The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-24
LIFE INSURANCE COMPLICATIONS.

Liz II lNOOuANOH NOML
THE TWO REFEREEs IN THE CONTINENTAL
MATTERS OF DIRECTOR
THE GAME THAT J. II. sTEDwELL AND BEN
JAMIN MOVES ARE PLAYING.
The Albany referee mr. Abraham " DO whO N tho
OF the Attorney General vs. Tho Continental Lie
Insurance Company, held a meeting. pursuant 70
ADJOURNMENT at No. 90 Nassau street. yesterday morn
Ing number OF attorneys present for the pur'
pose Of proceeding with tho examination. but rs the
Attorney General represented the hearing was
postponed until eleven O'Clock this morning. AS was
expected Attorney General Farchild is intending 70
assume personal charge OF tho case and will endeavor
to annni oil the proceedings for dissolution that nave
taken place in Brooklyn He has been In town for two
days. and it Is understood will remain until some Set
tement is arrived at. strong effort was mado 10
make him party to the Brooklyn proceedings. but
thus TAR no has refused 10 recognize Thorn IN any
manner
TESTIMONY BEFORE WILLIAM ALLEN BUTLER
Tho reference under the OF hoyt vs. the Cont''
Mental Lilo Insurance Company was continued yester-
day afternoon. There lever lawyers present
than formerly, and less interest was manifested in the
proceedings IL clear that the evidence il almost
exhausted, and Referee Butler animated yesterday
nearly for his report TO be made to the
Court
James B. Colgate, former director Of the CONT
mental, first called 10 the stand. He was ques-
toned by Mr. Moses with regard to the annuies paid
to some of tho officers by order of the Finance Com
mlttee OF which he was member. Witness testified
that he HAD heard OF proposal to pay these annuitics
OF five per in addition TO tho salaries, and had
expressed his dsnpprobauon thereof; had never
Understandings voted tor such propositions; resigned
his Office as director in September, 1872; several
reasons induced him to leave the company, among
which this annuity plan. and tho fact that Tho
Continental had rcinsurcd the Empire Mutual without
consulting the Board of Directors. The attention OF
witness directed to the records OF meeting OF the
Finance Committee in January, 1872 nj which he IN
troducci resolution favor OF withdrawing the
com,uuy's deposit in the Lnancr's Bank Witness
said his opinion AT the time that the funds o!
the Continental ought to be deposited IN stronger
institution had urged that they should BE- kept in the
United States Trust Company; had no confidence IN
the Loancrs Bank and opposed tho Citations with IT,
despite the That some vi tho directors oil tho nsur-
ancc company were also directors OF tho bank desired
10 re sign from company tor some time, because
his advice ana counsel were not needed had been on
the Finance COMMITTEE and Auditing Committee ana
dropped from both; witness Onco stated to President
that the Market Bank was not the place Tor
dcpos,ting the funds OF the bank; on the next day
he learned that tue unds were In the Market Savings
Bank corrupt institution; concluded from nil CIR
cumsta that 1t time for him TO quit the an
nuaI statements OF the company were read to The
Board OF Directors, and witness supposed that they
we're drawn up with great accuracy; suspicion to the
contrary was first aroused The fact that tho real
estate was at 500 O00 winch consisted solely
OF the building on Nassau street and which no did not
believe was worth more than half Million
OTHER WITNESSES
Marvin F. Parrot. the company's claim agent. was
then called upon and submitted list OF the contested
CLAIMS against the Continental. Witness also sum,t-
ted ms contract with tue company as claim agent,
dated April ii. 1874. le testified that under the five
per cent clause tina, contract he had probably re-
cevcd 81 500 year during 1874 and 1879 u made no
difference In the amount OF compensation Of claimant
us the delay IN time OF payment
ID. L,
tho accounts OF the New Jersey Mutual Life Insurance
Company testified that certain bonds had been pre-
senlcd 10 him by J. II. Sicdwc the president which
the latter said were hypothecatcd 10 he Chemical
Bank OF New York; witness SAID he made list Of
these bonds and forwarded them to tho Secretary OF
State al Trenton.
John l. Ill., now counsel for Receiver Grace and
formerly John Anderson testified as 10 the legal
services he bad performed in connection with the Con-
tinentai I'M the value of the same.
Tho regular reference here adjourned until Tuesday
next ut two O'Clock. aud some special references OF
comparatively little interest followed
rHE NEW JERSEY MurUALs ASSETS
No arrests OF Now Jersey Mutual officers were madc
Yesterday, and Of them was obtained. II
seems that j. II. Stedwel was IN Washington lust
week, Tor be addressed letter thence to Governor
parker tho recover, at Newark. relative TO the
assets OF the company, which arc IN tho possess
SION OF himself or Benjamin Noyes. Governor Par
ker has held no pegoi iations with them urihcr than
that he requested Noycs 10 see hm some ten days ago,
winch request was complied with Since then the two
presidents have addressed occasional letters and tcc-
grams 10 the receiver expressing great soctudc Tor
Tho welfare The policy holders and announcing ther
THIS H. however, all the satisfaction they VIII afford,
and when Noyes asked to give up the assets, he re-
pics that he will willingly do 50 whenever the con-
tract for the transfer shall DO obtained from Stedwc
In this way the Two defeating the wishes oil the
receiver and dsobcying the order Ot the Court They
want immunity, but judging from the disposition OF
the New Jersey officials, they will hardly succeed In
| obtaining IT,
MR. KELS.Y'S AFFiDAvITS.
| The adldavts upon which the warrants were issued
| set forth that on December 81, 1875, j. H. Stedwe
late President OF the company, and Charles H. Brnck
crhoT the Secretary made an Official statement to the
| Commissioner OF Insurance. IN which II was repre-
ser, cd that the total liabilities and obligations o tho
company were 81, sos, S97 This, II is alleged was in
correct In that there omitted $3.50, 65j 10 OF in
debtcdncss MS shown by the books OF The company
and their own private balance Sheet second speci
cation OF the charge that Daniel j. Noyes the aitor
pcy by collision with tho President and Secretary
| obtn,ncd $4,000 OF the cotnpanys iuuds or
| bonds and mortgages on property said TO h,
| worth double tho amount, whereas II Is worth
Mt the most only $2O, 600 To $780,
probably not more than $1,000. Again, It is charge,
that there is denct Of $3.50 900 in tho OF IN,
company aud that when this discovered the tire,
named officers consprcd 10 deiraud the shareholder
and cover up the fraud in putting on the company the
said mortgapes also that they conspired to proven
tho appointment OF n receiver, and, being appointed
from assuming control V tho assets aud securities
also secretly ami without authority OF the socKhold
crs removed large part II not all OF the assets Il
New York or Washington TO avoid invest igat,on. Re
sides this there another affidavit charging Brinckcr
ho and Stcdwell with perjury IN swearing TO the falls