The New York herald., 1877-02-16
BAD LIFE INSURANCE.

THE CONTINENTAL OFFICERS TO BE INDICTED
FOR PEBJURY-PRoCEEDINds BEroRE REFEREE
DE wITT-rHE NEW JERSEY MUTUAL AND
NATIONAL CAPITAL.
II appears that the day OF reckoning for the officers
OF the Continental Lie Insurance Company nearly
arrived. To-day Deputy superintendent Mccall vii lgo
beoae the Grand Jury. and officially declare the evil
deeds which thc public have long known 10 have been
committed Altcr the hagrant exposures OF the
conduct of these officers there can be doubt
OF their indictments being procured. Tho Insurance
Department eau only prefer charges against two OF
them-L W. Frost, president, and j. =. Rogers
tary-for perjury swearing to false statements OF
the condition OF tho company. The remaining officers
must be proceeded against by the receiver upon such
charges as may appear II Is currently believed that
oil the officers are guilty Of endorsement and lhat
they will ultimately DO indicted for that offence
That criminal action has been long deferred is
due 10 the force OF and any
Of evidence The officers will DO proceeded against
civlly as well, and already attachment has been
served upon the property OF &. Hilton Scrbnor at
Yonkors, to secure mortgage for SIT 500, which is
claimed was released without payment.
These determined actions the part OF the Iusur-
ance Department and Receiver Grace will be viewed
without regret by those who familiar with the Con-
tinenta story. Whether not Receiver Anderson
will also be made party to the indictments Is
settled question: but there is strong tide Of opinion
town lately, and no difficulty Is apprehendcd in the
way Of attempted flight
cGxrIxExrAL VS.. NEW JERSEY MUTUAL
Yesterday forenoon an injunction granted by
Judge Pratt, IN the Kings County Supreme Court, In
the suit begun by William A e % trace, receiver OF the
PENDANTS from putting the property out OF their pos
session. The latter arc the New jersey Mutual Lie
Insurance Company, the National Capital and Bcnja-
min Noyes, president OF the last mentioned
writ Of re exeat against Mr. Noyes also granted
by the Court prevent him from leaving tho State.
servance Of the writ.
: In relation to tho securities Of tho Now Jersey
Mutual IN tho possession OF the National Capita
action for their return taken yesterday. Vice
President Walker, OF the latter company, offered
for tho delay that their counsel had advised
them not TO give up property without order that
would relieve them Of all future liability Of action
THE REFERENCE PROCEEDINGS
In the examination the Continental affairs ycstcr.
cree, John j. Anderson the iormcr receiver testified
that he had never signed paper relation 10 mort.
ilage since he had been appointed receiver gave tho
securities to Judge Fullerton and told him to do the
best he could; suit for their recovery then
menccd; In his report witness had stated that therc
$3l4 900 worth of securities transferred entry
the books showed $355, ,3l2 SO; witness had never
Jersey Mutua schedule of the policies icxhibited)
he thought had been handed HIM by Mr.. Daniel J.
Witness asked why he did not say In his report
that thcrc were S355, 3l2 so OF purchased policies
stead Of s314 00o Ho replied that he understood tho
Mutual; had got the amount from Mr.. Thomas, OF
the employees Of the company; asked Mr.. Thomas 10
let him have tho amount as near as bo could get 1t
and tho latter told him $3l4 900; became aware
OF the contract for reinsurance after ap-
pointed receiver; found II In tho vaults; had got
back $lO2 900 for tho company which would never
have been got back but Tor him; Mr. StcdweII OF
the New JERSEY Mutual ard told MIN The money must
be returned; Mr. Stcdwc said the legal
regular and all right that the Continental them
over 500 o0o ana intimatcd that they would keep the
policies In lieu OF that; witness also spoke to Mr.
Noyes about the securities, and told him they
returned.
MIR. ANDERSON MISTAKEN
Mr. George W. Thomas called and contradcted
Mr.. Andersons statement to his having fur shed
with list OF the amount OF rcnsurances as being
$3l4 000 Witness said that Mr.. Anderson had never
made the application to him. and m ust have been mis-
taken when he 30 stated.
schedule OF rensuranccs, but could not remember
wncn 1t was done ho did not understand the principle
o' The selection OF these policies ON examination OF
the schedule u was Iouna that tho policies were all
IRON the States OF Pennsylvania and New Jersey; the
policies to DO rcinsured wore COPIED on the schedule
IRON book in tho possession of witncss; this was
done by direction oil Mr.. J.. w. Frost,
Mr.. Drydac, another empoyc OF tho ompany, next
testified rs to having assisted IN making up the sched
ulc; this under instructions from Mr. X. G. Frost
he made up one column Of the figures from the pre-
MUM, loan and dividend register; no no nstruc-
tons as 10 tho purpose for which the list was made
out: no had never reported 10 the recover what lie
was doing.
Mr. S. {. Chandler, former actuary o. the comrapy
ncxi testified regard TO the $500 3l2 80 entry. lie
eAamned the account ana SAID that tho entry, sup
posed was intended 10 correspond to the credit the
other SIDE OF which 1921 300 was Tor bonds aud
CAGES when Anderson was appointed receiver witness
said there nearly 10000 policies outstanding,
the value OF each OF which had to be determined
before the report OF the cOmpany's affairs could bo
by the different agencies. From many OF the latter
they could not lenrn Tor q long time what policies
were in force special messenger therefore
sent about the middle of December to the various
agencies find out what policies still in force
The examination was then adjourned, to be con-
tnucd this afternoon.