The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-10-28
LIFE INSURANCE TROUBLES
THE UNITED STATES INsTITUTION
ASKED TO Explain

Accusations Of an Intention 10 Transfer the
Business Of One Corporation TO Another
A Temporary Injunction Grapted.
A rumor was afoat In Wall street yes
terday afternoon that the United states Life
Insurance Company was In trouble, and was
about to transfer it's business and Assets TO a
company in Maine; and that the institution
was TO be wound up. Color was given to this In
the fact that a stockholder had obtained a tenn
porary Injunction restraining the directors from
taking such action. The United States Life To-
surdnce Company was organized In 1850. and for
some years has been considered very prosper
Gus. The annual report OF the State Superin-
tendent OF the Insurance Department gives us
assets nc tt,6l7,9S2g1; liabilities, %, s22 q43.s 80
surplus on policy holders account, los.
The companv's figures are about the same; but
they. calculating according to the law Of Mas
aGassett give t6el To- surplus rs regards policy
saying that calculated by the New York State
standard OF valuation this surplus would he In
10 the neighborhood Of that given in the In
surance report; or rather about $4,000 over,
e -: S.% 9Cia s sssis
standard OF valuation.
The complaint made against the company is
by Francis H. O'Connor. an insuran 20 AGENT OF
256 Clinton street, Brooklyn. He cha ges, In
brief, ss follows: The company Is n prosperous
holders, Insured for e., sis.oel on January 1.
1873. Its income IN 1916, from running policies
$500. January l, 1875, the reserve fund required
TO be held against claims OF policy holders was
the same time. in addition 70 this reserve fund.
the company held undivided pronte amounting
TO $4,000. The total assets are as given In State
insurance report, and he believes they have been
Increased to over f5,0OO,OOO.
He alleges that John L. De witt, the former,
and James Buell., the present President with
other persons. have consplred to transfer to an
other COMPANY the reserve fund held by the
carry out this scheme. 1t 10 alleged that De witt
and Buell. have purchased majority OF the
Stock OF tue company, and have procured the
OF others who are willing to do their bidding,
so that they now possess complete control Of
Buell., President OF the In porters and Traders
Bank, knows nothing OF life insurance, and was
being Understood that DE witt. though resign
ing bis Presidency, was TO continue In the 70.
the plans Of DE Witt ana buell. are not inter.
feied with, the result Will be disastrous to the
COMPANY COMPANY both las as to policy and STOCK,
from their ofices. new election ordered to Oil
Also that the company be restrained from pay
ing De witt tl5.Wv year, aud further that q
their procee dinss that he NAV obtain discovery
OF all the facts connected with the conspiracy
SO s., that he may serve an amended complaint.
ney, and IL supplemented by an AFFIDAVIT Of
O'connor, In which after setting forth the sub
hmslRsmstion of the United States Life lnsur-
ance COMPANY with some other company has
been publicly spoken OF, md that within the
past We the following named directors Of the
COMPANY have restgued Washington X. Ver-
Apoios wesmofs. %m PseIes wm g.
Ogden, j. Hurs)n Rhodes, and others whose
names are not known; The persons chosen to
AL the vacancies are, O'Connor says friends Of
Buell..
Mr.. Brosnan, superintendent OF agencies. was
conversed with last evening and his assertions
In regard To the matter we're afterward corrobo-
rateu by Mr.. W. A. Ogden lieaeman. director.
| Ia August last. resigned his position as Presi-
dent OF the company to take the position OF
| President OF the Union Mutual Life Insurance
Comp nv of Maine, dong business In this city.
Dir. De Witt resigned, for personal reasons. to
take charge Of a larger company, where he had
| live In Boston. He quit the company, for whicn
he had labored hard for many years. on the
| best OF terms with every one connected there
with. He owns no stock In the company ana
has no connection Herewith In any way, shape,
| Mr.. James Buell., President OF the Importers and
1r dets Bdnk, was elected. The assertion that
company TO the Union Mutual Insurance Com
pany OF Maine was agreed upon was totally
false. such subject had not. directly or mat
rectly, been hruached in the board Of directors.
| In fact, added Mr.. Il o-nAn, this could not ps
| done according to the laws OF the state Of New
| York.
| The reason alleged for O'Connors action was
sfd TO be n desire to gratlty personal suite or a
worse motive. The assertion was made tn
| O'ConnOr WIS DISCHARGED from the company for
| characterization Va 1873. lie held position az
| account nt aud desired the position Of secTe.
taTy and failed to OBTAIN IT, lie sued the COM
! pany Tor ALLEGED services aud the SUIT IA Yet
! pending. After beng discharged he tried tu
| injure the company III various ways. Aug. L
| lo.G. he wrote letter "a Mr.. Ezra a HOyt. A
uiitctor aud editor Of the Christian InttlAy ncor
saying that he bad heard Of the rcslgnatlun OF
| Dewitt aud on ring bis services. lie sald he
controlled much stock ms actual intere l.
| on the contrary, was given As $40.
| Messrs. Brusuan and ilegeuan said that there
| Is NJ Internal trouble In the cOmplny, either ~
| regards Mr. De wits retirement or I'm ncialy,
| and they pronounced the rumors as false. aud
| tic suit against the company as ridiculous. as
| all tue allegations contained tnerein are untrue
| tue reports OF the want of sOundness IN the
| United states Life Insurance Company were
! also cOntfadlcted. md desire was expressed q
| snow the books and papers to any one lntcreste
| said MIR. Bruanan " We IKE a mortgage ot
| prnport, for one wear only. or he fractional par
| l. crrof, terminating Aprl l. Directors attend
| refully to any hIctultiOn Ia the real estitt
| market. ana IN c 81 u decline " ha, at one,
| to be made gool or the mOrtg &c IL foreClosed
| So far the numter Of foreclosures has uesr
| trting.'
Judge Gilbert has granted a temporary inJuno
| ton, aud alsO an order for the examination "
| Messr-. Bael and DE Wit nv referee.
| Francis O'CnnnOr, the plainun Ia the sui
| az inst the uuted States Insurance Company
| sid last night that the con- plant 10 true, ant
| that the action il IN a Court of Reco d. lie hat
no furluer information about II to give.