The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-15
pRECKING THE CONTINENTAL.
How Agents Induced the Frightened Poiic,
IIoIdcrs to ReIemse the Nompnny.

Tho first witness examined yesterday be-
fore the referee appointed by Judge Pratt 10 in
quro into the affairs OF the Continental Lfo
Insurance Company was NJ. Il. PARROT. former
manager OF its claim department. He tcstiilcd:
On the 2jth Of October. 1876 tho total amount
OF death claims was ii3j.059. He know nothing
in reference to the money paid to the deiunt
Southern Lifo Insurance Company for rcln-
surancc. Tho impression made on his mind
through Mr.. Hammond. who conducted tho
transfer was that mono OF tho money was re-
turned to the Continental Life.
Mr.. Parrot was closely questioned by Mr..
Moses with reference 10 n mysterious AFFIDAVIT
for which he and Mr.. c. II. Frost rode eighty
five miles to havo prepared. He did not say
what that affidavit contained. nor would tho
counsel after tho examination was over. An
inauisitive reporter subsequently discovered
that II charged an officer. then connected with
the company. with having forged tho name Of
the medical onror to nm examination, by which
at Arrival amount Of money was derived. The
counsel expected To- show 10y that aniilvt, with
other convincing proof laid before Mr. l.. W.
Frost. The President Of the company. that alter
ward the Same man was employed TO negotiate
thn surrender OF policies
II. H. McUgcr. who WIS connected with the
Chicago ngcncy OF the Continental. testified
In many con'cr-aiions with Hammond. in Omaha; the
ma Win regard III. work in having policies SURF, NJ
dcrd by playing upon the tears oi the assured He cited
;sl .d,Se$ leiyssS Pr";t BLAKE aud G@- g
lie told me Nath> share OF the spoil. was S26 40 In gold
have hc.n Sinpo In Nebraska he III the habit "
IaN the Uun agreed surrendered policy iv
arai ON q, cennany Ilc~s drag. were endorsed IN
plank. ana the receipts sen'i by the frightened policy
holders also IN blank These were atorward nlicd out
for larscI amount, than those actually paid To The policy
holder The difference wnsn case OF divNy." several
of such tran .lcunn- came uni my personal notice in
umHha. and wrote TO MIR u Frost almost daily about
them. Hammond after this In rlat-uuuth where
hr was nearly being mObbcd BY excited policy holders
for like actions
A circular dated Juno 2. 1916. was exhibited
ly witness. which was Intended for distribution
Throughout the West and South MS a means Of
aiding in the cancellation Of policy holders.
rms circular. hc says, WAS gott. n up hy Ham
mOnd. hut II hal the names Of l.. W. Frost. VI.
u. Wynkoop. j. T. Rogers. and ;. G. Chandler.
Jr.. ~ iis mead and was signed j. L. Rogers.
S,Crctary.'
Tn oyidonre Of c. II. Frost mo relation OF l..
W. and II. G. Frost the Chicago. agent. was con-
frmatory OF Mctzgcr
lie said the letters detailing the transactions of Ham.
nond were generally forwarded a. secretary Rogers lie
also talked personally with Mr. Luther W Frost about
soNcncN Of The company circulated throughout the west
~ Hammond was Ia 90 ahead aud put IN all he could,
That the company was all right
John s. Marcy who was formerly Vice Prcs-
dent of the American Tontine, and in that ca
pacity negotiated reinsurance in the Empire
Mutual. said that 100000 of the assets. in
] United states bonds, were after transferred
tn the Continental. The transfer was made by
the sup"rint nd"nce Of q. W Miller There
can br no doubt Of this, the witness said. " for
the present Superintendent. Mr.. Smyth. himself
told me that they were turned over
The chief effort Of Mr. Mos : is now To- show
ilnt the transfer II assets T. the Now Jersey
Mutual WIS made after Mr., John J. Anderson
Mti~ appointed receiver. ana that he WIS 90. nj
zant II the whole affair.