New-York tribune., 1878-05-10
THE MOVES CONSPIRACY TRIAL.


TESTIMONY OF EX-PRESIDENT STEDWELL
IMPORTANT RuIING or THE CoURT-HisToRf OF
THE SEw-JERsEY MUTUAL REINSURANCE
The trial of Benjamin NOyes was continued
yesterday at Newark before Judge Depue. Charles H.
BrinkerboH. formerly secretary Of the NewJersey Mu
tual recalled. The prosecution showed by the Wit
ness Noyes assumed actual possession and con-
tro OF the Sew-Jersey Mutual AT Mr.. NOyes's request
several account books company sent to Mr.
NOyes at New. York Of them were brought back
and others have been returned. The unpaid
death claims the tine the company closed business
amounted TO 100000
On cross-examination Mr.. BrinkerhOf was asked II
the directors OF the New-Jesey Mutual had taken any
steps looking to the reinsurance Of their company IN
other companies before negotiating with the National
Capitol Mr. Yanatta behalf OF the State objected
and In lis argument took the ground tbat such ehort
was a crime. Messrs. Keasbcy and Robson, OF coun
sci for Mr. Noycs. argued the matter at considerable
length.
Judge Depue said contract OF insurance Is a con
tract that is made where insurance company has
taken larger OF risks of certain class than
deems safe. 1t is the thing the right oi hank
20 TO another bank and have its surplus discount
paper taken OFF its bands 1t is, however, settled by
that company has right to transfer its assets
and liabilities TO another company-to amag gamate
Insurance companies cannot arnalgamate cOnso
-
companies are merely agents. and without unanimous
consent The stockholders transfer the assets Of
the company The question now is whether the at
tempted consolidation honest mistake or
deliberate attempt to deiraud the stockholders The
indictment charges this offence. Whether II Is
tanned FOR tGc jury TO decide matter OF fact To
determine tas, wide range must be given to the cx-
aIninatOus."
Mr. Brinkcrhof said that January 90 Mr..
Noyes showed him contract rinsufing the SewJersey
MutnaI. Nr Moves told him he wOulc show the pOlcy-
lli,F fu.tll IVA. W.lsR
duct the affair. OF toe company with economy thai
with an income Of 5000 900 from premiums and death
raic Of 100000 the company could create new re-
jeremiah H. well, formerly president OF the New
Jersey Mutual was csiied by the County Prosecutor.
Mr.. Robcson asked the Court IL Mr.. scdwe being in
dcted with Mr.. Noyes, was competent witness. Judge
Drpuc decided that he and Mr. ROhcson took excep
the ruling Mr.. strdwell testified that on Janu-
Mutual deficient, bat not 10 large amount as
had been suited In court. AZ that time the company
had state deposits Of ABOUT S3O0,OU0; assets worth
their face oi H2OO,OOo; premium notes OF f3lOOOO;
mortgages property worth less than their face value,
SI2OOUO: real estate worth about S5O.OOO 100000;
outstanding unpaid preiniuus, %21O,TO; due from
agcnts arising from insurance OF the Hope, Craftsman,
Commcnwe lh aud Hcrcnles. large sums making in all
Sl,liO.OO0 When Mr.. Kelsey examined the company 1t
had russrssOn OF S32.OOO OF Government bonds, s1j,
900 oi whch were ny Olhtchiei, IcaNhS - 'UOo Inc
company having to borrow money Ia meet death claims,
the witness consulted with Dir. Kelsey, and subse-
qucny euGeayOrcd to n ct reinsurance OF the
p,uy his from about January 10 about Jan
Satc- Globe Union Mutual OF Maine, versa Lie and
other compan, ahOu III all, lOOAng to reinsurance
Tue witness inst saw Mr.. Noyes on January l. 1877
IN consequence OF an Invitation from Mr. Fay. Counter
propositions made by Mr. NOycs and The witness
winch be- subject 10 the approval OF the drec
t,r. nt Inc TWO coninanies Mr. fav had brought 10
rougn drafts Of conditions OF rensur
lncc, which the witness subsequently ascCTalned 10 be
In IN, I,udwritiny OF Mr. Noycs out they were not
n,rm..ihe Thcy were received by the witness
before MIR. NOyes. several PROPOSE
Mr. Fay VA, the attorney Mr. Noycs IN the nesoiia
tIons. Mr. stcdwcl sad he met Mr. NOyes again o
January or j. ls77, nd then ana not meet HIM until
January II -. The witness postponed action wltA
Mr. NoJcs because there Nas PROSPECT OF raising su
cicni money 10 make sood the dehcency The witness
also ArgoLtcd vita Oghcr companies FOR reinsurance IN
the meantime. nul, fallng altogether. he sent Tor Mr.
Noyc- by Mr. Fay ana thcy had another interview, az
winch agreement Tor reinsurance was effected which
The company had nominally Ss7 900 in United States
bonds (es value Of SlOOOOol, which appeared the
Offset to stock Tney were the property OF
Ir Ffost. and were be rcccptod for, paying the
bonds back 10 Mr.. Frost, ana cauc"iing 100000 uf
mcut made between the witness and Mr. Fay, and
latter assured the witness that Mr. Noyes consented
ubseqneDty M Fay referred To the
In Ihe of Mr Soyes aud tue witness and
Mr. NoSes made no Objection MT Fay told the witness
Suye. Ia pay hun 100000 for securing the
,rH ia rec, i've tn $40 900 IN cash hui .ubsenurntv
modified bis clamIand agreed 10 ACCEPT Sl2OOO IN cash
aud mortgages of the Nrw-Jersey Mutual for the bal
Of @lsOOO.
Tho transfer was completed about midnight Of Janu.
AIRY 26 The said that he had sigued all
papers and transfers Of securities, lac took them into
the room where Mr. Noyes sitting and laid them be-
fore hin accompanied with receipt for Them. In-
oluded In the rrcrpt Ss7,OOO In United ststes
bonds aud $4,000 cash. Mr. Noycs did look at
The bonds bat passed them The witness gave Noycs
an envelope containing Si2OOO check Of the company
AID The witness's !escnal check Tor $4,000 THIS
10 account fOr the $4,000 IN cash embraced
ia tne recent. Nj. Auycs aid examine the
envelope The witness placed his personal check for
SsOOO iD the envelope with the understanding with
Mr. Fay tnnt lt WAS be replaced by "A mortgage for
tAni subsequently Mr. Fay brought the check,
and Toe witness gave um tne mortgne for that amount
Mr.. NOycs had ample opportunity 10 examine tie
ceipt before he signed 1t. lie did not sign u until after
had cXamutd H. and he did not oJcs Ia the items OF
SS7 900 for Government bonds ana $50. 900 cash.
witness could not SAY who took away the Govern
nirnt bonds from ihc table He under the Imprps-
that Mr.. Fay took them away. They returned
Ia Luther Frost
The Court adjourned until 10 o'clock this morning,
when Mr.. SedWell will be CrtpssrNanined.
The following prominent cIliZens OF Connecticut
present at the trial yesterday The Hon James Gal
agher, lately Democratic leader IN the Connecticut
House OF Representatives n. d. Sperry postmaster OF
Hew-Haven JuOge X. W. Wright Joseph A. Smith. K
Nlce-pTesident Of the Yale National Bank DIR. Wm N.
White John B Robertson, formerly Secretary U State;
william IIillhOse, Collector OF wiHyUn Charles r.
Whrdon, president Of The ewlayen Board Of Health
eXCOngrcssm1n e. NJ Ingersol oi the New-liayen Dis
trc; and L. i. Lyon.