New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-06-03
RECEIVER PERSONS METHODS.

ALBANY, June 2.-Assemblyman Haggerty,
of the Chaplin Special Assembly Committee, 10 whom
was delegated the duty of preparing the committees
port ON the management of the affairs of the North
America Life Insurance Company and the four com
panes intimately connected with it, viz the Guardian,
widows and Orphans, Reserve Mutual, and NewYork
Htate Mutual intended to submit the report this morn
Ing but was unable do owing TO the Of other
matters. Consequently ii will lie over until next year
The substance of the report is as follows
! Prior to the time when, unhappy whole, these
companies conded to the care Of receiver, one
lad been transferred ana With them the rgnts Of
tue policy holders When the North America was placed
IL the bands OF receiver H. X PleIsoD, IL had WITHIN II
the partially digesed remains Of the other four nstitu
tons With the actions OF the managers who brought
as La nf ol td deal The coGr have been soe
what unfortunate In their selections Of receivers. The
men appointed seem 10 nave, Deen seiec'ed
account Of the special ignorance Of the principles Of
life insurance, and their utter meapabity of managing
IN practical manner the trust conlided TO their
MIR PIersOn devoid OF of the qualifications of
CA a large salary TO DO the work tna he as
eeiyer, appointed 10 perform: The committee be-
lieye receivers should be in degree fitted
by training and eApeIioOce for the position rather than
The FUNDS M the hands Of " distin guished citizens"
The committee say that they cannot 100 strongly con-
denn methods employed by Receiver f1ersOn IN his
Investment OF the funds OF the North America Life
He 10 have regarded the money as personal
fund aud without nsuctio from the Court appoint
7ng him he placed upward OF $500 900 at one time wi
Wall street hrm and had absolutely no security III his
possession. When questioned as 10 these transactions
The receiver displayed amount OF Ignorance
that startling being unable 10 state the name OF
one person 10 whom the money was Loaned or the amount
oi Interest paid and the account books contain no
record The loans The gross violation VI trust duties
exhibited by the testimony shows the laNty OF the
Courts and the need OF greater wachfuness ON the part
OF the appointing power Up TO the present tune Re
drawn S33 100 from the North Amer
trusting that the Supreme Court Will award him
anu above that amount. Receiver Person. as well
nearly all Others, drawn ION account" IN defiance
OF law which provides tnat not one dollar shall be
paid out for such purposes without the sanction Of the
Court The legal expenses connected with the North
America Life aggregate S3 ia a. and IN the case OF the
other mpanies ga 965 49, and there Is yet Que
nearly $4,000 That receivers should be permitted 10
begin legal proceedings al their own discretion, no
matter how bright may be the prospects Of success.
the committee believe 20 be bad policy. One suit
Instituted by the receiver Of the North America
against Drexel. Morgan * Co. has been In progress
more than three years. The in dispute
Sc s5O.0O0 the referees fees thus far amount 10
$4,000 and the fees OF various counseis swell the
amount 10 nearly $4,000. Receiver PcTsOn seems 10
have exercised his discretion 10 whom he would sue,
and has made compromises officer Of the Supreme
Court OF degrading character.
Many OF the Individuals directly responsible for the