The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-31

MIR. Faikcr says:-rhe company's business seems
issued premiums below the net ratcs-onc Of the
most rkable cases Is that OF N. N Halstead Ia
clrector) whose $40, 600 policy pays premium of
1912 60the regular table rate would DO at least 1ty
per cent more-he net Is 1882 30. At least
lirecors policy was issued without his request with
out medical examination and without any pay
ment OF premium
INTERNAL MANAGEMENT
Tho internal affairs OF the company appear to be very
carecssly administered. The book OF the minutes or
the meetings Of the Board OF Directors has not been
written up tor two years, and, consequently, the
present directors and officers have title 10
the control OF the company Several OF the former
no longer policy holders, and are thus not entitled
to act directors Though over half Of the directors
reside at distance FROM Newark meetings have some
times been called by mailing notices only about six
hodrs before the time for the meeting: in
of mis- some directors unavoIdably absent and
tho meetings were in the hands OF those 10 whom the
officers had privately given sufficient notice. The OBJ
ject OF such action can hardly be doubted
The President, who very rarely visits tho main Office,
appears to have undivided control of the and
lis assets He could dispose of all the otnpany's
marketable assets without the knowledge OF the other
officers and directors, a power that should never be
conhded to one man. cannot close this report with
out saying that much regret that justice requires 1t
TO be what Is The officers and clerks have treated
me with much courtesy and The President alone has
tailed TO comply with my requests
THE MINUTE BOOK.
Attached TO Mr.. Faikers report Is a subsidiary re-
port from Joseph L. Naar, whose direction was prnci.
pay directed TO the record vi the proceedings OF the
company and the status vi the then Board OF Drec-
tors. Among other things Mr Naar says:-"By the
charter OF the company the directors required
be chosen by ballot from and among the members
and all persons who insure with the company
shall, whine they continue insured be
deemed and taken as members of SAID
corporation An examination OF the policy
registers developed the fact that OF the sixteen dirc-
ors, three, Messrs. Wales, Lydecker and McMichael,
had made no ymcnt on their policies ut all while six
others-Messrs Vroom, Overton, Drake, Rankin,
Wright, and Gcs--we,e credited with O payment only
up the 10Th day OF January, 1875 Inquiry made OF
Of the latter number shows that In point OF iact
lie had never made apple for insurance, never
was examined Tor IL, and never made any pay
his policy, although he was credited the policy
register AS having paid a years premium
A report by X. N. Stratton. accountant Is also at
tached Alter detailing number OF fragrant errors In
the books and accounts he says
"rownrd the close OF 1875 large addition made
TO the credit OF each OF the accounts OF - II. Stcd-
well, President and III. W. Baldwin for cash
ceved from them; and shortly alter the beginning Of
1876 about the same sums were charged as having
been paid back similar transaction took place at
the close OF 1874 ana beginning OF 1875"
Tng MOTION FOR RECEIVER
Yesterday morning, as he promised Mr.. kelsey,
with the Attorney General appeared before Chancellor
Runyan, at Trenton, and motion was made that the
New Jersey Mutual be ordered to show cause why q
receiver should not be appointed. Thomas N. McCar
ter appeared as attorney for the company. Attorney
General Vanatla, after recounng the facts evidenced
tho above statement OF the examiner referred to the
socaed reinsurance IN The national capital. He said