New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-13
NEW-JERSEY MUTUAL.

SECRETARY KEIsEYs REPORT TO THE NEw-JElssEY
LEGIsLATURE--AN ACTUAL DEFICIENCY OF OVER
SC1s, 5OO-EXTRAoRDISARY HYPornECATioS OF
BONDS BY THE Observation-Disclosures OF
VALUELESs MORTGAGES.
frros A SPECIAL CORRESPONDENT OF THE .TRTBUNg.l
TRENTON, n. j., Feb. 12.-The Compromised
report OF Henry C. Kelsey Secretary OF State relative 10
m, Neu,Jersey Mutual Life Insurance Company, was
pr,.aied 10 the Senate and General Assembly tonight
After citing the authority of law for making the eXal-
alton OF company, secretary Kelsey says that ne
began a preliminary examination of the affairs oil Tie
company last September. On Oct. 20, one JChn' ).
Anderson was appointed receiver for the Continental
Life Insurance Company of New-fork. In litigation
which cnsued il was alleged on behalf OF the policy
holders that the action the receiver was brought
with the consent and procurement OF the Oeeis OI said
company; the receiver appointed with Their
CONSENT aud that the proceeding for the purpose OF
faudulenuy conccang The real state OF the affairs OF
the said company and to prejudice the pODcy holoefs
thereof" MI Kelsey says he believes this allegation
because the action brought without the
knowledge Of the New-iork Superintendent OF In
surance and because Immediately on the appointment
Of the receiver 1t announced that the policy
OF the Continental would be rcnswed IN aud by the New
Jersey Mutual and the agents of the two companies re-
spectively throughout the country far they could
be controlled by the officers, diligently applied them
selves to the promotion of such reinsurance. and
10 securing the assent OF the Continental p0cyhOders
thereto; also account OF tine apparent collision be-
tween and identity Of interest OF the management OF the
Continental aud New-Jersey Mutual companies respec-
lively and finally Of the attempt TO transfer
the policies OF the Continental and its assets 10 the New
Jersey Mutual which far than insooent and
must have been known TO be by the managers Of
both companies.
ZION Dec I6 1876 Mr.. Kelsey appointed D. p. Facker
Consulting Actuary OF NewYork TO conduct the exaIn
nation OF the New-Jersey Mutual and Joseph L. Mar OF
Trenton 10 assist in IT, Failure 10 produce assets alleged
10 be the property of the company and crooked book
keeping were supplemented by founded complaints OF
the severity Of The examination aud asperslous upon the
objects thereof and the motives and methods OF the
examiner which had neither foundation in justice nor
warrant The evidence OF irregularities OF
management coupled with the fact that ;he alleged
assets were kept wholly outside the state and the
probable actual Insolvency under the most favorable
ruling vas 80 clear the very beginning Of the inves
cation Secretary consulted the Attorney General
on Dec o. due consideration he advised that the
Court Of Chancery would be powerless III the matter
there being 10 forbid the keeping Of the assets
outside the State until the result OF examination"
deficiency Of assets should be shown, and then, that
the company having had reasonable tiIIe to make up
such deficiency should fail 50 10 do provided by law
Mr. Kelsey therefore recommends modification OF the
law on the subject.
IL appeared by the examination OF MI etedweil that
be had Hypothetical the Government bonds belonging
IN the compaDy 10 the extent OF $4,000 $4,000 he
could not say which, TO loan OF $4,000, made
IN him p rsOnay his individual note by the Chemical
National Bank OF New-York, although he claimed
that the proceeds Of the loan had been Ny
him paid over to the company when II was made, or
When or how il was paid lac was unable 10 say definitely
or an least he did not but finally II out that the
iaan lad been taken UP by d. j. EOyes attorney Of
the company, and in order, Us admitted W s'eo"on'