The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-30
THE NEW JERSEY MUTUAL LIFE
AN ATTEMPT TO AVOID RECEIvERsHIP-THE
TRANSFER TO THE NATIONAL CAPITAL rNsUR-
ANcE COMPARATIVELY SECRETARY OF STATE
KELSEY SAYS
[BY TELEGRAPH TO THE HERALD

By TELEGRAPH ~ TIE dERALD.
TRENTON. Jan. 20, 1877.
The New Jersey Mutual Life Insurance Company is
making desperate effort escape the hands Of
cever on its part tbatwas some timc since
anticipated in the HERALD In series Of articles
posing this company's condition. After tho examine
ton was begun by the Hon. H. G. Kelsey, Secretary Of
State Of New Jersey, the HERALD positively
stated that tho corporation nsolvent Two
courses pom to ia dissolution or a
repay mont Of Its capital; the former option would
have revealed strange things about questionable
tcrprises the latter alternative would require too
much money. Tho company's managers, therefore,
adopted proceeding by which they expected not only
avoid further scrutiny, but Also may be- to profit
ably dispose OF their trust reinsurance by the
National Capital concern could not have been mado
with a view OF serving tho interests OF tho policy
holders, and SUCH resort is unhcsitatingly con-
demncd by The better class OF insurance men and
other well informed people. The nnaigamaton was
syly effected not openly and honestly, should have
been done, II warranted by the circumstances The
nminers we're deceived and II was not unti transfer
had been consummated for moro than two days that
the secret was diynlged Benjamin Hayes, President
OF the National Capital, has taken possession OF the
New Jersey Mutual, and claims TO have assumed all It's
assets ana liabilities. With how much Of law and
right this transfer effected remains 10 be seen
AN INTERVIEW WITH SECRETARY or STATE KELSEY.
A HERALD representative visited MI. Kelsey, ut
Trenton, last evening, and obtained from him an ac-
count OF tho examination and the circumstances
preliminary examination OF the New Jersey Mutual
Insurance IN september last, preparatory 10
more thorough ono commenced on the 18th
OF December, when Mr. Fackler appointed
10 conduct the investigation The officers Of
the company protested and asked for another
person IN his stead. Mr.. Kelsey, however, had the
best possible evidence of Mr.. Packers mpartiaty
aud declined to accedc to their request for his 70
moval FROM the commencement of his labors. Mr.
Fackler was constantly annoyed, his motives i'm
pugned and his Conduct AMI character assailcd by
o0ccrg OF the company. Notable among these assal.
ants was Il. w. Baldwin, whose connection with
the company was af,erward proved TO be
OF not very commcndnble character Mr.
Facklcr asked President Stedwcli TO produce
the United States bonds claimed by the
company to tho cxtcn. OF tls2, 600, which was re-
luctantly complied with, and only after second de-
mand had been made by Mr.. Kelsey, in person; tho
bonus had been kept In New York instead OF Newark,
where they belonged. During tho course OF
an examination OF Mr.. stedweIi, under oath, II was
discovered that SI 900 OF these bonds had been hy
pothucatcd to loan from the Chemical National
BANK; the transaction made by Mr.. stcdwcl him
solf, aud with authority from the board OF directors