New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-06
INSURANCE MANAGEMENT.
THE COMMITTEES INVESTIGATION.


Mr.. FURBrR's TESTIMONY coNTINUED-TEsrI-
MoNY OF JULIUS uuLBORN AND THEODORE
WESTON.
ALBANY, April 5.-The Insurance Committee
resumed It's investigation al $50 this morning. Previous
to the resumption Of the testimony the Committee went
into Executive session, and 1t is understood that M
Floyd Jones made motion 10 discontinue the investga-
ton and make q report. What the result OF the
motion is unknown Senator Hammond also appeared
before the Executive session and made statement in
refuaon Of the charges contained in the testimony OF
Stcphen English Mr. Hammond also appeared in Open
session and demanded another hearing, which should
TO the public and at his own request was sworn He
recountod Mr. Emgshs evidence already printed and
said the bill referred drafted by himself person
ally In February or March, 1873 II reached the Com
mtee of the Whole and discussed at great length,
both then ana at the third reading The bill passed the
House The Committee Of the Senate made report, but
il was defeated in tine Senate. The bill not in the
handwriting of Mr.. Miller but IN the writing OF person
who then OBLIGATED my clerk Mr.. English says truly
that lie abused in his paper and distributed thousands
OF copies the State In 1876 introduced the
hill IN the Senate, and there passed by vote OF
81 The libel against Mr. English in The Genera Gazette
WAS not written by The suit which he brought was
withdrawn by Mr. Ensllshs counsel without solicitation
from me. No arrangement ever made by me, or to
nv knowledge foi his Withdrawal OF the suit In short,
so EAR as am concerned the statement Of Mr English
entirely false.
MR.. rI'RDER AGAIN on TIE STAND.
Mr. Furbcr's testimony continued "a follows:
when the Guardian went into the hands of receiver
there We're 1900 policies. including those 1t held
for the other three companies there about $1,000
600 OF n>urauce the was not intact; we have
not made mp the reserve on thom; presume ire per
Of reserve on the policies when fenaheu intact
was about 70 per cent; the defects IN the Guardian
which had not discovered consisted or losses ny ual
10 the amount OF about T2pO,oo0i tc PROPS were
l,I, 81, tIn btf
marked off Un thc policy register bnt did not them;
notes mad their premium ledger; loss
Oh this about $1,000; no more ulc was
taken In the investigation because was necessary Tor
the Guardian to make it, statement to the Insurance De,
paitmcnt within few days; the reason the uhlycrsal
WIS Interested To save the Guardian bccause it was
81 f. io us 10 assume per cent Of It's outstanding Gb-
cations the l Of January 1874; of the 10 per cont
the reserve 1240O0OO was paid Over 10 AZ Wheh INC
contract wtS made with the agreement that the lealhd,f
should % pail when the reserve WAS competed
t Of the objections furnished The balance 81 me
reserve was not actually paid over, becaus, certain as
sets h, BY them cOdld not be turned over as heJ were
ness OF the schedule of obligations had been verified by
the dams books. but II was found 10 bc lenrreo.
aftcrWa,d. There mad been over F-QvoOo o ItVrn q"
policies scratched of the books as padup poles Wnmh
were NOT paid up and which remained LIABILITY a5nn2t
the company; these policies were pald UP lol POD"OD
100000 Or $JOJOo0.
1uE NORTH AMERICA.
ur Furbers testimony resumed: The instructions to
agents oil the Universal iii regard TO the change OF poi
eies wac to state the facts clearly and truthful and he
America suggesting them TO beware Of amy improper
statements from agents and to change only if they
though; il 60 their best interest; where m'repge
sentations were made by agents the Universal pohcy
youd be sent back and the North America polIcy re
turned. The North America, when witness became con
noccd with IT, in October 1874 had 81 6120O0 assets
among them f2l3,'0o aSontd balances; TlooUgv ro,
imitation al commissions; FlO2OOo bills froelFHDe
rni pail Tor rcccIniug scrip there had been 100000
OF this scrip ssuedD 1000 judgments against agents
wa, in tact worth $4,000 Of these tJ2oOOo proved
BAD ana only $4,000 has been realized since upon ila
bad assets the company had outstanding bllis payable
$1,000 Saytng Sr G' be Woo" Dah 'n Dmfn
The time since wcntn. received premiums ana iuttI-
est 81 gGGpOO; amount used death losses,
SOY OO0-Si07OOO Hatured LOSSES $4,000 anuuitIes
and - SOB In scared policies total Of $393OoOO
which leaves S2S76,UOU. | passed 10 Receiver
prrnon 81 73i 900 In assets as follows Cash, Zoo
biIs receyabe 600 real estate at leas, Ss9l 900
L. J. stock, 1903 OOl premium on the stock SlO,sOO
mOoklyn bonds, $4,000; furniture, Tl2,3%l; tempo
miuIm loans Si05 00o Virginia bonds $l2G00 Mo
bile savings Bank, 1899; II. n. Morgan 5000 pre-
MUM notes on standard insurance policies ~, iG3 loss
ON same c0mpauy's stock, $1,000; premiums, loans
on Government securities, policies on SuS SfSa
agents balance, S9,l63-approXlmate total, S2,73i
| 900; witness found also S2,OOOOO0 OF NOR,
Claimed to be usirons because Of bonus OF 100000
paid by McCOO to the former president, MI pIOlEih'
Witness had succeeded in securing the property repre-.
scented by the mortgages Notwithstanding the uslry law
by paying John McCool $4,000 for an actual convey
ance oi tie property By this meanE he had relieved tie
company Of tho usury. The books Of the Guar
dian Company probably WOuli not nave poSNNcE us
closed mn The liabilities Of the company their policies.
The superintendent OF Insurance probably could not ~
any examination discover all the liabilities Wines. 10
remedy that would require every company "a Keep eX-
act copies of every kind OF policy Issued there hi Dec
an examination Of the Guardian by the Superintendent
during the previous summer He went over helr regis
and atgated the reinsurance OF the WIDOWS ana
orphans and reserve mutual policies III the GuatIdl
These statements easily dscoyeraDe by The eX-
amner and certain data found there were corrected py
| the superintendent.
None OF the books OF the Guardian Company were over
handed To the Universal Five or six ONlce5 OF thc
Universal became drcctOrs Of the Guardian Du INC al
ter continued lie business Independently. Inc OnlNrr-
sal men did not have uDoilty OF me y Doin VI tn
Guardians directors until the ian'cr nhel DSc'.n'
connected with the UNIVERSAL IN lebD hau ,hc nun
agcment OF the agents. and contract was nue enHs
ing a salary OF - 500 year ana 2 per cv on ~, i
! nrpmiun rpcoDts: 4 worked under thai contract tiI
1857 when the salary was made 5000, and percent
age Of 2I2 apOn the net receipts, all rNl'n,s 20 pe
| mid onT of il. this Terminated IN May 1876; ul-
der that contract have received all tLc hOhs5 Lave
rto 81 axr"nt INV salary in the North America rs
th ti ,smit ~ those two contracts received from
Mn the companies which h4d to 40 WIN I'D tLt olt'
for eleven years and hyo months @-V1lUO Sh w Wv
co.s Tb was ALL either prOhts upon contracts OF
| ntb,rvI.e something less than TlS,Vou year: IHs
North America rcinsured the Government security auu
tho Standards policies Inc srcuripv rein
| sured both OF them " ID. horg"l was pr,
den " the North Aher'sa .r nSa it 0ns Of his
Ina was secretary and another was actualt VIII
ness became president and retained bis c"hee" III INC
universal aud the Guardian. All Inc Morgan FAMILY
| hen vent ouL There was consideration paid for
their going except loan by me OF 80 1000 10 Ms MOE
| gan ior which the company gave her certain Eau
| claims. - ,,,.n on
A. 10 fhe Charter Oak Company, Mr. Furber testified
that In October 1873 he was introduced TO f. r. Wlggn
OF Boston as gentleman authorized by the Charter OAK
10 negotiate for the sale of $4,000 of the capital stock
OF that company. having been unfortunate io' three