The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-21
CONTINENTAL LIFE INSURANCE.
A New Scheme Tor Reviving the De.
funct Company
OVERTURES TO THE POLICY HOLDERS
The Reference PrOceedinss-ln Important
Order Made.

For few days past circulars have been addressed
many the policy holders of the Continental Lie
Insurance Company for stated purpose of secur.
ing their cooperation In what Is called scheme for
mutual protection. Enclosed with tho circulars are
printed authorizations, which the policy holders
expected sign, authorizing certain attorneys to
appear for them In the OF Hoyt vs. The Continent
tai the understanding that the attorneys 10 col.
lect Their fees only from tho allowances, or fail
ing ga reasonable and sufficient allowance" out ofths
moneys recovered not TO exceed five per cent thereof
MEANS.
OF course anything of the above nature would OK.
cite considerable attention from the policy holders,
whose unsatiscd claims have been almost forgotten In
the legal wranqng and expert dissection that have
followed tho bankruptcy. George ". Crofut, whose
name is attached to the circular was formerlya sort
OF general manager in the Office OF the Continental His
services retained by Receiver Anderson alter the
failure, and he has been prominent witness the stl
unfinished proceedings before Referee William Alien
Butler Itappeared from his published testimony that
reference that Mr. Crofut favor OF revving the
company, aud, in fact, had been engaged In ncgoia
lions having such an object In view. Mcssrs Mckay
and McKnnon, two Western men, claiming TO repro.
capitalists Of their section, were desrous OF pur
chasing the stock of the corporation, aud Mr. Crout
acted with them to that end. For several reasons the
project ialed though was still claimed to be feasible
HERALD representative called upon Mr. Crofut
yesterday 10 make some inquiries respecting the
objects contemplated by the movement. He was
given detailed statement OF tho intended co.opera.
ton Mr.. Crofut at first referred to his previous
efforts rcorganlzc tho company, and repeated hia
belief that such enterprise not only desirable
possible The former scheme TO sell the stock to
the W esern men then received tho approval OF Re.
ceivcr Anderson, and had 1t been Carried out he
thought good deal Of money would have been re-
turned 10 the treasury which may not now be re.
covered. He said that Luther W. Frost had informed
him that the rocuperatve plan, II followed, would
place him (Mr. Frost) in much poorer condition than
he was generally supposed to occupy.
THE NEW REsURREcrIoN.
Mr.. Crofut said that tho plan Of cooperation just In.
auguratcd had the ultimate accomplishment in
the previous negotiations for sale Ut tho
stock He supposed that the concern could pay fifty
cents on the dollar which would actually represent
reinsurance fund of seventy five cents the dollar.
Ii such the case he was satisfied that he could
obtain subscriptions to make Up the remaining twenty
1--WE per cent and the company could continue its
business To do all this the cooperation OF the policy
holders desirable and hence the issue Of his cir
culars.
However practicable the scheme of Mr.. Crofut may
prove be, its novelty Will at least insure It atten
ion That II could ever succeed without the coopera
i0n OF Mr.. Grace, the rcceiver Is highly improbau
aud II remains 10 DO seen what course he will purss
IN the matter.
nxpoRE REFEREE BUTLER
Tho examination into tho AFFAIRS OF tho Continental
Lie Insurance Company was yesterday resumed be.
fore Referee W. A. Butler. Leever V. Styles, book
keeper, being recalled. went over tho item OF Sc
curles aud checked or those representing So o.
which ne had carried MS cash IN his book.
James T. Dudley janor OF the building, testified
that tho last sunday IN October or the FIRST Sunday
IN November L. W. Frost, President, his son. X q.
Frost, Mr.. Rodgers, Secretary, came to the Office
and entered the Presidents room; witness did not
notice II tho vault open; Mr.. Noyes was not with
them, nor the receiver either; Witness did not see
them remove books from the ONCE but Mr.. Rodgers
lett with small bundle, which he might have had
when he came n II was the size OF two or three cash
books like tho ono prouccd; witness remembers that
evening Rodgers in after four r. NJ. and went
to his desk, where he remained about hltcen minutes;
he took away little bag belonging to him; what was
the bag he could not say; thus was in December on
another occasion Rodgers came with small package
after tour p. NJ and II was mysterious witness
made memorandum, as was his practice; this wis
after the vaults mad been opened IN January.
MORE IRREGULARITIES
George w. CrOiut, agent OF the company, who, when
negotiating with western capitalists for tho reorgan
zation OF tho company had examined the stock list.
placed upon the witness stand and was shown
tain certificates OF stock Ia the name OF Walter r.
Blake, NJ. u. Wynk0op, j. j. Halcnbeck, X. G. SoM
and others He testified that certain memoranda now
on the envelopes wcro not on them when tie first OK.
AHMED the stock list The object OF this testimony
show that stock transferred and loans maze
upon stock after the appointment oil MIR. Anderson as
receiver. Witness noticed that while MIR. Anderson was
Mr. Noyes had Tree access to the vaults; on
tho morning OF the 25h OF January an cmpioye told
him number Of books were missing; W. X. Blake was
agent OF the company at this tIme Noyes was here
five or SIX times day with Receiver Anderson. III
had found Mr. Blakcs name us a party TO whom loan
made" SAID witness, III should have supposed
there something irregular in 1t, and would not
have negotiated Tor the revival OF the company"
MR. wyNKOOPs STOCK.
NJ. D. wynkoop, Vice rresiden! Of the company,
testified that Mr.. Frost, Mr. Scrbncr and himself
agreed purchase certain stock; the stock DO held
and vi II sold 10 other directors. The stock waa
Tho latter resigned about that time The money ioi
the purchase came from the Continental Life lnsur.
ancc Company. The amount was repaid when he sold
his stock, May 1876, by tue company taking Mr..
r. c. Frosts obligation, instead OF hts Tor over
$4,000 Witness said ~ hold the release at my resi-
cncc secured Tor sixty live shares, par; reserved this
reie q
were transferred on the day Of my resignation; tho
stock by Mcssrs Frost Scribner and self
was at about 200. Mr. Wynkoop was examined as 10
certain stock OF tho Empire anu Mutual insurance
Company held by him and j. j. Hallenbcck; II was
given by them to the Continental Company to cover
loan made by the company to them; l understood
from Mr. Frost that holders OF Empire stock would re-
ccive dollar Tor dollar from the Continental Company;
received salary OF $1,000 and an annuity OF about
five per cent tho 'alary which yielded over $1,000
officials OF the company stated TO mo that he thought
with cire ul management the company would come
out all right; he did the printing, which run about
$4,000 per year, at current rates.
The examination will be resumed on Friday at two
r. NJ when Is expected tina, the taking oil testimony
will be closed
An order IN tho action OF John q. Hoyt against the
Continental Life Insurance Company, joining The
People Of the State OF New York ana William Smythc,
State superintendent OF Insurance. was granted III the
Kings County supreme Court ny Justice Pratt An
order TO show cause, OH the petition Of james Melon.
nell and Joseph T. Sanger, why tho relief asked
Tor in the petition should not be granted,
was also granted ny his HONOR Acstcruay morning,
all the parties being duly served, and no opposition be-
ing offered by the Attorney General Justice Gilbert, in
accordance with the prayer OF the petition, granted
that the franchises OF the Continental Lille In.
surance Company be declared TO be dissolved and ex.
tinguished 10 all the world except solely Tor the
single purpose OF enabling the Attorney General 10
prosecute action auxiliary to this to reach the funds
belonging to the company.
Justice Gilbert also granted n motion substituting
William X. trace, receiver OF the Continental Lille In
Company, as Defendant IN the action OF H. h.
Schcnck vs.. Tho Continental Lilo Insurance Company.
The suit Is brought for the purpose OF nuyng three
mort cages which made by the plaintiffs ancestor
on the ground That the consideration tor the had
tailed.
CARRYING GOALS TO NEWCASTLE.
II was reported yesterday at tho Produce Exchange
that a cargo OF lard which had been shipped from
this city TO Europe had been returned to this port