The New York herald., 1877-02-28
LlFE INSURANCE LITIGATION.
The Continental Reference
Examination.
RECEIVER ANDERsONS ACCOUNTS
I he North American and Universal Com
panies on the Rack

The newly appointed Superintendent Of Insurance,
Mr. John smyth. left tins city for Washington yes
terday morning He has come into the department at
very active porod insurance affairs, and, 1t Is
understood, intends the duties and prerog.
atives Of his Office with impartial vgor Mr. Jonn A.
Mccall is still performing the duties Of Deputy Super
inendent and his friends that he is to be
manentIy retained in the position.
The Continental reference before William Allen
Butler has nearly concluded ITS labors meeting
held yesterday afternoon at No. % Nassau street,
when there full attendance of lawyers, wit
nesses and others
EXAMINATIONS BEFORE REFEREE BUTLER
James Mcdonnell, former agent of the Continental
in Brooklyn, was called to the stand and examined
with regard to his personal accounts His name has
appeared several times pettoLing policy holder
In opposed to tho Attorney Generals action,
while the books OF the company show a balance
against him as agent OF $l0 7S0 II.
Hc testified that his with the company was
a rowing ono; under OF its provisions he was en-
titled after the termination OF his contract to elect
receive a communication OF twenty two and hall per
cent ol the aggregate promiums for one year ON bis
outstanding policies; the balance on tho books against
him WAS correct, subject only 10 this communications IN
May, 1875, ne applied under the communication clause.
TO have the twent and hall per cent paid to him
between that time anu August 1876, however, he had
received moneys from the company under the contract
which his counsel, General Tracy had obtained judg
from Receiver Anderson in which the action Tor
dissolution OF the company was alleged TO have COM
menced upon the I'd o October This suit for the
return OF moneys alleged to have becn paid into tho
company the action for dissolution. Mr.
Moses stated that the action not begun until tho
lth ol October and the money had been paid IN be-
tween the "a and the llth
ANDERsoN's ACCOUNTS
John J. Anderson, the former receiver, then took
the stand and Mr. Moses put in his objections to An
ders0u's accounts as foll0ws:-
An em OF tho payment Of So O47 67 by order Of the
Court was objected TO- because the said order for pay
ment was obtained through the gross negligence OF Rc
ceiver Anderson. Two ohe. small payments were OBJ
jccted TO en the same ground.
The following counsel fees paid by Anderson
receiver were objected to:--NovemDer 8, George w.
Miner $780, November 10 Daniel Magone Jr, 81, 0O0
The pay ment o one-haI Of the following fees OBJ
tected to--November IL, William Fullerton 81. 500;
January 10, William Fullerton, ~ 50O December 30
J. L. Ill., 1lOO. The payment OF one-fourlh of the
following was objected to:-Jauuary II Scwel Il
Pierce, $1,000
Mr. Moses said that these fees incurred in lt
CATION between the Attorney General oil the State aud
the Continental Life INSURANCE Company, in which
John J. Anderson had no interest BY way Of sur
cnarge MI Moses said that John J. Anderson should
be held responsible tor any oss that may the
transfer OF $3.50 900 IRON the Continental to the New
Jersey Mutual Lie insurance Company The ground
for this charge is that Mr. Anderson became
with the fact OF the trausicr shortly alter be-
coming receiver. that he omitted take action
slO2,O
The referee appointed Friday next for Messrs Moses
and Sewe 10 argue these objections to the receivers
accounts
WILLIAM wHirNEY'S LOANS.
william G. Whitney, CORPORATION counsel was called
and testified that he made st0ckholder and
elected director OF the Continental the spring OF
1873; retained counsel for the company ABOUT
two years before that: held twenty shares o Stock
upon which he received dividends, during 1874 and
1875 OF from twelve to twenty per cent per annum;
had received loan OF ~ QUO upon this stock and some
other securities, which was repaid two months
alter its issue; 0y oversight, however, neither
the stock nor the note had been taken up; in
loans from the Continental, on Metropolitan
Steamship companys stock aggrssnttng $50, 500; the
Metropolitan Steamship Company was organized under
the laws the State New York; It's stock was
selling above par; this was the only loan the Contnen-
tai against hi and witness explained that he had
notified Receiver Grace o his Willingness 10 take up
the latter could make out the exact amount
due The witness gave some testimony regarding the
contract. which he drew up, Tor the reinsurance be-
tween the Continental and the Empire Mutual He
testified thar the capital stock OF Empire Mutual
was especially excluded from the Liabilities to be as
sumed by the Continental
Referee Butler then adjourned the examination until
two p NJ Friday next when he said the reference
would terminate its evidence.
A RECEIVER ASKED FOR-THE NORTH AMERICAN
AND UNIVERSAL INSURANCE COMPANIES ON
THE RACK.
Judge Dykemap OF the Supreme Court Kings
county, motion OF Counsellor John L. Hil granted
order to show cause why receiver OF tho North
American Lie Insurance Company should not be ap-
poin ted and injunction The ORDER which is
made returnable March 3, 10 A. NJ appoints William
H. Leonard referee, and demands that said
company and all its agents and officers should show
why they should not be restrained and cnjoined
according to the prayer OF the complaint and espe-
caly restrains the North American and the Universal
Life Insurance Company and Its officers from doing
any further act in the execution of reinsurance ANAL
gamaton and absorption OF the business OF the former
company. 1t also orders that the North American,
Guardian. Mutual and Universal Life Insurance
panies shall submit to iull examjna 10y the ref
and disclose TO him all tho affairs and condition OF
tho affairs OF said companies
The suit is brought against the North American
Lite Insurance Company the Guardian Mutual
Life Insurance Company, tho Universal Lilo
Insurance Company, Henry J. Furber, Will
iams Walker, Edward Lambert, George I. Hope,
Samuel W. Torrcy, John j. McCool Robert J. Lancas-
ter, John H. Burlev, George L. Montague, Nathan d.
Morgan, John ii. McCoo! John Doe Richard Roe and
the people oi the State OF New York.
Tho palntin In the case Is Ethobert Belknap Tho
complaint sets forth that according to the orth Amer