The New York herald., 1877-02-04
LIFE INSURANCE TROUBLES.
The Movement to Gust the Receiver Of
the Continental.
HE IS SUSPENDED BY THE COURT
Vice President Wetmore Indicted by the
Grand Jury.

which werc made returnable there for the removal OF
John j. Anderson receiver OF the dciunc Continen-
tai Life Insurance Company and tho appointment OF
his successor The array OF counsel was unusually
largo and mtlch interest manifested among the
spectators in the uttcranccs OF Of law npon whom
the eyes 900 deceived and sadly betrayed citizens
who held insurance policies IN that unfortunate
life insurance corporation, arc concentrated fehd-
Ing the argument one OF the policy holders
remarked, In the hearing OF tho reporter,
lhat as the beacon light OF Tho ''searchers
sftcr truth'' was moro strongly turned upon the
mysterious ways OF the managers OF the bankrupt
corporation liz question Dickens 'Anglo-B Bengal
Dsinterestcd Loan and Mutual Life Insurance Com
pany," and the metropolitan Hot Muhin, Crumpet
Bakery and Punctual Delivery Company was s'roneiy
portrayed Every legal lumnary present In the court
room occupied, before tho opening OF the discus
sion In the careful perusal OF the HERALps expose
OF "Broken Insurance Companies" and the
knitted brow and pcrturbed manner OF the parties
affected by the exposures contained theren was
clearly defined upon the countenances of tho readers
Among lawyers OF course, tho tablo OF counsel fees
was one of the interesting items of the publica-
,,ou and much jealousy was qriety expressed among
those who had finger in the Continental pie against
their professional brethren who were more fortunate.
THE REcErvERs PETITION.
Counsellor John l.. Hill opened the proceedings by
presenting tho Court the petition OF John D. Ander-
son. as receiver OF tho Continental Lie Insurance
Company, the prayer OF which was that tho Court
would accept his resignation of the Office OF receiver
He also asked that suitable person be appointed as
receiver to whom the petitioner may turn over all the
property; that proper compensation may bo allowed
for his services, and that suitable person may DO
chosen pass upon his accounts and returns Coun-
sci stated that he had endeavored to ascertain the
al nd wb bO ha lD-
pointed IN the action, and he offered his affidavit
showing who had appeared first and last since the
proceedings instituted against the company The
order OF the Court had been served upon all attorneys
and persons interested tar as counsel could ascer
tain tbor whereabouts. Copies OF the petition and
order to show cause had been mailed to Attorney
tiencral Fairchild, to Horny Schmidt, counsel for
the latter and TO the State Superintendent Of In
surancc The question had been raised as TO whether
competent for stocKholder to take action for
bankruptcy and tho power TO take away the franchise
had been denied by the Court OF Appeals That ques-
tion went TO tho very foundation Of all others. But
what Mr. Anderson asks is 10 DO relieved from Office.
ins a0a cond"c, @ Of the recover so that while he
focs that hc has honestly tried to 90 tho duty imposed
upon hin by the Court the circumstances attending
the case are such that he wouldn't be able to satisfy
those who interested in the fund II was there
fore wisc for him TO retire, and that some person
should be appointed in his place who would restore
confidence among interested persons IN the adjust
ment Of the company's affairs.
Notice OF the service and petition have been sent 10
tho following counsel and policy hoders:-Moses
Raphael. b. +. Tracy, John Todd Leonard n War
rem, Nicholas & Richard, George W. Lockwood George
NJ CuN,s, Peter Shield, William Barnes, Frank Rudd,
Henry Schmids VIM. Smith, i. W. Felt, s. G. Andrews,
John J. Finch, NJ. Z. Packman, Richard OGorman, c.
that would be necessary view Of the resignation
OF the receiver, that a new statement OF accounts
should bc presented the Court nasmuch as part OF the
accounts already been presented, and would be
well to present the balance thereof
THE POLICY HOLDERS POLICY.
Mr. Raphael counsel for several policy holders, said
that the receivers report had not yet gono before
tho referee, William Allen Butler II would
acrson. II would be well to suspend HIM
pending the examination of his accounts
BY the refcrec. With regard to the appointment OF
successor to the present receiver counsel said he
should be "a man like Casars wife, above suspicion
fI.aughter,-that no shadow OF suspicion may rest
against him.
Judge Pratt said it was not very likely that the
Court would appoint any person resting under suspi
MI Raphael hoped that the of the Court
would embody his IDEAS, and that Mr. Anderson would
be suspended pending the referees passing upon his
accounts.
Mr. George Warren, who appeared for number OF
policy holders said that oil they wanted was good
business man for receiver, who would look alter the
interests of the policy holders. He had made several
Intellectual attempts to search the books Of the company
In the his clients He denounced the concern
as "A sink of corruption and iniquity The receiver
had covered things up as far as ho could do and the
bcs; thing now lett for HIM get out of his pres
ward q Lawrence, broker, OF No. So Pine
street. Now York, be appointed receiver. II
appointed he would open the books and lay bare
tho facts against the corrupt officials who repre-
sent this company, and who would then
objection was made to Mr.. Lawrence by Mr. Raphael,
ana the name OF Edward Il. Wesley, who had been
receiver for the Union Trust Company, was recon-
mcnded a fitting person Tor receiver.
Mr.. Richard O'Gorman moved that the matter oil
selecting proper person for receiver be referred to
taken until such tmo as he could confer with his
clients
Mr. Richards counsel for policy holders, said he
wanted rather that the appointment of receiver would
be made by Court than by the referee, ms hc had
more confidence IN His Honor in the protection OF the
rights OF his clients,
A LARGE REPRESENTATION
General b. +. Tracy said that he appeared for 120
policy holders, representing about 81, 800, 900 OF
lie insurance money, and he therefore iclt
a special interest in regard to the person
appointed as receiver. ''The facts disclosed In the
paper" Mr.. Tracy SAID, reading IRON the HERALD,
i.provcs the existence OF that which so strongly
pccicd when | drafted the order, which Your Honor
rngrafted in your order, tho motion to appoint
referee SEQ that the results which followed that
appointment justified my. suspicious This publi-
cation gives startling facts to view, and IL
imposes grave duty on Your Honor and compels us
to proceed with our eyes open. The publication dis
closes suspicious action of director the
fer of stock two days prior to the order Tor the ap-
pointment OF a receiver" The fact that the same
director was indebted TO the company for $52 900 a
short time before the company wound up was re-
fcrred by counsel and also that two other directors
borrowed money IRON the company just before tho
failure, giving no other security therefor than the
stock Of the company. The publication, he said,
closed condition OF things that will make tho Court
rcsponsib bic the public and TO the policy holders
tho honesty OF the person here appointed to to the
bottom OF the company, and II there Is any money TO
be refunded by the swndling OF officers that may DO
seen TO. Otherwise II would be better that
oil courts Of justice be abolished, and that
attempts to obtain relief from such operations
ON the part OF lie insurance companies
should cease He asked that the name OF tho person
appointed receiver may be guarantee OF hdeliIy
and vigor IN the administration OF the case 'Let US
have n O arraigncu beforehand
SAID Mr.. Tracy.
Mr.. Tracy said II not arranged satisfactorily to
his clients lie had DO knowledge Of Mr. Lawrence,
except what he had learned in court to day lie hoped
appointment would be madc, except upon the fullest
possible personal investigation by His Honor to
his fitness Counsel suggested the names as samples
to select from OF Charles Storrs Samuel Mclean,
Gcorao L. Nichols and Austin Corbn. The appointce
should be entirely from all social aud personal
Iatopg and cntap clements with those persons who
have been connected in any way with the company.
HOLDERS AGAIN.