The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-06

u was safe for u TO assume eighty per cent OF It's out
eighty Der cent OF tho reserve 900 was paid
when the contrnct was made with the agrec
mcnt that The remainder should be paid over
when the reserve completed; list OF
tho obligations furnished; the balance Of the
reserve was not actually paid over. because certain
held by them could not be turned over. they
were deposited by the other the
OF the schedule Of obligations had been veri-
noo ~ there had been over Of
policies scratched on the books paid up
polico. which were not paid up and which remained
paid up for probably $40, 600 or $500, 00Q
SENATOR roBEy's nuxoK.
Al this point Senator Tobey appeared and said, In
regard 20 the statement Of stephen English, that no
(Mr. Tobey) did not know Mr. Mlier's handwriting;
that he did not remember TO have made any such re-
mark aud II ne did mako it he must have done from
mere humor. m
GUARDIAN AND uxIyERsAL
MI Furbcr's testimony resumed-fhe Instructions
to agents Of the Universal in regard 10 tho OF
policies TO state the facts clearly aud tru,hiuy,
and he had sent circulars 10 all tho policy holders of
tho North America, suggesting them 10 beware OF
any improper statements from agents. and 10 change
. S
Universal policy would be sent back and the North
America policy returned the North America, when
sac 900 assets among them, $4,000. agents. bal
ancos; $4,000, ccmnu'ation Of commissions;
Sl02 d0O bills receivable; $4,000 suspense account
50, 600, scrip redemption lmoney paid Tor redeemlng
scrip; there had 500 900 or this scrip issued
' n ac
and A only ss5 900 S.s been realized j. since sss
on deducting these bad assets the com
pany had outstanding, bills payable $l47oOo
and when was supposed 10 be good; during the time
since went IN received premiums and interest
GOO amount disOursed on death e losses
So sos 900 secured policies, total OF So. $3.50 600.
which leave s2,976,00O; pissed over 10 Receiver
Piers0n So, 1874 900 assets as foows:Cash, 81 700;
bond ana mortgage, ST. O00 nrc insurance. $ 600;
bills receivable $40 O00 estate lat least 1891 1000;
:' srossSn Soaas rnu sos
temporary loans SIS, SD; suspense account So, 700;
premium Sans 0eS s vgla S Sorss si990o
premium notes on Standard Insurance policies So 403
loss on same company's stock, "a, 900; premiums,
horses s2.573; s. Morgan c., $6s2; agents. bal
ance. $s,lSs; approximate total, ~ 7s4, o0o
FIGHTING THE usURY LAW.
Witness found also 81 600 900 Of mortgages given to
the company by John McCoo claimed TO be usurious
because Of bonus Of 5000 600 paid by Mr.. McCoo TO
tho former presdoni. Mr. Morgan; witness had sue
ceeded In securing the property represented by the
mortgages, Notwithstanding the Usury law, by paying
john McCool $25 900 for actual conveyance OF The
property; by this he had relieved the company
or the faint Of usury.
FACTS NOT SHOWN ON THE coupAxY's BOOKS
The books OF the Guardian Company probably would
have positively disclosed all the Liabilities OF the
company on their policies, the superintendent Of In
all The iabilitics Witness to remedy that would
require every company 70 Keep exact copies Of every
o. 20 mere nsq an ion
previous summer; he went over their register and In
vestiaated the reinsurance Of the Widows and
Orphans and Reserve Mutual policies In tho
q uardian; thcee statements easily dis
by the examiner and certain data
found there were corrected by the Superintendent
OF the books OF the Guardian Company were ever
handed over TO tho UNIVERSAL tive or SIX officers Of tho
Universal became directors OF tho GUARDIAN but the
latter continued It's business Independently; tho uni
versal men did not have majority OF the Board Of
the GUARDIANS directors until the transfer.
MIR. FURBERs PAY.
When became connected with the Universal. In
1865, had the management OF the agents, and con-
tract was mado giving me salary Of ~. 500 year
aud two and one-half per cent on its premium
receipts; l worked undor that contract till
1867, when the salary was made $4,000
and percentage OF Two and one-half upon the net
receipts, all expenses TO be paid out OF IL this termi
mated IN May, 1875; under that contract 1 have
celved all tho money! have received except my salary
10 the North America; as the total result Of those TWO
contracts l received from I'LL tho companies which
had to do with in the State for eleven years ana Ave
months 1905 500 less my outgoes this was ALL either
profits upon contracts otherwise, something loss
than SIS 600 year, the North America ransprcd the
Security's aud the Standards policies;
the Standard stock mutual company; tho Gov
Security had rensured It's policies before the
North America; rensured both OF them; N. d. Nor
gun president OF the North America one OF hs
secretary and another was actunry; witness
became president and retained hts connection in tho
Universal and the Guardian: all the Morgan family
then went out; there no consideration paid iors
their going except loan by me OF $95, 0O0 to Mrs.
Morgan, for which the company gave her certain bud
claims.
ruRBER AND THE CHARTER OAK COMPANY
AS 10 the Charter Oak Company Mr. Furber testified
that In October 1875, he was introduced to f. H. Wig
GIN, Of Boston, a gentleman authorized by tho
Charter Oak negotiate the sale OF 900 OF tho
tunate Tor three four years in its Investments Mr.
Waikey, tho president, having invested over mill
ion OF It's bonds In the Connecticut Valley Railroad
Connecticut superintendent OF Insurance had In
sisted ON change IN It's management Mr.. Wig
GIN said no authorized TO sell the stock;
witness inquired about everything connected
with matter WiRpu he had
agreed 10 pay u certain gentleman $4,000
IN relation to inc transaction certain capitalists IN
Boston wanted control OF certain railroads from Long
Island 10 New Hampshire, the Connecticut Valley
being OF tho three roads composing tho proposed
ana so control the road; Mr.. WIggln then INTRO
duccd to Mr.. j. o. Horton, who SAID he could obtain
$50 600; that arrangement Tell through the other cap
italis,s having dropped II; but Mr.. Wiggin had met
the officers OF the Charter Oak Company, and The
propoposition for sale OF the compuny's stock
grew out OF this meeting Mr.. Horton thought be
ought have his commission as control OF tho Char
Oak would carry control OF the railroad; tho wit
urged Mr.. Wlggin that he must live up 70
had bargain witness did know Mr. Horton by name
until some weeks ai,erward the interview led TO W.T.
ness purchase Of tho Charter Oak stock; after
sultation with the Superintendent of the company
It's affairs The superintendent said the company had
It's full tour per cent reserve but of tho items
were hard pass their face, and $500 600 would
make the company all right; witness paid $1l5
share Tor $l36,000 worth oil STOCK the $780, 900
put IN.
REAL ESTATE LOAN
Mr. Edward Mathews owned certain real estate at
tho corncr OF Broadway and Rector streets, which
appraised at $l,S25 0OU It was subject mortgages
amounting to S625,OO0 Mr.. Mathews made mort
gage Tor $500 oOO upon the same property TO the Char
ter Oak Insurance Company he received $500 900 In
money for It, leaving the $500 600 that was needed TO
make the Charter Oak good my pay forthe mortgages
simply commission OF seven und q hall per cent
upon tho receipts OF the Charter Oak Company; the
receipts 81, 600 900 year; the compact for
this mission cancelled when the amount have
advanced IS returned to me- Witness upon making the
arrangement, became financial manager and Mr.. Wig
gin became president Of the Charter Oak.
A LAPsED POLICY HISTORY.
julius Hillborn VI New York, testified that upon
application TO the New York Lille Tor loan OF $40 900
SO, 600 real estate lie required to take
policy Tor 500 COO, from which they deducted the pre-
mum OF some 81, 200 and charged him 500 Tor
the search VI tie lille TO his property when no found
himself unable 10 keep up the premiums he asked 10
surrender his policy Tor paid up one, but they
lusod to give until he mado another premium pay
mcnt. winch would have amounted TO more than tho
amount of money 10 BIO paid on the surrender; the
transaction with Mr. Beers, Mr.. Barton and tho
m q ha nf sho