The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-04-28

Referee BUTLER's report of his invcstiga-
tiOn into the affairs of the bankrupt Conti-
mental Life Insurance Company Ii "A slcken-
ing story of fraud, rascality, and downright
robbery The institution seems 10 have b,s'n
gotten up for the express purpose II swim
ding the public, and u have been consistent
IS carried on In accordance with its original
plan Whatever might happen, the stock
holders and officers were bound to I'LL their
own pockets and their pockets were filled.
One man alone. l.. W FROST, received, in the
course Of the ten years that the company
did business sos so as his share Of the
plumber, and others got, over aud above
their salaries. sums amounting 10 Sl5jl46.
The Stockholders, Notwithstanding their
agreement that they should have but seven
per cent per annum dividends, took from
nineteen 10 twcnty-eight per cent and some
OF them sold their stock virtually to the
company itself for four times It's par value.
False accounts, lying, and perjury were IN
significant incidents in the riot Of crime
which seems 10 have gone on IN the com
pany's office. Other swindling concerns
were affiliated with II, and assisted II aud
were assisted by it, in the most ncfarious
schemes The outcome OF the matter II
that the liabilities Of the concern are
S5.slN.OOO while the assets are only s., 6sl,jlj,
and this notwithstanding numerous policy
holders have been cheated into surrendrrng
their policies, or, rs il Is lacctlously termed,
have been frozen out.
just rs this report Of Mr. BUFFERS rs pub
lished come the results of the OIL lll inquiry
into Superintendent ELLIs's criminal neg
lect of duty in regard to the various savings
banks which have failed in this city during
the past few years. II is shown pretty con
clusivelv that he allowed rotten banks to 20
on and receive deposits long after he knew
them to Ice rotten, and thus made himself n
party TO the fraud which they were prac-
Using on the community. prompt and
faithful discharge q his duty would have
saved to the Industrious poor millions Of
dollars which they have lost 10y relying on
his integrity. and they have "A moral claim
on him for every cent of it.
As to the losses Of weather. people hv the
acknowledgment of coal companies, railroad
companies, and similar Institutions, they al
most defy computation. Twenty-Five mil
lions havo been wiped out ON New Jersey
Central stock alone, and as much more on
its securities. Delaware and Hudson aud
lis affiliations have lost for their owners III
teen millions. and the Delaware, Lacka-
wanna and Western over twenty millions
This makes ON three companies an agGre-
gate destruction Of values amounting e.
oightv-nyc millions. The seventy millions
Of capital Of the Pennsylvania Railroad ar,
worth but llftv millions in the market, The
twenty millions Of Michigan Central will
bring only eight millions and the thirty
millions of Illinois Central have fallen one
half A. for the scNcnty-llvc millions 81
Eric Railway stock, it is good only to gam
bic with.
Now tho question comes up: What ar'
people who have surplus income to invest
going to do with it? Tho savings bank
used to take the modest earnings Of tn,
poor. Clerks and other salalind employees
used t. insure thcir lives. The richer por
tion of the community used 10 buy stpcN'
and bonds. liut the fnct- we have been rc
captivating have very properly alnrmo'
all clu45c- AMI unless they can find some
thing which they cam trust, they will gW'
over attempting 10 lay mp money at all, an'
i nud th.ir Ia pmo 90 tloy rc, it. This w,i
g be- % SERIOUS iuiury to the prosperity OF TIN
c'.'i .ioul yet W9 see NO imme.l date ren