The New York herald., 1879-01-04
THE CHARTER OAK TRIAL.

CLOSING ARGUMENT FOR THE PRoSECUTION--A
DEFENCE OF Ex-pREsIDENT wALKLEy-THE
LAST WORDS IN BEHALF OF THE ACCUSED.
[BY TELEGRAPH TO THE HERALD1
HARTFORD. Conn, Jan. g. 1879.
The Charter Oak trial resumed this morning
and State Attorney Hamersly continued his closing
argument for the prosecution. He took up the sub
ject of the thirty per cent "loading" Of the COM
pany's policies which the accused claimed that the
company justified in using for any purpose with
without detrment to the interests of the policy
holders. In the condition in which the company
when Furber came into it every dollar of surplus
earnings should have been applied to the restoration
of its solvency. and the speaker claimed that the
drawing Of money by Furber under his contract was
inconsistent with the terms which the Insurance
Commissioner approved the whole arrangement
under which Furber and his associates entered the
company
FURBERs PROFITS.
This contract gave Furber, on the 10th of each
month, seven and half per cent of ''all premiums
collected at the home office" The premium receipts
for 1876 100000, the expenses of management
1854 000 the loading of 2s.4 per s54s OOO
the required a four per cent basis was
$53sOOO Was the company in a condition to
pay Furber anything? Mr.. Hamersly further
claimed that Furber really never paid ST.
Of money into the company except what
he paid Director Hollister for his stock.
1t also held that the of Furber as fnan-
cial manager was only method Of utter confusion,
and his acts in selling real estate to the company
two occasions. while officer of it, in violation
of the company's charter. Both transactions were
questionable, and especially in the of the last
one-the New York downtown" purchase-in which
Furber sold to the company his terms and
valuations
4
there fatal defect regarding the second count
in that the State had not shown that certain persons
policy holders who were alleged to have been
defrauded such. Mr.. Hamersly said that the names
merely surplusage. and no proof was necessary
| as claimed The testimony to fictitious values
given by the accused to their assets to deceive the
surance Department was commented on and Mr.
| Hamersly then closed by saying that he would
leave it to the Judgment Of the jury to deter
attempt to defraud and deceive alleged in the
| dictnent. and whether it was not true that
| the accused had committed great crime and been
guilty of combination and conspiracy for evil pur-
poses in combining to rob the treasury of the com
| pany, and by virtue of that conspiracy drawing
| $2O0000 year from the company while they were
connected with it, although they knew the institution
| was in crippled condition.
| Ex-PREsrDENT wALKLEy's DEFENcE.
| of ex-President walkley. He argued that walkley
to prove the conspiracy, and about the only connec-
| ton that he appeared to have had with the whole
affair signing. president of the company the
famous Furber contract But it should be recoected
that the directors had approved that contract and
| that it also had the approval of Insurance Commits
| sioner Sedman and Governor Hubbard. 1t il true
that very unfortunate investments made under
| the walkey management in 1912, but proof
| has been presented that he derived dollars
benefit from them. walkley also signed
| the Wigsin and White contracts; but he
Was then only nSminay the president
cising the real power Soon afterward he
went out of the company and HAD nothing whatever
1 ,,,4
Mr.. Chadwick remarked that this certainly did not
look like completely in the conspiracy. In conclu
sion he expressed the belief that the jury would be
warranted in giving verdict of not guilty to his
clients without leaving their seats
CLOSING ARGUMENT DEFENCE.
The closing argument for the defence was made by
Mr.. A. p. HYDE who first reviewed the troubles of
the conspirators and the warfare against them from
the time OF the first outcry clear down to the
beginning of the legal prosecution. For more than
year they we're on trial before the public, and
an impression was created that they were in
some way responsible for the crippled condition in
which the institution delivered into their hands
by the former management Nothing was left undono
to increase the adverse feeling. There special
commission and special legislation to aid the prose
cution all for effect. The speaker commented on
inmation that had been made during the trial. that
the accused had not come forward in their de-
fense because they were afraid to; but hc stated
fact, that after consultation. aud having in
mind the cloud of suspicion which oyershadows them.
they had preferred to prove their innocence by wit
nesses of such standing that their integrity could
never be questioned. Turning to the idea presented
By the prosecution that the purchase of majority of
tho company's stock to get control a criminal
thing, the speaker remarked that similar purchases
of daily occurrence in commercial life and for the
purpose that Furber had in view-that Is
TO guard the heavy interests he had involved;
and yet every dollar paid by Furber for this stock
paid by him into the company's treasury
count of debts of the stockholders. Proceeding.
Mr. Hyde remarked. to the Furber contract that IL
was remarkable thing that mec planning con
spracy should have laid all their plans before State
officials and insisted their approval prcrequi-
site to going with the plan. Regarding Vice
President White contract for commissions sal
ary, IL was in proof that il made with
the old Board. that he received dollar.
and after leaving the company he promptly cancelled
his contract President wiggn also received nothing
under his contract, Furbcr insisting that the COM
pany must first be solvent on four per cent basis.
Both Of the contracts were for services in getting the
company out of its financial straits. After getting
into the company the accused proceeded to open
better books. which have been indorsed by every in
surance man. and at work. with the assistance of
the State Insurance Department. to straighten out the
accounts.
The Court adjourned until tomorrow, when the
arguments will close.