The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-25
LIFE INSURANCE TROUBLES.

ARGUMENT IN THE NORTH AMERICA AND
GUARDIAN MUTUAL CASES AT WHITE
PLAINS PRESIDENT MOVES IN A NEWARK
JAIL-AFFAIgs OF THE METROPOLITAN AND
SECURITY COMPANIES.
The argument in the suit Instituted by Messrs.
Tremaiue and Belknap, policy holders in the North
America and Guardian Mutual Life insurance
panes against tho Universal Life, was resumed aud
concluded yesterday before Judge Dykman, ut White
Plains weschestcr county. AZ the close Of the argu.
mcnt tho Court continued the stay OF proceedings until
decision shall be rendered.
II understand" said Judge Dykman at the opening
OF the court that the questions now before me arc
resolved into two-namely, whether certain policy
holder, such, maintain this action and whether
The Court has the p0wer 10 appoint referee with vista
torai powers Mr. Hill said he did not assent TO that
proposition TAR to resign his right 10 present other
questions should they ARISE in the course OF the argu
ment Mr. Green then resumed the argument. He
began BY alleging That Nr. Bclknap being creditor
Of tho North America Insurance Company
was not creditor of the Universal IN
the proceedings under the statute. No statute
OF this state lie commended authorized the courts to
grant vstatoral power, and he moved that so far
The Guardian Mutual Company was concerned the
order OF reference should he vacated.
Counsellor Trcmaine. on behalf Of Mr.. Pierce, tho
receiver, begged to know tho precise status OF that
gentleman. Ho said II the receiver be called
upon IN innumerable suits instituted by policy
holders he would be involved III endless
Mr. Tremaiue would therefore suggest stay OIL pro-
ceedings rs 70 allow tho receiver 10 attend 10 his
duties.
thing. he said, II tho 81, 900 policy holders
not permitted to come into court aud ask that the
persons holding their funds should be restrained
IRON running away with them. The policy holder,
Mr. Hin claimed, preferred creditor the
OF the value policy. He further commended that
the visita,oria couldbe conferred by the Court
aud citec numerous references from ancient ana
dern practice to sustain his propositions.
Mr. Townsend argued that II this visitatorial power
not invoked Tor the protection OF the creditors
they all liable 10 be cut oil without a dollar
This closed the argument and the Court adjourned,
Judge Dyckipan continuing the stay OF proceedings
until he snail rcpdcr hls decision.
Mr. Piattcry, the ex-agcnt, has furnished Mr. Hill
with COPY written letter of Instructions to
the agents OF the concerns by Mr. C. r. Griffin,
general manager oil the three companies. One
paragraph IN tins Interesting document rcads:-"Buy
loan polices as low rs City or iorty-tve per cent
on tho reserve " you can, and IN all cases
deduct the loans ana interest from tie per cent
allowed IN purchasing or changing. To illustratc:-
Reserve, $780, loans s2O0 and interest 70 date, So
FIFTY per cent OF the reserve Is $3.50 Dcductng $40
leaves $40 pay in cash. and we have paid nifty per
cent OF the reserves &. T. T."
.'P S.--Guardan policies only are to DO purchased
Tor cash. G. J.. c."
Ferd uand $. Ham, formerly the general agent Of
the Western New York Department OF the North
America Life Insurance Company, ut Syracuse,
made affidavit yesterday before John II. Dunn, a
notary public for Kings county, Pronouncing
ms false the affidavit Of Henry j. FurUer,
President OF the North America Lie Insurance
COMPANY, In so tar as that Official denies any effort
the part Of the officers oil saA company To improperly
the policy holders 10 sell out their policies or
change them to the Universal Company
OTHER COMPANIES AFfAIRa
During the ntrst developments In the Life lnsur.
situation several Of the disabled corporations
have quito passed out OF the view Of all excepting
those holding policies thcren. The Metropolitan Fire
insurance Company has been very Dcariy wound up
by Receiver Appleby.
The affairs Of the Security Life being quietly
prosecuted and unless specially interrupted will be
hnay wound up IN much less than tho usuai limo
Ex-Mayor Wickbam