The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-12
DIR. LAMBER1'S TRIAL.
wHoLEsALE ISSUE OF BOGUS AMERICAN PoPU-
LAR POLICIES THAT WERE CLAIMED AS

wHoLEsALE ISSUE OF BOGUS AMERICAN PoPU-
LAR POLICIES THAT WERE CLAIMED AS
ASSETS.
The trial OF the late president OF the American
Popular Life Insurance Company, Dr. T. $. Lambert.
was continued yesterday in tho Court oil oyer ana
Terminer before Judge Brady the sick juryman being
In his place and apparently recovered Mr. John !.
Mccall, deputy superintendent of insurance. again
took this stand and in answer 10 question explained
the rulings OF the Insurance Department on the col
iection OF outstanding premiums, and where Il would
cost say $20 to collect 500 due the company. the
department would call 1t $50 disallowing the cost OF
collection.
Mr. Smith, counsel for defence, here read over the
Indictment, and cndeavored to show That It's phrase
ology concerned tho whole report OF the company,
and not merely three items and therefore they were
in order in seeking to explain the whole report as
well part. suppose" said counsel. ''ihe Insur-
ance Department makes arbitrary ruling That
twenty per cent be deducted from the amount OF I'M
collected premiums Of this company the cost OF
collection, and the company make its collections
for Eve per cent, have not right 10 give an ex-
PLANTATION ?n Tho Court ruled that the matter was
irrelevant
SOME PRACTICAL DEMONSTRATION.
The witness then took piece Of chalk and on
blackboard like scholar in u school, proceeded TO
demonstrate by figures the problems that SO puzzled
everybody words. When the blackboard was filled
out with figures Assistant District Attorney Rollins
read of series To show that while other INSURANCE
companies had 10 more than from two 10 seven per
cent OF their policies issued and mot TAKEN" the
American Popular had over fifty per cent issued ana
mot TAKEN" and charged AS assets IN the companys
report .
Mr. Rollins then opened big book called the
register OF the corlpany and read OF entry after
entry OF policies entered 10 Thomas s. Lambert and
I. s. Lambert and mot taken aso ,h'rLeen pol
trtnc rad m mt har
"Wnat was the total amount OF policies issued and
not takenY"
witness-rhe number rot taken was lo34.
"And they amounted TO how much 7"
Wftness-roIal sum $780, Oo0 odd.
And that amount was credited TO the assets oi the
company"
Wltuess-Yes, sir.
,ross-exanined by Mr.. Smith-How do you know
thai these policies entered to LAMBERT were not akenf
Witnes s-By comparing this register Of the COM
pany with the register in tho department
Counse-is it not a common occurrence Tor policies
to be issued long tour or i've years and not be
takcnY
across this company.
Counsei-Wny did you strike out that So, 600 that
the company claimed TO its creditY
Witness-Because twas bogus entry.
Witness asked why he struck out otner entries
he found ON the books OF tue company, and replied
substantially that it was because they had no right to
be there.
DIRECTOR TRow's TESTIMONY.
John Il. Trow, one Of the directors OF the company
was called the prosecution and testified that he was
OF the shares Of stock OF the United states
Publish ng Company recorded the books OF the
company as a collateral for loan OF $29, 900 He
at length to ascertain the market value OF
the STOCK but could not state what was he thought
It was worth Its value, $32 900. He denied having
borrowed any mony OF The company and stated that
his stock the Popular Life Company WAS subscribed
Tor 500 and that no had paiu alI but So 500;
he had loaned the certificates in the publishing COM
pany to DR.. Lambert NJ the Doctors request; he ad
mttsd that every December he gave his checks
tor the OF the company which were Kept about
month aud then returned TO him. He had no money
in the bank 70 represent these checks, but
derstood that the money was not needed US the
checks were not 10 DO used. Witness was
shown q letter that he stated written
to DR.. Lambert by him alter consulting
his counsel CHE letter was excluded by the Court.)
He had offered to The company u be PAID bill Tor
printing about ST. 000 had said 10 Dr. Lambert
that he had given services to tho company in ex
aiming accounts. and loaned them the $32 900
stock Or. Lambert had not claimed that he owed the
company at that time; he had not paid Tor stock
81, 900 December 1877, as the books recorded tie
had gwen his check Tor $40 000 III December, 1874,
which, as he understood, was u memorandum check,
for the purpose oil transferring the conditional stock
into real Stock he gave that SO 000 check to DR..
Lambert, but did not know exactly what II meant;
the cncck did not represent any money; It was not
cash when the company had IT. but was given 10 Dr.
Lambert with The hat It was TO be given
back 10 him.
At this stage the Court adjourned until this morning