The daily gazette., 1880-11-29

uobeS do Ct ,u dSSeJS, DuL ile ulU DOJ Al
low them. Ia one or two States they are
so allowed by the Commissioners. They
are "carried inside,"-that is, included
as assets or which the mutual business
is based, bu. not as cash assets to be in
cluded in their Official statements.
The Chief Justice here said that the
New York Mutual Life Insurance
Company, one of the greatest corpora
tions in the country, had capital of
about 100000 600, composed princi-
pally of securities OF this kind. The
Kent County Mutual Insurance Conn.,
pany held large number Of these pre-
MUM notes-one of his being among
the number. He said the witnesses
should be more specific, as the idea de-
rived from the testimony is that these
securities are considered worthless.
Proceeding, Mr.. McFee said lie re-
jected al shares of Empire Passenger
Railway stock. He also discovered
some mortgages on prQperiy located N
New Castle county, assigned TO the
company, though with the assignments
on sepaI ate pieces Of paper. He OBJ
.jected 10 this mode of assignment, and
desrous of recording the assignmen s,
on aceount of the difficulty in settling
with the mortgages. Mr.. Bright gave
as another reason that there was suit
pending against the company, aud they
did not wish to appear as acting under
duress. Mr.. McFee said he could net
consider these mortgages as assets if
the assignments were not recorded at
once, and Mr.. Bright assured him it
should be done. The assignments
were in proper form and they were af-
terwards recorded. He could not say
that all the mortgages were assigned
in This manner. The amount allowed
as valid assets was something over
$31, 200, and comprised deeds and
mortgages, four shares Of Christiana
River Improvement Company stock,
at S75 per share, two shares of Will
mington Il Brandywine National Bank
stock, at $50 per share, and cash on
hand amounting 10 S349. The Iiabili-
ties amounted to $50, 251-comprising
boiroNed money and losses adjusted
and unpaid-leaving a surplus of ovel
$11 900. The premium notes, Mr.
McFee said, amounted TO $1S1 900, but
he did not consider them available al
cash assets and caused them to bt
"carried inside.' He did not trea
them as applicable to the stock busi-
ness of the company. The stock poll
cies in force amounted to $3.50, 900, ant
the mutual policies to 1889, 600
Messrs. Bright and Tantum, he said
put a valuation of 500, 1000 on thu
Dauphin county land.
THREE SIDES TO THIS CASE.
The Chief Justics-This was a prett.
high valuation, according to some OF thu
testimony.
Mr. Lore-Ah, b ( that was only on
side Of the case.
Judge Wootten-How many sides ar
there IN this case?
Mr.. Lore-Two that we know OF, you
Honor, and | am not right certain bu
there are three.
| aud Mr.. Lore cast a sHgRestive Rlanc
at several well-known Wilmington lu
surance men seated within the bar, on
of whom was Just then havinga whisper
ed consultation with one of the defend
ants counsel.
DID NOT CONSIDER 1T FRAUD.
On cross-examination Mr.. McFee sal
he had never examined into The conu
ion of any other Delaware Inshranc
COMPANY, uopa having asked an exami
nytiop. He made this examination q
the request of the Company's othcer'
Who said they desired IL TO be an 81
baustiye one. They said there were Col
tam rumors In circulation ABOUT III
Company, that it had been attacked by
ne wspaper in Wilmington, aud tina
they wanted an official Investigation
lh at the public might know the Con
pany's true condition, and If auythin
ws wrong they wanted to know 1t. The
ofiered every Facility for the examin'
uun, and made no attempt to concei
ahythiug. He made the exAmiDatio
A. d gave the Company a license to
bu in. IS in lhls State.
Mr., Lore-Did you discover aoy ev
dence of fraud?
witness We'll, saw something thi
I looked likeifl aud.
, | pRny a fraudT
Witness--l did not.
Mr.. Lore-And you would not hav
licensed a fraud?
MT. Lore-Dld not Mr.. Bright and d
rantum say that If anything was wror
| to let them know?
| W,tpess-Th y did, and l advise
them es to the oDaraeter Of one OF the
' employees, Myers. 1 in imated they wel
ca ~ ng heavy load with him.
MI. Lore-Wbat dId Mr.. Bright say
Wltness-Mr. Brignt said that no kne
there was a clamor about Myers, but l
! | c.nIu not ind it in bis heart to dscharl
! him becau.e Of public outcry as lol
2 AS he saw nothing wrong with hlm.
t Mr.. McFee said, in conclusion mat i
/. cluJinp the premium notes, which
, ,aused to be "carried inside" the tot
assets of the Company footed up aDo
= f260, 900.
: In redirect examipaian Mr.. Bird sal
Mr. MoFee, in your examination ye
i'd find irregularities, ana assets gross
Mr.. Lore obi cted to this TO; m of que
tionin. :, as 1t was putting words into u
o witness mouth.
MI. Bird said the closing questlo
4 nropounded by Mr.. Lore were not In
r.ot RESPONSE m thn exsmination-l
,ief, and that when couns' i Tor u
p,aintiff came to argue before the Jh
,e would tell them that the lnsuran
Commissioner had declared he ola
,alieye the company to be fraud.
i Jndge Houston called MT. Bird's
9 ,,ption TO the law creating the lnsuraW
j. | Commissioner, which gives that omc
a | mower, when he discovers company
ne in an iusolvsnt coudttion, 10 ciose
its affairs aud put It's case III the hands
the Attorney General.
Mr.. McFee said he tb oHght some OF u
Z .ssuLs were fictitious.
II Mr.. Lore-And these you mentioned
ell Mr.. McFte-Ycs.
y aid lie had the affidavit OF Daniel
M,ni.h late of Seaford, now living