The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-13
LIFE INSURANCE IN NEWARK.

WHAT THE GRAND jury - TRYING TO FIND
oUT-MYsTERIoUs FAILURE OF THE NEW
JERSEY MuTUAL-How TIKI HOPE REINsUn-
ANc8 WAS xFFEoTED-D AMI ox1 TO
BLAME7
The city OF Newark 10 rejoicing IN . nfs insurance.
investigation OF the intricate character. The
history or tho New Jersey Mutual Life Insurance
pany presents inviting field for inquiry, flied IL
Is with mpcations Of the srangest character ana
falling rs the company did under circumstances OF the
most extraordinary nature. The particular point OF
inquiry which attracts attention, aud one which
nearly concerns some OF the most prominent in
Newark is the reinsurance In the Hope Mutual in Oc-
tober. 1872. when tho management passed into the
hands OF the latter, and the old stockholders retired
with bonus OF nfty per cent tor their stock. This
transaction has many peculiar Sides aud though fre-
quently discussed has until The present been
fully explored.
In an article published in the HERALD OF December
g 1876, given tho story OF . stakeholder Of the
Hope, who claimed TO have been badly treated, 20
gether with his fellows From his statement 1t ap-
pcared that the umagamation conducted by ring
composed Of memberu from both corporations, and
that tho profits Of the enterprise divided among
them aud The New Jersey Mutual stockholders. he
stated that tho president president OF Now
Jersey Mutual paid $4,000 aud $3.50. ooO-A pre-
Mutual stock Tho assets Of Hope then consisted
according 70 his account OF about $3.50, 600 but no
cash. the New Jersey people had pay themselves
from their treasury.
POPULAR THE CASE
gentleman who has been Intimately acquainted
with the AFFAIRS Of the Now Jersey Mutual for three
years past and who from report conysrsant with us
earlier history. yesterday the writer the following
version oil facts concerning the Hope Insurance. which
appears DO the one most commonly accepted He
said that the Hopo Mutual was virtually brought into
existence by Mr.. Henry A. jones' who was It's first
president ana aiterward It's vice president up to the
time OF the amaigamation. Messrs. Taber and Plum
dent The corporation Jared but poorly, and at tue
time Of the reinsurance OF the New Jersey Mutual
nearly Il not quite insolvonI Tho inform
ant said II was supposed That Mr.. Jones,
vice president, started that project while
Mr.. Plummcr was president. The Hope stock
aud Lathrop, of the New Jersey Mutual that rcinsur
ance would prove "a big thing, ana that tho Hope
had a surplus OF S2OO,0OO. pan WAS cOpcOcted by
which the New Jersey people to sell to the Hope,
and tho former put their own stock back and took In
and worth nifty cont more than the stock. The in
orman said that the New Jersey stockh thought
that the Hope surplus would make up the deficit madc
by this payment. and he could only explain this
method oil compensating themselves from thor own
treasury by tue suppostion that they did not
trust tho Hope managers and wanted to make sure OF
Now that the New jersey Mutual has failed so igno.
miniousy, and many questions have arson respect.
ing its property and management, the Grand jury OF
Essex county slim uIatcd by Judge Depue have ZEN.
ure. They determined TO asccrtan whether the
result was one OF dishonest management or not and
who, II any, TO be held responsible. They
find out what bcari ny the withdrawal OF the mortgages
in exchange for stock had upon the welfare OF the
concern and n such action illegal the MD oil Jer-
sey justice will be invoked against the offenders.
Al the time Of the amaigamation Mr. William NJ.
Latnrop vice president. Among the directors were
many prominent gentlemen, including Mr.. John A.
ark; Thomas b Pedde, member OF Congress; George
Peters, Aaron Carer, Jr. James d. 0rton NJ N. Hal
stead aud James Il. fichenor.
Messrs. Force, Case and Lathr0p have appeared be-
fore the Grand Jury.
G. {. LATHRoP's STORY.
Mr.. Lathrop went before tho Jury Wednesday aud
yesterday, armed with Old reco, DIS and memoranda
He gave succinct history yesterday of tho New Jer-
soy Mutual from its origin down. He said that al tho
time of the amalgamatiou the company In first
class condition and controlled handsome surplus IL
had numerous offers 10 rclnsurc It's RISKS and, among
others, proposition was made tho part OF the
Hope by MI. ummer. tho president The directors
Of the New Jersey Mutual appointed committee to
consider the matter, consisting Of Mr. Force, Pres-
dent; Mr.. Case, Chairman Of The Finance Com.
mitteo, and Mr. Lahrop himself They inquired
character OF lis officers, aud upon a favorable
report made by them every stakeholder signed
told tho Grand Jury that at meeting OF the New Jer
sey directors Mr.. Plurnmer presented from the Hope
$I50ooO, IN checksand bonds ana mortgages, in pay
mcnt for the stock. He said that Now YORK law 10
which the Hope was amcnable, required that mo in
surancc companys Investments in real estate to be
within radius OF nifty miles oil It's headquarters; and
Mr.. Plummer therefore wanted the New Jersey
stockholders 10 takc mortgages outside OF this
limit, and with whose character they were ac-
quainted In payment Tor thor STOCK and tho 500 900
in checks bonds and morgag would be put into the
company instead. This acccd ID to, and the con-
tract carried out Mr. Lathrop that he
any other officer OF the New Jersey Mutual received
any sort Of bonus for the operation, except tue
premium given for their stock. Ho denied the story
that he received 5000 Tor his services in cectng
the combination.
Alter tho adjournment Of tho jury Mr.. Lathrop in
formed the writer that he had made contract with
the Hope managers TO act az special agent for which
his compcLsat tor a certain period not to tall
short of $780, 000 THIS contract terminated when Mr..
Plummer retired from the presidency and he declined
say how much he received Tor the time the
in existence
Mr.. Charles H. Brinkerhon. Secretary OF the New
Jersey Mutual the time Of the failure viii probably
appear before the Grand Jury to-day, and Mr. Lathrop
will perhaps be recalled iatcr on.
DEPOSiTORS IN COUNCIL.