The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-28
CR00KEDNESS IN INSURANCE
THE IMPENDING COLLAPSE or THE
NORTH 1NERICf LIFE.
A Charge TINT It's business has been Absorbed
by the Universal I.ife-Presidcnt Furber's
OenInI An 4 utilization for "a Receiver.

49,, ,
E.helpert DcIkhap' poilcy hoiuer III .hc
Norm America Life Insurance Company OF ms
city. mas begun suit in BROOKLYN against this
company. the Guardian Mutual Life Insurance
Compnnv the Univnranl Iifo Insur,,cc Com
,on,, H.. p,., ,,n,,' ~ III ~,
p""s i."' o. r"tocr' Within ""kcr' Eu-
ward w. Lambert. Geo. II. Hope, Samuel
w. Torrcy. Robert A. Iancns,or T. 7
McOooi' John H. Burley George Il. Montague.
Nathan d. Morgan. J. II. McCoo John Doe.
NJ, Wi, ha,.,,,s ~, a., 80, .,, .'o D''',o Vi
new hork' having ior its OBJECT thorough In
vcstigntion into the affairs Of the North Amer
lea Life Insurance Compnnv
M, ,', =, 80
me complaint SHOWS that ,ho charter "f the
North America Insurance Company proyides
TINT ts capitnl stock shall consist of Al oOO ooo
-, ~. 80 -, - 'i'VVV''VV'
divided into 800 shares. and reserves tho right
to the company to have the stock retired and
repnid to the stockholders. nfter which event
a., ~ VIZ I'm
policies in the company. the profits TO be then
divided nmonp tho nolicv bold,ra ,rbo ,vholc
VI 'io s'oVA was c"hcchou IN Iooo' lho plaln-
tin owns paid-up policy for 81, 1886 the condi-
tions of which he has fully comrlicd wifi rho
- '' V''f''N "''i,. nc
company business was prosperous until 1874,
and might have remained so II it had been hon
oa,I, ,r1 foi,,,, co,drc,,1 1,ha d,,,.n,,h, Ia,
''"' "'' '",'', ''"u""''"' in' ""S VI ''io oih-
c'rs wis 10 hOld. IN money or securities. ro-
serve fund to bc invested at AZ per cent. for tho
lft a. Itp,li hf
!" Nv az % W wv P''''' "''''is'
In 1874 tue complaint alleges. Henry j. Fur
s,,h, ., ,t ', ,1'i, w., -
sy Tor whch si,eh iaw trnns,ton ,nu Il x 'ho
rrr,,ir" & ,hn, ,,h ~ i,',,.s % ,on On ~ r"Nr py
nrt.nH'ns ~ iint tne uhiNcrSai i com pany should
% M ~, W. I7 vi Nv 'Myitn M hhii,,Iica III lls
% psurn in ,bs iniyers iver ny IbUy hor.rs 70 rr
isuir ihsuuirM IL ~ W." ,hiNelsh'. Whetc ile tlsks were
s T,L uiI & Il. ions', tpIV,p .he business OF
t' trr fDr,h AneTIhha' We l'tsr tthm rrtriing
and others should be officers Of both companies
drawing salaries from zach. and that after get
ting policy holders 70 surren Ter their policies
ior u consideration. they should let them lapse
Or reinsurc, them. where the risks were deslra-
pc. they, the O1lrers. 10 secure to themsrlves
large portions Of the reserve of the North
A further allegation il that Furher and others.
10y unjust. corrupt. and fraudulent practices
upon, the officers Of the North America pro-
cured their resignation as directors. and Sc
1urci thc election 81 the defendants, Walker
lambert Hope. T9rroy Lancaster. McCool
Fnrb"r. Bnrlry;. and Montague. directors and
others nNing in the interest Of the scheme. u
mnJorily q The Board ., Directors Of the North
America, and Vice President Of the Universal
Nathan u. Morgan was one OF the directors Of
tlr North America who was unseatcd.
The story OF fraud. as further told in the COM
plhint IA thut agents were sent out To depre-
ciate the credit OF the North America. and to
represent 10 iiS policy holders that twas unsafe
anu nS"yent' and unable To- pay the whole
amount oi lis reserve u policy holders. thus
causing PAM" among thc policy holders and
inducing thrm +" cease pay premiums and
allow tneir po!lcle- Ia laps" or To surrender
ll'm or SOL thrm u tlr Universal l.ife for
nominal sum. II had he"n arranged that the
i's,rNr on su,h p9l.!es should not DE liberated
:" ~ W. vs. 81, w .SoI' america. Dui lufhru over
10 ,h" Snlversa, LIE. or some person not at
present known. furber watched for tho oppor-
tuhity IN cas.s where the policy holders were
.,, ,hu.u,,,u not 10 pay premiums insisted on tho
iorlciture OF such policies. and the whole re-
serve ti"rcunirr Thousands OF policy holders
surfchd.rSd Their policies, and thousapdS more
"
untiI ,hn, Ivar, rains,ri ~ -, II hcpt niiVe
until The Whole rsrrSo ON them NV was w,,hr,r Up
IN rci -, :, ,,i '.r ,h,t t'ic''" III tlc
By su.l arts nniaS,hl mnI Fraudulent de-
7stIi was ,p,un rir,N,G rex : tiat VI i2s
1873 and nNnnnJ"d f,r tli.i Ia,. s,,,, ,.a ia
dcrnd. or pirrhnsnd nnI ,bet ibarrn H. en ad
,iitinnL tom nf ,57i asa tor dn.th lnssns " NJ
"polrv claims in n,liitinn th.r,.," whi'h 1" 1nf
tor phras, il heli,S.I T., 'nv.,r 'tl,r "irI @ ~
81 noli'i.s M r..,,ry f' is--na. v--a.a Iu,' Hn-
Aid nm1 fnr is-5 s5 ,no AK ho,w m,S s2i ~
nn'r'n-',. r 80, ~ ~ ~, M,,ns ul74p-
holders of 81 OiI 35g 'rhe innrne for IL w
TI11sV, "'r i"r ", w Si , .4I 57 FloisIi;h ~ ~
rNr.nditur. ,{ ~ o3s ~ '''-'i'i'0'''' d"" ''io
M. Lu.ln,.. - t,,., N'',h ,,,,,.;., l, -
wrn'knd ma r,i,l'r ~, 49, !, 10 III III ', I
hi,yn r,o,.,v"d nnd nI,,,rnn,in,.d Irs., ,, ~
th. rrs,ry. ia th"ir 10, h., oii H.. -, ~
thinks ought H. ho returned Tho finds Vhieh
onl,Gt t INV. loon 49,, t h,, It,,''3H I3 W ",,n @
brins enjoyed by tha stn.kholi,'rs and ,oji,y
hol,i,,r- of thr Ifuiv.r-9i H. a. ,ri, IN, INK
Tpiver..,i t',,r1,, ,,'l H., ~ ,li,.'' IN ~.
conducts what I,tsi',.'u u. Lr ~ H., N"k
Anrrl,n. nlin"u4,f m "A ,,t,r--i, ,,irnto.,art ,i,s
n Tho h"is ,, i, NIt n, rn inr !i N,r,n Amer ~
cunnl i ~. r, u". r "i',' "i' 's pi s"n' S"nIr"i
Ind anon, tns threc cnmn"mi. ,a,,l ,hc he
Universal In, ana the Gunrdian Lie 6y rcin-
,h,,ir f,,nI m Xxx, a wv ~ ~ n"u iii'. ~ . M Nru
,h,. funu ~ ,h rtl "'a ,i % y" M ,
Amnri'ils ofIlrnrs ar,. also nc,us'd - ln,'ninv
nnd ~ Hoytm %" MIN wrT n"l nm r, Hr ,r S,urcs