The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-01
LIFE INSURANCE.
Another Suit to Remove the Present
Continental Receiver.
TERRIBLE CHARGES OF FRAUD.
A Receiver Asked for the Phoenix
Mutual Life.

preme Court in which Albert Grant is the plaintiff and
the Phoenix Mutual Life Insurance Company. the Con-
tinental Life Insurance Company, Luther w. Frost
John J. Anderson aud John o. Hoyt the defendants.
Benjamin f. Butler Is OF plaintiffs counsel, und Amos
G. Hull Is his attorney. Action against the CONT
mental will be commenced before Judge Davis to-mor
with motion to restrain the present Continental
receiver from further action until the suit Tor his re-
moval be decided The charges IN the complaint and
tho Two atildavits appended below are OF the most
injurious character and Mr. Butler said to have do
carcd that II quarter of them could be proven il
would send all the guilty defendants to State
Prison.
THE COMPLAINT
The plaintiN alleges IN his complaint that on The
Goth day of september, 1871 the Contnenta Lie In.
surance Company Issued his life two poiiclos Tor
$780, 600 which in tho same year assigned by the
paintln TO the PhGnx Mutual Life Insurance Com
pany as collateral security for the payment of
promssory notes OF $4,000 These notes have
since been paid whereby tho plaintiff has become
tilted 10 reassignmcnt OF the policies, which the
PhGnix Company has refused 10 make He alleges
That nj the time OF the assignment OF the policies TO the
Fhnnlx, that company, Tor valuable conslde a ion,
promised to pay ali premiums that might become
on said policies until reassigned to plaintiff ana
THIS Tact was understood by tho Continental The
plaintn further says, Information and belief, that
about the time OF the negotiations for the sale or tho
PhGnix Mutual Life Insurance Company, hereinafter
referred TO, the two policies aforesaid by iraudu
lent conspiracy and COLLISION between the two dc.
iendan!s, tue sad insurance companies, attempted
DC rendered void without the knowledge fault Of
The paintin and without aEy notice him that any
premium was due..or about to become due, when In
TACT no premium on either OF said policies due
uhpaid, out on inc contrary the annual premium due
September 20, 1875, had been actually paid ana the
TWO insurance. companies annued and cancelled
the payment tor tho purpose OF having
said policies lapse, anu thereby Lefrauding the
plaintiff The plaintiff Is informed and believes that
the PhGnx actually did pay Its co-dciendant the Con-
tnenta the said premiums; but that II was afterward
agreed between the two that the payments should be
deemed cancelled tor the purpose apsing the con-
rpnd q mn mr.
said policies is over 81, $50
rHE CONTINENTAL STRATEGY.
The plaintiff says on Information and belief and
Charges the fact to be that the defendant the Con-
tinenta Lie Insurance Company. has contract ed with
the Southern Lille Insurance Company, OF Memphis,
Tor the wholesale reinsurance by said Southern Life
Insurance Company OF Memphis, Of large
Of in h osss suea by aa
II Is the inicntion OF the said defendant the
Continental Lie Insurance Company, to all
risks IN other companies from time time and then
gradually retire from business, after having conv
10 the use OF it's stockholders and officers ali It's
assets and other funds required by law to be- held for
The protection OF policy holders; that large number
OF said policies issued by the deiendant-tho Cont
tai Lie Insurance Compauy-have already been reis-
sued by the Southern, which last mentioned company
has recently gone into bankruptcy taken steps
that purpose The paintif AYERS that said company
Department; that for tho years OF its existence
there appears an unexplained deficit IN It's OF
$685., 6S6 43.
rnE MEANING or ''cAsH IN BANKn
Plaintiff says on information and belief, that the
report OF the Con made 31st OF December
1875, fictitious report IN the following
particuar:-Thc item designated "cash deposited III
bank," $45O,977 H. was made up us olows:The rres-
ident Of said company L. W. Frost, on the 3lst day OF
December, 1875, went to the Loaners' Bank an inst
tuition then existing IN the city Of New York, Of VIII
said President and several other officers OF the Cont
deposited IN behalf Of the SAID Con Lie lnsur
anco Company, his own checks IN banks IN which he
had no accounts, aud deposited other pretended So
curities and caused tho to be placed the
OF the said Loaners' Bank the credit of tho Cont
mental. and on The following Monday, which was the
third day after no had SAID report withdrew
all oil said pretended securities from said LOaners
Bank
DEcEIvING THE POLICY. HOLDERS
Plaintiff says that said Continental Company con-
cedes and admits that on the LIST day OF January 1876
II had outstanding Insurance amounting $751; 10 ga
the reserve required on which would DO 1923 TT
that said company reported such OF money as 4
met reinsurance rcserve that such report was ia se
and fictitious and calculated TO deceive the poIicv
holders that the said company had no such reserve
fund nor onc.haif of It; that the said company has
wronguy ana traudLieniy attempted 10 place its as
cots beyond The reach OF tho policy -hoders
uently combined and unlawtulIy conspirsd with
the defendants, Luther W. Frost and John
j. Anderson TO have judgment entered against said
company by default, and TO have receiver appointed
with u view oil getting possession Of the assets OF
ana selling tho same far below their roa!
the proceeds among themselves. That such iudC-
ment was obtained by default and by fraud and coiu
sion; that Notwithstanding reported assets on De-
cemb,r 81, 1919 of over So 0oO 0OO tho said defend
ants Frost aud Hoyi, so managed ms o have the de-
iendant Anderson give bonds rs receiver in the sum
OF only $780, O0O and the defendant Frost, became
OF the sureties in SAID bond Tho plaintiff
says information and belief that Frost while acting
as president, converted to his use more than
$500 900 Of the policy funds that the CONT
mental has recently threatened and threatens To
rensurc It's policies IN The New Jersey Mutual. The
elect OF which Is prcjudica to plaintiffs interest and
destructive OF the same that the character rcpu
tation OF John j. Anderson business Is such
as to render HIM very improper and unsafe person to
"A n and nj
his Apo ntmcnt was fraudulently procured.
Wherefore the paintin prays that receiver may DO
appointed Tor the fhonix Mutual Life Insurance Com
pany and That John j. Anderson be removed rom the
Office Of receiver Of the Continental; that Luther w.
Frost be adjudged TO nav over all moneys taken c-
RaIly from the Continental, that all Of the officers
having control OF said Continental Life Insurance
Company at the time OF It's dissolution be restrained
from mcddIng or interfering with the assets; that
receiver be appointed in the place OF John j. Anderson
TO whom Anderson shall all the properly OF
the company which came into his possession.
RExARKABLE AFFIDAVIT
City and County q Neo rork;--Aibert Grant. being
duly sworn. says he lis plaintiff in the s1ovo en-.
upon hi. lie In Continental Lite Insurance Company
set forth and described in the plaintiffs complaint
Deponeut further says that the 10Th day September
isI the day said policies wrc issued he paid 70 the said
e % c9pamy The prs,"q@ due on
sum Of 1923 60 Tint subsequently, and about the
ihe defendant tie r6@"is Mutual Lie insnranes
by sepossm. from 10, s of Mn,s
s ln;nranco Company and thai all he premi"@s
poncnt further that about the Uth Deem
ber 1875, he called &c the Office OF the Continental Life
Insurance Company this city Ia company with his
attorney and was informed by George w croiut,
piyye In charge OF the business OF said that
policies had pscd account OF the Of the
premium due thereon the 18th day OF September pre-
vons Deponent then asked said George W. Crufn
10 the books OF the company and ascertain the Of
premiums that had been PAID said policies that said
George w. ront reisr the books as requested aud
informed drrucu that there had been only four years
premiums paul tlnoruting to about the OF s. 800
a LEADING ACKNOWLEDGMENT then informed said
George W. Croul that he knew the premiums had been
iuiiy paid on said policies aud asked there had
N understanding between the deendants the fh1pix
Muunl Ie INSURANCE Company aud the Continental Lilo
company permit said poll les to lapse and di
ao the premiums, and thereby dcaud this deponcnt
ihat sara GEORGE W. Crofnt replied. THAT a
Leading question and he would not answer it, That
aeponent then told the said George w. Crolut that
ne had been informed that the officers Of the
rhTnx Mutual e Insurance Company had offered to sell
or rcsure SAID company In the Continental Lille
ana that negc,Mions then pending
10 us Tor that but rotten we would not
touch the dirty birdr Deponent rrther says that ho i'm
l4