New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-08
INSURANCE REVELATIONS
CONTINENTAL. IRREGULARITIES.

CONTINENTAL IRREGULARITIES.
| PECULIAR BOoKKEEPING-LARGE SUNS TO OFFICERS
FROM COMMITTED COMMISSIONS AND ANNUIriEs
"A SINGULAR ENTRY-MR GRACE TAKES pos
SESSION.
There was no examination into the affairs OF
the Continental Life Insurance Company yesterday rs
WIN. r. Grace, the receiver took possession. ne
ordered inventory made Of all the bonds, mortgages
and other securiestuned TO him. He discharged
the former employees of the company who bad been re-
tanned by Mr. Anderson II is believed that ne VIII en-
gage George W. Thomas the head bookkeeper instead OF
L. v. STYLES, who has been employed by Mt Andersoh,
TRIBUNE reporter, by looking at the committed COM
mission yesterday learned that the total amount
of Communication credited TO Luther w Frost on the
ledger 2l 900. On tracing these entries back 10
the cash and loan it found that whenever
the statements of the company had been made out these
fees were recorded loans to Mr. Frost The interest
was regularly credited to Mr. Frost and amounted 10
| about $1,000.
There was also an account the ledger called the
" COMMITTED Annuities Account" and among the last
entries this dated Sept 30, 1876, amounting
TO II 900, without any explanation. but WHICH, from
previous entries on the account must have been
credited to the officers Of the company. II viii be re-
membered that Sept 30 1876 WAS only 10 Gays Deiore
the Injunction granted against the company paying
out any money otherwise dsposng OF Its property.
Another xplaned irregarity in the books Is tue
loan the ledger This entry Is not brought
down as n balance ut all. and amounts to S41,375 81
This represents loans Of from LOCO to $4,000 made
by the company to James Z. Rogers Luther W. frOs.
X. c. Frost Justus Lawrence and other directors ano
officers The company No OF these loans appears
have been bona fde, have been carried 10 a!
other account The bOokkeepers have not Deeh exam
ined on any Of these points. ,..
suit brought by Charles p. Harwel against the
Continental, before j. j. Anderson was appointed re-
ceiyer in which 1t is claimed that all policy holders
under the original charter entitled 10 Distribution
of the profits upon q certain plan. The plantn says
the company afterward changed the plan WITHOUT
authority of law aud thereafter made such dstriDu,
ton that failed get all to which lie was entitleu
under the charter While in ignorance OF TINS chahge
he paid the full amount OF premiums que or 10 Dccomo
due, aud thus Oyerpad large amount to the company
This Mr. Uartwe claims Ia constructive III not an ac-
ual fraud, and he seeks to recover the excess SO
PAID. His bill fled In behalf OF himself ana
all others hight desire avail themselves OF the
benefit Of the decision. An order made referring tue
matter referee TO compute the amount OF the over
payments and while this pending the judgment Oh
the dissolution of the company was entered INC report
OF the referee subsequently came in and Mr. Moses IN
behalf Mr. UiTtWeli, entered Judgment AGAINST tue
company receiver not beng party to the SUIT III
the decree did effect dissolution, Mr. Moses claims
his client IL Judgment creditor, an therefore entiteu
To a preference. II ia claimed on behalf or Mr. thi,
counsel for the company that there are otner questos
besides those Of dissolution involved, and that no sucn
precedent Mr.. Hartweis suit involves Is likely 10 DO
d