The New York herald., 1877-02-17
INSURANCE TRIBULATIONs.


THE APPOINTMENT OF a NEW STATE suPEnIN-
MISUNDERSTANDING THE coSrISENTaL Of
yIcERs-wHAT WAS ELICITED At THE REP
ERENcE PROCEEDINGS.
The appointment OF State Superintendent has
disturbed tho outlook OF Insurance matters
in this city, What OBJECT the change will create IN the
present programme OF examinations, ard ho~, II Ut
a, II will influence the disposition OF rsolvcnt con
Germs, questions Of foremost consideration Per-
haps at any other time tho appolatmcat OF new head
OF tho department would have occasoned compnra
lively ,le concern but in presen. crisis Of l!c
insurance affairs tho event is doubly enhanced IN I'M
portancc and public interest
Tho appointment OF Postmaster Smythe geuer-
ally Unexpected though u has been conceded Tor
weeks past that some ono would soon succeed Mr..
william smyth in the Office. strong opposition had
shown itself toward hiin. while none Tor moment
doubted his integrity and honesty Of purpose Many
who endcavoripg 10 strip tho long masks
from bogus insurance corporations fear that tho
change In tho office Of superintendent Is m convention
oil the enemy intended in somc way to thwart the
dcs.re investigation ana public exposure OF DIS
honest officers
number OF policy holders in tho Continental, Sc
curity and National Lilo Insurance Companies Tor
wardcc petition to tho Senate at Albany, expressive
ot the above apprehension. This petition rccited in
forcibc terms the value OF the services OF William
Smyth acting superintendent, and especially dwsit
upon the need OF his services ut the present time IL
concluded with appeal to the Senate not to confirm
any appointment 'desgncd to superseac tho present
Insurance superintendent, William sluyth, until he
has completed his exposure ol life insurance frauds
and brought the guilty parties to Juscc
OF LAW.
II Is not known whether the conf OF the
On rntc wi De AL ulufh he
Deputy Superintendent. John A. Mccall, Jr,
whether he VIII remains In bis position, at cas. until
he shall have finished oi the important
aminations that he has commenced Mr.. Mccall
went yesterday afternoon 70 Albany having before
Grand Jury for the purpose OF securing the
indictments oil tho President aud Secretary of
tho Continental Life Insurance Company. BY the
action OF Receiver Grace, cIvi proceedings oil most
stringent character have been commenced against the
Continental officers VINO are supposedly decent N
already prepared and will at once bo served
secure the property OF the TWO Frosts at Yonkers
Nothing vet has been developed in regard TO the
New Jersey Mutual securities now in the possess on OF
the national capital Negotiations are yet IN progress,
and 1t IS thought that some settlement may be obtained
curly next week.
a the books and Office materials to apartments OH tho
floor Just the former location He says that the
original room was more than large enough and can be
rented while at the Same time he hopes that the
moval 10 another story may serve to fumgac In
degree the books and accounts OF the company
rnE CONTINENTAL EXAMINATION.
tinued yesterday Afternoon at No. % Nassau street.
The irst witness +. Barnett, the former agent
OF the Continental for New England Ho testified that
he had been AN agent Of the company from its first
existence; accounts were squared monthly by check
from his oilce in Boston to the man Office in New
York; mover knew until this week that there was
charge against his agency on the books OF the
pany; the company had never advanced any money to
him, excepting his proper dues.
The books were then produced before the referee,
showing balance charged against the Boston agency
OF sl5s, ,603 TO- Witness said that this balance could
hv unv eyl Ia Uiv no rsuso
tor It's appearing ON the books as II did, such
count had been rendered him nor 1t ever the sub
jecI oi correspondence; Receiver Anderson sent
him certain Instructions relative to the settle
ment OF some pending suits; funds to the
amount OF $39, ,03y 90 remaining at the Boston
agency were retained as por contract; witness
slockholder, and informed that he had been
tion. aud never had attended any meetings OF tho
Board OF Directors; never received any loan upon his
stock, ana had the same now In his possession, in
Boston, amounting to $1,000 when witness sent Oh bis
account 10 Receiver Anderson the latter wrote him
that doubtful could be passed, SO far tho
items Of charge the Boston agency. since ho had
been receiver, were concerned.
BALAXCEs.
George w. Thomas the former booKkeepcr OF he
Continental, examined with regard to diverse
tries existing the bo0ks He said that the balance
due from the Boston agency OF $l5S,662 TO- was Tor
advances made agents. 1t should have been charged
up long ago. when the Receiver took possession
81 O00,O0 Of such advances to agents outstand
nual statement
NJ H. Parrott was called to the stand and presented
list OF suits pending against Inc company. witness
said he had becn connected with the Continental since
1873; 1t to his knowledge that In 1875 l. W.
Frost became OF tue directors OF the New Jersey
Mutual Lie.
JohnJ Anderson was questioned with reference to
the suits pending against the company knew
OF no others than were ON tho list presented
by the previous witness, comprising about forty
suits; owned some certificates OF tho Hope Lite In
surance stock IN Decemoer, 1874; was West when The
Hope ANA lgamated with the Now Jersey Mutual; never
received any money from the New Jersey Mutual or
IRON J. H. Sedwell Tor distribution among the Hopc
stockholders
John A. Brady testified that December 81 1874,
he was director OF the New Jersey Mutual Lilo In-
snrance Company; before that time he was director
q portion Of the New Jersey Mutual risks
in tho Continental; no one received ponny
for the transfer OF tho Hope to the
New Jersey Mutual or the first sale OF the Now Jersey
Mutual the Hope; sold his stock in the Hope TO j.
H. Stedwc for 600; some oil the iricnds of wit
also paid S32. 900 for their Hope stock,
which was covered by New Jersey Mutual certificates
J. IL. Stedwe said these certificates worthless
worded that they could not constitute legal
claim they were paid nevertheless.
As the witness left the stand he asked tho referee II
tonablc payments from tho Hope, the New Jersey
Mutual or the Continental Being answered the
affirmative the witness looked satisfied aud muttered
.l'm going for some scaips; they sad $4,000 had
been divided up among US.
l.. V. styles, tho former cashier of tho Continental
Company, testified in regaru to the accounts OF WILL
X Biaxc the California agent OF tho Continental
He Know Of a contract Tor The purchasing OF policies
which was in the handwriting OF X q. Frost
Mr.. Thomas, the bookkeeper, was recalled and read
from tho account OF William X. Blake the amounts paid
him from time under the contract Tor the pur-
chase OF polcIes between July, 1874 and February,
1876. about S250Oo was credited to Mr. Blake's ac.
count.
Tho examination then adjourned until Tuesday next
at two O'Clock +. NJ.
cANrTrCT CANnDETT,c nEAnu