The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-05-09
BENJdMIN NOYEs's TRTdL
Secretary cfstat~ Kelsey IN the stsnd-The
Reinsurance Of the Mutual.

The case of Benjamin Noycs, the Presi-
dent OF tho National Oipitol Life Insurance
Company Of Wash ngton, d. c. who was in
dicted year ago Tor conspiracy within. II. Stcd
we'll. Henry w. Baldwin. one Frost. and others
to defraud the policy holders Of the Now jersey
Mutual Life Insurance Company. WIS called in
the Court OF Oyer aud Trrminer in Newark. ut
10 o'clock Yesterday morning. Judges Dcpuc
and Ricard presided. Ex-Srcretary of the
Navy Geo. NJ. Robeson. United States District
Attorney A. Q. Keasby. and VIM. b. Guild. Jr.,
appeared as counsel for Noyes. and cxAttor-
n5y-General vannatta, and Prosecutor Abecl
appeared for the State After the Jury had
been aelettod, Prosecutor Abee read tho in
dictmcnt against Noyes and others. and sad
that they conapired to convey tho assets of the
New Jersey Mutual tn themselves. and made
the transfer to the National Capitol ne a blind
N9yes alone was placed ON trial
Henry G.. Kelsey. Secretary OF State of Now
Jersey. testified that he wns Commissionrr Of
Insurance: He appointed y. p. Fackler OF New
YORK and Joseph +. Narr OF Trenton To- examine
the New Jersey Mutual in December, 1876 Al
most from the first, Mr.. Farkler had trouble
with the officers of the company Mr.. Fackler
made preliminary report on the 10th ~ Janu-
airy. 1877. showing deficiency Of 1921 300 and
the report WINS not disputed by the officers. On
Jan. 10 witness gave the officers ten DAYS In
which TO- make the deficiency good. the law re-
quiring hin, 20 give areasonabe time for, that
purpose William VI. Force the Vice Prpsi-
dent and other officers assured the witness
that they might effect negotiations 10y that time
and save the, company. On the goth. the wit
ness learned from the newspapers that the
company had been rcinsured in the National
Capitol. and he went Mt once to the office of the
New Jersey Mutual. in Newark where he found
Benjamin Noyrs, who said that he had rein
sured the New Jersey Mutual in the National
Capitol that the assets had been transferred 10
him. and that he had assumed the liabilities on
the Friday previous.
Moves saidhe loved tho insurance business.
and II panied him Ia see policy holders dnfraud-
ed. Witness had been shown tho esq 900 in
bonds and other securities. amounting in all 20
fl320OO, on Doc 20. hut had not seen them
since. Stedwell refused to deposit these securi-
ties in bank with him. and forcibly resisted the
Efforts OF witness to get possession of them.
Witness went ut once to the Chancellor and
asked for an injunction restraining the consum-
nation Of the contract for reinsurance. I. n.
McCnrter. counsel for the New Jersey Mutual
opposed the application. and it was twice post
poned. and the receiver was not appointed un-
Counsel for defence asked Mr. Kelsey about
tho examination of the New Jersey Mutual in
| 1874. when he certified that 1t was in a sound
| and healthy condition, and he now asked
| whether the assets nt that time were not about
| the same rs in 1876. EX-Attorney- General
Nannatta objected tn any inquiry into the 1874
| examination. Us not pertinent to the present
| ease. and Judge Depue sustained the objection.
Mr. Kelsey further testified. on cross-exam-
| nation. that all he knew about the assets in
| 1875 was what Fackler told him. Messrs. Force.
Peters Frost, and other Off 'ers Of the company
asked him in December 1876 for time TO raise
| $500 600 To- save the company. He could not re-
| member that George Peters said To him that
| II O0o policy holders would be ruined IL he did
| Hbl ul 10 SuN" VI" COMPANY b'l, any NOW, Ne
considered ii his duty 10 act rs he did. When
| he met Noycs In the Office of the New Jersey
| Mutual, he did not know Noyes was in charg,
| except from what Noyes said; neither did he
recollect that Noyes said lie wanted TO reduce
| expenses and save the company. rs he did with
| the Hartford H. fe and Health Company. Noycs
might have said so. Witness said that Noye.
| told him he had forwarded copy Of the rein
| surance contract 10 him. but II was never re
| reived. and he could not say that Mr.. :. y. NJ
| Carter ever appeared before the Chancellor a.
| counsel for Npyee.
|
considerable length, and at its close the cour
| adjourned until to-day.