The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-12-15
DIR. LAMBERI'S TRIAL.
WHAT HE HAS TO SAY OF HIS CONNECTION
WITH THE AMERICAN PoPULAR-How THE

WITH THE AMERICAN PoPULAR-HOw THE
ANNUAL REPORTS WERE SENT TO ALBANY.
The trial Of DR.. T. s. Lambert contin ued before
Judge Brady yesterday The first witness the
ex-sccretary OF the company, Mr.. James Crukshank.
He testified that he knew nothing OF five 1000 poll
OF insurance issued in his name and carried for
five years the books of the company these policies
were in tho handwriting OF DR.. Lambert
Mr. Charles f. Buckley said he gave a nvo thousand
dollar check TO the company, which he agreed with
DR.. Lambert should not be paid; he did not know
after seven months.
Mr.. James McCord, Mr.. b. B. YALE Mr. William
Phelps and Mr. Justus 0. Woods testified TO the
speciality OF the defendant and to the fact that they
would accept as true his sworn testimony
DR.. Thompson, in whose ten policies we're car
riod on the books, denied he got those policies
from the company.
President Winston, OF the Mutual Life Insurance
Company was called to show that u was not possible
tor the president OF insurance company verify
the books OF his concern, but the testimony
admitted. After this recess was taken for lunch.
DEPENDANT
Alter recess DR.. Lambert called to tho witness
stand. He did not swear the Bible but raised up
his right hand affirmed. He then seated hinself
tilted hs chair back 10 IN easy swaying position and
piacidly prepared himself for tho exam nation. Ho
said In Recorder SmIth's questions that
no had been President of the American Popular Life
Insurance Company 1870 or 1871 the pany's
business divided into Jour departments, the
heads OF VIII ch the President the IN Chief
the Agent-nChiei and the Treasurer; The Secretary
held a relation to the stockholders but tho
head OF any Department. III 1876 the heads these
departments were I. ). LamDert, Presidents DR.. Mo-
reau Morris, surgcon-in-Cn iei; Mr.. Reyes, Acting
Agent-in- Chief and t. i. Bancroft, treasurer; tho
President had certain limited supervisory charge of
tue entire company; IN my case'' tue witness said
stHnr MIDI az 10
In Chief IN tho grading and rating Of cases.
q What did you have 10 do vita the books ? A.
Nothing whatever, except to keep the death loss
count; with tue books proper had nothing TO do;
that duty came under the treasurer's department.
The witness, continuing, said Mr.. Bancroft, tho
Treasurer, had his residence at Salem; u messenger
recently sent there could not find him The witness
an annual sworn report OF the condition OF tho
company At the time he placed his signature TO this
paper the sheets were blank except an affidavit signed
by Mr.. CruiKshank; Ave blanks so signed were tho
same time handed him by Mr.. Heard, and he put his
name to all; next saw those papers In the court
room never swore TO any OF them.
q bid you ever make out statement either from
the books or otherwise, to present to the depart
mcnty A. No.
Q. Upon whom did you rely for the facts stated in
this paper Showing ststemen)Y A. Upon Mr. Reid
mostly In further explanations OF tins answ err wit
ness he relied Tor the material The annual
tho clerks ana heads VI depart ments he
believed all their statements correct At the Time.
FINANCIAL TRANSACTIONS.
Witness attention was next called 10 an item OF
IS 900 in Ninth National Bank the books and
by way oil iurther explanation tnat he knew
notning OF The financial tran actons; what appeared
the books he accepted MS correct and would have
sworn to he never ma1e an examination oi them.
lie then entered INTO long story about the pecu liar
principles OF the company. One Of these was
economy In the development OF VIII CHI the officers got
no salary tho hrst year; the next year
they got 5000 month, and when Dr. Nor
came in II Was decided TO pay tho Executive
Board" Drs. Lambert and Morris, Sl25 more month
advance profits, be adjusted out OF profits when
nnal settlement should have been made an item OF
form OF check cash against his account /;
another item OF S1,0l5 was a cheek of DR.. Norris :
another item 5000 check Of DR.. Lambert,
which he regarded Valid obligation aud should not
be stricken out OF the list he dd not know Tor what
IL gwen; there another cheek OF hts Tor $500,
which, though ne could not pay to-day, be considered
valid against him, aud finally cneck oil his $780,
which he put Ia the same light.
ON the question Of bogus policies the Doctor said
his understanding was that there were sach, and
that the company had out 2 905 valid policies; he be-
licyed the books and directed Mr.. Reed 10 strike of
every policy not out
HIS attention was directed to item OF over
$50, 900 represented MS Loaned rtgagcs and hc
| explained that III 1873 Mr. Trow agreed buy some
unadmtted assets, and aid finally conclude agree
mcnt by which he took those assets and pledged IN
stead thirtytwo shares Of United States Publishing
Company's stock, signing at the time u receipt condi
tonal that The stock be returned pay IN ent
loan; he subsequently obtained possession OF tho
| stock also; but witness SAID without his consent
| CROSS EXAMINED.
Witness was then cross-ex Amined. lie sad tho rc-
| ports were filed In and forwarded without his know
| ledge after ms signature had been placed them |;
late IN the after noon, anu when ne returned IL had
| been forwardeJ; Heard and MelIck said 'twas all
right" his answers TO certain Questions before
Tho referee shout bis duiies AS president read
and he WAS asked u they were correct be said yes
These answers represent him say ing he did
know or could not remember what those duties were,
Mr.. Rollins, who conducted the nation,
asked him " ne nad refreshed his memory since,
| MS reply was, 'Yes, SIR, very much"
lie was asked u ne had gwen the company $40, 900
check, ana he answered tina, he could rene mpcr
The books OF tue company showing items that
should nave been placed the account death losses
entered us purchased policies were SHOWN him and he
explained that they were the result OF compositions
| he admitted that lie gave the company check Tor
$4,000 once, he thought on the National Trust Com
pauy, though he was sure he mad an amount
hIgn as that on deposit there st the amount VI called
for, would have been iorthcom IN twenty hours
the reason his cnecks were carried by the company
over seven years was that the company were always
owing hun, but be did not explain Why he did not
take up his checks under these circumstances
rhc Court Adjourned at i've o'clock to Monday
morning at eleven o'clock, when the Doctors exam IN
atlon will be continued
CLOSING OF NAVIGATION.