New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-16
4 RE0EIVER WITHOUT KNOWLEDGE.
JOHN p. O'NEILL ON THE WITNESS STAND.
WHAT HE DOESN'T KNOW ABOUT THE CONTINENTAL
LIFE-AND WHAT HE DOES

amned yesterday by the Assembly Special Committed
Joseph o. Tobias the receivers chief clerk who has
been on the witness stand for the last two days. was
first recalled He asked how long, In his opinion, 1t
would take to wind up the affairs OF the Continental
Company. In reply he said that question was to be
argued to-day before Judge Westbrook at Albany
which, when decided, would virtually fix the date for
the closing Of the receivers trust. The argu
ment would be as to allowing or cutting OF Of the
death claims after June 10, 1879 II they allowed
"a actuarial calculation would have 20 be made. and
the settle Gent Of the cOmpanys affairs would virtually
be opened pOspOnng the windingu up for two years
longer. II such death claims out OF eight months
would the time necessary to close the trust II he
began at Mr. Tobias thought the real estate could
be Sold and all the outstanding claims OF the company
collected in four months The witness said that the At
toneyGeneral had begun action to compel the re-
ceiver show why the affairs Of the company
should not be summary wound up Mr. O'Neil putting
in long and comprehensive answer to show that IL was
impossible to do this Mr. Tobias instructed to lay
before the committee statement of the entire expenses
all the recevershps since the insolvency Of the COM
pany was leg lily declared.
Mr.. O'Neln IL over fifty years old, his face is
very 1orid and heavy black mOustache streaked
with gray, droOps beneath his sharp aquiline nose.
He gave his evidence in quiet but
strained manner. He was frequently prompted
in his by Mr. Tobias who also amplded some Of
his statements. Mr. O'Neil said that he came here to
practise law from Philadelphia. I'm December 1872 He
first Ocated In this city with Mr. Yandervere,
and afterward with Mr.. Tobias. Regarding his APP
pontment receiver of the Continental Company, he
testified that in March. 1877. he John Kelly,
who then Controller, by request of the
latter. Mr. Kelly told him that Judge Westbrook
intended TO appoint him receiver Of the Continental Com
pany and sent him to the Judge at the RossmOre Ho
tel the evening of the day He knew nothing Of
the insolvency OF the company before that time. Jus
tce Donohue introduced Wingate & Cullen to him,
recommending them for his counsel because they
honest men" Edward Kearney. whom he had never
met called the witness and offered become one OF
his bondsmen Ex-senator John ]. Bradley consented
to be the second bOndsman. and the bonds drawn
up by Wngate Cullen. He next learned Of the njunc
ton obtained prevent his taking his position by Mr..
Grace, who at that time held possession as receiver
under appointment by Justice Pratt Of Brook
Ign. The witness had direct negotiations
with Mr. Grace for the settlement Of their dspute II
arranged through counsel On July 10, 1877, the
witness took possession installing Mr. Tobias chief
clerk he had known Mr. Tobias for thirty years and had
the most implicit confidence in him. Three years ago he
gave up the practice of law, his business "had really
left him"
Mr. Erwin-HOw much time did you spend in your
Office when recciverl
Mr. O'Neill-At first I divided my time between my
law office, the receivers office and that OF Wingate Il
Cullen. One why have not spent much time in
the ONCE Is the OF pOliCyhOlders.
They would come to my Office and sometimes insult me-
saying that l a thief and had beggared them.
Although a receiver, don't think was as bad as
u thief became very under the prosecutions
and my physical condition could not resist these attacks
Mr.. ONcill further testified that he consulted Mr.
Tobias with regard to everything, and he left his chief
clerk attend to many matters personally In 1879 he
compelled to take his children Europe, there
was no one in this country take care of them. In
1873 he suffered from bronchial troubles and spent
about three weeks in Florida In the autumn of 1877
he had started on pleasure TRIP OF week, but was
weeks He fond Of shooting. and about three
or two M time. Speaking further OF the time he
spent in the receivers office Mr.. ONeill exclaimed:
=" did not consider that this place was Basie that
I should be entOmbcd within It's four walls. / to
discharge my trust faithfully and honestly and before
with respect to John II. Moneys bill Of 81, 900 for
services in opening the books Of the receiver the wit
ness said that he had refused 10 pay because he
thought II was exOrbitan; Mr. Mooney then had pro-
cured order of Court for its payment and the witness
complied with the order.
Did you not take proper pains to inform the Court of
the circumstancesP
My impression is that did not know OF the applica-
ton of Mr. Mooney to the Court until after 1t had been
made"
Mr. ONcill said that he did not give instructions for
the prosecution OF half the actions and suits instituted
by Wigate Cullen; he supposed they were the moving
the high charges OF NewYork lawyers; they larger
than those OF Philadelphia lawyers for like services.
Mr. Erwin-Has not the greater bulk of the of
the company gone to the lawyers and refereesl
Mr. 0NeilI-That is not my fault II vou undertook to
do their work you would be Of their opinion to its
value Their charges seem to be On astounding sum in
the aggregate, but when temzed they reasonable
In regard to Mr. Kcorney's purchase Of the
RIr ay and he East River for $i5i0o when
the value Of 1t Is claimed to be $4,000 Mr. ONeli said
that IN the socaed Scudder reference eX-MayOr Ely
had testified that he wanted TO get the properly, but
would not have paid more than $4,000 for IT, The pur
chase property sold by the receiver by his
in-law Mr. ONe said really had caused some GOODNESS
between them The sale was an honest however, and
answer to further questions Mr. 0Ne said am also
receiver of the Empire Mutual Llfe insurance Company
OF New-Jersey was appointed receiver OF this com
pany by Judge WestbrooK January A. 1879 The Empire
Mutual was merged into the Continental briore the
latter failed The only finds are in the hands Of the
superintendent or Insurance. He has mad all TO 90
with IT, a., r.. -, ..
day, on which payments wero made to attorneys and
Others, made on your petition ,,
Mr. ONcill-Ies. ST.. Tue payments were approved by
me. never suggested the sppontm, mt OF referee.
GLOW long VIII take close out the receiyershipi"
sold It viii bring 100000 Then there are some lOs
other property on hand The last sale OF property
WAS some time last summer or autumn"
Did you approve OIL the extra advertising and the
payment Of 600 TO an auconeer in connection with the
sale Of the Pavilion spring i'll Saratoga"
torneys attended to that"
made Of the twenty mortgages ON the Saratoga prop
Il gave no directions"
Assemblyman Welch read from the official re-
Po sTs 5a in s7 n s e ovcT s6Goo
IN 1879, and over 100000 Ia 1880 He called attention
tho fact that only $4,000 had been pad In dividends
amount not much greater tnan the expens' $, and
asked Mr. ONolll II he aware that tnis eat
lug up the assets at very rapid rate. Yes, sir" was
the reply.
ON further examination, Mr.. ONeil again stated that
when MIR Kelly told him that Judge WestOroOk go
ing to appoint aim receiver of the Continental he asked
what the Continental lie knew nothing about IT.
He had met Juuge WeAbroOk before that dime lie
Thought that Mr.. Kelly had derived his information Of
the coming appointment from Judge DOnOhue Edward
kearuey wnOm uld not then know came 10 his Office
aud INF himself and said be would w hs bond
hlr ONei did not appear 10 be very familiar with the
business his reCeyeTshp and frequently turned To Mr.
Tobias. This did not p,ease tue committee and they
finally stopped IL by requesting Mr.. Tobias
onl, such questions rs were asked him by the com
mlttec.
MIR Chafee n clerk who also does tho work OF an