The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1877-02-06
From the N. Y. Sun, 30th ult
ANOTHER OF THEM RUINED.
NEW JERSEYS MUTUAL LIFE
INSURANCE COMPANY GONE.

NEW JERSEYS MUTUAL LIFE
INSURANCE COMPANY GONE.
BY reason Of derr, citation in values,
contraction and denoraliz of husi-
ness, the rigid terms OF The insurance
laws Of the several 5 ales, together with
the If ct of the publicity given TO tx
amlnaiions by the insurance departments
of these States, say the officers of the
New jersey Mutual Life Insurance Com.
pany, the company has found il neces
sary to reinsure in another company -
This action, they add, was taken upon
the advice of friends and counsel, as the
best course TO pursue iE the interest of
policy holders For some weeks Mr..
Kelsey, the State Superinten lent Of In-
surance Companies of New jersey, has
been making an examination of the con-
dition Of the company. 1t was we'll un
derstood that the result of that examin-
alton must compel him to put the COM
pany in the hands of receiver. To
avoid this, the proposition of the Ma,
lional Capital Life Insurance Company
OF Washington, D. C.. to take the as
sets of the N.w Jersey Mutual, and as
sumo all its risks, was accepted. On
Salul day last the transfer was made.
The New Jersey Mutual was organi
zed in January, 1865. II has absorbed
the Hope Mutual, the Craftsman, the
Hercules, and the Commonwealth, and
recently had begun the reinsurance ol
the policies of the Continental. Accor
ding to its last annual statement it had
10,755 policies in force, covering Sl9,-
$50, l23. It's accumulated assets amoun-
ted to SI.20S,SSl 80 and surplus OF
S365,725 80 Ii the policies are con,
tinued, the amount of assets transferred
t" the National Capital are at least 81,
100000 If the policies are not con
tinued. however, at least one-half Of thai
amount will prove of mo value, being
policy holders credits.
The National Capital Life Insurance
Company WAS characiercd by Congress
in 1866 Its character is perpetual, and
the company has the right to do bust.
ness in any State, subject to the Safe
laws About one year ago Mr.. Benja.
min Noyes, President of the American
Mutual Life Insurance Company OF New
Haven, secured the charter of the Ma
tional Capital and reinsurcd 10 it the
risks of the former company. At that
time the National Capital had paid up
capital of Sl50,000, but no risks Since
that time neither company has transact
ed any new business. s7st ,..,
Mr. Stedwell, the President of the
New Jersey Mutual, was yesterday ir
Washington, where he had gone to make
the legal transfer to the National Capt.
tai Company of the 100000 of bonds
deposited in the Treasury Mr.. Noye:
was in Newark aA day looking into the
affairs of the New Jersey Mutual =
There was rumorJthat an effort was to
be made 10 enjuin the officers of the lat
ter company from making the transfer
But Mr. Noyes says it is too late, ''tht
contract is signed, sealed, and delivered
and the assets already turned over"
Some persons are curious enough tt
ask, If the New Jersey Mutual find tn,
laws too stringent to carry on its bust
ness with profit to itself and security tt
its policy holders, how has it bettered
the matter by reinsuring its risks in the
National Capital, that has to comply
with the same State laws?" q
Mr.. Kelsey, in Trenton, last evening
said the transfer was one of the great
est frauds ever heard Of in the histor,
of life insurance, and that he will no
recognize it, but will apply to the Chan
lcellor Tomorrow for the appointment o
a receiver who will act for the interes
of the stockholders and insured. HI
says the National Capital Company ha
!. only mythical existence; that Noyes
the President and sole owner, is a well
known wrecker of insurance companies
among them the American Life an(
Trust Company Of New Haven; that th
Nitional Capital Company has no righ
to transact business save what it ma,
have acquired from the wrecked Ameri
can Life, and that he will therefore re
fuse to recognize it in any manner il
New Jersey. His suspicious were frs
aroused by the appointment of Ander
son, formerly an officer of the New Jer
sey Mutual, as receiver Of the Continen
tai. He concluded that they though
they could not arrange to have collu
sive receiver in New Jersey. They trie.
to quarrel with Fackler, the competen
expert appointed by Superintendent Kel
sey, who found their books so mike,
that they could not tell assets from liza
bilities. They made evasive promise
to show further books and securities
and brought political and social indn
ences to bear to have him removed Su
| perintendenti Kelsey directed him Il
! make a report, estimating such figure
as he could not furnish, and he reported
probable deficiency of S420,5 500 ol
the 9th Of December. n The Superinten
dent directed the company to make goot
the deficiency on or before Jan, 80 o.
Thursday last they informed Mr.. Nc
Carter, Superintendent Kelsey's attor
ney, that they were not able to maxi
good the deficiency. He thereupon tool
steps tefore the Chancellor for the ap
pointment of receiver. The first in
formation he received that they hat
made the fraudulent transfer was yes
terday morning while on his way to th'
Chancellor's Office in Newark Mr.. Kel
sey called on Noyes, who confirmed thu
! story. Mr.. Kelsey told him he woult
not recognize 1t. There are good mort
cages and other securities deposited
with the State Comptroller, to th'
amount of S150.000, which they claim
but which Mr.. Kelsey, as the Superin
tendent of Insurance Companies, car
reach and they cannot.
1t was said in Newark last evening
that all the mortgages and other asset.
of the New Jersey Mutual Life Compa
ny had been removed from the Office il
that city to New York. This action wa
taken as an attempt to place the mort
cages and assets beyond the reach o
the New Jersey authorities The legali
ty of the removal was questioned BY
several Newark lawyers with whom th'
reporter conversed. Mr. Noyes, tn,
new manager. took formal possession