New-York tribune., 1882-03-12
INSURANCE RECEIvERSHIPS.
THE SENATE COMMITTEES INQUIRY.
MORE TESTIMONY IN REGARD TO MR. PERSONS
MANAGEMENT OF SEVERAL CoMPANIES-MR.

The Senate Insurance Committee met yes
erday Mt the Metropolitan Hotel ana resumed its nves
tgatiOn into the accounts OF Henry r. Person as re-
cever Of the North American Life Insurance Company
Mr. Pierson was present with his counsel. Rufus W
Peckham, Of Albany, and W. c. Trull OF this
city. George X. Chase, Of the firm OF Chase
Atkins. bankers and brokers, which dissolved
in 1879 and was succeeded by Kissam, Whitney Co.
was the first witness. As MI Pierson's business with
them was very extensive. lie unable to bring the
books and papers required by the committee, but said
that he would exhibit them at his former office. lie tes
titled in substance as follows
"Mr. PiersOn had two accounts with u.s. deposit
account "a receiver and the other private stock ac
count The account with him receiver was made with
him his request without any particular receiver
ship being specified. This account was for
money loaned us, on which put up securi
ties "a collaterals The cOllaterals were stocks
purchased by for customers and on which they had
paid less than per cent The cOllateras were
always left with us and could substitute without Mr.
Persons know ledge any other stocks we might have
sold all tie stocks but it likely that would do
such thing. 1t not unusual 10 sell one class OF
securities and substitute Others We purchased stocks
for Mr. Pierson on his other account and might have
used these same stocks security for loans he made
receiver. Both accounts alike subject 10 his
check. We did not furnish him monthly state
ment OF account our custom being TO render
statements at the end Of six months. We charged
him and per cent interest amounts due us on his
stock account and paid him per cent on his deposit ac-
count. do not think Mr.. Pierson oyerdrew his
account"
When the committee had finished the examination OF
Mr. Chase the counsel OF Mr.. Pierson desired TO ask
some questions He informed that the committee
had not made any charges against anybody and could
not permit persons called to testify to facts TO be cross
examined az it would prolong the investigation and
FARGO n b.l ~
Mr.. Pierson. protested against this ruling as
unjust, as the unexplained answers Of witnesses
to particular questions might leave unjust aspcrsOns
upon Mr. PiersOn. The committee went into executive
session. and that it would adhere to Its
previous ruling not to allow counsel To be heard.
Samuel II. Kissam. OF Kissam, Whitney Co.. bankers
and brokers was the next witness He testified fol
lows:
I'VE paid Mr.. PiersOn 42 per cent interest on his ac-
count as receiver and charged him per cent on his
stock account We had three accounts with hm-a gen
era stock account an receiver and special
loan account. The loan account was for 100000. II
shows credit for interest books, but wepaid
him interest on il 10 the amount OF 5000 which was
entered in some other way We had 100000 from him
at one time as receiver We put up colaterls only
100000 Of this These colllteral- we held our
selves Uhey were stocks purchased for cus0mers and
changed hem sometimes selling class of stocks and
substituting others. The coateras never delivered
Mr. PersOn. II was IN our power to use up the FUNDS
entirely"
After an adjournment Of one hour and half the com
mttee began the examination Of Mr. Pier-on. In sub
stance his testimony was follows:
was appointed receiver Of the Guardian Life lnsur-
ancr Company on March : 1877. | was appointed in
five cases m once the companies being connected in
some way. The companies we're the newborn state
The North American the Guardian, the Mutual Reserve
and the widows aud Orphans. knew nothing ot the
companies until appointed receiver The companies
were all in one office. that OF the Universal Life
MS
the same persons Henry j. Furngr who was The Elce-
~ The North American and really the man
aging officer IN each Of the other companies. When
went 70 office Of the Universe the North American
had te place sci apar for IT, but there wac nothing
Of the other companies 10 Dee found at hrst mt some
book, in q safe. hnk the superintendent of the lnsur
auce Department, John r. ~mytn, had not made any cI
animation OF these companies ar that time. / was
appointed receiver under the act of l-69. Tie compan
les were not dissolved by my appointment. ! ap-
pointed aCtuary and a. soon a. possible made an
inventory and report OF the assets Of the North Amer
can n Rad issued any policies or done any business
l274 The bo0ss had not been written mp Tor years
In some OF the companies ana the North american ld
Iuade no report Of LATER date tAan December. $50
MI Smvth The Insurance superintendent. made no eX-
animation and did not assist me IN making one
Tue witness was here showna printed report OF the
condition OF the company at the mr he wa7 aPP1lh'@fn @
receiver. this report Purporung 10 nave Deen m"ue oy
the Insurance Department lie SAID: .
cannot explain IT, but am sure Mr.. smyth made
examination. was not aware Ina az lhe hie was
appointed receiver any complaint hdd Dren made ny me
Insurance Department to the AorncyGenera IN regard
20 the insolvency or the company MI. urDer IIte
report about the time ! was appointed on WHcl
proceeding. were taken. I6at TePHit,o TeP2Hni showed
-. .295. .s56 l. was false in almost every
parcuargro- y false and made to mi'leat Mr. Fqr1er
furnished ne book. hut rendered no H,r"hce I'D ~ ~
ing an inventory lie rcPore ed the company a. holding
large amount OF real estate On Wmth u redy "h5 Htd
equities II held npriE'- Is on lut -Int I,Vp'a'S o
which there deficiencies oi from - 70 30 per cent
made rcpori 10 me INSURANCE DePFt4ens' m ana inai
report was an inventory al tAe property AT ~ hpPI4I'l
value There securities deposited IN Virginia 10
6onEt tHIT am er rue WIS II 900 depo,its in the uan-
= ~ "a hey
a trust for foreign policy holders. brought Il
suit for the amo mt Inc question was referred 10
referee who. after wear and half. made report 10
the Court that the $4,000 was not trust fund lle
matter Of confirming that report was argued before
in Zee in several states. Idt land has been -O except
some in Missouri san Francisco aud Minnesota. Ine
pos. rd with he Insurance Department There "as the
regular deposit of 100000 IN addition 10 ths There
and they claimed the right TO participate also IN the
general flnd aud believe the Courts have decided tEa
over part OF the bonds n It, possession Dut AFTER
T6ar were then read 10 Mr. Pierson items from his
accounts rendered the Court and he was asked 10 cX
plain Tut he said that in the absence OF MS books ana
lie continued: d" cannot now tell what the item TOT
S3OO60 paid out for taxes and water rates ID s'0 IL,
only one detailed account, and tna in 1850 ha! eight
or nine clerks. ! paid one clerk salary OF S3VOO
member what / paid Others. distributed the
expenses Of clerk hire proporuoudleS aucuE lu
Va
rrnsured the Ncw-l Ork state Lie Insurance company.
m j5a-eryr Mutual wa. consolidated with the widows
sfd 0runon. and then the Guardian Mutual was con-
soudated with the Reserve Mutual; >" tha an iyl con-
I,ie- we're consolidated into company kept the
iarcnunt. ,s of The Guardian Company representing
tbe whole The Universal Lie claimed tuat Tue Norm
American owed u sjl 900. asccrtaned that the Uhl-
Vrr.l rea ly owed The NOrth American e9OOOOO Whlch
II nad stolen and brought suit and recO' cred SIOOOoo
There wa, a great detl Of litigation, and employed
conn .el and attorneys 10 special cases .
senator Ttu--WEo were the lawyers you employed
The Witue.--Trcin4Inc * Peckham, oil Albany, and
s,Ic Mir Treipaiuc's death Mr. Pcckham has been nv
erai connect Nlr IrIu mas been my general counsel
In ms cty Ex-senator COukug s now counsel ia IOur
. 1000, .,.t.., - him,
senator Tiru4-iIow long since yOu employ rd MN
mo citne-s-Nir COuklng has been counsel M these
coers for over two years cannot remember all lae
b4 rouittee vi b fun aud complete LIST with ali pay
Gnruts made. . ... ....t. go, ,.,- ,..,,r
-nnntnr rtns-DLd the asscts a. made UP D! your