New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-09-23
DEFAULTER AND FUGITIVE.
THE END OF G. NJ. BARTHoLoMEw's CAREER
OVER ONE HUNDRED THOUSAND DOLLARS LOST BY
THE CHARTER OAK LIFE INSURANCE COMPANY.
rBr TELEGRAPH To THE TRIBUNE.

HARTFORD, Sept 22.-The heaviest deial-
cation IN Hartford for years brought to light IN
proceedings before Judge Pardee OF the Supreme Court
to-day. Insurance Commissioner Fyler made apDlica-
tion yesterday afternoon for the appointment OF
receiver to the Charter Oak Life Insurance Company
because of the una limous request of the Board OF
Directors of the company This action of the directors
was brought about by the confession of George NJ
Bartholomew, president Of the company, to short
age Of $105, ,O0O
When the Charter Oak Life Insurance Company
wasreorganized in April. 1873. Mr. Bartholomew was
elected president by the Board of Directors He was
given charge of all the finances of the company The
funds were handled by him. The affairs OF the COM
pany were managed with apparent success by Mr.
Bartholomew. until March, 1885, when Insurance
Commissioner williams made application for re-
cever because of the impairment of its capital and be-
its were less than three quarters Of its liza
biites, the amount required of life insurance COM
p,nles by the Connecticut law. The suit was taken
out of court however and Mr.. Bartholomew remained
at the head of the company. The defacation OF
Thomas F. Punkett. few weeks ago, seriously
affected the Hartford Silk Company. the Union Manu-
featuring Company and the Schuyler Electric Light
Company, in all of which Mr. Bartholomew deeply
iuterested 1t was supposed, however that he would
be able pull out of his embarrassment with assist
ance. On Thursday Of last week, he told Secretary
willard of the Charter Oak Company that there as
shortage in his account with the company, and that
he could not at that time meet it. The amount named
was $lO5, 900 and it said to be all cash. Mr.
Willard at consulted Mr. Gross, of Hyde, Gross
Hyde, attorneys tor the company who declared that
the facts must be made known to the Board of Direct
ors. However, Mr. Bartholomew given several
days In which to make good the deficiency.
On Saturday attachment was brought against tho
company and Mr. Bartholomew gave a check for $13o
to avert it. Mr. Gross paid the check out of his own
money, with the advice of all the parties concerned
The directors met on Saturday. Mr.. Bartholomew
knew that Mr.. Willard determined to inform the
board of the true state of things and for this reason
he himself told them Always regarding Mr. Bartho'-
new as solvent beyond question. notwithstand-
ing his being considerably involved the directors were
staggered at his statements 1t the opinion of
some of the directors that his resignation should be at
once demanded but it decided to let the matter
rest until Monday morning, when another meeting
to be held. At the meeting on Monday the attcn-
ton of the directors called to two notes. one for
s12 900 and another for $4,000 which will mature
in December They the cOmpany's notes and
had been discounted by Mr. Bartholomew as presi-
dent two months ago. This another startling
revelation for the directors believed that when Mr.
Bartholomew confessed taking $lC5 900 of the cash
of the company he had told them the extent OF his EN-
Dezzlement They called him into the meeting at once
and asked him what he had done with the money
which he had received the notes He said that the
company had received none OF It, His resignation was
demanded, and he gave 1t.
secretary Willard was instructed to confer with the
Insurance Commissioner and request him to meet the
directors He dhl so, and Mr.. Fyler was present at
meeting on Monday evening and the directors offered
to cooperate with him in any proceeding which ne
might institute To-day at 10 a. m. in the judges
room at the Capitol, Judge Pardee held Chambers.
Henry G. Robinson appeared counsel for Commits
sioner Fyler; A. p. Hyde and c. E. Gross, as counsel
for the company. Secretary Willard and number OF
the directors also present. The application was
read by Mr. Robinson The company desired re-
cever appointcd hero before the of the defalca
ton could lead to similar action in other States Mr.
Robinson ASKED for two receivers, naming lsaac'
Brooks of Torrington for senior receiver, and Ed
mund A. Stealman, of this city. for junior receiver
Judge Pa7dee granted the request and soon as the
appontees can file bond they will enter upon their
duties.
Mr. Bartholomew was also president OF the Holyoke
Water Power Company. He resigned this position in
n letter IL allied from New York Tuesday, Septem-
ber a. He endeavored to persuade Cyrus w. Fled
to help him through Mr. Field is reported. on look
ing over Mr. Bartholomew affairs, declined to inter-
fere He went to New-York on Monday evening, out
dgent inquiry by telegraph failed to discover MIN
and the attorneys for the company profess to have in
formation that he has gone Canada The 500, OOO
ca,h Mr.. Bartholomew had deposited In New-York,
"a trustee for the company. The money is missing.
He had discounted the two notes for SlZ,ooo ana
So 900 and the money is unaccounted for In look
ing up the discounted paper for which Mr.
is held responsible Mr.. Plunkets name being on some
c.I have beeu discovered
Hartford Silk Company $4,000; Union Manufact-
urine COMPANY. Manchester, $500, 900; Schuyl
Light COMPANY 500 900; Charter Oak Life insur-
auce Company, so 900. The two hrst-named com ON
panics already in the hands oil receiver anu no
Schuyler Electric Light Company has called meet,
ing OF creditors. ln the city the disclosure caused
profound astonlshInent. Mr.. Bartholomew was
regarded of the most conservative trusiwortny
bsines men in the city and his reputation for honesty
was never impcached. His sovency was Always
readily granted. The effect OF his TRANSACTIONS on 'ne
Charter Oak Company cannot fail 10 be extremely
serious To Judge Pardees inquiries, 1t was answered
by the directors counsel that the total real estate OF
the company is valued at 81, that much OF y
il unproductive that some can be maze 10 pay goo
nroft that it IS situated in ten or eleven States ana
tha. the pei sona property Is worth about SzZOUVo
Judge Pardee thought there might De Sl,ooo VoV IN
money realized TO the company lhe ropofieu haoh-
tiles of the company its last report to the Insurance
Commissioner were So .293 Ii. lho Bartnoio-
new paper widely scattered. some OF II having iltIe
collateral security. Ii has been found IN New iorK,
Boston, Philadelphia and in most OF the cities OF Con
necticut us well as in Hartford George W. Bartholo-
mew the son of the defaulter, has reported 10 ms nus
creditors that he can pay them nothing. The comph-
cations arising from the Plunkett and Bartholomew
defacations will probably affect property worth over
Al 900 600 Some careful business men place the
Ggnres at twice that amount What disposal Mr. Bar,
tboomes made of the funds he obtained on discounted
daper the cash he had taken from the Charer YAK
Company is Lot known.
The Charter Oak Company has no insurance agency
in this CITY, branch Of It's real estate department Is az
No. II Broad way and charge Of Thomas r. Ciench.
"Ionly learned Of Mr. Bartholomew's defalcauon Ton
minutes and was never 80 surprised 10 my mo
,ad Mr. Clenoh when at his homo early last even
ing 1T doesn't seem possible that man OF his char
actsr could be guilty Of the indiscretion alleged
in the telegraphic reports was aware
that he was somewhat involved by Punkers emoelzie
ment but never dreamed that he was not solvent oy
IL ha hee actiYa manager OIL kno