The New York herald., 1877-02-27
THE CONTINENTAL LITIGATION.
Contest Between the Attorney General
and the Brooklyn Courts.
WHO IS TO BE RECEIVER?
An Extraordinary Instrument Executed by
Judge Gilbert.

The securities, amounting TO slo2, ooo which were
transferred by the Continental Life Insurance Com
pany to tho New Jersey Mutuai and from the latter
10 the hands OF William Fullerton, counsel for the
Contnentas former receiver were yesterday given TO
Receiver Grace, ordered by the Court
From general appearapces the already "too much
counsecd Continental is to be pursued by litga-
tion that nothing may be left Of the nourishing
institution seats and dogs" and cw legal
questions II 10 i've months since dissolution
was granted. ana even tho amount Of tho assets
and liabilities Is not definitely known Mean
while, now that 100000 has been paid
for legal services and the average OF interested
attorneys is daily increasing, the responsibility this
grcnt wrong upon tho policy holders is improperly
charged to the officers Of the concern, who.
with numbering the corporation sought to const
tute themselves Coroner, undertaken and executors.
The Insurance Department dcGed, its efforts to
gain control interrupted and delayed by legal
trckcry, and finally, after replacing alleged collu-
svc receiver, Endorsement all these proceedings
s modesty requested for the sake OF the hitherto for
gotten policy holders.
ATTORNEY GENERAL.
As from the rst, the contest now Is purely between
the self constituted executors and the people OF the
State The Attorney General claims that life nsur-
corporation cannot bo dissolved at the suit OF
sockholder. On that plea tho entire proceedings in
The Brooklyn courts would be void. referee ap-
pointed the suit of the Attorney General at Albany
but be has not yet made his report The Attorney
General has personally taken charge OF the case
indications point TO some pretty strong tugging
~ his end Of the rope On the othor side.
Receiver Grace has hedgod himself in with
sorps Of industrious attorneys some Of whom had been
retained by his predecessor, John j. Anderson, and q
desperate attempt is being made overthrow
Of tho "ins." All sorts OF aritul steps have been
!aken mostly in the way OF orders from judges sitting
In Brooklyn to weaken destroy the strong position
Of the Attorney General Failing to stop the reference
in inc adverse suit by injunction, they adopted
traordnary plan by which to make the Attorney Cen
eral party their action. On the 18th inst, when
superintendent of Insurance had been appointed
and appeared that tho Attorney General would per-
sonally take charge of the case petition was drawn
and tho order issued by Judge Gilbert on the l9th
making the superintendent OF Insurance and the peo
po Of the State party defendants IN the SUIT Of Hoyt
versus the Continental On the dav following Judge
Gilbert issued the following, OF which only small out
line has heretofore been gvcn:-
REMARxABLK ORDER
whereas BY order dnly made sa entered the 10Th
the Insurance. Department and the People State
Ssw n0nn and ds qad to IN
To @ s s na % @ pa ~ ssa
der was made. and reading said papers and on filing
S' "S service the upon ad said a s S,ss
"z s
fled message respecting this application from ths Attor.
ney one appearing on behalf OF the people
Sow deserving an right. and Of the original
the receiver this action and such shall
ordered and adadsod and the Court doth hereby de-
clare that the said the Continental Lite Insurance Com
S d I % Of Ss
securities and property which were Of said company
which were deposited with in the hands Of the
sSs eS,sfs ind depart,
permit tho pIosseuIon OF such proceeding IS ancay
the i sad the people this state and
% as s ssS sSs4 . sSa a @
court anclary to this pocecdng and not otherwise.
S "hsr ere aee% Of this this action with
ssS ssa the
from making OF said assets and securities
20 enforce the sceordns their 70
% tie end that such % rights hereby
directed with all practicablc speed the collection
any Of Se% IS .s, The
Ter" this % Court, to brook
n M y SS.r s Or s e. ss
present Instructions should not be given IN the premises
report the condition and situation Of proceedings
pending rs aforesaid
now IT REGARDED.
The order has created no little wonder as we'll as
amusement among those of the legal fraternity who
have seen IT, Several Of them expressed their views
regarding to the HERALD representative who found
them unanimous in their opinions respecting the In
strument The points considered most remarkable
IL makes Tho people Of tho State OF New York dc.
rendanls whom there is no law authorizing them to be
sued unless by their own vohtion.
makes the Superintendent OF Insurance party
when he has nothing to do with the moneys OF the
company m the hands OF the receiver here nor have
they an ything do with tho moneys deposited at
Albany under his charge. This last point was deter
mined 10 the case OF Rugeles vs. chapman, where It
wa, decided that the superintendent had power to
pay the moneys in his charge on the application
Of the plaintiff as receiver.
TO have been already disso.ved) on petition In which
the Continental is not party and has no notice oil the
II rcstrains tho Attorney General mot party from
performing specific duty required OF h'm by the
statute 1853 and lately adjudgcd aud ordered In this
very case BY the Court Of Appeals.
II requires the Attorney General to submit an action
pending in the Third department OF the Supreme Court
to direction oil the Second department of the same
court.
II requires action drought to sot aside this
action as collusvc and fraudulenU to bc submitted 10
the alleged fraudulent and collusive action.
OTHER ALLEGED IRREGULARITIES
The first order, granted on Monday, the 18th inst,
required the Attorney General on the following day
wnsn the second was issued) to show cause why tho
hrst should not stand. NOTICE. was served on the Az.
toruey General at half-past five Z, NJ, Monday, and
by The terms of the he expected TO appear
IN Brooklyn at ten O'Clock on the next day. Accord.
inc TO the statute hc should have mad eight days.
notice and furthermore u he could have been maue
party to the action he was entitled TO summons and
twenty days' time to file his answer. When TO all
these detects added the fact that Judgment had been
entered beforehand in the SUIT oil Hayt rs the CoDu
mental, the lawyers CLAIM that the whole lhns mas
nothing wanting TO make II monsrous joke.
Tho Attorney General ignored the orders, as ne dia
all other proceedings IRON tho same source ana 'hougn
he went TO Brooklyn Friday and saturday last 70
appear IN his private capacity, no court was 10 DO
found Ii is understood tnat wncn the DC witt refer
cncc shall have met once more, he will move In Albany
TO have another receiver appointed and the two APP
pointccs from tho Second and Third departments OF the
supreme Court will fight IL out in the Courl OF
Appeals
SUGAR SEIZURES.