The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-27
LIFE INSURANCE TROUBLES.
THE nErEREE's EXAMINATION OF rnx coSri-

THE REFEREE's EXAMINATION or Tnx coSri.
MENTAL YEsrERpAY--A SINGULAR PROJECT.
In pursuance OF order granted by Jsixe Pratt %
Brooklyn, Mr. William Allen Butler yesterday con-.
menced his proceedings lrte the
affairs OF the Continental Lie Insurance COMPANY ssf
the accounts OF Mr.. Jonn j. Anderson. the receiver
Such order made upon the joint apIilcauon Of
Stephen English aud James Mcdonald. po.icy- holders
in the company and BY Ne supustons Delays ne an
curry into the recevcr's unt amer hs state
ment shall been died. Tho proceedings ysssss-
day were ofrather congiomeraIe character aud ~
parently devoid OF any dehnite. wcl'-nxed pafpose
The reference WINS held IN the oscc Of MI Butter.
No. Ill Broadway Mr.. Raphael J. Moses appeared In
behalf OF stephen English General Tracy 10 bchsf Of
James Mcdonald, ct al, and number Of other policy
holders were also represented by counsel hessrs
John L. Hi and Robert sewcll appeared coansc. tor
Receiver Anderson.
Il stated that for greater consenence shs future
meetings Of the reference would be held ne once
formerly occupied by the Loancrs Bank adjsaing the
Continental Office, In Nassau street
rmK rEsrinosr.
The nrst witness called John J. Anderson. Who.
In reply 70 inquiries made by Mr. Moses. ,sss'nsd
follows:--I. W. Frost and Il O. FROST were. beesc.
directors Of the Continental Life Insurance Company
st tho time appointed receiver, ! possess prop
erty worth about 100000; 2soo acres Of land
Long Island believe have about $50. ooc worth Of
properly New York State; cannot state exactly bow
much cash there is hand belonging 10 the CONT
mental; suppose between sss. 900 and 800 900; the
company bonds the value OF fsS. 00v dcros
tied with the safe Deposit Company think l. W.
Frost resides IN Yonkers. Mr.. Anderson was detained
AS briefly possible as no stated that ne vas busy
engaged in preparing hts statement % the company
condition, which viii he ready either today OF on
The Deputy insurance Superintendent Mr. Mccall,
was next sworn. lie testified that just after the APP
pomna"y x ~ william smxsn "e,,".
the Office OF the CONTINENTAL Tor the purpose Of
aiming The books and accounts; M. Anderson Who
was in ht once, after consulting with counsel, denied
them she right TO proceed. When asked by MT Moses
how long would occupy him TO tell the condition o.
the company, the witness repied:-'n the books
were balanced could tell ia two weeks"
Mr.. Moses then made some inquiries Of the witness
tending to ncuIpatc tho Acting Insurance supcrnten-
dent General Tracy said iorcioly that the intention
TO attack William Smyth. he should object 10 H.
ever made OF tho Costins ntai by thc department;
have been Examiner Tor but Two years.
To Mr. Sews-ln a.cer'.ining tho Liabilities OF =
value tho 1000 Continental policies two weeks the
Security Company had Q, 900 policies; was I'VE weeks
in making up statement OF that concorn but was
making other examinations at the same time
WESTERN ExTERPRsK
The next witnesses called two sWestern men,
who have been engaged Tor some time past IN making
inquiries about defunct company alleging that they
subpnned through Mr.. Moses, who stated TO the
referee yesterday that he hoped to prove that they
Receiver ANDERSON.
cetved secret Information from hun respecting the
condition OF the company The first Of these two
John j. McKinnon, who testified as foilows:-
1--we in the West; my business here 10 purely that OF
lawyer have received statement of the assets and
liabilities OF tho Continental fo Insurance Company;
have stated that Mr. Mckay and myself possessed sui
ncent evidence that the Continental Is legally solvent;
have received some Information from employees OF tho
receiver boen endeavornR to purchase the stock
OF the company and 10 become tue owner OF II; IN
order to do intcIigcntly made such inquiries aud
saw such data as 10 convince me OF tho compauy's
up the money for the enterprise; didn't come here
upon any wild goose chase; have talked with Mr..
CHAMBER the nctuary anu Mr. Crowfut; had 40 inter-
views with Mr.. Anderson
II. Mckay testified that he the President and
Actuary OF tho Alliance Mutual Company OF Lcaven.
worth believe that with very little money and proper
management the company might be made solvent
revealing either absurd unpronabie project
pointing 10 further effort 70 manipulate tor dark
George W. Urowiut testified that he had been con-
nected with the Continental since 1866 he declined to
say II he had held any conversations with Messra
McKnnon Mckay: had never mentioned names 10
Receiver Anderson; had made efforts to procure
money for the purpose OF rcsuscitating the company
THIS concluded the examination OF Witnesses Coun.
sci for the policy holders asked that tho be
required furnish more bonds, which Mr.. Butler took
under Amusement, and the reference was adjourned
until Wednesday next, a. two O'Clock
FAILURE OF THE METROPOLITAN FIRE rNsUR-
ANCE CoMPANY-A RECEIVER APPoINTED.
An action has been commenced in the Kings County
Supreme Court, before Justice Gilbert, against tho
Metropolitan insurance Company OF New York. by
George w. Gilbert holder OF forty-three shares OF
the stock OF The company. Yesterday the plaintiff
cured the appointment Of receiver in tho person OF
Mr. Edgar Appey residing al Glen Cove, Long Island,
and bonds TO the amount OF $50 900 have been given.
II IS alleged by Mr. Gilbert that the company's capt.
ta stock $500 000 and the provisions OF the acts
under which tho company Incorporated have been
violated by the defendants. IL Is further alleged by
Mr. Gilbert that part Of the capital has been loaned
and invested In illegal securities TO such an extent that
the capital has been impaired, and there arc not SUM-
ccnt lawful assets remaining In possession
OF the company TO warrant tho defendants
continuing in business. The sum OF $50 900
In bonds and stocks, he alleges further,
have been loaned TO the Knckcrbocker Gas Company,
OF New York. The plaintiff asserts that the bonds Of
this company have no fixed market value and that
dividends have been paid upon them On the 25tn OF
January 1877, at the meeting OF the Board OF Dircc-
tors tho Metropolitan Insurance Company, he says
they adopted resolution 10 discontinue business and
have legal proceedings taken 70 dissolve the com