The New York herald., 1877-02-15
LIFE INSURANCE TEXAIIONS.
Some Valuable Testimony Before the
Continental Referee.
EXPERIENCE OF SOME AGENTS.
The New Jersey Mutual Securities-Can the
Company Be Revived!


insurance Company, has stated several times Of late
That whenever formal request should bo made for
return OF the New Jersey Mutual securities
they would be retransferrcd at once. II has
created considerable surprise that such an
amount OF property should not yet have been
reclaimed, H. as alleged by Mr. Walker, IL could be
had for the asking. A HERALD representative, who
thus put question 70 Governor Parker Receiver OF
the New Jersey Mutual, told in reply last even-
Ing. ssAil say that subject is that We arc
doing all We obtain those securities and have not
yet succeeded
rhis would suggest that. In spite OF Mr.. Walkers
statement something more than simple request IS
necessary the OF the property tho rghtfu
owners. Governor Parker was to have held further
negotiations with Benjamin Noycs Tuesday last.
but the latter tclegraphcd to Newark that his illness
would necesstato postponcment Of the meeting.
Yesterday Governor Parker was in town
and presumably had an interview with
Noyes, but he declined to say what had occurred,
the grounds that it might embarrass further proceed
ings in some degree. Rumor has said that these
curities not in Noyes possession, but rest
securely beneath tho watchfu eye OF j. II.
Stcdwell, tho former President Of the New
Jersey Mutual. That gentleman is declared
to be in town, and his friends say is waiting the
making his true position known. Ono gentleman
stated positively to the writer that Mr.. Stedwci in
policy holders, and was lending what assistance he
could thereto
TALK OF A REVIVAL
There has been discussion of the practcability
Of putting tho New Jersey Mutual on It's feet once
moro and avoiding II possible the disastrous loss that
must happen to tho policy holders from dissolution.
Al present the company is merely suspended, as
It were, and final action for dissolution
viii not be taken until the 2eth inst
men any company unless too badly lnsolvent.
by economical management and careful nursing Of its
interests be restored to hcaithlul and prosperous
condition. This Is claimed because ol the wonderful
recuperatve power OF Ito insurance companies One
:he New Jersey Mutual that ho thought such
pf restoration was practicable His plan would be to
have another valuation OF its policies made upon
commercial basis Ia matter that optional with the
Insurance Departmentl ana make good whatever dcii-
cheney there might exist. Give the control to num-
ber OF able and trusted mon, who Should the actu
ary expressed It, '.sit conccrn until by lapses
Of policies ana absence OF expense the new phoenix
would come forth.
favor Of revivng the company 1t IT were possible but
he did appear to be very confident of the achieve
depend largely upon the o deficiency found to
exist and commonly believed to be too great 10 be
replaced.
Yesterday afternoon the examination of the affairs
OF the Continental Lifc Insurance Company was con-
tinued before the referee, Mr. William Allen Butler, ut
No. % Nassau street. Mr.. Martin 4. Parrot was tho
first witness examined He was manager oi the claim
department of the Continental Life Insurance Com
pany and read list OF the following claims pending
Dcath claims examined and allowed. . . $4s, ,s25 10
Approved and not due. ue.................. 37,0l6 SO
Claims filed, but not acted upon ny the
committee, although unquestioned. ...... 23,S2S So
Notices Of death received, but not acted
upon .................. So, O9s 90
Disputed claims, in witch proof had been
furnished OF their legality ........... 222 sOs 90
proof OF legality was rendered ......... 6s,4s4 90
Total. s4a5, ,oeI Al
e..
that he was connected with the management OF the
agent there tor eight ycars his agency mprsed
States of Illinois. Iowa. Nebraska and Minnesota Mr.
Hammond was IN Chicago in March, 1876; Hammond
had been in San Francisco Tor the CON-
pany and told witness that his share OF
Tho profits in that city was $4,000 IN gold,
Hammond told witness that had he not been called
away suddenly from San Francisco on account OF his
IONS illness he would have taken away at least 500 O00
In Chicago in the OF Mr. Arlington policy Tor
b45 had been purchased the $45 was handed to Mr.
lllngton and he ndorsed draft on the company in
blank; after he was gone Hammond hed out the draft
or 500 and took the extra Sl5 offering 81 so Of It to
ritncss, which the latter refused.
MIR. HAMMoND's DARK WAYS
Several other similar instances OF Mr.. Hammond's
'ascality were mentioned by the witness Mr.. Ham,
mond told witness that he came there To mako money
ent wavs of making money. He oitcn boasted OF tho
amounts he had taken IN order TO get witness to join
him in his fraudulent transactions. He was gong
Pnts smou.h and told witness that he twitnessl could
make 81, 00O by going with him. Hammond, hndlng
he could not induce Metzger to 20 with him, took
named Taylor, and agreed to divide with
Taylor what they maie by derauding the COM
pany. All this time witness kept writing 10
his superlors in regard to Hammond's trans c,ons
Witness wrote daily to Mr.. g. II. Frost about Ham,
mond. The latter went SO lar as to publish circular,
signed by j. I. Rogers, stating that the company had
decided withdraw their agencies west OF the Mssis-
sppi River The purpose Of this was 10 irghten
policy -hoders into Withdrawing their policies. then
Inc premiums would be returned 10 them ard draft
On New York would be made out purporthg TO cover
the exact amount OF policies paid but reality being
mado out Tor much larger amount; Witness told Mr.
Rogers also about Hammond.
THE CHICAGO AGENT TEsTIFIEs
Mr.. Charles II. Frost was next called. Ho said he
had tccn general agent OF the company In Chicago;
had received letters from Mr. Metzgcr, In which the
latter spoke OF Mr.. Hammonds transactions; some Of
these he kept, others were sent on to Mr. Rogers
acknowledged the receipt OF these letters witness
in New York last February and talked with Mr. I. W.
Frost IN tho Presidents room; Mr.. Frost had spoken
OF taking up paid up policies ana discountng thcm
ana thought of sending special agent TO the Chicago
Office for this purpose; he asked witness how he would
like to have Mr.. Hammond sent out; witness replied
that Mr. Frost knew his twitncssD opinions about
and that it was not necessary to repeat
them, after witness had gonc oacK MI. hammond was
sent 70 Chicago To him.
Mr Moses at this point was asked BY the referee
what the purport Of the examination was, aud replied
that IL was TO show that the officers OF the company
knew OF Hammond's fraudulent transactions and
continued him in their employ.
Witness said that when the reports were circulated
by Hammond In regard TO the Insolvency OF the CON-
pany he wrote to Mr. Rogers asking him about tho
ports and received the following rcply:--
NKw YORK, jane g. 1876
My DEAR SiR:-
Concerning matters in recent letter received from
have TO say do intend right along with this
company keep going along and expect TO keep
and do business the Continental PLAN and don't see any
now why can't keep doing It, So put In all
you an you yours We doing our eve best here.
TO ahead p, .,
Very truly yours, d. ~ II.
Mr. John S. Marcy was the next witness. He testi-
led that the American Tontnc Company when II went
out business rcinsured all It's policies to the amount
,r about $780, O00 tho Empire Mutual Lie Insurance
Company.
INNOCENT MR., BALDWIN
Henry w. BALDWIN testified that he was general
manager of tho New Jersey Mutual Lille insurance
Company for the middle department; he Lad heard
th at there contract for rensurances with the
Continental Company, but could give no positive IN
formation about II; certain securities had been
transferred Tor this purpose from the continental 10
Tho New Jersey Mutual; tho receiver had entered
suit for breaking this contract and demanding back
the sccur,ties certain policies had been changed TO
policies OF the New Jersey Mutual; could not state