The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-07
TWO INSURANCE CONCERNS.
THE CONTINENTAL LIFE co. AND TIE
NLW JERSEY MUTUAL 90.
Mr.. Grace Tnkipu his Place ~s Recover OF
the Continental I.ife-Mr. vnnnttn Moving
for ~ Receiver for the New Jersey Mutual

| hIr. Gr1Cc Inktuu his l-Ittcc RECOVER OF
the Continental Iife-Mr. vnnat,n Moving
| for ~ Receiver for the New Jersey Mutual.
Tho examination into tho affairs OF tho
Continental 1ifo Insurance Company was ro-
sumed yesterday before Mr. William Allen But
ler Mr.. l.. V. Styles tho cashier. testified that
on Sunday. three weeks ago. he and Daniel J.
Noyos. L. W. Frost X. Q. Frost and q. w.
Crofuu opened the company's vaults with a
view OF writing up q list of tho bonds md
mortgages; but nothing was done. The wit
ness further testified that in September Mr.
L. W. Frost received s9O.oi6.Gs as commuicd
commission. This amount was paid to him by
| direction Of II. G. Frost. who was then acting IA
| President Of tho company When asked who
WINS the President Of tho company at that time.
Mr. Styles replied: Mr.. l.. W. Frost. to whom
the money was credited. his brother wGs moroly
| acting President"
Judge Fullerton. having been called M a wit
ness. produced IA copy Of an agreement made on
| tho 10th OF October. 1876. signed by j. H. Stcd-
| we'll. President OF the Now Jersey Mutual Life
Insurance Company. and L. W. Frost. Preei-
dent Of the Continental Lifo Insurance Com
puny. undcr which the former promised 10 rc-
insure the policies Of the latter.
| IL may be- rcmembcrcl that Ssvell K Pier GO
got an injunction on the 9th OF October which
they did not serve until the lith On the 10th
the transfer of sJli.ooO Of securities was made to
the Now Jersey Mutual.
Mr.. William II. Grace tho now receiver OF the
Continental appointed by Judge Pratt. qualified
yesterday. His surcties. in 100000. are Eugene
Kelly. james L. Ward. Isaac Y. Chapman. and
| benjamin Flint. He takes posscssion to-day
Tho motion made by Attorney General Nanat-
", Tor lic nppolntlment OF receiver in the case
| pany, was argued in Trenton yesterday before
Chancellor Runyon. Thomas n. McCaricr Of
gl 4
the motion ON tho ground that the noe, ssary
data prepared 10y the compHny's actuary was
put into his hands only the previous evening.
| lie asked Tor q wc"h - time to prepare an an.
swcr. IN which he would cndeavor 10 show that
the company IL not nsolvcnt. and that there is
therefore. no necessity for putting it, affairs
INTO the hands of "a Receiver. and OF winding 1t
up. He said that no serious Inconvenience
would result from the delay. "a he understood
thnt th"4c ia possession are taking stops to pre-
vent any lapse of policies.
1he Attorney General replied that the ten
days allowed 10 the company 10y tho Secretary
OF state to establish its solvcncy had been
been us,d. not for that purpose. but to render il
still more insglyent by dQpriving the company
o .s aIs1 ,6o, arere is IN MI opinion urs,nt
take what ~ " and keep II for the benefit Of the
creditors and policy holders. lie thought It was
evident that II there was "A bona ilde int mt 10
make good defence those who 81, up this plea
for dcla} would.not have lcltthcir counsel unin-
suuN'd until the night before the rule WAS re-
turnablc: and he intmated that the delay was
sought for no honest purpose.
Mf. MtNrtrr rcloin"i that he was there as
thc counsel of the company. and during the in
terrcgnum he had bcon applied to by policy
holders To protect their interest He read from
IN" statute concerning tle thnnccllOrs power.
IN cn'" he WIS saii-i'd that such aeon pany'.
ana the distribution of itS oil,cts. and denied
eeycr lie conisndsd ths, The " cqpSny %nPSn' has s'
right to an opportunity Ia satify tho Chancellor
that its assets arc su1icicnt 1t takes time and
the services of an expert. he said. 10 determine
the assets and liabilities OF n life insurance
company, and he Insisted that the Chancellor
should either hear tho evidence, or appoint
muster i9r the purpose or grant the weeks de-
The Attorney General argued that II wis un-
nooc ->ary for the statute To authorize the np-
pointmont of a receiver. because the Chancellor
already has Tint power and exercises II In suit
able cases. Tho purpose OF the statute was to
stop wasteulnrss and he ridiculed the notion
that the court hlS not the power 10 stop that
Ma-triuness while the investigation proceeds
pcaiiOn Was not fora dissolution OF the com
pany. To grant delay IN such cnsos would be n
perfect shelter to dishonesty. The operators in
the case in hand would not take long 10 eficd
Mr.. Mctarcr responded thnt it was singular
that not single sioekholder had com" before
the court 10 demand protection. Alter further
argument the Chancellor called the counsel's
attention 10 the inr that although there was an
allegation that the company. after bon. called
upon T. show that Il wa solvent. had transfer
rcd all it, assets To- foreign company. it has
not answered even that allegation.
Mr.. MrCartrr sald they could not put in
cl-ion made by the Chancellor upon the appli-
cation Of "A ~tockholdrr 10 have tho Central Rail
road Company put into the hands OF rc'aivcr
10 the cffcot thnt the effect Of such an ippOin.-
m"nt upon the public mind would be- t. bring
about the ruin II sought to prevent H. hoped
that the result Of the drlny would ho Ia show
that the company wn- solvent. The offices in
Newark We're kept open. and the holders Of poll
ci"s were still paying their premiums from time
t. time tn keep them from lnpsing.
The Attorney General interrupted 10 say that
he would like Ia hear from somebody inter 'strd
in the assets Of the concern. or its ,tp khOdcrs
rather than from itS plundcrers. This romark
was uud 'r-toOd to b. aimed at cN-J Judge NoOr-
h""S, VINO wh- present. and vino represents
some oi III" policy holders; but he did not re-
sl,ond 10 the invitation.
Mr. NJ Carter added that Will he represented
the company he wis free to on6perut" in the |
movement 10 set aside the transfer of lts assets
u II was proper H. do 20: but he cunt"ndcd that
tho company should not be- totally Il .stroypd
even II some OF liz officers had been untrue 10 |
their trusts.
Tho Chancellor said that the application for |
delay was doubtless mado in good fifth and |
he Was disposed Ia give the parties opportunity |
10 show what they claimed 10 be ubc TO show. |
He directed them to come before him tO-mor- |
ROW prepared with their proofs and he would |
decide the case
Mr.. Walker. the treasurer Of tho National |
Capital Life Insurance Company. snyH that they |
will abide by the do'i-on of Chancellor Runyon.
LIFE INsVR fNCE KNfyERY