Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-16
CROOKED INSURANCE.
Mr.. NOyes, Of Connecticut, Goes to Jail,
and his Three Insurance COmpa.
MES are wound Ep-A Dis
graceful Record.

New HAVEN, July S.-B4pjamin Noyes
who was sentenced on Saturday afternoon, in
Newark, by Judge Depue; TO Imprisonment
for eighteen months In the New Jersey Stats
prison, Was the acknowledged head of three
insurance companies-the American Mutual
Life, the American National Life and Trust,
and the National Capital of Washington.
The Life and Trust company partly absorbed
the American Mutual. and when the Life and
Trust; after unprecedentedly tedious hhga-
tons and legislative hearings, was beset Tor
its life, the charter of the defunct Capital
company was purchased for a few thousand
dollars to avoid the persistence of the iusIr-
ance commissioner of the State, thereby the
scene of operations was transferred to the
National Capital. 1t was in the Capital that
the New Jersey Mutual was to be relnsured.
Last fall the insurance department sued out
an injunction to protect Connecticut policy
holders in the National Capital, and recently
insolvency proceedings were begun in the
probate court, In the New Haven
district, which are nearly closed, the time for
preferring claims expiring next Saturday.
Still more recently a successful application
was made for a receiver for the American Mu
tual and Life Trust companies, it appearing
that both companies had assets remaining
undivided, though business had ceased, and
policies not renewed in the National Capital
were outstanding. The receiver appointed is
Talcott II. RUSSELL Of this city. The last
named application las, indeed, had been all
others) Was fought hard. In fact, since the
fall of 1874; there has hardly been time
when legal proceeding OF some kind connect
ed with b. Moves companies have not been
gong on in the courts of the State, the range
CT which may be inferred from the statement
that besides two special tribunals, two iegis-
lative committees, the probate, city, superior,
and supreme courts have been employed, and
among the proceedings may be reckoned two
appearances by b. NOyes on criminal charges.
lt will he seen that in the absence OF Mr..
Noyes things have occurred disastrously for
his companies, and they seem to be in a fair
way to be wound up altogether. At the time
of the reinsurance of the Two New Haven
companies in the National Capital, they had
outstanding policies with face value of two
million Fix hundred thousand dollars, and
real or surrender value of about one million
dollars. To secure this mass of CLAIMS
there appeared to be little except the insur-
ance building in this city, which was recently
appraised at fifty thousand dollars; capital
stock of the Life and Trust company of one
hundred and twenty five thousand dollars,
and guarantee capital of the Mutual Life of
seventy-fve thousand dollars. The insur-
ance building cost three hundred thou
sand dollars or more, but standing
on leased land, for which an annual
rental of eight thousand dollars
has to be paid, it has never reaizedithe inter-
est On the investment. The business Of neither
company amounted to much, and it seemed
rather to be the policy to frighten policy
holders into allowing their policies to lapse
than to get new business. An eX- official Of
one of the companies says that in one year,
when only eighty-four new policies were
taken out, the expenses for salaries alone
amounted to ten thousand dollars, and when !
he protested against such extravaganza &c +,
was treated so shabbiy that he withdrew. |
The National Capital company, since the re- |
Insurance had issued but one policy, and that |
10 man who afterward appeared to oppose the |
insolvency proceedings in the probate court !
Of the district, being personal friend of Mr.. |
Noyes. The dividend received by policy |
holders in either of the three companies will |
De small. The Capital has proceeded |
Is systematically to reduce liabilities
~ extlnguishing policies as its predeces-
ors. Although getting absolutely no new
it has sent out quarterly demands
or premium accompanied by circulars say
ng that all agencies had been discontinued |
or economy's sake, and money must be paid
It Washington. 1t would be easier to carry on
egal fights in one district court than in the
ourts of many States. is the explanation put
building, the principal tangible asset, will
probably be sold before any dividend can be
declared. Over the other assets named there
will possibly be very interesting, and cer-
ainly bitter fight, if the receiver of the
Iew Haven companies shall press his claims,
nd this his counsel says he viii do. The
oders of guarantee capital or capital stock
7ill not acknowledge their responsibility; the
counsel say that they are not only
esponsible for this, but that they are liable
Or all the policies on account of such lax
They ought to have known
7hether Noyes was misleading them. Even
be State may be liable before the sDarl shall
e unraveled. b. NOyes procured special
sgislatIon in 1873, by which one hundred
thousand dollars in good securities were
Irned over for what counsel contemptuously
tyles wildcat mortgages" by the State
-easurer, who held them IN trust for the
of the old companies. As the
never acquiesced or had any
dice in the arrangement. the State is held
} be responsible. Much excitement was Gre
ted here by the news of Noyes's arrest, he
avlng been a prominent cItizen-once an
ditor, and at other times bank commissioner,
lsurance commissioner, and insurance presi-