The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-07
LIFE INSURANCE TROUBLES.

IMPORTANT EVIDENCE TAKEN BEFORE REF
FREE DUTLER---G. HILTON scRIBNER UNDER
ExAMINArIoN-rHE EXTREME LIpERALIrY OF
THE OFFICERS TO THEMSELVES.
Tho Continental examination resumed yesterday
before Referee William Allen Butler, at No. % Nassau
street Despite the desire OF Mr.. Butler TO conclude
with that meeting there much additional evi-
dcnce which counsel desired get In that adjourn
ment was again necessary.
Mr. Sanger, former director testified that no dis.
posed of his twenty five shares of stock In 1873 by
hypothccating them to Edward Horr, who sti holds
them.
q. Hilton scrbner, whose namo has appeared prom
inenty In reports OF transactions discussed IN former
proceedings, and who was subpenaed TO appear
time since, was then and testi.
fed that he had been director Of the
Continental from It's organization until about
a year ago, when no resigned; became disqualified
for such ohlco by tho disposal Of 2l5 shares OF tho
company's stock; considered that he owned ITO
shares absolutely because they purch Al the
desire Of the officers Of tho company; tho stock
James G. Colgate, George Hill and George W. Smith
was thus bought; after this stock purchased
tain loans were made upon t-witncss obtaining
loan Of $l0 625 upon 1U5 shares OF stock Mr. Colgate
was paid $500 per share for his stock; II under
stood that the loan witness but temporary with
the understanding that he was being used Dor.
rower, tho obligation to DO discharged by tho CON-
pany; witness ceased TO be director In the Loaners'
Bank 1875; the 2lst day OF April 1876 he trans.
ferrcd hts los shares OF Continental stock entro to H.
q. Frost
from liability to the company and the assumption OF
tho same BY Frost.
MS coxSEcroS WITH THE LoAxERs BANK
He testned that he sold altogether at that tmo els
shares for what II cost MN. He shown two scks
drawn tho loancrs Bank but he did not recognize
ton witness testified that he lost something by tho
failure OF the Loaners' Bank the amount wrs some
thing like $500 or $500 was director TO the tmc Of
the sale Of this stock; knew OF loan from the CONT
mental TO tho Loancrs' Bank at tho time no sold his
stock no did not know OF tho condition Of the Loan
crs' Bank; was very much surprised ut the
banks failure; withdrew from the bank account
oil the change that made Ia the Board OF Directors
without consulting him: 1t was purely accidental that
he had small amount deposit at tho time OF
tho failure Attention OF witness WINS called TO
luton, offered at meeting OF tho Continental direct.
In 1872 Tor the purpose OF Withdrawing tho
pany's deposit from tho Loancrs Bank He donied
all knowledge Of the matter. lie was also shown a
resolution authorizing the payment Of annuitics TO tho
officers OF the Continental IN addition 10 their salaries.
He knew that at some time tho directors passed such
u resolution. Ho described the manner In which tho
officers were paid stated salary. part OF which was
gwen IN the shape OF an annuity bond, which they
could cash the end Of the year Witness thought
this method Of payment was In vogue among other
companies
A SINGULAR OFFICE
Witness was paid salary Of So, 900 per annum
AUDITOR that title was msnomcr, for he never per-
formed any oil duties winch devovc upon an audi.
tor; when the Empire Mutual was rcinsured by tho
ting some agency affairs; he became familiar with tho
Continental matters. and he was appointed by resou
ton TO confer with the President upon detailed
penscs and disbursements he paid tho above SAL
AIRY for these services, but could conceive
for being designated tho auditor.
Witness was then examined with regard to certain
entries TO his account In the ledger. He testified
that he received moro than per cent IN dividend
thought the extra dividend was twelve per cent; did
know that the dividcnds paid by the In
dividral check OF X. G. Frost.
The reference here adjourned until Two O'Clock this
afternoon.
THE NEW SUPERINTENDENT.
Mr.. John A. Smyth the recently appointed Superin.
tcndcnt Of Insurance. Is IN town looking the held
OF his new duties. Ito stated 10 HERALD representa-
tive last evening that he felt the responsibility and i'm
portancc OF his trust and fully appreciated the great
pubic interest that Is centred now in insurance mat
ters lie had just commenced active service In the
Department. and intended To push forward with
zeal the line examinations now commenced
Mr. Smyth Is not posed to pave the future with his
expressed Intentions, out will quietly assume his yet
unfamiliar office with dctcrmn to secure TO II
the entire confidence OF the public
Mr.. John A. Mccall, Jr, has been retained In his
position OF deputy superintendent new commissio
TO that effect being given him n few days since.