The New York herald., 1878-12-31
THE CHARTER OAK CONSPIRACY.
ADDITIONAL TESTIMONY OF THE DERENcE-IA M.
poRrANT STATEMENTS ny STATE INSURANCE
COMMISSIONER srEDMAN.

PORTANT STATEMENTS ny STATE INSURANCE
COMMISSIONER srEDMAN.
HAnrEoRD. Conn. Dec. 80. 1873.
The Charter Oak conspiracy trial resumed in
the Superior Court this afternoon Judge Ashbel Green.
ii New York, testified that he had advised Furbar to
take title to the Matthews property in New York
through himself instead of directly to the company.
on account of . statute in New. York which might
render it unsafe for the company to takc title direct
ly Witness had consultation with Governor Hub
bard of Connecticut the subject, and both agreed
to advise Furber to get securities from the company
which Matthews had taken or agreed to take by pur
chase Furber to give his notes to the company and
the company to take the property in payment OF
such notes.
REAL ESTATE ACCOUNT
H. C. Clinch, in charge Of the Charter OAKS
real estate in New York city, testified that he Went
into the company's Office in December 1875, under
Mr.. Furber. and took charge of the bond and mort
gage account. witness prepared the statement OF
the real estate assets that went into the December
1875. report and neither Furber Wiggn ever saw
the statement until 1t was finished 1t had been
carefully prepared under Furber's instructions to
get as accurately possible from the records III
the company's office. At later date witness pre-.
pared second schedule, errors having been dis
covered both sides of the account as it had been
kept by the old management The bond and mort
gage account itself would not balance by $4,000.
Witness also prepared the schedule for the
1876 report with the greatest care, as he
was informed that it was to be used in
the opening Of general set Of books, which
had been delayed until that time. owing to tho
impossibity Of getting at the correct value Of the
premium notes and other assets. On cross-examina-
ton witness testified that he got the valuation
OF the worthless second mortgage bond OF
the Connecticut Valley road from Mr.. White and
sumed the value OF the Allen, Stevens q Co. collateral
mortgage at its face. S1s2.0Oo Witness was also ex-
anined ut great length to where or from whom he
obtained valuations of certain pieces OF property tho
object being show that the values reported to make
SI73OO0' were exaggerated On redirect examina-
ton witness stated that Flber gave him memoranda
Of increased values OF some the real for the
1916 report these Valuations having been made by
loan agents of the company.
COMMISSIONER srEDMANs TESTIMONY.
The testimony Of John w. Stedman. insurance
commissioner Of Connecticut, occupied the remain.
der OF the session until the adjournment To the
accused OF great value, going to show that In
every important step taken they had the approval OF
the Commissioner and other gentlemen. Mr.. Sted-
man testified that Wiggin first called on him Novein-
ber Isl 1875, relative to the Furber contract under
which the control Of the company was to pass into
the hands of Furber and lis associates Wig
gin was accompanied by Charlton T.. Lewis,
OF New York, who explained the arrangement. The
next day Furber called and said that he did not
pose to enter into the arrangement unless it had the
r,ll approval OF witness and because he to con-
tribute $5000UO to the companys assets to make y
solvent in way that would not liability. and
as his return must be from the future premium re-
ceipts he must feel assured that the Insurance Com
missioner would not take any action, by in
junction or otherwise in the future, that
would cut off those receipts. Mr.. Stedman con-
suited with Governor Hubbard OF this State, and
A. T. Burr, editor of the Hartford Times, both OF
whom approved the arrangement. He next made in
uuiries regarding Furber and Wiggin, and finding
nothing suspicious he wrote letter to the company,
eight days after the Furber interview and approved
the arrangement the conditions that $5OOOO0 wero
contributed and to be paid for out of the loading or
surplus earnngs that the majority OF the directors
be Hartford men, and that the treasurer reside anu
have his office in Hartford This latter stpula-
ton was due to suggestion that Furber
thought of being treasurer and keeping his Office
In New York. Witness further said that he had beeH
familiar with the transactions under the Furber man,
agcment, and every thing hal been carried out az
originally agreed Furber consulted him about the
So 600 900 purchase OF New York downtown properly
and produced appraisas by Homer Morgan and +. 4.
Ludlow, but witness withheld his approval until
after he received satisfactory appraisal made BY tho
official appraiser of the New YORK Insurance Depart
ment On cross-examination new facts were de-
veloped except that Mr.. Stedman not aware
sons in addition to their salaries. Witness declined
to say what he would have done he had known that
these coupled with the Furber contract. Inc
State Attorney inquired whether witness had made
inquiries among leading insurance men OF Hart
ford regarding Mr. Furber but the defence objected,
and the Court refused to admit the testimony.
marking that Stedman had testified that the results
was enough. In conclusion witness said, 'The COM
pany was in very critical condition gave it the
benefit Of every doubt. did all that did i'll perfect
good faith and now believe that was right
The Court adjourned to ten A. NJ. Tuesday, when
Mr.. Stedmsn's ross-examination will be resumed