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

that the bonds might hand to produce at the s5
, MSySs CUSTODY Of them
Sedwe swore, had been negotiated by hmsei' wi'nUu
the authority Of the Board OF Directors OF Oh 9
Der Of the board The demand OF Mr. Kelsey that dnese
bonds be kept in Newark subject TO me Gn Sond he
concluded dcmurred TO. and his attempt " ,h ua
possession of them for The purpose OF 80 adatey
All the time having elapsed that appeared to Mr. kel
sey reasonable and only small part 81 the ~ a re
amount of bonds and mortgages claimed 10 peoh nr
company having been produced on Jan TO- MI h
was instructed to make a preliminary report ~, WIN
view TO ascertaning the probable conduoh VI .nI
pany allowing as assets only what had been proaSen
this he did promptly Mr. Kelsey served on the president
and secretary of the company Lotice reqn,ins ~
fore Jan 9g Is79 On that day Mr. Kelsey ascertaned
that the business and assets OF the company u pe 81;
insurance Company OF Washington. Application was
Immediately made to Chancellor Runyon and ON feo'
Joel Parker was appointed receiver OF the company
Mr. Kelsey says that the appointment OF ex-Gov
Parker receiver is sufficient guarantee that In1 con
Germs OF the company will be administered fitnluhy oT
The benefit of those interested. BY Mr. FackleTs final
report the reserve on outstanding policies is ac.uat
81 697 or which alone increases the company uencit
by $107 900 beyond the amount anproxma'en IN ms
preliminary report or TO total OF Solsooo. anu nns
too on the assumption that the mortgages sucmtted ana
examined worth their face, when from positive va
nations made Mr.. Kelsey seriously questions Tue COM
many furnished the examiner with list or mortgages as
in its possession but did not produce them anu tae re-
port states that there abundant reason to believe these
fraudulent and known So TO DC by the cohp"ny's
officers. ,, ..,
AS IA part OF the little information Cleaned from
the conipany's books it appeared that there
entries of Call loas on frequent occasions ana 10
he m to j. Tc ebarsr
expressly provides THAT part OF the funds snail ne
mens shall be made except either in loans bonds
and mortgages upon real estate OF u0up.e tne ,auo
or stocks created by any state the Union in bonds
OF the City OF Newark i'll bonds OF such oher cues o
Of directors" No attention appears to have been paid
to these requirements whatever MI Messy iona' NJ
this company by tie National Capitol Life Insurance
Company 1t well be asked how coG g1,0 u.n
to discharge Its own liabilities can procure
them to be assumed by another nc ,hir case cor !.
the fact so far as known, that the company ASSUMING
such liability has not assets OF the value OF IL te Trans
before The Newcrsey Mutual had formerly reinsured
the Hercules Craftsnens, aud Hope Lie Compaies OF
Mental Now il is claimed that the Ncw-Jersey Mutual
has itself been rensurei by the National Capitol VINO
to reinsure the National Capitol or whether tnat ~ te
last ditch" remains 10 be seen luTtner relnstt".T
is 10 follow IL must be had quickly fora OIL Is now Ha
ing Congress for the repeal OF the charter OF tue Ma
tiOnal Capitol Company" ,o
BY the statement filed in the New-Jersey Insurance
Department the condition of The company on Dec 81
1879 it appeared that II had ,0tai assets anonlh,s 10
$lsOs,ss 90, with total liabilities us To policy ho
OF 81 4i3l5 thus showing surplus oil policy hoaeTs
OF $65,723 80 making total ol u eusssl w.
The total cash income Of the GoIuay ea "a yeas t"r
premiums and the balance SsesI2 VI ior NV,
dends and rents Ibe Total easn f rccnints over
expenditures III single yeac of S2e9l24 ~. me
abatement from which these figures taken was mace
under OATH and If true, the fraud which has resulted I'D
such great the many thousand innocent pohey
holders of this company, has 40 the same ume, ue-
strovcd a business which, under honest and prudent
MANAGEMENT, could but have been prosperous ano non
Orable." ,,.- A.
Mr. Kelsey concludes his report by recommending the
enactng OF such amendments 10 the INSURANCE laws as
NAV seem calculated render their effect more con
ducve 10 the welfare and protection o. the people III TIC
future. =, 49,.
The report Of Secretary Kelsey, nclosng Mr. Facklers
report referred by the Assembly 10 the Committee
on Banks and Insurance