New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-19
HOW ASSETS HAVE SHRUNK.

| SUITS COMPROMISED FOR SMALL SUMS.
| MORE TESTIMONY IN REGARD TO TIE RECEIVER
| SHIP OF THE NORTH AMERICA LIFE INSURANCE.
| COMPANY.
AT the session yesterday of the Senate In
Committee viii n Is gating the abuses Of
receycrsiios. Raphael J. Moses, r further exam
lped ond Charles J. Hartman Whose principal business
Is the collection OF claims of polcvhOldcrs in insoven
life Insurance companies put the winesssianG
! The committee received statement prepared by Mr..
Moses purporng to show the amount of assets Of seven
suspended life insurance companies before the receivers
! took control the disbursements subsequently mnde
| for dividends, and tie discrepancy between the two
| sums. which * uuaccDunted for. Tie seven com
! panas were the Atlantic Mutual Continental Eclec-
tic, Globe, Guardian Norm America and Security. Nc
c0dng 10 their las: reports TO the state Insurance Dc
parnent prior 70 their insolvency. the total admitted
assets ~ 1909 $3.50; additional assets, Stl4sOt
| total, $la,O1s,163 De1uctiDg from this sum the
amount Of the deposited fund TO secure registered poll
cic allowances for premium notes. the regular 100000
deposit with the Insurance Department for the begin
ming II business and deposits in Canada Virginia in
all $-,7s3,j93; the dividends paid by the receivers
| G1,s25 OOOJ and the further possible dividends,
| Dy Mr.. Moscss estimate, &l,17j.0OOJ-a total Of d.
ducton. Of $il7s3 503-nl the amount Of assets said
not 70 hc accounted for Is e7,23l,57O.
Senator Charles II. Russell examined the witness pa
tcuary with regard to the North America Life In7ur
Company It appeared in his estimate. The report
of the company TO the Insurance Department showing
it's condition December 81 1876 gave its assets at
S2,7j9725 The receiver report on December 81, 1871
placed the value of the assets at 81 2772SS. The re-
cev.r the witness thought should have accounted for
tho condition OF the he received them and as
they were shown by the last report to the Depart
mcnt before he compauy- insolvency. He did no, do
so.
Mr. Russcl-HOw do you account for the discrepancy
| or shrnkagcl
Mr. Il hoyp in my q
cevcr Pcrson in of the suits prosecuted by him.
which several items that may account for it,
one item in the companys last Department report is as
fOllOWs Title 70 certain real estate property in New
York 3iO2jO. The bonds and mortgage on this prop
orty amounted to $4,000 The item regarding the
tile was put in at fictitious value. Then there
transfer Of property from the North America to the Uni
versa Life Insurance Company, without consideration
It was valued at 100000. and formed part OF the
50 75072s assets reported Of December 81, 1876
The witness explained that this property was trans
ferred from North America to the Universal between
the date of the last Department report of
the North America and that of its insolvency !;
he Thought this done 10 cover the stealing OF
officers Of the Universal all along from 1874 to 1877
some OF the officers OF that company were connected
with the North America Receiver Person began a suit
to recover the transferred property from the Universal
alleging that tie transfer effected by fraudulent
combination between the officers Of the two companies
for the fraudulent reinsurance of North Ancca policies
in the Universal Company. The officers OF the North
America the witness said. finding they could not post
ponc tho Insolvency Of the company, turned over the
real estate 80 IA up the past stealngs OF the
Uniyersa5 officers, the alleged consideration being the
transfer OF North America policies to the Universal
Mr.. Persons suit was pending for about three
years up to MAY, 1880, and resulted in a
compromise ny which the receiver got 800 900 n s"
cement from the Universal Life tn" slt originally be
gnn war 70 hrl The Univer, officers for criminal liz
bily il nfferward degcncratcd into sa;t to how
! Ia. anti fltn m sal ln
cr'uc Of the receiver thought 500 wa, m the Unit
versp could stand" and n compromse fer thai
amouut Wna sanctioned by the Court. The witness
thought that between 100000 AMI 100000 coud be
accounted for in the g 43S5O7 ditc enrG peg W"en me
p ' the vaue of ra cs'i.te IN tie case II The
Guran part OF the kind Of discrepancy could he
explained 10y compromise +Gitrinen iol $1,000 OF
the Universal by Receiver Pierson.
Regarding the business transactions OF Mr. Hartman,
nocy holder in the Empire Mutual in suit brought by
him against tle receiver MT otSAS ,0H Two gIes III
for 5000 being ignorant at that time o the fact that the
actlary had pa.rd upon tem ma a5IEe1 , m
preston rom talks with Hartman thai me Empire Nh
sane, ana ti ~, "y Mr. Nos. sI liza. AT one time
Peccivcr Wickham, OF the Security Life suggested
the bringing OF action In behalf of pocyhOderS to
restrain Hartman and others IA their bds:uc-s alleging
that they procured assignments OF ci1lhs nom policy
holders by Misrepresentation Nptmh9 'Gl cGht rom
thi- taxi The witness was briefly examined WIN regard
to hill OF his allowed against the Continental! company,
which mas excited considerable criticism. In II
charges OF talking to his eli mt an hour ~ 600
for "nakin enemies while protecting the Interests cf
policy-hoders, aud among miscellaneous expenses,
Moses said that he made ont the BILL which was for
81 600. In that to determine the value
of his services 10 the policy holders. lie had selected
tIo basis OF time for his charges as check on the
value which he might place his Own services lie mad
talked with lawyer, about the amount % MS blI ana
they said II was reasonable. They told HIN, however
tnnt ne was fool itemiZe the bill as ne al
thought afterwards" added Mr. Moses, that there was
good deal Of ia the suggestion The witness was
not examined with respect 70 the different Tens OI us
bill. ga ., .......
Charles j. Hartman testified that he was an insurance
octlory aod cynct the of his bureau mt NO 2NO
Broadya was the " Life Insurance intelligence Bu-
insurance companies falling in The scope Of The commit
tees investigation became msONent; he got irtS OI
dcrs those companies after their Insolvency
In various ways; sometimes he bought them from
lorncr clerks agents Of the companies Ne never 80
lcitrl such LIS. they brought To him. III one
cas- thu witness testified. he had paid man named sea
man -7 for nenry complete sl of the policy holders
Life ANY ntTr sion thai policy -holitfs
got from his circulars that his bureau was connected
with the state Insurance Department the result ~
their own Ignorance. lie bought some claims rom POI
icy-old.r. with money borrowed on iinerclt terms nom
his friends The committee demanded the names 81 the
lenders Oh such money the witness, nut M hartman
declined To give them units ne had consulted with Lls
counsel The committee suspended rs question untl ne
could yet legal advice in the matter
gdiuuruucut then taken, 50 iar aI the FcsSbnS
in this city are cOnccruei, until next FRIDAY.
THE CONIINENrALiS RECEIVERS.
MR. wINGATEs FEEs-JU DGE " ESIBRoOk BR JIiiER
rttr