The sun. [volume] (New York [N.Y.]) 1833-1916, 1882-03-12
STIRRING UP RECEIVERS.
LEGIsLiTIrE INOUESTS ON DEFUNCT
INSURANCE COMPANIES.
Mayor Grnces Receivership Investigated
An Item of sundries In Henry IL. Pier
sons Ncport-Two Committrc. Mt w orL.

SONS hcpOrt-I"O committees mt w ork.
The Senate Committee on Insurance held
Its last regular session In this city yesterday ut
the Metropolitan Hotel. Senators Herman. Lord.
Russell Bowen, Koch. and Titus were present.
The afternoon was consumed in the cNan,ina-
ton Of Henry Il. Picrson, Il banker and broker
in Albany. who was appointed receiver OF the
Guardian Mutual Life Insurance Company. and
of the New York City North America Reserve
Mutual and Widows and Orphans Benefit
Loan and Insurance Companies. Senator Titus
asked what the Insurance Department did
toward investigating these companies. Mr..
Person said it did nothing Whatever.
decided sensation was created when Sen
ator Titus asked Mr.. Pierson To explain an
item in his disbursements for the North Amer
lean Company Of si0i. 1ld.66 for "sundrics."
He could not explain the item and was conf
dent ii was II typographical mistake in the re-
port. He could not explain it without his books
but had certainly never charged any such enor-
nous expenditures to sundrcs.
Up to that time he had been cool. moderate.
and impcrturable. He became aftcrward more
plain an item o., sGs .406.46 FOR commissions;
MIN by the Insurance superintendent under
the statute.
The Assembly Committee held its first public
session yesterday in the Metropolitan Hotel.
The Hon. A. G. Chaplin Of Brooklyn Chairman.
Col u. +. Baker Of Saratoga County. the Hon.
Jas. llnggcrty Of New York. and 7. Y. Welsh Of
Niagara were nll in attendance. As to the Con-
testified that in 1876 while that company flour
ishod, q short examination satisfied him that it
Mas ,n fraud thr0qig g and had been irnndu,
was made receiver 4 decision by Judge West
brook that II receiver should only be appointed
by the Attorney General, was, in witnesses
opinion. bad law. and was tho source Of all the
subsequent difficulties of life insurance in this
state From the time he decided the Attor,
npy General alone could bring those actions ~
he said the Attorney Generals Office has
been bcsct by applications for these positions.
and, with the keen scent of birds of prey. the
applications are made long before there is any
question, in the Attorncy-Gcnrrals Office. of u
have known these places to be spoken for when
TIE rrocGcdings did not commence fora year
SON, and G., $4,000 for working i've months s.'
The Mayor testified: Il was appointed re-
! GGivgr Of thGContincntal Life in February, 1871
tincntal until the Saturday rclcdug the Mon
day FEB. 10 on which, I,Was ,appolnled. My
Sn success wa alrIinted March n lSl7 re-
my h"st to get the estate into cash assets ms
the figures Of his work AS receiver Mr.. L. 4.
Coudrrt testified that he was Mayor ,Grace's
counsel DURING his rccciycrshp. and that the
iah.3r e the dntics Of his POSITION.
MIR. llag-erty-Didn't almost everybody who
had anything TO do with that company plum
mr.. Souuert-l bHileN" so, except Mr.. Grace
and Mcssrs. COudcrt Bros
Mr., HaegCrty,l don't except Mr. Grace. who
got sljOOp for three mouths services.
MIR. COudert-He WAS allowed that sum by n
referee who could not be suspected Of undue
frcndliucss.
Mr.. HagGcr UT was n Legality that was not
justice. II /. Il singular pcrNerSion Of con-
SCIENCE that would allow man to take an
award ike that even upon the order OF court.
Mr.. William Allen Butler said that this COM
pany appeared from the evidence taken on the
reference, 10 have been left without examine
tion By the Insurance Department for ten years
The directors gave very little attention to the
hands Of three or four men. who received
manipulated. and managed all the funds.
John J; Anderson testified was only nj
lowed Sl3. 900 for my services. and haven't got a
dollar OF that yet while Mr. Grace wa allowed
tl7500. II he was entitled to sl7.5O0. was to
$35 600.
Mr.. Haggerty-Mr Grace says he was only
allowed SIS 0O0.
Mr.. Anderson-And he got 81. 500 more. in
addition. from New Jersey for ATTENDING, 10
something about mortgages over there.