The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-07-09
NOYES'S QUEER INSURANCE.
HIS THREE CORPORATIONS IN 4 FAIR
UaY TO NE WOUND UP.
Foley Holders Likely TO whistle for Divi-
Standardization Amend thnt mny Invoive
the stnte-How II L. Seen In New Haven.


dends-IitIgntion Ahead that may InvoIve
the stnte-Iow II l. Seen In New Haven.
NEW HAVEN, July S-Bcnjamin Noycs,
who was sentenced on Saturday afternoon. in
Newark. by Judge Depuc to Imprisonment for.
eighteen months in tho Now Jersey Stats prison.
was the acknowledged head hero OF three in
surance comprehensive American Mutual Life
the American National Life and Trust and tho
National Capital OF Washington. The Life and
Trust Company partly absorbed tho American
Mutual, and when the Life and Trust. after un-
prccedcntedly tedious lltigatons and lcgsla-
tive hearings was bcsct for its life. the charter
OF the defunct Capital Company was purchased
for few thousands OF dollars to avoid the per-
sistency OF tho Insurance Commissioner Of the
State. whereby the lsccne OF operations was
transferred to tho national capital. II wns in
the Capital Company TINT the New Jersey
Mutual was to be rcinsured. Last fall tho In
surnnce Department sued out nm injunction to
protect Connecticut policy holders in the Ma
tlonal Capital. and. recently. Insolvency pro-
cccdings 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. n success
full application was made for receiver for tho
American Mutual and Life and Trust Com
panies. II appearing TINT both companies had
assets remaining undivided. though business
had ceased, and policies not renewed in the
National Capital were outstanding. The re-
ceiver appointed Ia Talcott II. Russell Of this
city. The ast-named application las. indeed.
since the fall Of 1874. there has hardly been
time when legsl proceedinss OF some Kind con,
nected with Is. Noyes's companies have not
the range OF which may be Inferred from tho
statement that besides two special tribunals.
two legislative committees the Probate. City.
SunpriDT. been
ployed. and among tho proceedings mny he
rcckoned two appearances by b. Noycs on Grim
innl charges. II will be seen that in the absence
Of Mr.. Noycs things have occurred disastrously
for his companies. and they seem to bc in n fair
the reinsurance Of the two New Haven compa.
MICS in the national capital. they had outstnnd-
ing policies with face value Of 81 60O.0 600. and
n real or surrender value OF about sl.OOO,OOO.
To secure this mass OF claims there appeared
TO DO little except the insurance building IN this
city. which was recently appraised ri <50.OO0,
capital stock OF the Life and Trust Company Of
$4,000. and guarantee capital of the Mutual
Lite Of T5.OOO. The insurance building costs
t3OO.0OO or more. but standing on lcased land.
Tor Which an annual rental OF $4,000
has to he paid, IL has never reaiz'd
ness OF neither company amounted TO much.
and II seemed rather TO bc the policy TO brighten
policy holders into allowing their policies TO
of one OF the companies says that in one year.
when only 81 new policies were taken out. the
expenses for salaries alone amounted to &c.
OOO and when he protested against such cN-
travagnnce he was treated so shnbbiy that he
withdrew Tho National Capital Company
since the reinsurance has issued but one pol
icy. and that to a man who afterward appeared
10 oppose the Insolvency proceedings in the
friend Of Mr.. Noyes. The dividend received
10y policy holders in either OF the three cOmpa-
MS Systematically to reduce liabilities by extin-
gushing policies M its predecessors Although
getting absolutely no new business, 1t has sent
out quarterly demands Tor premiums. accom-