Morning journal and courier., 1886-09-23
HARTFORD's SENSATION

HARTFORD, Sept. 22.-Application was
 made to Judge Pardee of the Superior court
 here to-day for the appointment of receiver
 for the Charter Oak Life Insurance Go. whose
 affairs became involved several years ago.
 Insurance Commissioner Tyler made the ap-
 plication. When the company became in
 volved an attempt made to rescue it,
 the fate of companies which had had re-
 ceivers being held up to view as 8 warning.
 The policy-holders organized to manage the
 company with George N. Bartholomew as
 president. Since then about $500, ,000 has
 been paid back to the policy-holders. Re- gently fhe company's finances have become
 involved again through complications in
 Bartholomew's affairs and 50 the receiver
 ship is necessary.
 Mir. Bartholomew informed the directors | of the Charter Oak Saturday that his &C.,
 count was short $127 900, and on that ac-
 count the receivership was to-day applied
 for. Other deficiencies in his accounts
 are reported, but no statement is yet ob-
 tainable. MT. Bartholomew left this city ! Monday afternoon and has not since ! returned. He has been in business here for 1 fifty years and was one of the most respected
 and leading citizens. He was connected with its most important business enterprises and
 the present condition of affairs creates the |
 ness circles. He was very large borrower
 and had the highest credit. At one time he
 endorsed for the Charter Oak Life company
 to the extent of half million dollars to car
 ry it over a bad place when no others were
 ready to help it. He had been very success ful in it's management until this condition of
 affairs developed.
 Of the $127 ,000 for which Mr. Bartholo-
 new is short $105, 900 is in actual cash and
 $SS, ,OOO on paper, one note for SIP, ,000 and another for $10, 900. Further details of the I affair are as follows: Since the reorganiza- tion of the Charter Oak, in April, 1878, MT. Bartholomew has had sole charge of the affairs of the company, never being obliged to make any report to the directors.
 ! In the early part of last week Mir. Bartho- lomew informed Secretary Willard that he was short in his account with the company | as president $105, 900 cash. He said the em- barrassment caused him by the recent em- bezzlement by Thomas Plunkett in the Hart ! ford Silk company and the Man | chester concern was so great that | MT. Willard at once informed the company's \ attorneys. They told Willard the matter | must be made known to the directors. By l agreement, however, several days time was | allowed Bartholomew to make up the short | age. Last Saturday the directors met, ie- | norant of the condition of the company. MT Bartholomew at that meeting, finding that | Secretary Willard was determined to notify | the directors, preferred to do so himself and stated what he had told Willard. He had said nothing of any notes up to that time. On Monday morning they discov- cred two notes, one of $12,00O and | the other of $1O,OOO, which he had discounted about two months ago, and of | which transaction they had had no knowl- | edge. The proceeds had been used by him, and not for the use of the company Then | th6V n ndo o1 | nation. Ha gave it to them. In the after | noon he left for New York, and has not ! since been seen in this city
 Charles k. Gross was appointed by the court oday to take possession of the com panys property until the permanent re- ceiver shall be appointed and qualified
 The assets of the company will net in cash with faithful and proper management about $1, 5O0,O00 This property is located in eleven States, much of it unproductive, and some it is likely. will bring good prices if sold with good judgment
 When the recent Plunkett defalcations be- came known George M. Bartholomew was heavily involved, and it became generally question hereabouts whether the latter could stand the shock but it was the opinion of many financial experts in this city, pa1tiou- larly among the banks, that Bartholomew was solvent in every sense of the word. It was believed that he was solvent with a mar gin of nearly $1 100000. Last Thursday he gave check on the State bank for $135 to avert an attachment on the company, but the amount was paid by one of the counsel of the board of directors after all. '. =-zx MT. Bartholomew grew up from 8 small boy in this city and amassed large fortune It will not be known here until the evening papers appear that MT. Bartholomew is de faulter. The blow will come with stunning force upon his family and upon those clerks who are now employed in the office of the company. Yesterday he resigned as presi- dent of the Holyoke Water Power company of Holyoke. He is also connected with the Florida Construction company. The Paper out Reaches Into the MiI- hons-TwO Receivers-Two Appoint.
 ees Deelins-The Charter Oak . Wreck
 Paper Coming in From . Dozen
 Cities-GOne to Canada.
 HARTFORD, Sept. 22.-Judge Pardee selected Jonathan Bunce of this city as receiver, but at 3 o'clock it was learned that MT. Bunce declined. Judge Pardee then sought Robert E. Day of the Security company, but that gentleman also declined. Late this afternoon Judge Pardee appointed Messrs. Brooks and Stedman senior and junior receivers respectively origi- nally asked for by MT. Robinson this morn ing. It is learned that since Mir. Plunkett's departure investigation into the affairs of the Silk company and the Union company has brought to light a large amount of paper on which MT. Bar tholomew has realized large sum of money. What this money has been used for 1t is not now known. MT. Bartholomew seems to have managed in all sorts of ways to raise money, and it is said that his and Plunkett's paper that is out will reach into the millions. So far can be learned $36O, 900 of Hartford silk paper, $200, ,000 of Union com pany paper, $200,000 of Schuyler Electric Light company, considerable amount of 1 Charter Oak and some Holyoke Water Power company paper have come to light. This | paper turns up in many different sections of the country outside of Hartford; reports coming in from Philadephia, New York ,Bos- ton, Providence, Holyoke, New Haven, New | London and other places. A director of the | Charter Oak company said this evening that | the first intimation he had of the terrible l state of the company's finances was on Sat- urday at a meeting of the board, when, as | related above Mir. Bartholomew acknowledg- ed having used $1O5, ,0OO of the company's l money. MT. Bartholomew went to | New York on Monday in company | with Cyrus w. Field and gave the directors 1 to understand that Mir. Field and several | other New York capitalists would assist him | out of his difficulties. Since then he has not |
 
 from him s;ating that he is in Canada. A director, when asked what effect the defalca- | tlon would have the company, said it | would completely wreck it. '7There is no | money left to it's credit,'' said the director. ''and already several drafts have been pro- tested" | How Other Hartford Concerns Are Af-
 fected. |
 HARTFORD, Sept. 22.-Mr. Bartholomew is 1 president of the Schuyler Electric Light com pany. R. E. Dustin, secretary of the com pany, said tonight that the company was as | sound as dollar. He, however, admitted | that the company would for some time be | pressed for ready money. The employees of | the company were paid yesterday, the regular | payday, and received only forty per cent of | their wages. Mir. Bartholomew is president | of the Watkinson library, trust of consid- l erable magnitude, but J. Hammond Trum- bull in an interview tonight said he had no | reason to believe that anything was wrong in the management of the funds. A | prominent director of the Charter Oak | company said to reporter tonight