New-York tribune., 1877-03-12
LOCAL MISCELLANY.


COW HENRY r.. PIERsoN WAS MADE RECEIVER OF
FIVE COMPANIES AND THE BROOKLYN PROCEED
INGs WE'RE LEFT OUT OF ACCOUNT-JOHN L.
HILL CHARGES ATToRNEY-GENERAL FAIRCHlLD
WITH BREAKING HIS PROMISE.
None of the life insurance companies that
were placed in the hands Of receiver last week by
Judge Iandon OF the Supreme Court at Schenectady,
except the North Amerca Life, had done any new bust
ness for several years. and with this exception they had
all been rensurcd in the Universal Life OF this city, either
directly or by the reinsurance OF other companies into
whose hands they had fallen. The Widows and Orphans
Life Insurance Company was organized In 1867 ana IN
1872 was reinsured in the Reserve Mutual which In
June 1872, was reinsured in the Guardian Mutual On
Dec Il, 1872, the Guardian Mutual rensured the New
York state Life which had been organized in Syracuse
in 1896 All the existing liabilities of the widows ard
Orphans the Reserve Mutual, and the NewYork State
except TO stockholders were thus assumed by the
Guardian Mutual, which continued to do business until
March, 1874, when its assets amounted to about
S4O0OOOO 1t was then rensured by the Universal Life
The statement made 10 the Insurance Department on
March IT, 1s7GLe last statement published-savc the
total unsatisfed liabilities OF the Guardian Company as
$4,000 for unpaid losses
The North America IAfe Insurance Company was or
ganized in 1862, and in 1874 the reserve was found
10 be impaired about S5OOOO0 Henry j. Fnrber, Wee
President Of the Universal Life then became President
The North America had the Standard
and the Government Security Life Since the change In
the North Americas mana cement, very little, II any, new
business has been done The reserve which at the emo
OF 1870 was $5,4OOO00. was reduced by Jan. l,
1876 to about 81 100000 About two weeks ago pro-
ceedngs were brought i'll the Kings County supreme
Court before Judge Dyman by polcy-holder, asking
for an examination OF the Universal North America,
and Guardian companies and the appointment OF re
cever OF the North America. The officers OF the COIN
pany refused permit the officer of the court to exam
inc it, and the next day obtained stay OF proceedings
Henry Il. Pierson, who appointed receiver OF the
Guardian, Reserve Mutual NewIork state, widows ana
Or,hans' and North America companies last Thursday,
on application of AttOrney-Gcneral Fairchud at
schenectady is a resident of Albany and one OF the
regents OF the University. He was formerly state
Senator from Kings County, ana subsequently, for sew
eral years the resident and managing director OF the
New York Central Railroad at Albany.
The case IN the Kings County Supreme Court came up
agnin before Judge Dylman, Saturday. John L. Hill
OF counsel for plaintiff Ethelbert Bcnap, submitted
an affidavit alleging that since the adjournment OF the
Saturday previous a fraudulent settlement Dad Deeh
effected He had consented to substitution OF counsel
in the case Of H. c. Tremaine, but between the time OF
This consent-lO O'Clock at night-and the next morning
settlement was effected and Judge Gilbert granted an
order disseminating the suits Upon the strength OF this
ord the Attorney General had been able TO 90 before
the General Term schenectady and obtain an order 10"
the dissolution of the North America and GUARDIAN MI
tnal COMPANIES He Oir. Hid therefore asked for an
order 10 show why the original proceedings should
not 90 on on the ground that the settlement was raud
lent and the dissolution of the companies effected
through bad faith MI Bclknap stated that lie had been
approached with an offer TO buy his policy II he would
assign his interest in the suit and make the settlement
without consulting his counsel The order asked for by
Nh Hiu was .uted. returnabie forthwith; but before
the order had bee drawn 10 Mr. Nandcrpoei OF counsel
for defendants said that ThCt had hfCu an cntlrV nsul-
Gersta"dmg, aud as,ed Tor Wtch posi- ponc'ntHg 10
ALLOW time Tor satisfactory cX'auit t'A: ne cas- vas
fiuay aQOUFued, by consent oi al pd'S' 10 next 0'
uIddy. -, 49,. . ,,.....,
Ibis during the us part ol Id-l Week. lad
made positive promise TO hIn TO take no action III ne
matter without swing MIN auulr I1t!tt, Iht lill N
Eur.ill had JruSpn Glf promise ana ibc pf'tt'h@S X
Srhc.ct ti, wore brought without the knowledge or
consent Of MI lii. lie had no lHtnuO, however, oi
Abandoning She matter u ito present shape ~ - al
lercd that htSy cX&miUati N Oi the comp mes "lch
have since lacrd in the hands oi Mr. Pesuu, was
mad, during the eIrly pare % last week iy Hup'rn,en
dcpt -liyh a statement having previously be.n pre-
lut,i all the companies 10 be msoNCut WIN
fni~ tlr Suyth proceeded 10 Albany and iad the case
before the AttOIhty Gene raj who mace Ire 5lhcli"s
stated, Tie order SHOW was granted rt-
fugDaJ fc same day, the object OF tins hds;y action
bciug ID. prevent tie auiU!n ntmout of receiver VINO
would unf, uGy to tlc Universal ana lis officers or
winch The lVs,s Of r1c policies of the Not
America anl Guardian were procured. In tlc "Iphcl-
lion OF NJ. BoEBaE for receiver, u was asserted ib
"fhc North America an' MI furhI were coiluNNr Hiiu
cetvcr of he company appointed after tutr own ntdr
them ana the ulNcfa from iIe 'NhS' t'CS
Of rer wrJi-S and frauds MI Father, WhtH inns dN
UiCatUH made, dcilcd lDdl hc hdu any i'' VI ScI-
ting a receiver appointed .
I.e furniture and otIer movable effects OF the New
JcIiy Mutual Life Insurance Company III lhc olhcc III
tins city sold on saturday except TIE books, W'h
placed ia he hHndsoi toe attorneys Tor lhe receiver