for
the money borrowed by Mr. Blake. Mr. Cfoiut said that
when he examined the envelopes Ill January last there
was no note III the envelope aud no pencil memoranda
on the back This was true also in regard 10 the
note Of j. ii. Findenberg, dated May 3, 1876
for Sl1 800, which appeared to be borrowed
ON iuclOscd 700 shares OF CohtihehtaI l-lIc
stock originally issued to j. j. Hallebcck some OF the
pencil Inducements which had been added were III the
handwriting Of Mr. Rogers and in that OF Luther W.
Frost On the note made Sept. p, 1876 by Walter H.
Blake for 81 G25 the collateral appears TO have been
changed from stock Of the Union Trust Company TO the
same amount nO5 shars) of Continental Life stock. An
envelope which had formerly 40 shares OF STOCK III II
now appeared to have only TO- The witness said that
walter r. Blake only agent OF the company and
II ne had seen Bakes note connection with this stock
he would have known thht tueIe WAS s"he''ns "i'ne
about il.
NIB Wvlkoop testified that lie a director OF the
Continental until he resigned 1876. The two notes
for $4,000 and 5000, made by hun Tor money
borrowed from the company with 10 shares OF CONT
mental collateral, were aiterTdfd palu ny hl
~ conuany buyin par in the summer uf
1876. The money raised Oh these notes was usSu Nv
I1lher W Frost others 10 buy certain 0her shHles
nf Continental stock Mr.. Colgate Of Newark, " j.
The witness received for IS shares OF tOntental Stock
the par value $1,000. The $4,000 which he borrowed III
January, 1872, on 80 shares OF COhheH,al s.och nc
never paid the interest he understood that te EN-
plrc stock would be redeemed ny tht continental NoW-
ry at 100 cents Oh the dollar lie received from Luther
" Frost dollar for dollar FOR ms Empire stO'h' Tue
oitneas was formerly director OF the Empire Company
suits have been begun by William X. Grace, as re
against the Coutinentals officers and others VINO
are believed TO have been ghJ OF lia; ie thu niH f
president Of the COMPANY juliet o. l. fIOst, Ills VIC
and Daniel j. N0ycs, the attorney Tor the rrosts anu i
emily attorney for Receiver Anderson Inc cOilpiun
irst iuth4r W Frost allcgce that he tool $2ls.23I
from The 1uuds the company between June y $50 anu
Oct TO- 1876 and Overpald agents ,553 whGh u ule
at al due by him to tht agents asS tn' % '
NAV and July 1872 he fraudulenty took from me coin
any s6D 200 that he wrOngfully drew out Sll55Ob III
March 1874 that he borrowed Of the COMPANY S-1'oVO,
secured only by Els oSn bonds ana mortgage ne - aIo
red with getting possession of Otucr funds OF the
cnnapy Improperly, and the receiver pIays That Judg
nent be entered against him for eG222O4 %.