, 1877-02-08
A Chapter About Recent Dis
asters.
rice-Insurance Wrecks and
Rascality.
Officers Indicted for Perjury and
Fraud.
How the Companies Feel tho De.
nlorntization.
fbt Life Association In Tllit1t Intercourse with
Bankrupt.
A Big Steal for. the Albany Legis-
lattve Lobby.

A Big Steal for the Albany Leqis-
lattve Lobby.
sprefd, Correspondence af The Tribune.
New Yonk, Feb. 5-ff you know what d quiet
excitement mcans-tlosc two words exactly
describe the present situation In life Insrancc.
Tie companies which arc Inherently strong md
alunttantiy able tO atnnd the shock art like tho
prudent ftuarlncr who secs storm #. tho dis.
tancc an,l at unce begins to shorten sail Those
vhiel, arc colossal IN their financial strength
used to laugh ut the failures of such companies
rs tho Hercules aud Anchor. Their officers
smiled co,nptacently when tic Continental and
Security passed. away. The fa,luro Of the 81.
Louis Mutual killed In the house uf tta friends,
did not disturb thcin. They smile lcss about
the New Jersey Mutual, nnd arp not now 50
surc that tho growing llstrust Of llfc-insuranco
by the public docs not forecast futuru trouble.
Thcrr Is gratlo OF companies which nrc neither
the highest nor the lowest In asscts which must
DO seriously affected by thcac multiply
Ing disasters, md tl,r!r lntc as to future
business tseublcs In tho ba1ancc. They arc IN
tho main believed to be honestly aqd faithfully
managed, hut II their Income Is diminished, and
their customers leave them, their doom Is aeal
cd. Should these companies succumb then tho
turn Of tho mammutlls will come next, md that
is whore the sloe plncllcs IN tile present condi-
tion Of aiIaira. On the whole, the situation is
serious.
BANKRUPTCY or TIN NHw JERSEY MUTUAL
Things OF this disaster have nlrca1y been
flashed over tho country. Coming upon tho
heels Of tho Continental ,lnsco, It produced an
Impression upon tho community decidedly un-
favorable to honest management. II Is only d
few weeks ago TINT tic President Of this cotnpa-
ny, in response TO attacks upon It's officers for
eDlluslon In the failure Of the Continental, as-
surcl IT'S patrons that tho Company was all
Right, md that It's officers t1cdcd Investigation.
Yet It was this identical investigation 10 val
iantly dcflcd that led to Tho downfall, or
rattcr the exposure, Ut tho Company. Tho
investigation was begun by tho Secretary
VI Slate OF New Jersey To cseapc tho sharper
md more piercing examination feared by tic
Now York department. Tho oillcers Of the
Company evidently expected at tho outset tint
they could llumbug and doccivc tic New Jersey
official ly cooking their aflatrs In such inahner
rs to pill wool over Ills cy0s. Luckily tho acc-
rctary Of State called In MIR. D. T. Fack1cr,
actuary mud mathematician, 10 assist In c1-
a,ntnatto,I. When t!loy discovered that Mr..
Fucnser uutlcratood Ills busiucss they forthwith
began to weaken, Tho investigation WIS
a,, WIZ .,'n fna''aan", "s n",,n..m,. - va.
sayhusctts anI New York grow impatient, aul
demanded report Of the examination, and be-
cu,.sc II wus not forthcoming on tho Goth ulL,
tho Massachusetts Department cancelled It's au-
thorlty for tho Company 10 do business tn that
StAtc, nl,sl on tho 9Th utt. the Stato Ut New
York followed sui. THO New Jersey official,
tired with waiting for tho Company to mako
good It's 'oat capital, Oh tho 90tl nlt. applied TO
f1,.aF
OF Receiver, Judge Tho establishment OF the
home department anil the tAlltc, when It was
an,,or1lec1 tiqt ll,e Company l'a rsns,rcd It's
fsIs IL ths National 4i'.a carItal, Of Washington
TltE HAAAlC or pALsENQon
ltpon which this rotten concern }Ias been rcstng
for several yeara tlus been fully exposed. f1au
etcr,, uni rigorous Justice hcesl done. tic affairs
IN tic form of crlnllnn prosecution OF its ull-
GERS long ago: The Company - sworn statement
" Dec. ", !S1b. Was taisc. II quilted tn the
list Of liabilities an Item OF siH,oou, which
would llays Impaired tue eapitul: Ill thc recent
Investigation t'e Company's officers produced
tatscr lung delay, tln'ler very huep!ci0,ls cir-
cums.ances} United Suites bolMls worth $lAl, u0
md Southern s'a,a n"'!ds to the value oi t5i,soo
more, but they fasled to present any evidence
whatever that tleta hotuls Wcrc tho ls'na fie
property of the Conpany. They wcrs langlera
as we'll as knascs, a. they failed to
&tsd how, auu fur wlMt price tho hun4s
were purchased. Thu suspicion that thu bonds
wert ilot tho CUnpany's property has Blncc been
verified. Tllc 1nct 0f tho CDnpafly'E Insolvency
was tleyulolsot VERY carly In thu Investigation,
but II is ,:reat p'ty that Its full uxlcHt ts thus
farunknown. 'rl,u actnary seemed TO proceed
upon tllo tden that tc Company was worth saw.
lug II pHss!hg, anl when Ilu fOtthti that this
was impossible, ho saw ou1Y tue surface iacta.
and not the full depth ut tho fu!achool, which
llsnkcs Insolvency u llItfil term. The nHscts, Us
rrportctl, were only anil s!Ie liabilities
Ut all kiutls q tS}J, pW. Thu details 0f this
statcment atu u shocking commentary upun tho
honesty VI tho men WHO faye tecli L3nlli1Ig
widows anil Orphans, It would require
column to analyzc II item by Item, aud show
wherein thu cyi4curc Ut rase1tfty exists.
THE TRANSFER ro THE NATIONAL. cArlTal4
II ever u set uf swlnhieL creditors escaped
frutu tho frygpan tntu the trc, It IL the policy
lotders Ut the Nov Jcrsvy Mutual. Ttu trau+-
fer In }s f,nEjtn1 ftf ~ Wnslkln,rtf