The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-19
.Prssdsn! Moves Reveals the Inner Workings
d New Jersey Mutual.
FACTS AND FIGURES.
Who Stole 100000 Of the
Company's Assets /?
HON. \. c. KELSEY ADDRESSED.

no one who reads the following story will deny When
he was brought to Newark, ~ j.. from New haven,
Conn. public feeling high against him that TO
use mis- own wordsj the people would have lynched
him II they had had m opportunity At that time no
deemed II ocs, to remain silent and await develop
ments and often since be made up hrs mind remain
silent has had cause to congratulate his Judgment
HIS policy OF silence mas enabled him gather facts
for his yindcaiion when the hearing before Chancellor
Runyon is called on the 30th OF this month. These
facts arc double.edgcd, and while they Will tend to
clear Mr. Noyes they also transfer the cloud recently
ovcfhanging him 10 spot until recently quite sunny.
MR.. soyEs TELLs STORY.
In an interview with HERALD reporter Mr.. Noycs
said with show OF pridc:-"A although
am gentleman, / am also FIRST class
detective, and while in jail [ gathering some OF
the facts now in your POSSESSION. When 0rst came
to Newark" he continued. II not Immediately
sent to Jail, but allowed TO remain my hotel While
In the hotel gentleman high In tho Church here In
Newark and man emncnt in society came TO apd
said Mr.. Noycs, Is there way In which this thing
be smoothcd over!' Al tho time knew or nothing
10 connect this man Intimately with my trouble; but.
rong IN sense OF the justice Of my cause said, NO,
sir am into this BUSINESS now, and intend touch
potion before leave this place. Two hours alter this
answer OF minc was III jail. can't explain how or
why it was that the authorities took such sudden
notion that should go to jail leave disintercscd
parties 10 draw their own conclusions. This gentleman
oil cccesasticaand social distinction OF the
hrmer directors Of the New Jersey Mutual Lilo
insurance Company, and knows how certain things
we're managed by tho directors wnen he Of the
Board.
PREVIOUS HISTORY JERSEY MUTUAL
Before continuing this story had better go back
tlc that you better understand all the bearings
Of what have to say. In 1874 or 1875 Mr. Anderson
since famous iron. his connection with tho
Life Insurance Company in the New Jersey Mutual
About the Same time Mr.. Steadwe was In the Custom
House, He had some money and was anxious 10 start
law office, being a lawyer and having previously
practised his profession. Stcadwell and Anderson
acquainted. and the former spoke OF his intention
Of beginning again the practice Of the aw Anderson
spoke dsparagugy OF the enterprise and that
would be better for him instead OF opening Office to
accept the nice round salary the Office which he IAN
derson) about vacatc for similar position in the
Continental Steadwoll protested that he knew nothing
about life insurance, but Anderson treasured him by
saying that II he was short at the end oil the year he
would help him out do not think that Steadman fully
nderstood what that meant al the time; think nc
cepted a kind and friendly offer part Of Mr.
Anderson. Well, Steadwcl finally accepted the offer
OF Anderson and took charge OF the New Jersey Mu-
tual.
s now WERE
At the end OF the first year he discovered that ho
was about 500 900 behind IN hts accounts, and he
went and told Anderson how matters stood. Andor-
lent TO the amount OF $500 900 be-
longing To the Continental Company, and these
displayed to the actuary who innocently enough gave
credit Tor tho books and sworc 10 the account
OF tue company. When the securities had been dis
played 10 the actuary MIR. Steadwel brought them
BACK ana nsy were 10 b one I'm
should increase lis business, and with this end view
he began TO advertise and start agencies all over the
country. The demands OF agents at this time were
enormous and although policies came flooding IN from
ali quarters found that 1t cost about seventy Eve
procuring Of the premiums The show OF business was
Of very great but with such enormous cx
pcnses no substantial basis could be arrived at.
pcrty In double quick time. But unortu
natcIy for him about this time tho Con-
tincntal Lille Insurance Company went into the hands
OF receiver, and when he made up his accounts tho
friendly Anderson could not advance hun the sccuri-
ties necessary TO make both ends meet
MOVES BARGAIN WITH sTEADwELI.
For twenty days poor SteadwcIl ran hithcr and
thither seeking some company 70 relnsure tne
would comply with his request, as the assets
insufficient Az .hc emu OF twenty days no
came TO me and asked me II would rcnsure him,
and /, oil course, told him that could not, as Tho
assets OF his company would not warrant me. he was
almost despair and said, Can't something DO done
10 get out OF this awful muddle2' told that OF
course something could be done, but TO
,ensure INC policies was ,mpo eS .ola
that 10 say II tho assets OF he company would real
izc seventy-hve cents on tho dollar holder would
10 pay the premium on that amount, and not on tho
face value OF his policy. Stoadweli finally agreed TO
arrangement, and the bargain was concluded.
All the OF the company nad not yet been turned
over TO when was arrested, nor had had time to
investigate the value Of those securities that came into
my possession. The premiums of policies IN the New
Jersey Mutual Company, owing TO the extensive ad-
versing and canvass'ng done by stcadweii amounted
To about S65O.0O0 per annum. and saw grand OPP
porunity of raising moribund concern, In two years
at iurthest, INTO prosperous and paying business.
Lilo insurance, as ali know who have ever had do
vii IL n al ".
inlrmty 10 soivency under Judic'ous MANAGE
lneni. Now, ! proposed 70 reduce the expenses
Offices. stop further canvassing and advertising, and
by doing this could, With the income secured by
premiums have paid every creditor OF the concern
.hu pdrcd cents the dollar. Tho kind gentlemen
who brought here and who are so anxious 10 pro-
tcct the policy @ o u' c
holders will be very lucky they can set ten cents on
the dollar. You ask how dd u happen mat there was
bothered me for long timc, but, as told you, am
Do mean detective and have solved the question to
my satisfaction, " not 70 that Of several other
wealthy gentlemen here In Newark. Now these
the facts In tho case, and will give you the figures
laier-rho directors OF ahe compa@y saoscr'ooa
shortly after the bargain was made win me tncy TOOK
this fund and distributed u among themselves MI kei-
sey knew there such fund, but in his report
he says nothing its disappearance Had the direc-
stopped this very questionable piece OF business
things would have bcen bad enough. they went iur-
Their however ana actually stolo 5000 600 from the
company and divided IL among themselves Thcy are
all rich men and arc at present very ANXIOUS 10 pay
back inc money and lot tho thing blow over. but, as
told one OF them, III touch bottom before leave
tho place. If the truth were known. y was not so
much anxiety TO secure the rights ana properly OF
policy holders that caused the wreck Of tho Now Jersey
Mutual as desire 10 provide Ter certain poitc'an
: lucrative rcccivcrship which would give nun M IN
como Tor three four years know that great dis
was expressed by these parties when u
was discovered that the assets OF the company were
not convertible cash. No fat counsel fees could be
paid aud a handsome job was spoiled Finding no
money In the assets Of tho company the receiver am
tod went TO Trenton and demanded tho 500 600 re-
serve fund there held by the state
FABULOUS ExPgSsEs or NEW JERSEY MUTUAL.
To show you how tho New Jersey Mutual Company
has managed for years let me state few facts.
In 1878 the Jersey Mutual absorbed tho Hope Com
pany OF Now York. which was at that time insolyenl
Alter the transfer the directors Appropriated $3.50 900
To themselves and gave So, 900 TO a gentleman who
engineered the job Now, u Is we'll known who cngi
ncercd the job All the transactions were progressed
list Of salaries Tor 1873 and think OF the economy
pract,scd by the company. tIIcre Mr. Noyes read as