The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-10

A Comprehensive Sweep by the Broom Of
the State Department.
Prospects Of Continental
Policy Holders.

and the closing out OF the puSlncss VI suo i"o""e
named lie insurance companies
Tho Guardian Mutual Life Insurance Company.
Tho Widows and Orphans Life Insurance Company.
The Reserve Mutual Life Insurance Company.
The New York State Lille Insurance Company.
Tho North America Lie Insurance Company.
BASIS OF PROCEEDINGS
The proceedings OF the Attorney General were based
on petition setting forth that the superintendent OF
tho insurance Department had examined the compa-
MES named; that from such examination II appeared
they had not sufficient to provide for the rein
surancc OF outstanding risks, and that II was not
for the best of the public that they should be
allowed engage further in the business of nsuring
lives.
An order to show had been issued In each case,
returnable at ono o'clock the 9Th inst, before the
above Court the time the Attorney General with his
assistant Mr. Page appeared and asked the Court for
anal Judgment dissolving the four first named COM
los and the closing OF the business OF the North
America which is amenable 10 different statutes on
account OF the system has Of issuing registered poll
ces. The four first named companies were repre-
seuted by Messrs. Sewel and Pierce as attorneys,
while Messrs Alexander and Green appeared as at
,orneys for the North America Mr. Sewell and Mr.
Green were present in Court, making no opposition
90 the request OF the Attorney General
ORDER OF DISSOLUTION.
A decree entered in accordance with she pc.
t,tion dissolving the Guardian Mutual, Widows and
Orphans, Reserve Mutual and New York State Life
Insurance companies, and appointing as receiver Mr.
Henry r. Person, OF Albany, the receivers bonds in
the case of The Guardian Mutual being fixed at ooo
and in the cases of the other companies at IS 900
each
Il WAS ordered IN the case OF tbs North America
that its business be closed and that Mr. Person be
appointed receiver his bonds being placed at 100 co.,
with power 10 receive premiums and carry the
business under the superintendent Of the Insurance
Department until such time further orders should
be made BY the Court in the premises.
AMOUNT ASSETS REMAINING.
The Widows and Orphans, Reserve Mutual, and New
York State companies are understood to have no
assets thoy having been reinsured in the Universal
Life Insurance Company. Tho assets of the Guardian
Mutual are also small while in the of the North
America the consists entirely Of real estate.
ceptng ST. 600 In mortgages which are on deposit
in the superintendent office at Albany. By the
terms OF the ORDERS the receiver is not entitled
to act without further orders from the Court. and his
proceedings to be entirely under the direction Of
the Superintendent OF Insurance.
The in the OF the four first named CON-
panies businesses all complaints and abates all actions
against them. The North America decree contains u
clause enjoinng all persons from commencing, con-
tinuing maintaining suits against the company un-
thereto.
THE DISSOLVED COMPANIES
The Guardian Mutual was organized in New YORK
August s. 1859, with paid up capital Of $l25 900 1t
continued doing business until March 4, 1874, when
eighty per cent OF It's policy obgaons were reissued
urcc OF It's risks were similarly taken From state.
ment made to the Department by c. l.. Montague,
Vice President, anu Lucius McAdam, secretary, upon
the 18th day OF March, 1876 It appeared that at that
time the assets of the company consisted of cash.
s29, 500 81; ledger balances, s9d,635 "a; total
O
in unpaid losses.
The Widows and Orphans Life Insurance Company
was organized In New York, September IL, 1864. with
q capital paid up cash OF $500, 000 The COMPANY
passed through q wonderful series OF pantomnic
TRANSFORMATIONS, only equaled perhaps by the history
OF the wonderful blouse that Jack built" The out
standing risks reinsured in October 1871, the
Mutual Protection Lie Assurance Society; thence, by
change of name, into the Reserve Mutual; theDce by
another reinsurance, they passed. INTO the Guardian
Mutual, and nnally found beneath the conprehcn
sive shield Of the Universal Lille Insurance Company
In the last report OF the Insurance they
werc said to have securities deposited at Albany TO the
amount Of 05 000 Its actual existing liabilities
limited TO the stockholders
The Reserve Mutual was organized in New York as
the Mutual Protection Lite Assurance Society, July 81
1868, with a captal OF 100000 Its present name
obtained by special act of the Legislature passed
February Is, 1872 Its risks were relnsured in the
Guardian Mutual passing aitcrward to the Universal
On December IL, 1874, had Sis, 600 deposit at
Albany, with no liabilities except to stockholders.
The New York state Lite Insurance Company was
organized In Syracuse June 1866 with cash capital
OF S120, 600 On december II, 1872, It's outstanding
risks were rensured in the Guardian Mutual and ali
Its assets transferred TO the latter excepting the
securities deposited with tho superintendent at AL
bany. These securities IN the Superntendcnts re-
port for 1875, were stated at $lO2, 200.
CONDITION THE NORTH AMERICA
This company was organized In New York city Octo-
Der ~, 1862 win paid up capital OF sloo,0 Ma
than u. Morgan It's first President, who remained
IN that position until about two years ago, when he
was succeeded by Mr. Henry J. Furbcr. Al about the
vent, and, though the deficiency to its supposed
extent was then made mp, the corporation
has not since been regarded with any de-
gree OF confidence The present condition, together
with the causes leading thereto, have been recently
published in the HERALD in connection with a SUIT
brought for a dissolution by policy holder named
Ethelber, BelEnap Two three orders under this,
Inclusive OF one to show cause why receiver should
not be appointed, are reurnabe today before Judge
Dykeman, IN Brooklyn What effect tho order above
cited will have upon this case remains to be
soen. II may serve to rcvolutonizc the proceedings
or least apostponement, seems probable as Judge
pykeman was yesterday reported to be quite III There
also suits for dissolution pending against the Guar
dian Mutual, which, under tho above decree, viii
doubtless be discontinued
Thc superintendent of tho Insurance Department
yesterday commenced an Official examination Of the
Universal Life Insurance Company, the results OF
which will have important bearing on the case oi
the North America and Of the others mentioned
In the sworn report the department, dated Do
ccmber 81, 1875, the North America claimed assets
amounting to So 664 49, OF which O63OOO was IN
s'rca estate owned after deductpg all hens aud incum-
bruncesv and 81 6s5 25 90 in loans secured 10y deeds
Of trust or mortgages upon real estate" It's liabilities
as to policy holders were gwen In tue above report At
80 Sos 81 81 and It's surplus regards policy holders
At SlO3 1893 is On December 81, 1915, the company
bad on deposit Albany 500 600 aud tor the special
protection OF registered policies ~ 800 'l6 All tue
tgures IN the above statement have been considerably
reduced since, and a great many policies have ter
minated or reinsured in the Universal.
CONTINENTAL INVESTIGATIONS
The oxaminaio OF the Continental alfairs before
Referce Dewitt continued yesterday afternoon
at No ~ Nassau street. Ex-Judge William Fullerton
appeared to give some explanations regarding suit
which he had brought in behalf OF Receiver Anderson
against the New Jersey Mutual Life Insurance Com.
~ " In recover certain securities that had been e
SaIlv transferred 10 them by the Continental II
was clained he said, that these transfers consisted
of ono lot OF bonds and mortgages valued NJ si16,OOO
one Iot valued III $1O7 00O and lot OF United states
bonds valued 1t $7S 900 lie sad he was instructed by
Mr. Anderson bring suit ~ recover whatever prop
ri inc tontincp tai he could that then In the
nossesson of the New jersey Mutual He ascertaiued
'rnn, the receiver that the transfer OF s0T 600 IN
,eoks while there was nothing to show the