New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-06
INSURANCE TROUBLES.
THE CONTINENTAL INQUIRY.

WILLIAM r.. GRACE APPOINTED RECEIVER AND JOHN
J. ANDERSON SUSPENDED UNPLEASANT DIS
CONTEMPORARIES STOCK RECEIVED IL
PAYMENT OF A NEUTRALITY-SUSPICIOUS. ADMIT
TED TO THR VAULTS AND PRIVATE PAPERS
TAKEN AwAY-MR. ANDERSON'S PAYMENTS TO
LAWYERS.
Judge Pratt has appointed as receiver of the
Continental Life Insurance Company, William Il. Grace
weLknown merchant Of No 66 Plne-st in this city Mr.
Grace has been for years IN business and largely
concerned in the trade with Peru having houses in Cal
lao san Francisco Liverpool, and New-NorK. Judge
Pratt placed the of Mr.. Grace bond at N2COOOo
John J. Anderson was suspended from his Office a. re-
cevcr and his accounts referred to William Allen
Butler as referee examine and report on thein The
Judge directed that money should be paid Tor the ser
vices Of counsel for other services except upon The
order OF the court Decision oher points raised be-
fore Judge Pratt was reserved until Feb :.
The examination OF the affairs Of the Continental was
cont nued yesterday before william Allen Butler reg
cree at No % NassaU-st., the pocy-hoderS and re-
cevcr John j. Anderson being represented by counsel
The witnesses the boobkccpcr OF the company
George W. Thomas and Mr. Anderson. NJ. Thomas ties
titled in regard TO the various books He said that GER
tIfcatc No 60 for 10 shares from G. Hilton scrhnor
Clrccto) was not on the stock ledger The certificate
No II for shares originally attached 10 cerhcae
NO &C. on page is Of the stock ledger 1t was found At
tacAcd to certificate No &C. issued 10 IN Hoyt II did
irregularities testified to by NJ. Thomas.
MI Van Pet Of counsel put I'D evidence certificate on
incorporton dated oct 1876, of the United states
Partition and spring Company. lie stated that ret on"
of the five directors Of this company were directors OF
the Continental Life Insurance CcmplnT-G. Hilton
scr!brer. L. W Frost, and sumner ". Frosi-tai 'Aat
Ae waall show that among tIc assets Of the c'ptnF
appeared mortgage given by the United stat F3r.l-
on anI Spring Company for SO 0J0 but the trash "S
that IL was only r1.1JO.
,Ir Anderson and that rs receiver he had sold tie
-o-ta United States bonds Aclou..a- to Tie company,
ami received them +7~go1 -. IL suppose, tiat
the entry cents accounts. $737 - was for pro-
mil4s that The of tac company iai I"c' 81 Tor
policies The Whole amount Of interest due on bonds
ana mortgages held by the company Wa. Tl3i-5l p
The mortgages amount 10 SIoi6,--1 80, hut Only
St9352 - OF the interest had be paid TIE exact
amount Of the rent. Of tn building was SOP -.
Mr.. Anderson said that the mor cage entered
on page II of TIE m0Tt-a-e book was not
on his list OF bonds and mortga-es. lie found
tie envelope in which tins mortgage was k"pt on
tile outside 81 the insurance box. All the muf,-i-tS
of the company were kept IN similar envelopes with the
proper Endorsement ON thc bach- Inc lnlof.tMu' on
Morfsagn. sarah r. and g. Hilton Sc15Ac7. Zen. -
l~-3 %l7,50O' aud IN pencil. " impure S'utA. .II'
~ IN [,.uT Ia biIl-.. y. IIr was also tie
directors and Tie principal ,s't --t'l-ot Oh I-c N"--
MI Van Pet then offered in evidence an aeTce,nent
between g. Hilton -cnbnor ana cdlaH J.. .iln'r 'lt
esJe The master Was finally LET'S W,'u Inc Ieieieo 10
Mr. Anderson continued: .Vo o13 on the record is
mort gage given hv Charles r. Frost, hu. nave u" III
formation tat 81, ;nrow any Iig1t this transaction.
some al the mortgage, my pcs SON. and some
are hold hv the attorneys who are fUrc'-ln- men,
About $4,000 has been I4d Ne On account G tnese
mortgages, II. W Bldtchforl raid $4,000. Thomas
Moore pad III $500 on Drc H. lo16 Inc ,h'iF GA
the moftaag, for $1,000 gwen hv j. J. Anderson
Oh Juuc i5 1870 refers me; paid IF This mortgage
IN May. 1-7G and secuiii, mortgage on some
called on % pay any THIS pal. nd never dd
pay ANY. paid the 74CoO 10 take up The mortgage il
lir. Anderson said That The loan OF $1,000 to S. v
syies on jim ~, L.. - "igH ipt's ' I'VE w. H.
~yes. vino iivtl al Orange. Mr. styles Was M A4o4
bn II VAS found that he lad Jeff the room. and
suggested that ne mad gone 30 consult counsel as 20 the
SIR Anderson caused mIcn laughter by saying that ne
dlI not know Who \. B. Cornell was Hc STAT d iat he
500: Daniel Maeone - GOO: +. p ark. y 20: = A.
and d. j. NoyeS, = 50 -; a. q hc!SDt' 7130' Joan H.
%-.o00t, tbir IIWVcr. II. SAID thal All
these sums had been paid for fees and d.sour.'-
n'U,t n.m as receiver Jaaac Fullerton hal brought
S,I,t ae,anst The Ncv-Icrscy Mutual Tho amount
volvcd was S3Il.9OO. judge Fullerton had recovered
100000, holding the money to await the order
some discussion ensued as the reason Why judge
Fullerton was present directed by tie referee lie
10 To- uppcar to-day al p M Much interest ""s shown
secret meeting or Lathef W I"st j. j. No}t-' hu-' l.
Frost and = u styles Sunday. Jan. It. The witness
admitted mat S. V. styles. hls booAAeepcr ana
ibe former treasurer the COMPANY.
mad MT Luther ". Frost aud Runs l.
FROST two OF the directors and d. j. Noyes, OF the
attorneys Tor The receiver. conducted them 10 the vaults
OF the company where ali TIE bonds ana mort were
kent and allowed them 10 take some private papers.
mo witness was then shown some envelopes ia %hch
he said there had zen T-~.JJU STOCK OF llr bankrupt
Trnnirc Mutual Company. II is claimed that some on
This STOCK after II had become worthless was taken IN
payment Of a mortgage. Mr. Anderson sad thai THIS
lfnck WAS kept il small wooden DUA IN the FdiIt.
This box could De opened by al ordinary ke} or we lh
cond he easily plcked Mr. styles acknowledged 10 MIN
maj he mad been in the vault with the gentlemen named
abovc lie told M STYLES that Iii. act W1s very luru-
dcnt hut he still Kept styles ID his position and still
trusted him.