New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-12
FURTHER DETAILS.

PAYMENTS TO ALLEN STEPHENS & CO.-HFhVY
COUNSEL FEEs-THE INTRODUCTION OF FURBE8
AND wfGGIN INfO THE COMPANY-FALsE RI
PORTS ~ REGARD TO THE PRESENT MANAGERS.
iFIoM STAFF CORRESPONDENT OF TIE TgIEUYE.I
Hartford, JAM lin my last letter l gave
sketch of the history Of the unfortunate Charter
Oak Life Insurance Company, from the time OF its
| organization through the several administrations
that have managed its affairs to the present tine.
Some Of the facts given in that letter had never be-
fore been made public, and others, though more or
less generally known, had never been consecutyely
arranged, and given form ard conference. I am as
sured that the narrative was read with great in
tcrest by all classes in the community, as well
by those Immediately interested in the
business of life insurance, as by those
who had yainly wrestlcd with its mys-
tcries, and given them up things fellow could
find out. Some OF tho incidents in this checkered
history marvellous some Of the details Of tho
Encouragement Tie company had suffered revealed
such startling ncompetency and rccklessncss and
worse, that though had what deemed the very
best authority for every particular Of the story /
scarcely expected that they would 60 entirely
contradlcted. Some one, l supposed. of all the
persons implicated would step forward and
either by abrupt denial or effort at
explanation put in plea of not guilty. But
while the community stood aghast at tho
disclosures concerning the methods of the
Walkley management, not one of tie persons
raigned at the bar of public opinion for completely
IN the transactions has yenturod to open his mouth
in explanation rcfutation. The revelations con-
corning the formation of the ring, the means
adopted for absorbing the stock, the manner Of de-
claring AID distributing dishonest aud unlawful
dividends. the purchase OF stock from tho
companys assets and redistribution at a
nominal price TO the directors, the
chaotic bookkeeping which had nothing in the
shape OF cash account, and for transactions cover
lnga period IF years and involving hundreds Of
thousands Of dollars, showed not SO much as tho
scratch Of penal these remain uDcontradcted
and unchallengcd. | confess my own surprise at it,
For though the sources of my information were Of
the highest authority and unimpeachable the story
seemed incredible.
ALLEN. STEPHENS & COMPANY.
One of the most unaccountable of the series of
complicated transactions in which the Walkey
management was engaged was the Allen. Stephens
& Co. affair, to which only q brief reference was
made in my last letter. Where when The relations
of the company with this concern began or what the
circumstances that led to the connection, it is
impossible to find out. The books furnish no clew,
nor IL there any record throwing light upon IT.
The letter-books in which reference is made to
large transactions are the only documentary evil
dcuce vet discovered, and this Of course, is frag-
mentary incoherent and unsatisfactory. Yet it ap-
pears that Allen. Stephens Il Co. were the compa-
ny's Now-Iork agents; that all its New-York
drafts, checks, etc, were deposited with
them, its bank account, in fact, being kept
with them; that Messrs. Stephens and
Blennerhasset, members of the firm, were
each under salary of $4,000, special agents to
protect the companys interests, and that borrowing
mi land linn aub hutr md I'm MI
all the multiplicity of transactions common TO such
intimate business relations, were constantly going
on between them. OF all these, Messrs B.ssell and
Hyde, the committee engaged in examining the
books, find evidence except in the cor
rcspondencc which the late Treasurer, Mr. White,
carried on with the NewYork firm. copies of which
are in the lettcr-boUs 1t is inferred from the tone
of some of these letters that Allen, stephens &
Co. took advantage of the Knowledge they had of
the Companys financial straits to pat off upon il a
large amount of securities of doubtful value, or
worthless, Mt the same time that they
made advances in cash to meet pressing
emergencies. This is partly matter of con-
lecture but reasonable Interpretation Of
portions of the correspondence lends it great
plausibity. 1t turned out in the end that Allen,
Stephens X Co had got the better of the company.
according to their own statement, TO the tune of
100000. To secure this sum, Mr.. Allen, who was
reputed to he 0feXtenSiye possessions and vast
wealth, residing i'll Des MONIES, Iowa, made what
was called blanket mortgage to tho company,
conveying in five lines all his real estate wherever
located When the concern went INTO bankruptcy,
as it did shortly afterward, the validity Of this in
strument WAS contested by the other credit
ors and. tho case is still pending. The
expenses attending this litigation have been
enormous, moi less than $4,000, in fees aud dis
burscments, having Been expended up 10 the advent
of the present management. do not feel ccmpe-
tent 20 Sit in Judgment upon attorneys bills orto say
in any circumstances that lawyers charges arc
exorbtant bat have no hesitation in saying that
at the ratio these bills were running up, would
much rather have the fees than the claim. Perhaps
my syupathics are misplaced. but there's n pathos
in the situation of this great company lying
stretched out ut the mercy OF yultues that brings to
mind those touching lines
"Thoy perched themselves on his backbone,
And piched MS eyes ou', one by one
ENTER THE wRECKERs.
Thus far in this singular story have confined my.
self chiefly TO the period of the c0mpny's history
anterior to the FGrbcr and Wiggin management.
Since the advent of these worthless the company has
been constantly under cloud Of suspicion. and
consequently under moro or less rigid pub
lie scrutiny, that left little opportunity for
any elaborate scheme to make way with tho
assets by indirect and creuitous processes. Tho
Furber management went in to strip the wreck, and
what il did was done boldly and almost openly, SO
that very little inquiry uncovered il all, and made
the public acquainted with the facts. have con-
cerned myself chiefly with tho history of tho COM
pany prior 20 their advent. because the public know
so little about that part of it, and full knowledge
of all the facts seemed necessary to fair under
standing of tho present situation. But tho
facts concerning the manner in which Furber
and Wiggin got hold Of tho company have now
been published III full and may be of interest. There