Year: 1878

| q new charter has been asked Tor. III lS tnOugnt


that most of the policy holders will cooperate with
the managers in their efforts.


RADICAL REORGANIZATION PROPOSED.


THE LEGISLATURE ASKED TO GRANT NEW CHAR
TER MAKING 1T MUTUAL COMPANY-TIiE
SCALING PROCESS BECOMING MORE ACCEPTABLE
-.THE SPECIAL COMMISSION


| lFEoM A STAFF CORRESPONDENT OF TIE TRIBuSE1
| Hartford, JAM 1.-THE latest phase in the
Charter Oak Life Insurance matter since the appli-
cation for a receiver, which adjourned over
from last week motion of the cOmpanys attorney,
and is to be heard by Judge Pardee tomorrow,
is the effort to intervene by legislative action and
procure n reorganization under purely mutual
charter, merging and wIpng ont the stock. The
continuance of the hearing granted by Judge
Pardee with the consent of the counsel for the
insurance commissioners, upon an understanding
that the Legislature should have time TO act in the
matter. II is the belief of all parties interested that
the reorganization proposed is altogether the best
thing for the policy holders. TO put the company
into the hands of receiver and close mp its entire
business at the present time, would involve great
sacrifices aud loss, which it is hoped can be avoided
by more deliberate proceedings. The proposed
plan of reorganization removes the only objec
tons which have been raised by any of
the polcy-hoders to the scaling process,
which has been part of the plan OF the
present managers for saving the company
from utter rum. The scaling process has gone
on much rapidly during the past fortnight
than at any previous time; many policy-holdcfs
who had heretofore stood aloof having learned the
true history of the company's troubles from The
TRIBUNE, and upon the facts published in this cor
respondencc, decided to cooperate with the Jewell
management rs Offering the most satisfactory way
ouh Still there will be some who under no circum-
stances will agree to the scaling process so long AZ
the possibility remains that the company may
fall again into the hands of ring of stockholders
The wiplng out Of the stock removes the last OBJ
lection of these policy holders and offers to all the
absolute control Of their property. So strong
is the feeling that the appointment of a receiver
and process of liquidation would involve great
damage and loss which can be avoided by careful
management that the Commissioner has felt il TO
be his duty TO allow considerable latitude TO the
management and Judge Pardec, OF the Supreme
Court, before whom the proceedings for an injunc-
tion have been brought has in effect sustained his
view Of the case and justified the delay, war
rantcd by considerations of the publiSgood.


The petition of the policy-holders and present
Board of Directors for a change from a mixed to
purely mutual company, has been referred to the
Joint Committee on Insurance, and the committee
has promptly taken it up and made 1t the first bus


ness for consideration. The present law on the sub
ject is mandatory upon both the Insurance Commits
sioner and the Court so that upon a state OF facts
which is rot denied attempted TO
be concealed, there be nothing done
except to issue injunction and appoint
a receiver, unless legislative intervention
is had. Under this law there can be no other action
taken; tho policy holders have choice in the
matter; il makes no difference If they unanimously
agree TO let the company go on; the Com
missioner having found this impairment of assets
Of which there il ConccIlmcnt must
take immediate steps to put the company
into receivers hands, and the court
has no discretion in the premises but upon proof of
the facts must grant the application. Hence arises
the necessity for some Immediate legislation, which
shall temporarily, at least. give the Commissioner
or the Court little freedom Of judgment. The
adjournment Of the Senate from thursday over TO
next week makes it impossible to procure such ac-
ton if it were deemed advisable, before the time
fixed for hearing the application, which is on
Saturday. So far as | can Judge from their
conduct and conversation Mr.. Jewell and the
other directors are quite indifferent 10 what
course the Legislature and the Courts pursue in the
matter. Having undertaken 20 save the company
they would naturally like to have fair show given
them; but they have found their way much OBJ
structed by persons who pretended to sympahzc in
their object and themselves subjected to such gross
misrepresentation and !abusc from the begin
ning that any action which relieves them of
further responsibility will be hailed with salts
faction. Governor Jewell has charged up his
$4,000 investment, for which he has been
freely criticised, to profit and loss, and will cheer
fully return to his own private business lie fully
recognizes the fact that he has suffered damage per-


La. i,t Ia. I,,,lI :.
quite philosopher, and wastes time in rcpining
He is as stout in adversely he smcrry in sunshine
and whatever faults he may have. no call him
bitter moroe or revcugcful III have seemed in this
correspondence to give the more favorable con-
sleratIon TO his of the case-and il is not
likcy-it has been because he has appeared TO
to he entirely frank and open in all his statements


with no grudgcs rescntmcnts to crafty, and no
personal ends 10 serve; free to confess his mistakes
and not over-anxious to he Immediately set right,
hut patient and willing to bidc his time.


The COmdni, observe, charges me with "0mlt
ting unpleasant facts, A" in that | forgot that Wig
gin gave Charlton T. Lewis $4,000 of the compa
ny's funds for that gcntcmans assistance in getting
control of the company. did not forget it, for
never knew it, | have heard rmors of this
sort, but informed on good author
ity that the companys books furnished no
evidence record of any such transaction.
Ii Mr.. Lewis was concerned in this business. he
ought 10 explain il, if he If he cannot, ii
talnly is an unpleasant fact, though why more un-
pleasant than any of the rest do not see. Nor do
understand what motive could have had in omit
ting it. The CourGRt to intimate
that l had. The Times, Of this city, remarks
also that have "colected a considerable quantity
Of very old news about the Charter Oak and palmed
it off as fresh" 1t may be so How much of this
story of the Charter Oak IS old news in the Offices
of the Hartford papers am unable 10 say. | con-