The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-08
INSURANCE CROOKEDNEss.
Opposing the New Bui-How the Assets of the
EmpIre MUTUAL were Eliminated.

Mr.. John l.. Hill, aided by Mcssrs Grant
and Lydcckcr. has prepared a protest against
the passage of the bill introduced into the State
Senate by Senator Wagsaff. The bill provides.
in effect. that no proceedings TO dissolve insur-
ancc companies by stockholders or policy hold
crs shall be instituted except through the Attor-
General. and that all such suits now pend
ing shall be changed to the control Of the AttOr-
ney General.
Mr.. Hill il counsel for the receiver OF the Con-
tinental Life Insurance Company. appointed
under the order granted by Judge Pratt in the
suit Of John O. Hoyt, whose action is ignored
by the Attorney General. The now passage of
the bill would give Mr.. Hill the control Of the
pru'ecd ngs in the affairs OF the Continental.
Mr. " is also the attorney who has instituted
proceedings To have receiver appointed in the
mnti'r of the North America. Guardian. and
Universal Life Insurance Companies. This
suit also would 20 into the hands of the Ntor-
ncy-',rneiul " In fat. agCntlcman said yes
tcrdiy ton SuN reporter. the passage Of the
hill would have a tendency to put "A stop to all
'wrerking Of companies 10y pncing it beyond
the power of att lrn"ys TO pct up expensive lit-
lltl"q solely with a view to individual profit
Va the examination before Referee VIM. Allen
Builer yesterday Mr.. seth G. Chandler. Jr.. the
former u tulry of the Continental. testified TINT
he first hrcHm' aware that cunluut d annuitics
w,r' paid in the LITTER pnlt of 1872. IL made
tho yniuation OF outstanding rolicies. but did
rot estimate Tia" usstis of the Empire Mutual
Isle lnSurHnc" tumpnuy The policy liabilities
hr put at S6uO.uOO. When this estimate WAS
niu'i' hN him be- WIS told that the Empires lin-
hintie- were ulnMt s2lO.Ouu in excess of its AS
-'i- Tie subsequently made another c-timate.
and this tim" the deficiency amounted To- about
s'jnnnu Mr. LustuS Lauren 49, then prn-id mt,
know nothing ol the large dcirienry in the En-
pirc's n-~rts, and Nj. Chandler said. Mr..
Il; g. Frost told IN" that they did not dare to- tell
him. On the puci"s rcinsurrd 10y the CONT
rental there should be- legal reserve ol about
1928 uuu. and on those stu held in the Empire
thrr" should be Il rrscrN" Of about S6j.OOO. MIR
Andui- nn. in his report as receiver. snid ,hnt
tnr Empire had no available assets The Wit
nrsS very reluctantly admitted that he had
called Mr.. Frusts attention W the many irrrgu-
lar'tir- in the nnnncinl management of the
company particularly in regard To- the contract
with W. X. Blake. under which the commission
frequently amounted TO more than the snrrcn-
der value Of the policy Mr.. Frost. he said. also
a"kuuwlcdgod to him that the amount Of cash
ported on hand did not exist in fact. hut cN-
cu-cd himself 10y saying that II was the general
custom Of insurance companies Ia ren0r more
cash in bank than they actually had. The COM
purN. in thrir Inst statement Ia the department.
reported s3uoUVo more in deferred premiums
than actually existed.
" f Blakr testified that under his contra I
/ hr mudr about s2j.oOo in eighteen months.