The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-17

lapse TO induce others surrender their policies and
accept other companies acting IN co-opcra-
With this fraudulent scheme and misleading tho
policy holders the real value Of the policies surren
dered by false frautu rcprescn atons by which
means large Illegal gains and profits accrued 10 the
three defendants Buell. Fraleigh and De Win, and their
aud especially 10 the owners OF the
capital stock Of $500 900; that tor many years policy
holders have, by fraudulent pretexts and rep
reservations Of the officers OF the company. been IN
ducec to surrender their policies by means OF which
the three defendants Buell. Frnleigh and Dc Witt have
iraudulen,y made and appropriated 10 their individual
over Sl.50U,00U each oil item receiving
large share Of these illegal gains; and that 70
conceal these Illegal false books have been
kept. fictitious entries have been made aud false
pors given ,hs Insurance Department OF the state.
AZ ALLEGkD FRAUDULENT TRANSFER.
II Is further averred that immediately before the
commencement OF this ucon the ulcers OF the com.
officers and directors TOR selling out and transferring
TO some other corporation. and especially 10 the Union
Mutual Life Insurance Company, OF Maine OF the ac-
cumulatcd assets 0! the company amounting 10 about
81 5U0 oG0, by way OF what known as "reinsurancc,
commonly called 'ihc amaigamalion' OF companies.
or transferring the policy holders 10 the main COM
pany other corporations, with view OF pundering
the assets OF the company, cheating and derauding
the policy holders and acquiring thereby on the part
OF these officers a large amount OF wealth. and that
IN carrying out sald conspiracy and combination
thus transfer and dispose OF tho Interests
OF the plaintiffs ana oIher policy holders who number
about ten thousand ana whose aggregate Insurance
amounts TO $24, 600 900 on avcrmcns, which, II they
should be sustained AS averrcd would snow that the
bcneGcent system OF mutual Mo Insurance can DC, aud
and gigantic systems OF swindlng IL modern times.
That 1t 10 tho power OF corrupt and INSCRIPTIONS
guardians VI such trust as Buel. the presidents FIRE.
leigh tue secretary, aud Dc w the former president
and consulting director are IN this complaint averred
TO have been, ocvise and carry on scheme ny
which the public those who pay premiums for IN.
surance such institution can be systematically
plundered
WHAT rHx PLAINTIFFS WANT
The equitable relief asked, u this complaint should
be sustained is that these defendants account tor all
the moneys so illegally received; that they restore TO
he az u
may be applied The purposes OF the corporation con-
template that lull account may be hat OF all sur
rendered policies and the amount OF tho reserve 10
which each OF said surrendered policies ~ entitled.
and disposition has been made OF the reserve"
ana whether any and what portion oil II was wrong
fully by any OF said officers, and that Tho
amount SO received be PAID by such oincers 10 the
company; that IL may be held III trust erected and
allowed according 10 law; that the company and It's
officers be restrained from parting with The assets 10
tho aiorenamcd insurance company OF Name,
any other company. or carrying on thcir pan
OF sreinsurancco or 'amal2unation;'' that after
sucn accounting the plaintiffs may be adjudged TO
have such divuends us by their policies they are On
titled; that the value oil the surrendered policy OF
Tilton and vile be asccrtancd and that IN allowing the
dividends TO which they may be entitled the cx-
cessve premiums paid by them upon their new policies
may be taken mix account The equitable Gauss oil ac-
ton in the npaiDt is the Illegal and wrongful APP
preparation by the defendants Buell. Frclcgn and
DE WNt to themselves OF the sums received by thein
Tho equitable remedy Is the restoration Of
and the adjudication OF the amounts to which
the plaintiffs may be respectively entitled
is dependant upon the paintilis establishing the
cause OF action set forth III their complaint and Is
incident TO The application OF the equitable remedy
winch IS sought by the suit The cause Of action 10
one, therefore, which, IN the language Of The loIth
OF tho code, Affects all the parties 10 tho action,
and thorc not, MS the demurrer sets up several
causes OF action which have been improperly joined.
Tho demurrer WILL therefore, be ovcrruled.