New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-29
AN INSURANCE SURPRISE.
NEw-JFRsEY MUTUALs NEW STEP.

NEW-JERSEY MUTUAL'S NEW STEP
REINSURANCE BY The NATIONAL CAPITOL LIFE IN
sURANCE COMPANY OF wAsHINGroE-THE Me-
CEssTTY MAKING A STATEMENT AVOIDED IN
THIS wAY-ALL THE CAPITAL STOCK Losr-No
NEW BUSINESS To BE TAKEN BY THE NATIONAL
cAPrToL-srATEMENTs OF OFFICERs-HIsToRY OF
The TWO CoMPANIEs-THE NATIONAL CAPITOLs
PECULIAR PosITIoN-ITs SPECIAL CHARTER FROM
CONGRESS-.
Another life insurance company with over
ID 900 policy passed out Of active existence
having been completed for the reinsurance
of the New-Jersey Mutual Life Insurance Company Oh
Newark " j. by the National Capitol Life insurance
Company OF Washington d. C. The transaction coseu
ON Saturday by officers Of the two companies and the
National Capitol Life took immediate possession OF inc
office and assets Of the NewJersey Mutual 1t being
agreed that the transfer should date from midnight Oh
Friday JAN 26 Nj Kelsey, the Secretary OF state OF
NewJersey has engaged for several weeks past IN
making examination Of the New-Jersey MUTUAL anu
il was well understood that in case ne shouiu ut
eide to permit the company to continue O"Si
ness another examination OF it's condition wouiu
be begun at once by the Insurance Department
of this State In the Commissioners Rhodes OF
Massachusetts becoming satisfied that the company was
impaired, revoked about week ago ts license W uo
business that State. BY the laws or NeWJersey' IL
was necessary that the company's annual statement
should filed to-day 70 avoid mourning the FISK Oh
having its license revoked by Mr. Kelsey No statement
OF the result of Mr. Kelseys examination mas
been made public. but 1t has Deen eeneraiiS
understood that under the rulings OF the
State departments assets Of the company were not
equal to it, Liabilities. and it is believed that the COM
pany was unable continue business unless II couid oD
TAIN outside and whether its statement was fled
On account or this state of affairs application was made
several weeks ago five six other companies for ouS
for reinsurance Nearly all of them declined to consln
the question favorably proposition was hnaIy hao
by the National Capitol Life Insurance Company OF
Washington about three wees ago. which resulted III the
transfer Of the Newersey Mutual to it, stated above
The New-Iersey Mutual had over $4,000 outstanding
rocies about 5000 Os which belonged to the Mddle Dc
partment, under the supervision OF H. W BALDWIN, anu
lis total admitted Jan. l. 1876 according 10
the last annual report of the New York state insurance
DEPARTMENT were 81 500 ss1 30 with surplus on
policy holders account OF 1865 1913 90 Since the failure
Of the Continental Lfe about 1000 Of the policy holders
of that company transferred their insurance to the New"
Jersey Mutual, the transfer being made by assigning
their Continental policies 70 the NewJersey Mutual IN
lieu of which they accepted the policies or the latter
company.
J. H. stedwel, President Of the New-Jersey Mutual
was not in the city yesterday, Int Mr. NoyrS President
Of the National Capitol stated to TRIBUNE reporter aSt
evening that the OF the reinsured company wouu
amount to II 200 900, all of which had been transferred
TO his company. and in return for TINS Trans
fer IL had agreed to all the risks OF
the New-Jeisey Mutual. The stockholders would lose
all the capital OF the company. which amounted 10
100000. About One-fourth OF the policies were wnat
was known 20-year term policies-tlat Is II the IN
sured should live full specified. the insurance
voud cease without any further liability to the com
many IL WAS not the intention of the National Caption
Company to con taking rev business and rs the
company was Ting under special charter granted ny
Congress it would be required 10 make any state
ment OF It's condition. deposit of 100000 would be
made and with the Treasurer II the United states or
Inc benefit Of all the policy holders Of the company
The Nrw-Jtrscy Mutual Company was organized Jan.
/ 1865. The Craftsman's Insurance Company was re-
insured by Hope Mutual Lie, both of this city The
latter afterward passed the hands of receiver and
most of s policies relnsured by the NeW-JrrseI
Mutual The Hercules and the Common" ealth
Lie Insurance Companies were also re
insured directly by the NewJersey Mutual
and as before mentioned, the New-Jersey Mutual had
begun the reinsurance OF the policies OF the continental
Life Although its home Office in Newark themain
Office has been in city several years The officers
at the Of the reinsurance BY the National Capitol
were j. H. Sleiwel, President; r. G. Frost. VicePres-
dent c. II. BrinkcrLof, Secretary, anu j. H. Clnnf
Cashier The Messrs stedwe!l and Cannf
n n Halscd of Newark, Garrett d W. NrOon Of TRENTON
Garrett Hobart Of Paterson, q. W. Murray, Vlcc-fres
dent OF III, German-American Insurance Company OF
this city and Mr. Giles, and Mr. Wales, OF Giles Wales
The present officers Of the National Capitol Life are
BENJAMIN Noycs President, j. \. Mortim0re Secretary
and Henry d. Walker, Treasurer. The home oiicc
or the company is at Washington, but II
also has an Office at No. 40 Broadway, in
tin, city and another New Haven The company WAS
chartered by special act OF Congress several years ago
with capital of $lJOOoo, and subsequently transacted
husness in some OF the Western States after which 1t r.
insured its risks in the Pennsylvania Mutual Life Ils
rance Company Of Philadelphia. About year ago It's
charter was purchased by Benjamin Noyes President of
the American National Life and Trust Company OF New
Haven, C1nu winch had previously rensIrcl
tie American Mutual Life OF Ncw-HaYen
and the Hartford Life anl Health Insurance Company OF
Hartford, Conn, and N IinllgamdtOn was eHeceu by
which the risks Of the American National Life and Trust
Company were assumed by the National Capitol
Life Company. Neither company has transacted
any new business since the close OF the
contest with Mr.. Sedman, Insurance Commits
sioner Of Connecticut, in which the commissioner
attempted to wind up the American National ifc and
Trlls; Company An arrangement made for the re-
insurance " the NatOna! Life ~ tins city by the New
Iycn Company, but Nh Noycs saeg last evening that
owing 20 his failure 70 obtain ne deposit Of rlOOOOO al
Albany belonging 70 company, the reinsurance had
not b4rn completed and TIE National CdpitO conse-
gnautly in no way involved In the matter.
A circular viii bee issued to-day by Mr..Stedwell in
when he Will state substantially that owing 10 the great
diversity OF State lawA by which Insurance companie.
are subjected many kinds OF laws ana standards "
valuation as there arc which they transact
business AM Of fidelity the interest Of the policy
holders which Is their first great care the risks OF his
company haye transferred 10 the National Capitol
To tis Will be added statement from Mr.. Soycs u the
effect that the has been made for the prorc-
OF the policy LudeTs and for other reason aud the
contract viii therefore he carried out good faith the
insured being Afforded every available facility for
the National Capitol to the amounts for which
they are insured respectively.
In he preparation OF the contract for the reinsurance
the Ney,Iersey Mutual was represcnted by ex-Judge