New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-28
INSURANCE TROUBLES.

THE RUINED CONTINENTAL LIFE.
OBJECTIONS TO PARTS OF RECEIVER ANDERsOTs
EEroRT-CORPORATIoN COUNSEL WHITNEY TEs-
Titles
The examination into the affairs of the Con-
tinenta Life Insurance Company continued yeser
day before William Allen Butler, referee James Nc
Donald formerly general agent Of tine company against
whom there charge Of s1O,7sO the books.
claimed chat this settled by allowing 22I2
per cent committed commissions He said that no
allowed also JIG per cent renewal commission. From the
general management Of the company aud the singular
actions Of the officers he believed that the company
nsoivent before it actually suspended.
Raphael J. Moses of counsel for policy holders. pre-
scnted objections to items OF Receiver Andcrson report
He objected to S3,O47 81 and - 800 paid the
order OF the Supreme Court for premiums which had
been paid to the company by pocyhoders after il had
become insoyent. This objection was made the
ground that these orders would not have been obtained
from the court but for the neg gencp Of Mr. Anderson
He objected TO the following amounts paid for counsel
fees TO George W. Miller, $500; William Fullerton,
$500; quarter Of the $1,000 paid to Sewen
Pierce; 10 onehalf Of SLIGO paid John L. Hill.
These objections ,lre made because these sums
paid out In litigation between the Attorney General
and Mr. Anderson. which Mr. Moses claimed was in fact
conducted FOR the purpose OF conceang the actual
diton of tine company from The policyholders. Mr. Mo-
ses that Mr. Anderson culpaDle because he
did take any immediate steps to the bonds
and mortgages transferred To the NewJersey Mutual,
and even when he did commence suit, Jan % 1877.
he only sued for 100000 instead Of the total amount,
S3j5,O00.
William C. whitney. Corporation Counsel testified
that he a stockhoder and director Of the CONT
mental Life IN 1873 He was counsel Tor the company
perhaps two years before He received from II to 20
per cent dividends annually on his stock He thought
the dividend paid in july 1876, was II per cent ON
June G. 1873 he borrowed $4,000 from the company on
Metropolitan Steamship stock. He believed the stock
was a great deal above par. and cost 175. h
received So 900 "a counsel fees Oct %, but did
not know the company was insolyent at the time.
He was the regular counsel and did not know why the
officers did not consult him about tie condition OF tle
contract between the Empire Life Insurance Company
and the Continental III ~ FOR the reh1uIaEce OF te
former by the latter ne was cdtu 70 tne De's." %
Justus Lawrence, the former president OF the company
when he was dying, ana ne instructed tle Witness /"
draw up thg contract. Inc witness h"'tr kue" Any
thing about Rufus C. Fr0st's committed commission con
fract until he read Of IL in the papers.
Paul L. Bradley testified that he was general agent
for the com ANY and nad great many VALUABLE th"o"
mont policies upon WnlcA mere wa l''.Et ] -
LII lrr " Frost urged MN Tor iohS ut 20 consent 20
change the policies hut lie di not accept MS proposition
to commute them until sept 80 $50 uhlGr tls con-;
muted commissions contract tAr Win aI'' ~ , ~,
reserve between Sept. 80 and Oct . 1876 WAS sJ3OJ
and ~ 700 on his Jew business.
A circular signed by George " Croiut, formerly con
uectrd with the Continental, las been forwarded Z"
policy-hOidcrs and contains the following clause: Your
attention IL called TO the iac tlt an ori n5 n. en-
tered within few DAYS past directing ne receiver 10 al
Ncrlse for claims, ana calling on All PolI uU!Ars Z"
appear in this action by attorneys ot inc court
or lose the benefit Of the decree Whlch VIII
be made therein" The policy -loidtrs are III
yiied JOIN those residing III NcW-h0rk ana bTOosyh
for protection Of TIER interests, ann 10 sign a"'''
circIlir inciosed authorizing Davies, Work, McNImee
Hilton " this city 10 appear or mem me IeeeNeI
stated yesterday tt the appointment or an ATTORNEY a.
Indicated above was entirely unnecessary The receiver
had been aupuIn the court Tor the express purpose
~ lacking after the Of the pOicy holders
Blanks bad bee prepared By MIN 70 Dc signed bS me
Uprvboilers aud la these II Is stated that lawyer II
not necessary 20 who appear unless some objection
shall he raised the claim, in which case notice VIII De
sent" These blanks be obtained upon applcdon at
the Office OF the receiver.
The Treasurer uf the National Capitol Life Insurance
Conpanv sft.rd Yesterday to TRIBUNE reporter tha
hr Natlona Capitol has not received any Q! me Dond5
and MORTGAGES that ,gcd 10 nave been IdhS-
ferred to IL by the Scw-JerSeJ Mutual