The Union flag. [volume] (Jonesborough, Tenn.) 1865-187?, 1868-12-11

/ J.
that the Directors might invest the
assets ofthe company in any property
or thing, which they, in their discre-
ton, might regard as most advanta-
geous to the policy -holders} that the
charter further provided, That the
Directors might issue guarantee notes
to tho amount of $500,GQQ, which
were not to be used unless the assets
Of the company were deficient.
The bill charges that J r. Berry
was the principal manager of the con-
cern that he was the acting Secreta-
ry, President, Treasurer, and Execu-
tive Committee; was not worth one
dollar; had failed in other establish
,mehts Of similar character iE Indi-
ana, and had inaugurated this policy
here in Tennessee for tho purposes of
fraud and speculation that said Ber-
ry drew the charter and engineered it
through the Legislature fraudulently;
that he practiCed d fraud in the cleo
tion Of Directors that he practiced a
fraud by executing his guarantee
notes to the amount of Sl4O0 when
he was not worth l40 cents that on
said note t&us executed to the COM
pany AS guarantee note he has re-
ceived six per cent. interest, and his
only object in executing this note, was
to increase his salary that he had
received in this way, to bO paid out of
tie cash premiums paid in by the
stockholders, at least $4,000 per an
mum as his salary that the whole
amount of cash premiums paid into
the office BY the policy holders, had
been absorbed in the payment of the
salaries of officers. and that the
greater part had been received BY
Berry, who was, or discharged the
duties OF President and of Secretary
aud Treasurer and Executive Coin.
mittee, and all, and received the sal
aries Of each, amounting TO fabulous
sum, and that in this way the cash
premiums paid in by the policy hold
ers has been absorbed.
The bill further charges that the
term, Southern, had been adopted as
a prefix to encourage Southern poo-
pie TO take policies, whom, in truth, it
was a Northern Garpet-t0g c6htern,
composed Of bapkrupts-Noithefh
bankrupts--there being no Southern
men in the company. That frauds
had been practiced in entries on the
books, and especially in ante-datinc
an entry as Of Sd September, purport.
ing to withdraw as of that date the
guarantee notes, executed by Berry
and Thompson, and others, when, III
truth, and in fact, the same was not
signed by the President until since
his return from New York, few days
ago.
The bill charges that the whole
thing is bogus, capital, assets, men,
charte; and all, and is most ridicu,
lous and shallow swindle, and that
every man concerned in practicing
such frauds upon gallant, con6ding
and unsuspecting people, ought not
only 10 be held liable for his fraud but
ought to receive the penalties of the
North Carolina whipping post for the
sin and folly of his frauds. The bill
seeks TO attach all the assets in the
keeping of the company-the books
and notes and cash on deposit and
the private property of Berry, and
asks for the appointment Ofa Receiv-
er and an injunction as to all the suits
wherever instituted, against the poll
cy-holders, and that the notes of the
policy.holders be delivered DIP to be
cancelled. And especially that what
ever private property the defendant,
Berry, may have may be attached,
and especially "his black horse dhd bug;
eyp bought with the proceeds Of tho
premium cash paid by the policy-hol-
der.
This bill Ras fled by Judge Ridley
and Hon. Charles Ready, of NJ hrfrees-
boro; Colonel 7. H. PEBBLES, offspring
Hill, and Judge Baxter, of this coun.
ty, who acted as q eommittee by ap.
pointment Of numerous policy holders
in Rdtherfofdj franklin, Bedfordj
Maury, and other counties. The gen.
tlemen have been in the city since
last Saturday engaged in making
rigid examination into the affairs of
the "company." Their application to
Judge Cary was at oh6b granted, at
tachments we're gotten out, and the
office, with ITS assets, books, notes,
etc, are now in the hands of Colonel
PEBBLES, as Receiver.
Our information extends 10 the
fact that whilst the policy. holders will
all get back their premium notes,
they will lose The cash premiums al
ready paid in;
Suspicion was first excited about
two weeks ago, when a demand was
made for ffiy per cont. Of the premi-
am notes, or aboGt 100000. Colo
hel Peebfes came up from Spring Hill
saw how the things was working (as
charged in the bill) and Immediately
communicated with policy holders in
all the surrounding counties. The
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