New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-12-31
TIE COURTS.
A DISHONESTY MANAGED COMPANY
REPORT or THE REFRREB OF THE AFFAIRS Oh TIL
CONTINENTAL, LIFE

Il
REPORT or THE REFEREE OF THE AFFAIRS OF IHf
| CONTINENTAL LIFE.
Henry J. Scudder who was appointed by
Justice Wcstbrook as referee examine the accounts OF
John F. O'Netl the receiver Of the Continental LIE In
surancc Company, which failed in 1876 filed recently his
report in which he cricses severely the organization
and management u the company. lie says: It was
one series Of corporations largely devised and con
trorcd by INSCRIPTIONS and speculative persons Ii
the line fraud and deceit yet its business was
enormous The ingenuity OF those concerned in this dis
honest adventure surrounded IL with every entangie
mcnt that would impede research or foil investigation
Through reinsurance policies its undertakings ran BACK
through three generations OF thC1c life insurance exist
cuces Mr. Scuddcr declares that when The company
placed in the hands Of Mr.. O'Ne 1t was "tlc else
than ruins" The assets amounted to S10o0ooo There
were about 10000 outstanding policies, the risks assrc
eating about S3sOJO0JO The total Of death claims
infested admitted AMI proven amounted "FGf7l5b -
and notice Of further claims amounting 10
Sl77.509 had been GeL There were over one hun
bred cages TO be 0rccoscd in different parts of the
country. The premium loans on policies amounted TO
81 100000 There were thru officers and clerks at
the time OF the appointment Of the frs, receiver whose
salaries exceeded 100000 year. in addition to certain
annuics attached to the salaries Of some OF the occr7
Justice Wcshrook granted Mr. ONcll an allowahc; OF
five per cent upon the total assets Of the company Tor
relcrecs'lce
In reference to this allowance 3lr. scudler says: Il
cannot hesitate in ID, expression of the opinion that no
such allowance should been male AZ the date OF the
order granugit Tac receiver had been in possession
81 the a+S.!s oi tho COMPANY ony one near anu olic
month. The assets COuli not nave inhtn snort oi
~ 100000, that the allowance would have amounted
10 $4,000 - .,- 90.
Mr. ScIddgr refers 10 the character OF Nj ONeis ac
tual services by quoting Mr. ONciis own s1iclndh -
used to 20 over there every day was III town AFTER
the hustle " the day over, Eod 70 down 10 Mr
Tobias, and go over what hal been done. dll not
want 10 be- there answering questions ana inquiries IL
rcited and annoyed me" The decision ~ IN" referee
il taat M o Seii should receive $500 year Tor tue
first years % his fcccycr5ip, and g6oOO year .or
the following two years. besides his actual dSDHlst-
mCuts
Rolcrlck + applied in behalf Of certain policy
holders, Justice MtstDIuOa 10 D. allowed 10 appear
before Referee -cuddr one ~ the utrryenors IN the
Justice Nc~urOOk has not YET gwen Ms d'S7lnh
the application. Mr Farc said IN regard u his ri
cation: applied e. Judge Wc'tbrDOk ~ Junc 1850 ior
permission 90 act u.rycHJr Ia october nr Wroit mo
tturs r th2t Dc Acsi,nCd 90 make the ORDER ONtI
gave clrrksdp the Judges brother Colonel west
Dro,k-tt 800 week; put down Tor ne amount j.
o. Tobias. who previously h- clerk ~ SO seek
divided 800 mpItI between hl' own sons Jhit' ana
joan O'NcL minors aud gave Gillespie, another fnia-
GruniaH. $50 n month MCssh. Niusatc q Clicu, the
attorneys, got ST., sos 10 o. WHICH lhty voluntarily
gave DaCK ~iu,OOU'
Mr. Srudirr huds that Mr. ONCin had allowed IN his
accounts 1898 80 Colonel &. -. MCsibr0u a. salary
roa june 10 July 10, which latter de Is previous 10
that when slT O'Scl obtained possession % Inc prop
cry Ol the company.
The expense of winding up the affairs Of the company
mas already Tor referees ana lawyers lees Over
which extended period Of about ono year