New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-18
COST OF RECEIVERSHIPS.
NORTH AMERICA LIFE MANAGEMENT.
TESTIMONY BEFORE THE SENATE COMMITTEE IN
REGARD TO MR.. PERSONS REC IvRRsHIP
When the Senate Committee on Insurance,

TESTIMONY BEFORE THE HfNAIE COMMlIlhh IN
REGARD TO Mr., PERSONS REC IvRRsHIP
When the Senate Committee on Insurance,
which IA investigating the receyershps OF insoSen LIE
insurance companies reasscmbled in this city yesterday
morning at the Metropolitan Hotel the only members
present were the chairman. John j. Herman, and
Senators George T.. Lord Josepi Koch and Charles H.
Russell. The affairs OF the North America Company
formed the principal subject Of the days examination
Senator Russell cOnductingit.
Raphael j. Moses jr. counsel for about 80 policy
holders Of the North America Life Insurance Company.
and also representing policy holders Of most OF the other
insoven companies connected with the North America,
testified that Henry r. Pcrson appointed on March
sls77, receiver Of the North America the Guardian Mu-
tual the Reserve Mutu l. the state and the widows and
Orphans The three last named companies were sub
stantally part OF the Guardian Mutual The WI ness
ia 1879 first made the acquaintance Of Charles j. Hart
man. who had an office at No 206 Broadway, ana VINO
solicited from policy Of ali these companies the
work Of procuring the settlement Of their claims William
G. Tru counsel Mr. Pierson and Sowsll PierceWho
represented the North America Company In the appoint
ment Of the receiver, had Offices at No COG Broad
way. Hartman, In his circulars to pohcy-hoders, con
yeyed the impression that he in way connected
with the State Insurance Department in the settlement
Of tho affairs Of the various insolyent companies. With
regard to his efforts to secure pocyholders as
clients all that he Uhe wtness) did to inform regis
tered policy -holdors who had taken out paid-u
Ioicies before the insolvency OF the North America
but had received unregistered instead Of registered
pad-up policies that he thought they were
entitled TO share in the distribution OF the assets
deposited with the Insurance Department to secure
regular registered policies These secured assets were
divided by the Department before the payment OF the
general or unregistered policy-holiers and general
creditors the rest If there any OF these secured
SETS general fund for subsequent disrbu
ton The question raised by the witness pend
ing before the Court OF Appeals. Mr. Moses testified
that Hartman told him that he had obtained list OF the
of pocyholders In the Security Life before the fl
report of the referee who passed the claims
against the company from clerk in It's employ the
witness characterized such action improper and ir
regular The reports Of the referees of insOvent
panes, after being fled were OF value to attorneys
seeking obtain clients FROM among policy holders of in
solvent corporations.
Mr. Russel-Did the order of Judge LnndOn appoint
ing SIR Pieson ceiyer Of these various companies
tain clause directing him to deposit their funds par
Mr.. Moses-An the orders appointing Mr. Person 70
ceivcr failed To direct him
Mr.. Russe-What was the custom with regard TO that
Mr.. Moses~In every case with which have been CON
nectcd excepting the North America and its
collateral companies, the Cont named the special rst
non where the funds Of the nsolyent company should
be deposited
North America had received from hr special fund held
by the Insurance Department dividends amounting 10
Z ,
an general creditors had not received diydcnd the
receiver awaiting The determination by the Court Of
Ap eas OF the question regarding unregistered pad-up
policies issued TO registered pocyboldrrs Al ~ the
registered policies supposed 10 be fully protected
collateral securities Be posi- with the Insurance
paTmcn; II HE Department had done ia duty in watch
ing these collaerals during the companys e the reg
istcrcd p0ilcyAoldcrH III the opinion Of the witness
would not have lost cent through the Insolvency of the
North America Company.
9" what DO you mink the receiver Of the North
America viii be able TO pay TO general poicy-nodeIs
and creditors out of ihe assets in his handsf
1.-THE minimum DIVIDEND think. Will De 3 per cent
the maximum 10 per cent; ia" amount cannot be de
ternnod accurately until the Court has passed upon
pending questions connected with the pcnses OF the
pirTsOI administration"
The witness further testified that the receiver had
drawn $50 90 ont Of the funds OF the North America
Company for ms services from March /, 1877 to date;
this was less than the amount of the . per cent
compensation claimed by Mr.. Pcrson the money
hand. by him during his rrccyrrship lie drew his
without special order OF the Court On December
81. 1850, Mr. Picrson had submitted his
Judge Lawson, asking for SGS,4O6 as > per cent on
IL SOS. l2S the amount he claimed TO have handled
Exception was taken to this allowance; Judge Lawson
reduced the basis Of Mr. Persons compensation to
$4,000, thus reducing the receivers tine General
Term Of the court affirmed Judge LanGOn's order
case to the Court OF Appeals where II now Is pending
Up December 81 1850. the receiver paid for legal
expenses S23,O21 81 1881 his law expenses were
S4lS 49, The witness said that the At OrnrY
cut the work required in them. He thought that
Attorney Generals Falrchiid, scbOOnmaker and Ward
policy holders would have been saved large Of
iuOney.
Mr.. Russe-How about the present Attorney General
Judge Rlsselli
sir. Moses-IIe has been very active personally in all
these insolvency he has done his duty thoroughly
in my opinion
In the absence OF important Witnesses who had been
subpGnacd, the committee adjourned until 1880 a. m.
today.