New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-15
LOCAL MISCELLANY.
CONTINENTAL, ACKNOWLEDGMENT.


vuRrHER TESTIMONY ABOUT HAMMoNDs OPERA
TiONs-A CHARGE OF RAISING DRAFTS AND
STEALING THE DIFFERENCE.
The examination into the affairs OF the
Continental Life insurance Company, before William
Alien Butler was continued yesterday at No. 20 Mas
sau-st Mr. Parrott the first witness, read paper
stating that the claims against the Continental on
Oct 2 1876 resulting from the death OF poiicyhoiders
amounted in all to $i35O59 9S Mr. Parrot said that
g. IT, Hammond. in conversation, had given him the I'M
preston that O0O which supposed to have been
paid TO the Southern Life Insurance Company for the re-
insurance OF some of the Connentars Southern risks
was in reality divided between Luther W. Frost ana
himself lHammond).
Henry f. Metzger said that he was in the EN-
plo ment of Continental Company eight years under
Charles II Frost had general charge OF the chicago
agency s. U. Hammond told him last SATURDAY hiHu'
that he had seen L. w. Frost the Friday night before
The witness saw Hammond In Chicago in March, 1875
Hammond SAID that he had bought up one or TWO Gu
dowmeut policies amounting to Sll,ooo ior fooV' III"
had divided the difference with II. H. Blake ana Luther
Frost In addition 70 the 5000 he had gwen Tempo
rary policy running for one or two years. but the '[ee
OF them together had made out Of this about sSooo
the witness knew of several in Nebraska In when
Hammond raised drafts the Continental and pocketed
the difference. Hammond said to MN that th're were
twenty different ways of making money OUT OF te Ooh
tinental He believed that Hammond raised drafts auu
oh. company Wv
hundred The witness reported all these mat
,ers fully as they occurred To MI Frost
IN Chicago Hammond was in danger of being mobhed
In Plattsmouth, Nebraska. He had agreed with MI
Fitzgerald TO pay him 81 500 for his policy ana had rep
resented to him that the Continental was lnsoVehI
telegram was Charles H. Frost In Chicago ana he
replied that the Continental was all right This ais
covery of Hanmonds duphelty so ehiageo 'no Peopie
that violence threatened
Hammond had printed circular addressed to the Con-
tinenta policyhOlders and signed by j. r. Rogers inc
Secretary OF Company but Rogers sent him wordh not
to,orniate It, 1t was dated New-York April g. 1876
F-HaEss in part as follows:
This company has decided To withdraw all its agencies
from territory west Of the Mississippi River because te
business i, largely unproductve notwithstanding u Is ~
tend'mg the procurement Of business; the uncer
iainty and risk of collections together Win ome"us
taxes various kinds and the continually increasing ca
penditures necessary 10 maintain agents Ill actNc SCI
the difficulties % finance, the endorsements connecteu
with the currency, and the serious cOnseq ehces result
inc nom state Of disorgaized labor all OF which make
il next impossible % procure new business at any
like paying rates.
Charles H. Frost testified that he the general agent
Of the Continental in Chicago He was not relative OF
Luther W. Frost president of the company The testi
mony Of Henry F. Mczger, in all the matters which re-
ferred 10 him. was true He had the letters that Mr..
Metzger wrote him about Hammonds operations. Inc
witness wrote James p Rogers secretary OF the com
pany and asked him what it all meant. The reply OF
Mr. Rogers contained the following;
We do intend go right along with this company ana
Keen old and do business, ana dont see
any reason why can't keep ON doing IT, so pnt IN az
you can, you aud yours We are DONG our e'ei oeS'
here.
Henry W. Baldwin, actuary Of the NewJersey Mutual
was examined aud crosSeXanned at great length AZ 10
his knowledge concerning the bonds belonging 10 the
Continental that turned over to the New-Jcrsey
Mutual Mr. Baldwin admitted nothing important, but
the fact that former contract oewey sS on Ia
., 1877. 10000, A.. =,
William X. Grace, the new receiver TESTIFIED tnal ne
had received all the property of the company that had
been cid by the first receiver from MI Anderson. -,
The new order in regard 10 the receivcrshp OF the
Continental filed in the Kings County clerks Once
YESTERDAY. states that Mr. Anderson, the reslglng
receiver absolutely removed from that once Dct may
the books of the company Tor tue purpose
of preparing and settling his accounts undeI reasonable
restrictions, by the new receiver. VIM r. Grace OF
Great Neck Queens County, is appointed receiver under
5000 600 bonds IL ordered that no moneys 10f cOu-
sci fees be paid without order from the Court AS
often as moneys shall accumulate 10 the amount Of
$1,000 the excess shall be deposited In me New-1oik
Lie Insurance and Trust Company, and remain tlelc
subject the order Of the Court The receiver mas
authority let lease any real property Of the COM