The New York herald., 1877-02-03
BROKEN INSURANCE COMPANIES
A New Receiver and Open Examination
for the Continental.
THE CRIMINAL INDICTMENTS.
What the Continental Policy.HOlders Have Paid
In Fees 10 Adverse Counsel.

Excitement in life insurance circles greater yes
tcrday than before. Discussion hinged principally
upon the criminal indictments found and to be found
against guilty officers II was generally conceded that
some OF these WHY gentlemen would prefer lilo IN
foreign parts to strict Accountability for their past
transactions Indeed, II is strongly rumored that
Mcssrs. l.. W. Frost G. r. Frost, J. II. Stedwel and
Robert L. Case, Jr., have already begun thor pill
grmages. a few days will perhaps sufncc TO deter
mine the truth OF this rumor.
1t is a pleasant thing to report one conscience
stricken individual in this Crisis who desires to mako
reparation. Receiver wickham, OF the Security,
yesterday received letter inclosnG $45 and on a
small scrap OF paper written, 'Add this 10 your
company's cash." There signature or other
means OF Identification, and Mr.. Wickham was at
loss to understand the transaction There is plenty
of room in tho Security's treasury, however, for
tho SIS.
TmE INDICTMENT AGAINST sEcRErARY ALLEN
Dvcs,cd ofits legal verhiago tho indictment found
by the Grand Jury against Secretery Allen is that In
the statement OF OF the company required by
law TO be made the end OF each year, both he and
President Case appeared before Moses b. MacIay,
notary public the 18th OF February 1876 present
my staemen. oil the companys assets on The slst OF
following under the head Of Wv. Assets"
/ a. Cost value OF real estate, exclusive Of
all cncumbrunces, as per schedule S460, S75 OO
O c. Cost value OF bonds and stocks, owned
absolutely, as per schedule E.......... 592,19! IS
Z. Cash in conpany's olice. ISIS II
8. Cash deposited IN banks. .......... IL. $50 90
Both Case and Allen swore that the above was
truthful exhibit In behalf oil Allen II is charged that
such oath was "knowngly falsely corrupty, willully
and malicously made"
WHAT REALLY WAS THE TRUTH.
The indictment theh proceeds 10 show what were
the real facts, far as the above statements are con-
cerned.
Fisf-rhat the cost value Of tho real estate, tho
absolute property of the company the date
toned exclusive oil all cpcumbrances S460 S75
but only $500, 900, discrepancy OF $11os7a
Second-rhat the cost value OF the bonds and stocks
owned absolutely by the company $780,, 1917 75
but than Sl00 0OO difference OF $492, l07 IS.
2Aiyd-That the cash belonging to the said company
anu in It's office on the date mentioned was not tho
sum OF $50, SIS II, but amounted to $4,000, leaving
The difference OF s27,Sls II to be accounted for
Fourth-That tho cash deposits in banks on tho date
mentioned were not Sl72 500 81 but only the
sum Of $780, 000 tho difference bctwccn TACT and false
hood being he sum Of S22 500 81 So, ''in truth and
in lactn Of tho Of ST. 25s 7S1 43 claimed by
Secretary Allen to be tho OF tho company they
Ing the snug amount OF sos, ISL 4s to exist Simply
upon paper, and no where else.
THE GRAND JuRY's FINDING
In consideration OF these alleged facts the Grand
Jury duty bound hold that Secretary Isaac II. Allen,
on the 10th OF February 1885, ot his net and
sent and OF his wicked and corrupt mind falsely,
knowingly. wiliully, maciously and corrupty did
wliu and corrupt forgery, TO tho great displeas
ure of Almighty Cod the evil example OF others and
against the Of tho statute in such made and
provided and against the peace OF the people OF New
York and tEoir dignity"
Shortly after two o'clock Secretary Allen, together
with several other gentlemen, walked INTO the
and. inquirng for Chief Clerk Clark, were
shown up tho well-known circular stair.
Office. There the usual questions propounded 10
Secretary Allen concerning his readiness to give
bail to answer the charge preferred against him,
required he introduced his surcties Mr. Stephen r.
Post, OF No. 265 Gates avenue. Brooklyn, and Mr..
Henry Dickinson, OF No 1856 DeKalb avenue Brooklyn.
A nrol m
ceeded to the Court OF General Sessions on the oppo
site side OF tho hall and before Judge Gdcrsleeve
amount moniont later and the usual business OF
tho Court was resumed
Mr. Allen is aged, gray-hatrcd person OF delicate
physique He seemed TO feel his position most
keenly
Indictments Tor perjury have also been found
against Robert L. Gaze, President and Robert L. Case,
Jr., Actuary of the company. the v'cc President,
and embezzement. 1t is rumorcd that some Of these
persons have ned. but the officials are in hopes Of
serving all tho warrants IN time.
RECEIVER ASDERsoHs STEWARDSHIP
In Brooklyn this morning two or three motions and
orders are rcturnabe before Judge Pratt all of which
have the same object in vcw-viz the retirement OF
Mr.. Anderson aud the appointment OF new receiver
for the Continental. Al The same time that be asks
the acceptance OF his resignation, he Will be required
to show cause on motion OF the policy holders, why
he should not be rcremptoriy removed All sides are
manner OF his going creates a ltilc dIerouce OF
opinion. The order under which the Butler reference
su the receiver and his friends. This is the whole
cause OF his csgnation. The reference mystery
70 all for time, and was thought 10 be machination
OF the enemy. But II became apparent at the last
meeting agencies were at work 10 turn the tide
Of investigation the other way and any
was clear overthrow OF tho ring, and
policy holders OF the Continental may soon
expect an open administration OF their affairs and
funds It Is not likely that the hrs! referee appointed,
MIR. De Witt, OF Albany, will ever hold his first
One very important fact, discovered In the last
meeting OF Butler reference, was that Mr. T. Wyn-
coop owned 10 shares OF the Continental stock. OF
which as shown by the books. he transferred fifteen
shares to John o. Hoyt, who brought tho suit tor
dissolution. These fifteen shares arc shown to have
August Mr.. wyncoop was paid the dividend upon the
ITO shares.
There hos been considerable speculation to who
should succeed Mr.. Anderson, but It seems, from all
accounts that the question was definitely decided yes
tcrday the satisfaction OF all concerned The name
OF h. T. Laurence VIII be presented tomorrow and
man is OF well known financial capacity
soME RAMIricArIoNs ny AN EXPERT.
The Continental office was thrOngcd with lawyers
and experts yesterday examining the company's
books. Tho result OF one accountants discoveries In
the new Held given below Some time ago Mr.
Anderson said to tho HERALD representative tnat VI
they did not lot him alone tho whole assets would 20
or counsel fees and the following hgurcs would su2
gcst the truth OF his assertion The expert examined
into the am cunts paid TOR lcea! rctners and
during the months oi November and December, 1876,
with The following RESULT
COUNSEL PEEs PAID.
Nov 9--Gcorge W. Miller. $500 90
Nov. l0-D Magonc, Jr. ................. l.UUO W
Nov. ll-W Fullerton. $500 %
Nov. l6--F =. Chrko..... 120 10
Nov 2s--s A. Il u. j. Noves.............. 7s3 SO
Dec l9-Gcorgc Blddc. .............. ...... 40 rs
Dec GA. q. keasby .......... 900 %
Dec 3o--J. L. Hill. ..................... Lloo oo
Total. 81, 544 20
This was the amount shown to have been paid for
counse lees Ia the published statement OF Receiver