New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-31
INSURANCE DISCLOSURES.


appointment of receiver for the Ncw-Jersey Nu-
final Life Insurance Company and for an injunction
against the reinsurance in the National Capitol Life
Insurance Company. The Chancellor has ordered
the company to show carse why receiver
be not appointed, and enions tire trans
fer of assets until decision is made
The examiners preliminary report charges
loose management and deficiency OF AT ieast
1920. 00O Indictments for embezzlemeN and per-
Jury against officers of the Security Life are eX-
pected from the Grand Jury ut an early day. Inc
Court Of Appeals has rendered decison'adverse TO
The Continental Lie receiver in regard to the ap-
pointment of q referee.
SHOWING UP THE NEW-JERSEY MUTUAL.
THE PAPERS AND ARGUMENTS PRESENTED TO CHAN
CFIIoR RUSYoN AT NEUTRALITY-SUSPICIOUS.
ERAL yANAITAs CHARGES AGAINST THE COM
PANy-MR FACKLER's ACKNOWLEDGEMENTS OF
MIsMANAG ACKNOWLEDGEMENTS KELSEY ON The
REINSURANCE.
trRou A SPECIAL CORRESPONDENT OF THE TRIBuNEl
TRENTON. y. j., Jan. 30.-ln the Court OF
Chaucery today the matter OF ibe NeW-jersey MUTUAL
Life Insurance Company, AttorneyGcnerdl Nahat'" pre-
scented an information setting forth that on aeh 49,
1868 that company had been chartered by the Lees-
ture and soon after commenced business III Newark
On Feb 10 1876, the President and Secretary swofc
Z, a statement OF the assets and liabilities mp to
Dee 81, ls75-that the assets were aoS'iu'e
rronertv and amounted 10 Sl,S0S SS1 81, which was
recognized by men as proper basis on when
10 commence business and Sl52O97 "a, which was not
considered proper The liabilities were placed at
81 44315e which exclusive of capital stock 500
600 and showed q surplus Of $365.723 80
The Information charged that the assets "''e
oyerestlmatcd and Overvaucd. mortgages being
placed at double and triple their value Inc
statement of the liabilities Incorrect and untrue
~ N
bills payable, $lO9,55G o.; debt due the President
s17694 "a; due Second National Bank Newark, $500;
due various persons so4 SO that on Dec 10 1876
President Stedwcn requested the Secretary OF si'eto
examine affairs of the company This was DONE ana
prior to Jan 49, 1877 ssccrtained that the assets
were not sufficient TO rcnsure outstanding risks anu pay
debts, there being a deficiency of Si2l'5oo houco
was served by the Secretary of State upon the See
rotary. c. II. BrinkerhOf, to make up the &c
fciency before Monday, Jan 20. 1t was also
charged that the powers and franchises were
grossly misllsed aud abused, a majority ana
the 10 directors being Ineligible to that Office having
made no payments their policies, some never having
had policy All or nearly all of the assets were kept in
New-York and when the Secretary OF state requested
the officers OF the company TO remove them TO Ne"Jer
sew they refused do The reinsurance III thc Ma
tiona Capol Life referred to, and it charged hat
the National Capitol has regular or legal insurance
business and little responsibility, and that the arrange
ment and agreement Illegal and fraudulent ana ILL.,
tended 10 deceive and defraud the creditors OF the New
Jersey Mutual
The Secretary of State having informed the Attorney
General he presented the information TO the Chancellor
that the privileges and franchises were msuSed ana
abused and the company had forfeited them that
President stedwe had frauduently cOlluded with MI.
Moves and that the New-Jersey Mutual was unable 10
meet its obligations and prayed-l That the company
be declared 10 be insolyent 2. That the NeW-Jers'y
Mutual and J. H. stedwe and the National Capitol Life
nd no
business on account OF the NewJersey Mutual
Or having control OF its affairs B. Iha'
receiver or receivers appointed to take possession OF
the Jersey Mutual and TO administer IL uoer ordes
OF TIE court That any clandestine assignment OF 'e
assets &C. be declared void and be set aside D. That
other relief as the nature of the case may require, De
granted
Amended TO the information was an affidavit OF the
Hon H. C. Kelsey, Secretary Of state, eroBc'o COM
missioner Of Insurance. to the truth OF the lnforma-
ton; also one of d. p. Facker, consulting actuary,
that he had examined the affairs OF the company ana
found deficiency OF Si2l5Oo.
The AttorneyGeneral asked for order at some early
day for rule for the defendants to show cause why an
piunction should not be granted and receiver ap-
pouted Ii was manifest from the facts shown in the
information that an injunction should issue lie mao
drafted an order to that effect reurnabe in week. so
that in the mean time all would be ascertained.
After some argument by the Attorney General and
T. " McCarter counsel for the company, the Chancellor
granted the rule 10 show cause why receiver should
not be appointed and preliminary injunction was
Issued restrain the officers from transferring any Oh
he assets.
SECRETARY KELsEY's VIEWS
Secretary OF State Kelsey, in conversation with THE
TGIBUNR correspondent this afternoon sald that ne
should have treated the NewJersey Mutual Insurance
COMPANY as band of outlaws and that his mistake was
IN treating them with too much considerations Sti the
courts are quick TO take summary proceedings III
testimony IL he could nave Cd
tanned percmptory injunction two weeks ago 1T would
have been Of great service When NcePreSdeht fofce
reGutered the company he expected very much OF hh'
but to speak mildly he had been gravely disappointed
On Jan 10 gave notice TO tue officers that they must
make good the deficiency of $i2l 500 by jan
o. or he would proceed for the appointment OF re-
ceiyer on Thursday they informed his counsel that
they could not make it good and on the following day
the alleged transfer made to the National Capltol
Life The company took advantage OF the notice. III con
tempt of the Legislature, and transferred thcf assets
He pronounced it clear swinde. He had no power TO
take more summary proceedings against the company
The charge Of a deficiency OF $42l 800, Mr.. Kelsey
Thought was very liberal TO the company, and that the
deficiency would probably amount to at least 100000
more The officers did not demur 10 The statement Oh
deficiency Of $4zl50O, bat claimed lha' 'ney were
negotiating for a loan 10 make II g0Od. -
r hT,' W Foc and submit 1t with his own report
10 the Legislature Monday night next tht proceeding
before the Chane" having ei ,n "a Ai1 nrmon
from Brooklyn. " which would expose the operations
of Benjamin NOyes, president OF TIC Natohdl 'ap'VOi
Company
MIR. FACKLER's REPORT.
The provisional report of d. T. Facklcr, examiner 10
Secretary OF state Kelsey, dated Jan TO- 1871 states
that he began an examination Of the company dnring
IN. latter part Of last December and discovered
fiat the annual port Dec. 81 1875, grossly IN
correct AS omitted their liabilities sl50oOO of
IdeDedncss Shown by the books and the COMPANY =
private Daldnce-sheI" ihe A'niS Composing '"i'
were: o,oo,,, M