New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-09
BENJAMIN MOVES on TRIAL.
SECRETARY KELsEYs TESTIMONY,

SECRETARY KELSEY'S TESTIMONY,
REVIEWING THE REINSURANCE OF TIE NEw-JERsEY
MUTUAL.
The trial of Benjamin NOyeS, of New-H Haven,
Conn. president Of the National Capitol Life Insur
ance for alleged conspiracy in connection with Jere
miah II. Stedwell, Henry W. Baldwin and Others to
defraud the polcy-holders Of the NewJersey Mutual
Life Insurance COMPANY begun in the Court of
Oper and Termner at Newark, yesterday Judge Depue
presidiug. Ex-secretary Robson, A. z. Keasby and
VIM B. Guild ir, appeared for Mr. Noyes and the state
was represented by eX-AtOmey Jacob Nanatta
and County Prosecutor G. " Abee Among those present
were Judge W. Wright, exSecTct6ry OF State joan b.
Robertson, the Hon. James Gallagher, Dr. Wn. MWbite
James A. Smith, William HillhOuse, Charles r. WhedOn
and Mr. NOyess wife and daughter, all of New-Haven.
County Prosecutor Abeel in opening the case said
ofthe defendants president Stedwe wOud be used as
witness against Mr. NOyes the Others were beyond
the reach Of the court. He said Mr. Sedwel aud the
others received proposition from Mr. Noyes, by which
they and he were TO divide the assets OF the NeWJrrsey
Mutual stll remaining lie recalled tle history OF the
National Capitol Company the attempt to swallow the
New-Jersey Mutual by the National Capitol, and the
na transfer OF the assets OF the NewJesey Mutual by
Mr.. Stedwe TO Mr.. NOyes, at midnight, IN January,
1S77. lie then produced tin box, which he said had
been delivered to Receiver Parker, by Mr. NOye after
his first Imprisonment. Nj NOyes claimed that tins
tanned all securities that Nj. Sedwel had trans
1erted TO Nun put the contents were not worth adOar
The then askedwhat had become of the Of
the assets the bonds Casn etc inc particular charge
IN this indctment that Mr. NOyes TOOK $4,000 bonds
and $4,000 cash, by agreement with Mr.. Stedwe and
diverted tnOse amounts from the the
New-Jersey Mutual for the benefit 0i one Frost and
others and for his own benefit. The bonds went TO
Frost ana $4,000 OF tie cash 10 the attorney Of NOye
and the rest 10 other interested persons This the pros
eeutOr said. he expected to prove, and proved would
constitute crime
Henry c. Kelsey Secretary OF State aud Commissioner
OF Insurance, testified that ia December 1876 lie had
an examination OF the NewJelsey Mutual made by ID.
T. Faekler aud j. L. Naar, and that Packers report,
when ii was mace in January 1877, showed deficiency
OF 100000 The officers of the company admitted the
deficiency, and saId that they were making arrange
ments to make u good On January 10, 1877 he served
notice the officers 10 make the deficiency good within
ten days ON the tenth day he heard. through news
paper CIHE IRlBUNEl for the first time, that the
pany had been transferred lie had met Mr.. NOyes in
ISL OF ioI2, when the latter was Commissioner Of In
suahee Tor Connecticut and the witness Insurance
commissioner Tor NewJerseY. He met Mr. NOyes at the
when M: Noyes told him the Office was that OF the
NATIONAL Capitol Company. On that day the witness
asked the Chancellor for an injunction against the
IansleT IL was denied at that time, but subsequently
discussion arose between counsel as to going into
OF the company previous TO its last exam
heasOy advocating 1t. Judge Depue said he would
Siude any testimony relating 10 the condition of the
Ne.Jersey Mutual previous TO It's troubles irrele
want and he did not think the official certificates regard
ing the company were competent testimony.
On erOss-examnatiOn, Mr. Kelsey testified that Vice
PRESIDENT Force was anxious 10 prevent the ruin OF the
company and asked for time to raise 100000 To make
good the deficiency The witness limited the time
days long discussion ensued TO whether tho
definition OF reinsurance question OF law 10 be
witness could decide expert The Court admitted
the question, and the witness defined reinsurance as
Of two companies with the expenses OF rensur
ance In sound company would have been good ground
Tor delay. Two weak companies might consolidate and
by thus reducing their expenses Onehalf, make them
selves stronger The expenses Of insurance companies
were from to 30 or go cent OF their receipts
usual thing Mr.: NOyes continually insisted that his
best efforts would be made to protect the policy
Noyes said that when lie got the affairs Of the company
IN shape he would give the witness schedule
OF Them. lie never saw the United States bonds
shown him by President sedwe after the last examl-
nation OF the New-Jersey Mutual. lie never had any
conversation about the affairs OF the New-Jersey Mu-
tua with the officers of the Mutual Benefit Life nsur-
ance Company. In December, 1873, the New7Jcrscy
Mutual had 1878 policies In force insuiing Sl9O2l
900. Mr.. NOyes too sharp insurance man to tell
the witness that the premiums, amounting 5000 600
would pay the losses under the death rate OF 100000
aud run the company, without other assets Ii couldn't
be done. The witness learned that the United States
bonds shown him by President Stedwe at the exana-
ton, had that day been brought from Eew-YOrk
Charles ii. BrinkerhoG, late secretary OF the New
Jersey Mutual testified as 70 Mr. NOyess taking posses
sion OF the office January 30 1877 and said that Mr.
N0yes told him that the New Jersey Mutual had been
reinsured by the National Capitol Life The Court then
adjourned The trial will undoubtedly extend into
week