New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-08-19
FORK OF ATToR8EY-GENEBAL RUSSELL.
1xxEsr1aarrxn nEcEIvERsnIps OF rsoLvENr COR

INVESTIGATING RECEIvEBsuIPs OF INsOLyENT COR
PoRATIoNs-wIY THE WORK WAS UNDERTAKEN
Attorney General Russell arrived in the city, on
Thursday tie was accom- panied by his first dep
uty Major Dennson The object of the visit was
TO attend to official duties III connection with the
investigation by the Attorney Generals departinIn'
of receiverships of insovent corporations. MI.
Russell looks we'll" only Drowned little by
country SUM- rs he jocuarly Observed, and bitten
by mosquitoes" lie left town for Albany yester-
day afternoon. A TRIBUNE reporter had a brief
conversation with the Attorney General just before
his departure a., ~, -,
was TO look after the progress which IS beng
made in the examination of he accounts OF the re-
ceIyers of several insolveDt companies
also wished to see about the arrangements Tor the
speedy payment of dividends to creditors ana stock
holders The Globe Mutual aud the Continental
Life Insurance recelveTShps are now Delng
thoroughly examined. We have gotten along
pretty we'll with the Globe Mutual, and the depart
ment has just taken up the examination OF the
vouchers for the receivers disbursements. There Is
no little work to do in that respect. as there are
over 1000 vouchers to be gone over Mr. keeler.
my second assistant, is now CONDUCTING that w0rk'
with the referee the Globe Mutual case, MI
Hobbs. Considerable work has also been done as
regards the Continental Company we are carry
ing our investigation back to the time when the
companies first became lns0iYent. nave oeeh eA-
aiming the assets of these companies with a view
to securing the payment of poicy-hoders as soon az
possible and tho examination OF the re-
ceiyers accounts is for the purpose OF
detecting any Irregularities or extortonate
charges for services, or cases where assets may
have been mSuSed. Wherever anything ~ us
covered which seems to call for action by the At
torney Generals Office intend to take such acton
Immediately. OF course, there probably WIZ DO
some discoveries of Irregularities. Where pay
ments have been made by receivers which are pro-
tected by orders OF cOurt-Orders which nave De-
come final because they were not contested or APP
pealcd 'front.' can do nothing. But wherever pay
ments have been made which are not 50 protected,
| shall bring actions for the refundlng OF any eX-
of legitimate charges. 1 shall endeav0r TO
secure the refundIng of all improper payments. .
Was your examination begun IN consequence OF
the exposures OF the legislative investigating com
mtteesf"
myself independently. As u matter OF tact,
/ began my examination within three ssyeeks
after / assumed office long before the legislative
committees were appointed. / considered III my
duty TO look alter the protection OF pollcy-ho!ders
creditors OF inso"ent corporations IN the matter
of lees for the receivers and tnclr counsel LOT the
intervening counsel and for referees. Since |
have been Attorney General | nave done Whdl
could to excessive payments ol TINS klhu III
every new case. since January | there nave Ell
applications Tor %lJO,OOO III payment OF services Oh
different kinds and only about 9o,OOO las bccn
paid. The work of investigation has been very
labOrous yet have carried 1t ON without any out
slde assistance. Here OiOIe the AttOrLey-OcneiAl
has been III the practice of assigning dotali WORK IN
receiyersbip cases special counsel outside OF his
department. Heavy IecS "cie required IOi Juls'
All this work now IS beng zone by my Two depu-
ties ana myself alone without additional expense
to the Stale. IL Keeps Us pretty Dusy, Too, -
Besides wnat we have done III the Globe
Mutual and the Continental cases" con-
tInued Mr. Russell, there have heel sew
erai investigations male OF other bankrupt, cor
porations The examinations OF the New-h0chcle
ana the SiXpenny savings Banks are about closed
up We have found the affairs Ga these institutions
pretty satisfactory there seems 10 ne no occasion
for action on my part. 4 he dIyIuend by the SIX
penny Bank Is not entirely pdlI, Dut IT'S pawn nj Is
well advanced. Inc dividends mere Will amount III
all 10 So pei cent. There Is to come up IN court on
Monday the cain of the receiver OF the Nai0n i
lTist 4 Ompany, thnK II lS lie aAAS iOr about
$}5 900 for his services, but ! am opposing thi5
calm. DO not think the receiver Is entitled To
more than hall that amount II H. Is entitled 20 40
much. Nothing mas bcen done III thc Mutual trust
Company case That as Is known, SIMPLY involves
the question of VIII -tncr Or no. the trust company
comes under the Jurisdiction OF the state Banking
Department. That case Is waiting for she return OF
Judge Potter from ms vacation. Another case that
rests entirely with Judge Potter Is me proposed APP
pcation II a receiver of the Western Lie lnsur-
ance Company OF Batavia. Tn ground OF the APP
piicatlOn Is mat the company ud5 virtually been
of business for year or two, anu has no 1undS
with winch to carry it's affairs. Tins case VIII
have a hearing rs soon Judge Potter Is ready TO
grant il. As to the Bond Street Savings Bank only
"A partial examination has been made OF It's anans."