New-York tribune., 1882-03-12

OF the metropolitan Hotel Ine Oh the
committee are A. c. Chaplin, Of Kings, Colonel b. r.
Baker, OF Saratoga, George z. Erwin, OF St.
Lawrence, Major James Haggerty, OF New-YOrk,
AID Thomas. v. welch, Of Niagara. Ser
geantatarms Henry Wheeler attended the committee.
Chairman Chaplin Is young with keen hazel eyes
aud small Lose. under which droops a short black
mousacde In conversation he Is genial and pleasant
Major Hagserty Is the Tammany member OF the COM
mittec Soon after the last campaign he seriously
III, bui, while still looking fully himself again, Ire
had sufficient vigor yesterday TO allow him 10 improve
every opportunity TO cast imputatiOns the former
connection Of MayOr Grace with the Continental Life
Insurance Company, which the subject of the first
days iuyesGation. Besides Mayor Grace. who the
third witness examined Robert sewel OF Sewel Pierce
Samuel A. Noyes OF ;. A. ID. NOyes L. L. COudert,
Of COudcrt Brothers. william Allen Butler, John j.
Anderson and Charles H. Wingate were before the com
mitee. The design OF the testimony prove that
the several receivers counsel and referee, connected
with the insolvency Of the company charged exOrbitant
fees and expenses the detrmcnt Of the unfortunate
| policy y-noders.
The Continental Life Insurance Company organ
lied on MAY 10, sG6, with capital 100000 1t
mutual company In far the distribution OF profits
TO policy ho!crs, after certain percentage had first
gone TO the stockholders, concerned but few Of
slch profits ever reached the po'icy-holders
| On October %, 1876, John J. Anderson
was appointed receiver in suit brought before Justice
Pratt, OF the Kings County supreme Court by John o.
Hoyt, calming to be stakeholder OF the company.
! soon afterward the Attoruey-Gcn raj in behalf OF
stephen English pOlicyhO.de brought action TO
contest the legality Audersons appointment claiming
sole authority for himself 10 bring suits for winding mp
insurance companies Anderson resigned his position in
February, ls77. william Il. Grace succeeding him. Mr
Grace surrendered bis ohce receiver in July 1877 10
! JOHN r. OMEN, who appointed by Judge West
brook in the Attorney Generals action March 81,
| 1877 SIR ONeil still Is tine receiver. On April 23
Ion Rufl .1 tn ba -tv-
Court against allowing Mr.. Anderson compensation
! receiver, charging gross mlsmanagement and
! fraud against the former officers Of the
company. Mr.. And r'on appealed from Mr. Buffers
! For; and Subsequently reference conducted before
George H. WinCate allowed the first receiver $4,000
| compensation Mr Grace paid $4,000 for his
services Mr Wingatc also allowed various large sums
to counsel engaged by Mr. Andersou: his report ap
pcaled from and still remains unconrmed Mr. Wingate
allowed $500 for his services referee by Judge
Westtrook but his claim is in dispute the part Of pol
| icy-hOdcrs
Robert sewc counsel for Mr. Anderson, first testified
to the circumstances attending the appointment OF Mr.
Anderson a. receiver He described the various ways In
| which, he said the management Of the company had
| plunderad the stockholders and charged the
| state Insurance Department with having neg
| lccted It's duty in examining the company
for ten years p1or 1876 Speaking of Judge West
brooks decision that only the AtorneyGeneral could
appoint Of insolvent insurance companies he
said: - considered at the time and consider that
that decision errpr 1t the beginning Of
trouble in winding up the affairs OF inSOyeat insurance
| companies. Up TO that time receivers had been ap-
pointed business principles but afterward politics
were dragged into the matter. Since that decision the
Attorney GENERALS office has been anxiousy besiege
with applications for such positions, coming with the
keen Of birds Of prey, and have known Of them
being in the Office year before the entlon existed
| 10 put certain companies into insolvency" Mr.
| oil dafar .f frp-n fha
tion of excessive charges for his during Mr. An
derson', rcceiycrsY'p He Lad formed opinion to
the proper period in which the Continental could have
| been wound Up.
Mr. Auder-ons rccci eraup lie testified hat he offered
opposition to ir Hovts suit for The receyership
upou consultation with the officers OF the company. he
] saw that HOyts charges Of fraud and mismandg"me
could not b. met ne was not aware or me financial
condition OF the company Of lts msuan
runors recarIinc tie matter He received no fees from
! tho company after the appointment Of the receiver.
Mayor Grace then called To the witness stand.
and gave evidence 10 his connection with the com
pany receiver for about four months He said that
he had devoted hs undivided attention to il, affairs after
! De- ng appointed reducing expenses an9 shng claims
against debtors. He gave up the receivershp because
OF Judge Wcsbrooks appointment OF Ar ONeiil, after
which lie found thsl tV'Iys SUIT 20 recover claIinS
| for The company would Involve double litigation
and second respecting the issue He received
$1,000 services, allowed by Judge Wesbrook,
! counts had been passed upon by the Court Inc ex
pesc- OF his admins ration were $4,000 exclusive OF
Mf Clapih-Cau You recall any feature Of the COM
pany's affairs during our administration that would
! nave pro. nged your trusJ nye years
T6c witness further testified that he never gave any
direction prOlougng Receiver AndersOn's defence IN
the ac ion Oi tlc Attorney General
/. L. Coudert testified that he was counsel for Mr.
Grace a. receiver aud detailed lengtl The time and
attention winch he to the examination and better
ng Of tue company, affairs lie described the failure Of
h attempts get from william Fullerton bonds and
mortgages worm 10000 wncG mad been recovered ny
tine NeY-Jer-cy Muual Life Insurance COmpa-
ny ny 1 wicI Ha % Pv f foP in the coenta. mt r.
risks ju-t before the AOgt suit
begun ILcy had been given to cxJudge Fullerton by
the NewJcr-ey company when the SUIT was decided
Mr. CouIcr di obtain the securities und atteT he
had begun summary proceedings against Mr. Fullerton
investigation" MIR. COudert said, found plenty Of
evidence Of he pienderng Of the company by It's man
~ajor Hacgrrty dmreratvely)-Has not everybody
WhOhd- been cOuueCicd with the company pundered III
Mr. Couder-l Will say yes TO that, excepting Mr.
Major Haggerty-Wny do you except Mr.. Grace Look
AT tue enormous fre-Sl OOO-ne obtained for four
months service. l. ,hd rgnt
Nr Cou,lrrt-rn- arnouni was awarded by the Court
Major Hlggertv-Oh 10 was legal Or course But there
Is legality which there IS justice This Is question
Of ethics What conscience man mu Il nave 10 take
$4,000 from company III sucu condition as the Con-
Furtcr on Mr. Coldert testified tnat the sum OF $3.50
was stricken from his original bull when the referee
Mi'r Harty-What $3.50 taken from your claim
and nothing Tie rrceiycrsi 20 they baked at the
qua and swallowed The camel , ..,,.,h-..,
After short recess william y Alien was called oy the
Committee 10 testltJ as TO tue reference IN %cH ne
ne removal OF MI AlIcr5Ou ts Iccti''I
and that b. not allowed COmpen atlOn IOr MS services
Al the request committee hr suggested some rem
pdcs for the buses recevershps lie Thought that the
Iu-urauc. Depdr uent sAOid be compelled 10 make pc
rod examinations of life insurance companies luat
Ducy should be given, under proper restrlc
mons tht r-nt dtmdnI information a. To the dlspO
sal OF tAeir CON any. assets that the winding up Of
of companies should be put III the hands
OF tn. Department AID the AuoTey-Gen-
cral and that privilege Ot reiisUr'nS
r.-k. should bee allowed To companies gou mao
voluntary a- well Involuntary Insolvency. IN regard
10 Nj - -ac-'- rcc-ycr-lp he ND not think 0lVidend
could nav, been paid tim, there were many
deatn-c.aus right OF priority OF payment had TO
be settled legally =,
john j. Anderson, the first receiver Of the