New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-01
THE COURTS.
IMPORTANT INSURANCE SUIT.


STABILITY OF THE KNICKERBoCKBR LIFE INSURANCE
COMPANY.
An important and interesting suit has been
brought against the Knckerbocker Life Insurance Com
pany by John Anderson and Allen IL Walker, who seek
intervention Of the court In compelling winding up
OF the affairs OF the Company, and forcing Charles STAN
ton President of the Company TO give accounting OF
the money which 1t Is alleged be has improperly dis
posed Of Mr.. Anderson holds $50 shares Of tho Com
panys stock and formerly director, while Walker
has shares, and was clerk of the Company. The
matter brought up In the Supreme Court Chambers
yesterday, the motion for the appointment OF q
receiver wind up the Companys affairs, and for an
njunctio restrain the officers OF the Company from
proceeding F. Randolph Robinson and exJudge Porter
appeared for the plaintiffs and Messrs. Field Sherman
and Mr. johnson for the defendants
On behalf OF the former, afidavits were read. alleging
for the past year and at the present time the Com
pany has and is insolvent, the assets being
ceeded by the liabilities 10 the amount OF $S2i72 "a
The annual statement, given by Charles Stanton chen
-President, for the year ending Dec 81, 1871,
stating the assets be s5slis or and the liabilities
only ss674 So the adavits claim 10 be incorrect and
false, and that at that time the assets
were only sTO55.isl IS, while the liabilities were
s7.z74,2Sl So. 1t Is charged further that Henry E.
Stanton Vlce-President and director OF the
Company allowed large sums Of money belonging to 1t
foreman In the hands OF the firm OF Stanton, Sheldon
Co.. by which the Company lost heavily IL Is averred
that certain moneys paid out January lS7l were not
charged In the Companys books until about February,
isga and therefore deducted from the state
ment OF leash hand" Among these sums were
$4,000 George W. Miller, superintendont of Insurance
u secret bride TO induce him to make favorable re-
port" with respect to the condition Of the Com
pany ESQ TO Eldrdge. Millers assistant $3.50 60
TO Elizur Wright, aetuary, "for his services In max
ing favorable report Of the assets OF the Company
and 5000 70 j. A. & G. M goodsell, for two news
surance," and 1.-THE vndication OF the Knckerbocker
Company" General mismanagement Is charged upon
the Company and 10 rs ayerred that Charles stanton
responsible for the irregularities 10 It's affairs
Defendants counsel submitted afdayits stating that
this suit Is really instituted by Erastus LYMAN, former
Presdent OF the Company; that the plaintiff Walker
protege OF Lyman lives with HIM and received IS
shares Of stock from him. for the purpose OF beginning
this suit the transfer being made JAN 10 1879 aud Ly
man receiving 1000 note Of Walkers therefor tnat
the payments alleged 10 have been made prior to Dec
81, and not charged should not have been deducted
from the statement made OF cash In hand, as the
amount stolen WAS really in the Conpany's treasury.
IL Is further stated In the adavits that Anderson al
though for years director. attended sim
gle meeting OF the Board and that the Companys bust
Is prosperous It's condition sound. To support
these adayits for the defendant petition Of the stock
holders representing J out OF 1000 shares OF the cap
tai stock was presented praying the Court not TO grant
present management The allegations TO the value
| OF the real estate mortgages held by the Com
| pany made BY plaintiffs are denied by the defend
ants. The plaintiffs claim that loan OF $4,000
stock Of the Union Sugar Company was In violation
OF tho Company's charter. and that the Sugar
| anita deny and say that 1t IL the only loan on
which the Company lost. aud that IL was
made with the consent Of LYMAN and when
| the stock Of the Sugar Company above par,
and that not against the provision OF the charter
Tho statement aa tot tho bribery OF Miller, aud the
OF Stanton and Miller, and tho former alleges that the
money loaned Ia the rm OF Stanton. hhedon Coz was