The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-29
THE STIR Ex-GoE Parker rs MIXING.
Complications Growing Out OF the New Jersey
Life Insurance Co.'S Doings.


The civil suits instituted by ex-Gov.
Parker. the Receiver OF the New Jersey Mutual
Life Insurance Company. against eight OF the
original directors and stockholders. for tho
recovery OF t150000 worth Of the assets. which.
1t is alleged. were illegally withdrawn and paid
to the defendants in January. 1873. are set down
for trial this week before Judge Depne, in the
Supreme Court at Newark. The defendants
are: Vim. VI. Force. cxPresident OF the COM
pany: c. c. Lathrop. cx-Vice-Pres dcnt: John
II. Kase, President of the Second National Bank
the Hon. Thomas T. Pcddie. member OF Con-
gress; George Peters. OF Peters 4 Calhoun.
saddlery manufacturers; JcremiahCounsellor,
William Shove. and James G.. Barnett. The suit
against Mr.. John II. kase will be called this
morning and will be made test one He is
sued for "a. 500. the amount of stock he with
drew. with interest from date OF Withdrawal
Ex-senator John W, Taylor. T. n. McCarter
and William i. Guild, Jr.. are counsel for Mr.
kasn and ok Attorney General Nannatta Lud-
low VI. Carter. attorney tor Receiver Parker. and
Barker Gummrrr Of Trenton will appear for
ihe ke,,,s,ycr These suits are Of deep interest
10 the insurance world as they are a test Of the
liability OF stockholders TO the policy holders.
One of the counsel said yesterday that II all the
suits were tried Mt one time the Court House
could not hold the Witnesses.
The ground upon which these suits are in
| situted Is ~ follows: The charter Of the New
| Jersey Mutual Life Insurance Company. which
was obtained in 1862. authorized the directors tn
| raise guarantee cash capital OF 500 for
| the better security OF the policy holders" In
| 1865 the company organized and adopted by
| laws which provided that there should be
! raised n guarantee cash capital 'of not less than
| 100000. tO stand as security Tor the payment
! OF policies In addition to the regular fund TO
| he annually reserved Tor that purpose. and to he
| used for no other purpose whatever." The
| stock was divided into shares OF $1,000 each.
! and was to bc held ON such terms and condi-
| tions rs the directors should prescribe
| in the articles OF subscription. and II
equal S the msS, GN Ms should ID be be Sss%d redeemed
! in its place. Among the suhscrbsrs were
John II kgse. Charl G. LathroR. 7. b. ,PIeddie.
| Shove stafford r. Heath. Jerrminh Counsellor.
baniel NJ Wilson. pr, John T; ward. George
| David \. Hayes. Aaron Garter Jr,, j. d. Orton.
| Cashier Of the Second National Bank. for Ed
! ward Howe of Brookiyn; Hosrn f. Clark OF Jer-
| sry CITY: Dewitt C. Jayne Of Orange county.
| y. \. The 100000 thus raised was put into the
company 10 start II "a business. and was not
nnre Department. us has been 50 often stated.
| the company piUsprred beyond the expectation
| OF its most sdnguine friends and in few
years Il stood higher in the ratio Of its assets
Early in The ,iall q 1872. c. c. Lathrop. who
| was then the Nlce-President Of the company.
| negotiated with Horny A, Jones. formerly Pres
! idento the Hope Life Insurance Company Of
! New lore. to effect reinsurance OF the risks Of
| thc New Jers J Mutual by the Hope. the trans
! i.rrng Of It's assets. and the purchase by the
M9re Of H. capita" , st9Gs G e. ;lgC9Oo. This
Mutual bears date Sept. $ 1872. and was signed
10y VIM L. PIummcr as President of the Hope
| Jersey Mutual. and was Witnessed 10y {. {. La
| throp. IL provided that the contract should
s" TAX @ S3 anS If "n9 n N2S1d Ncw JSr!Sy Sy
Mutual by the Hope: also that the Hope Com
lGny should pay the storSholders ot the New
jersey Mutual the sum OF 100000. mat
! being the amount of capital stock held
hy them. and also my pei, cent.
| bonus on the stock, making $1,000
| The contract. or agreement also provided that
| this ;l5UO0O be- paid 10 the stockholders out
| OF the bonds and mortgages OF the New Jersey
| Mutual Life Insurance COMPANY" as might be
| agreed upon 10y the parties TO the agreement
OFT l. following. the Hope made another
| agreement in writing, with the New Jersey
Mutual. agreeing 20 indemnify the company for
| any loss thoy might incur ty entering into said
! the assets oil tiir Nrw jersey Mutual were trans
! irrrrd 20 the Hope. hut the execution Of the
| agents amt policy hoi"r- that u" COMPANIES
| We're CON PEELED 90 rrced" from the agreement
IL was all-Grd tliAt thr -tn'hhpiu'r- were about
| 10 he puli Tor their stock out OF money belong
On Dec. 81. 1872. another agreement was made
and signed. whereby the Hop WAS roinsurrd
| by tn New Jersey Mutual-ihat is. the New
Jersey Mutual swallowed the Hone instead Of
tine Hopr swallowing the New Jersey Mutual
| rrctors and stockholders %! the New Jersey Mu-
iuai retired from the company taking with
! them $50 600 ont OF the assets oi the company
| Mm. VI. Force WAS paid IN cush. hut the balance
OF the stockholders accepted bonds and mort.
ink IN tue mortgage book. As several OF the
| books OF the company ar missing, u cnnnot be
| shown what be- 'aWr of the stock. j. II. Sted-
! we'll. III" last Prt-id oi th" company. may
| supply TINS deficiency. The contract under
| winch this transfer wiS made is silent ms 10 the
| consid"rAt on 10 be pad the stockhclders ot the
/ New Jersey Mutual. The Hope WIS insolyent
at the tn" OF the transfer, and the Withdrawal
/ OF $3.50 600 from the assets ot the New Jersey
! Mutual seriously impaired 1t.
" .liam l.. P.ammer ana the Hope men were
in charge OF the New Jersey, Mutual for. one
mud lta taf fn.s
company mad" protest against the manage
mrni, IN III. interest OF the policy holders. In
| January. 1874. j. II. Stelwr was elected Presi-
| dent OF the company. He found the affairs IN a
wretched condition. In q tObcr. lS14 an invrs-
tigition was made by the State Insurance De-
parimcnt ana soon aiterward Secretary of State
Kelsey certified that the company WIS in a
sound and healthy condition.
| Ii IS alleged that Stcdwell. in his anxiety to
pla the company on a sound basis borrowed
bonds from the Cgntlnenth Life 10 swell the ns-
Slowly SLOW unt m S the ySf S ot isS Henry TBGHE BS9
win. who was in charge ot the Middle Depart
inent. then Arranged i9r the reinsurance oi the
New Jersey Mutual. In December. by or
der OF Secretary of State Kelsey. the
D. T. Fackler and two other accountants. While
the examnation, vas IN uroSrrssi the Directors
H. Trrnor ana IL. W. BALDWIN Of New York To
effect Il reinsurance in some other company
Il is avcrrrd, that this committee auth
| Presiden, stedwgl to act Tor them ON the Goth
! Of january. 1877. he met Benjamin NOyes.
| President OF the National Capitol Life Insurance
| Company OF Washington u. c., and reinsurcd
the New Jersey Mutual N that company. Sec
| retary Of State Kelsey refused to recognize the
transfer, aud applied 10 Chancellor Runyon
who. on Feb. 5. 1871. appointed cN-Goy Par
kcr Us receiver Of the company. Mr.
Kelsey certified on the l9tn of January
that the company was insoivent by oyrr
! $500 900 and the Chancellor. in his de-
cree ratified this statement. stedwell, Noyes
| Baldwin. IrrnOr ana others were indicted by
The Essex county Grand Jury. Stedwcll Ned to
| Europe. and Noyes was subsequently ,sted
| in Connecticut. taken TO Newerk. released on
| 50. 900 bail. winch he forfeited. and WAS recent
| ly arrested in Washington. ID. G.. He is now in
| the Newark Jail. and he asserts that he was kid
mapped Strdwe recently returned from Eu-
rope to testify in the clV suits against the poll
| cy holders. He and Noyrs are Jointly indicted
for cOnspiring 10 delraud the policy holders Of
the New Jersey Mutual. Noyes's trial is set
down Tor May 3.
The troubles Of the New Jersey Mutual began
when the old stockholders transferred their
stock 10 the Hope meu. The charter required
that the stock should he replaced by good secu-
| rlty. This WAS not done. me Prosecutor says
| that under the charter the transfer was Illegal.
and thut the stockholders must return to the
policy holders the entire amount they withdrew.