New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-16
INSURANCE IRREGULARITIES.
ANOTHER HARTFORD COMPANY IN TROUBLE
REPORT OF TIE LEGISLATURE COMMISSION on THE
CONTGNENTAL IIrE-AN OvEH-sTTEMENr OF
SURPLUS OF MORE THAN $3.50 000-A STORY OF

REPORT OF TIE LEGISLATURE COMMISSION on THE
CoNrGNENrAL IIrE-AS ovEE-STuEMENr OF
SURPLUS OF MORE THAN $3.50, 000-A STORY OF
MlsMANAGENENT AID co%CrAIhHNT.
10y TELEGRAPH TO THE rGIBUNE.I
HAHTFoED, Conn, Jan. 1j.-rhe Special Insur-
ance Commission appointed by the last Legislature
to investigate the condition of the Life Insurance
companies in the State, presented their first report
today. Contrary TO general expectation it did
not relate to the Charter Oak Life, which
has cngroSscd public attention much of late
that other companies have been lost sight OF. The
present report relates to the Continental Llfr, Il
company which was incorporated IN 1852. and or
ganizcd in 1864, on the stock and mutual plan SINH
lar to that of the Charter Oak. The company has
changed its management once or twice since its or
ganizaion, the present board of officers having
been in control for the past three four years. The
principal managers are from the neighborhood of
Windham
The COMMISSIONS report deals yithe thf jasqny2
1876. showing in detail that said statement con-
tanned serious misrepresentation OF Its assets anu
Indebtedness. The company claimed a surplus of
ssI2j, 300 3D. "A 4l2 per cent basis the Commits
sion reduces it to $G3 100 90 even after counting
certain assets of which it speaks i'll doubtful lam
guagc.
The connection of Mr.. John c. Tracy with the
com,giy as 4 director has a good deal TO do with the
trnuhlrs which have now been brought 10 the slr-
face. Mr. Tracy was the dcfauiting president OF
the Farmers and Mechanics Bank, AMI Is now III
the state Prison cxpiatng his offences. The entries
of unreal deposits III Mr. Tracy's bank, which,
10y his collision, were entered on the com-
pauy's pasS-booll at the bank, 10 doubt put
the Insurance Commissioner of the scent IN
his examinations and led him to report the company
all right. Prior II these transactions, however,
there seems 10 have been a number Of performances
OF a decidedly crooked character. in connection with
the purchase of stock In this company, too, rs well
AZ IN the Chatter Oak, there appear, Ia have been
a ring Of spectators absorbing the stock
and paving for il ont of the cOnpanys assets.
M coursn the real estate of the company
aud the mortgage securities were Ovcr-yalued. Be
sides that-bcing simple matter of course in these
companies after the first step in questionable tinan-
ciering has been takcn--the company is largely
mixed up with the Sharrs Rifle Company, of Bridge
port. in which Mr.. Tracy also was deeply in
voiyc,l The impairment ol assets discovered by
the Commissioner amounts to ,pOI III, nut II Il
claimed taat the rccuperatIon by lapScd and surren
drrcd policies will make this Impairment good
counting the debt against the SharpS Rlle Com
pany good at Tl33J3i 30. II Is hotlccable iart
ihat in this company, in the CHARTER Oak, the re-
cupcration from the impairment of assets comes
from lapscd and surrendered policies. That is pro-
. ccs. they used to call - lrccIlug out.
The report oi tie special commission on THIS mat
fer leaves the Insurance Commissioner in rather
UNPLEASANT position. II was his business 10 lave
discovered these facts III his examination of tac
compauv's affairs The fact that special commits
sion had 10 be appointed 10 discover chem does not
speak we'll for the efficiency of his administration.
II strikes an Indifferent spectator rs rather SIN
,cllar postion of affairs that Judge BrscOc who ~
Speaker of the House, has the appointment of the
committees who will have to investigate the nsur-
ance companies. still further appeared IN court a.
counsel for the insurance commissioner. II has
also been made the subject of unfavora-
bile comment, that he is tho law part
ncr of Sir. Maitbic, who has been until
Guite recently Deputy Insurance Commissioner, ana
is now member of the House. presume unfavor-
able comment will also he made upon the
fact that, in the list of committees announced by
the Speaker to-day, the name of Mr. Winchester
of South Windham. ylce-presidehi OF the
Continental life appears member of the lnsur-
oncr Committee II is not impossible that these
things NAV be accident, and that speaker Bfscoe
NAV intend to be entirely impartial and fair; but he
canot be too careful to avoid even the appearance
of Partially. go
As to the other life insurance companies in the
CITY am assured by Il member of the Special Com
mission that after the most rigid examination, the
commission prOnOunccs them all sound. The pres
ent prospect il that at the hearing next Saturday
the Charter Oak will pass into the hands OF a re-
| ccivcr.