New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-11-04
IT'S AFFAIRS IN BAD SHAPE.
DEFICIT IN THE COMMERCIAL ALLIANCE
LIFE INSURANCE COMPANY.

THE RECEIVER RECENTLY APPOINTED ASKS TO
DE RELIEVED OF HIS TRUST
An investigation into the affairs Of the CONNER
cial Alliance Life Insurance Company. which was
recently paced in the hands OF receiver by Jus
tice Barrett Of the Supreme Court. has elected the
fact that the company is In n most deplorapic
condition and instead OF being on a good roofing
as It's officers asserted II was. II Is completely ana
wholly a wreck. and almost entirely without any
assets TO pay the claims OF the stockholders or
creditors.
Upon the argument OF the motion for a receiver.
which was made before Justice Barrett, the At
torney General declared the Liabilities We're J75l2
and the assets about s21339G CO. In reply TO this
the counsel for the company declared that the Off
GERS insisted that the company was perfectly SOL
vent; that the deficiency had been made good, and
that the reports OF the examiners incorrect.
they did give the company credit for assets
which II was entitled to- Justice Barrett. neverthe
less after examining the question. decided that the
Court would take the responsibility Of the appoint
ment Of a receiver, and appointed William H.
Willis.
Within a shor: time after his appointment Wills
found things in such shaky condition as to cause
much surprise in view Of the persistent statements
OF the officers OF the company that II was solvent
The affairs Of the company are in such a shape That
II will require years 81 work to sraghten them out
In the hope Of obtaining anything for the creditors
or stockholders. Mr. Wills does not feel able TO
prosecute work OF this magnitude. which viii re-
qulre great amount OF hard work. and In view OF
this fact through his counsel. Henry D. Hotchklss
NJ yesterday. in Supreme Court. Chambers. asked
Justice Barrett to relieve him OF. the responsibility
OF the trust. The receiver has fOrnd that instead
0 there being several hundred thousand dollars OF
available assets which the officers Of the company
declared there we're. there is not suihcient TO
pay the cost of the trust The officers also asserted
tina; they had tit.e to piece OF property upon
which they could obtain loan OF Sl21@O MI fiotch-
kfGGs M
entirely The p~ceiver says that, outside OF
the $4,000 on deposit with the Insurance Depart
ment required by law. and $4,000 In cash. the as
estate and abandoned factory sites OF little value
and another piece Of property in Washington. which
f. in litigation, the title OF the company to II ~
claimed to be fraudulent. Besides these there are
a large number Of claims against agents OF the
company for moneys advanced and premiums col
lected which. II realized. will not amount 70 more
than 5000 and the Office furniture in the ofiices in
this city
Deputy Attorney General c W. Francis appeared
for the Attorney General and consented 10 the re-
quest Of the receiver. The Justice said that the
circumstances presented were suspicious. to say the
least and he directed the aidavits which used
on the motion I'm opposition to the appointment Of
the receiver to sealed and locked up in the safe
Of the County Clerk SO that they may be used az
evidence before the Grand Jury, # subsequent ex
animation into the affairs Of the company shall
fortlfy the intimaton that OF the officers have
been guilty of perjury He thought II was perfectly
proper that Mr.. Wills should be relieved OF the
trust and another person appointed.