The New York herald., 1878-01-15
A RECEIVER DEMANDED.
THE CASE OF THE CHARTER OAK LIFE INsuR-
ANCE COMPANY.


ANoE COMPANY.
HARTFORD, Conn, Jan. II, 1873
The application OF State Insurance Commissioner
Stcdman Tor tho appointment OF a receiver for the
Charter oak Lie Insurance Company heard before
Judge Pardee, OF the Superior Court. this forenoon
Counsel for the company opened the by asking
postpone ment OF the hearing until such tmo as tho
company determine the success OF It's plan OF
scaling all the policies forty per cent, thereby
reducing tho Liabilities 10 an extent sufficient
to place the concern on solvent basis
He staetd that the present directors acting In the
character OF trustees for the policy holders, mad
found, on taking hold OF tho company after the ro-
trement Of the wiggin management, that the doubt
fu assets equal TO forty per cent OF the whole
Nothing remained but to scale the policies an equal
amount, as the reouperatIvs powers ofthe company
gone or the 20 900 policy holders nearly eleven
thousand have agreed 20 scale, resulting In q re-
duction OF 900 Tho liabilities. and this seal
Ing steadily goes Oh, so rapidly, IN fact as 10 justify
hcicnt TO mako the company solvent under
the Connecticut law Counsel relerreo 10
sSsntass sss"i,s iound necessary 10 appo.n.
receiver those policy holders who had scaled would
.Sa w ~ u lace Anal
settlement Counsel further stated that President
Jewell had receivcd over thousand letters iavoring
reorganization Of the company on strictly mutual
basis, and the direction had decided 10 ask the
Legislature Tor such reorganization, which Will en
able the policy holders 10 assume the entire manage
OF Affairs through their chosen rcprescn natives
Counsel for the insurance Commissioner stated that
IL was believed that the company was In such con-
dition that 1t could not safely 80 on and such as TO
make II obligatory upon the Commissioner, under the
law, 10 tor receiver. As the mutual project,
the Commissioner nad no interest In It, The Court,
alter Temarkng that he ''didn't propose 10 assume
tno management OF the compaDy"-llaughtcr)-sa
that DO governed by the statute In tho hrst
place, the company must answer the allegations IN
the petition ior receiver Tp this counsel Tor the
company replied that The allegations werc denied,
yet The company would still venture 10 ask moro tme
to determine the success Of the scaling progress.
Further arguments cnsucd, during winch IL was
until the matter settled policy holders
whose policies ia danger OF lapsihs would be al
lowed keep them alive by conditional notes. rather
than casn, and Judge Pardcc then continued tho case
Saturday next after modifying the existing injunc-
tion so to permit payments for taxes, insurance.
&C " is believed tnat he Will refer The whole Ques-
tion a committee for thorough investigation.
PETITION TO MAKE COMPANY A MUTUAL ONE
The directors OF the company mot today after the
proceedings court and signed petition asking Tor
change OF charter. They say that owing TO tho
present condition oil the company u s desired by the
policy holders thereof that they should be allowed 10
assume tho control and management oil snd company.
They therefore ask tat the charter DO so amended by
this General Assembly as shall make said company
mutual company, controlled and managed by said
policy holders, upon such conditions and under such
restrictions may deemed ADVISABLE.