New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-07
INSURANCE EXPOSURES.
PROBING THE CONTINENTAL.

| PROBING THE CONTINENTAL.
THE PRIVATE PAPERS TAKEN FROM THE VAULrs--
PURPOSE OF FORMING A NEW COMPANY OUT OF
| THE RUINS OF THE OLD-MoRTGAGBs GIVEN TO
| THE COMPANY BY ITS oFFICERs-CAsH ENTRIES
| WITHOUT THE CAsH-MR. FRosT's IMMENSE RE-
CEIPTs FROM COMPUTATION FEES.
The examination into the affairs OF the Con-
tnenal Life Insurance Company was continued yeser
| day before william Allen Butler, referee, at NO. ~
Nassaus L. Styles, formerly cashier OF the company,
examined to the purpose for which ne admitteo
Luther w. Frost and Rufus Frost two OF the directors
and D. j. Noyes one OF the attorneys for the receiver
into the companys vaults JAN Ia He said that th's
was done In order make out new list OF BONDS ana
mortgages, with view to forming new company nc
admitted that bundle of papers, about 10 lncnes I'D
length had been taken from the vaults ethor by kius
c. Frost or ID. J. Noyes. He did not know certainty
what these papers and there might have been TWO
bundles of them but he believed they nothing but
private letters No conclusion reached In regard I'd
a new company, and tine proposed new mortgage DOCK
was not written up.
In regard to an entry bond and mortgage book
dated Sept 49, 1875, Mr.. Styles sad This is an IN
crease on a mortgage that had given from $1,000 70
81 500 paid this 80 800 Sept 80 1876 with money
which received from the company on the same DAY.
was not forced open the vaults for Mr. Frost ana the
others by being told that II did not they would expose
the tact that still owed $3.50 on this mortgage Mr
Noyes has entered the vaults several tunes sce te i
ceiver appointed"
The witness then testified concerning certain entries
on the cash book dated Sept 49, 1876 and 1t was shown
that the cash account had been credited with $4,000
Communication paid to L. W. Frost, and this entry was
offset by cash debit $4,000 charged to the loan ac-
count and S25, 5000 to pay of mortgage held by the
company Oh the property of L. W. Frost AT this time
II. c. Frost acting president for L" W. FROST
and ordered Mr. Styles to make out the check TO L. W.
Frost This line OF examination led the counsel into the
examination OF the communication fees account, WHICH
showed that in September. 1876 L. w. Frost had Deeh
credited with $9O96 46 communication fees The entries
were followed up through the books and carefully veri
fed and the witness thoroughly cross-examineo
that there should be mistake regarding this matter
He said Mr. L. w. Frost got all these commissions.
In answer to Mr. Van Pet, of counsel for the policy
holders, Mr. styles said "The purpose for which
opened the vault to make up new list OF mortgages
from the mortgage book Of the company with view to
forming new company The reason the new list was
not made UP was because Mr. Luther W. Frost aud Geo.
W. Crofut did certain mortgages which they ex
pected to have There mortgages on the old bond
and mortgage book Of the company which are
not on the book which I made out at all
don't know what the list OF mortgages OF the new COM
pany was comprise. Twas for seven or eight years
the cashier the company received the money paid In
and made the cash entries always received the actual
cash IN eases where made entries, except when was
directed by L. W. Frost or r. e. Frost to make cash en-
entries | did this whenever I was told This
sary to balance my cash Al knew about inc new com
Of this company; Their idea was to get .aoo this
made up the present revised mortgage book three or
-four weeks did not do 1t at any persons Direction
That was furnish the list OF mortgages to be used
company The old record was to furnish this
because there we're $1,000 addiGnal d 10 tS
ceiVer being appointed. The mortgages upon the old
record that are the amount to 100000
Among these see by the record two mortgages given
the company by James Rogers the former Secretary
The witness then told what knew about the Empire
Mutual stock was found in the SAFE and which was
not list OF the assets OF the company The Empire
Mutual Company went into bankruptcy, aud one Of its
officers and directors was L. W. Frost President of the
every of this stock redeemed dollar for dollar
Prosts and it is asserted by counsel that
collateral 10 borrow money on from the CONTINENTAL
oony hna Zone INTO bankruptcy Mr. Van Pet who had
examined the envelopes in which the stock was Kept
ESndce Fullerton testified that he had received from
MI Anderson, $500, Nov. TO- 1876, and $500 on
amounts were paid. He produced an agreement dated
Oct 10, 1876 between the Continental and the New
certain policies which i was to rensure ana IN
consideration therefore transferred securities which I
had recovered SO2 900, which he held for his client
Oct . Q. 1870 restraining the Continental from
paving ont anymore m0ney Ss oI6erT tss
uereement between the Continental and the NewJersey
Mutua was signed sealed and carried out This agree
mut related the transfer of the $4,000 securities
on oct IL the injunction served upon the officers
OF the company but late to stop this transfer Mr..
fullerton said, in conclusion, that ne had not been
counsel for the Continental and the NewJersey Mutual
at the same time.
THE NEW RECEIVER.
william r. Grace yesterday gave bonds In 100000
for the faithful performance of his duties receiver Of
the Continental Life Insurance Company In place OF
John j. Anderson, suspended, the following persons
qualifying as his bondsmen Eugene Kelly, James K.
Ward OF James L. Ward Il Co., and Isaac f. Chapman
and BENJAMIN Flint OF Chapman " Flint The bonds
were approved by Judge Pratt, and Mr. Grace will take
possession the Office this morning. In conversation
with TRIBUNE reporter Mr. Grace said yesterday that
no should leave the present offices OF the company for
cheaper quarters the change could be made
II is understood that while the Insurance Department
has no objection whatever Mr. Grace IL Will neyerthe
s insist upon its right to take charge OF the company
and that consequently friendly suit Will probably be
Instituted early day for the purpose OF settling the
question:
NEW-JERSEY MUTUAL.