The New York herald., 1877-03-18
LIFE INSURANCE LITIGATION.
A Field Day for Attorneys at
White Plains.
PiIing Up Confusion in the Suits Against 'he
North America and Guardian Mutual.
A Fine Entertainment and a
Weeks PostpOnement.

s~''~'~-'
morning White Plains, where the suits against the
North America and uardian and Mutual Life Insurance
companies set for hearing before Justice Dyk'
man. II will be remembered that these suits were
considerably mixed since their commencement by the
appoinimcnt OF receiver Tor the defendant COM
panies, and also by AT order OF d'scoh'ihu-
ance in the action Of Trema'ne ana o'hers
against the Guardian Mutual In this latter proceed
ing, as In that OF Beknap vs.. The North America
there appeared for plaintiffs yesterday Messrs John
L. Hill, A. A. RedleId and John J. Townsend. ror
the defendants there appeared Messrs Ashbe Green
Robert Sewell and A. j. Vanderpoe!. Mr.. William
Barnes appeared for policy holders upon tho sae oi
plaintiffs. ana Mr. r. W. Van Peu for interests that
we're represented by the Attorney General Mr. Gren-
Vile Tremaine represented the receiver, Mr. Henry
Pierson. :.
After considerable waiting for the disposition oi
prior cases Mr. John L. Hill opened the matter Tor tho
plaintiffs with general review OF all the former pro-
ceedngs He said there were i've motions pending IN
the two suits. The actions were brought by policy
holders for relief which they had supposed thcy
were entitled to. In reference TO the discoDtnuance
OF the Tremane suit he said mistake had there been
committed which needed correction. After few
further remarks he was interrupted by Mr. Tremaine,
who said that he appeared for Receiver Person to
make some preliminary objcctions to certain motions,
his ground first before going the OF action.
Mr. Hill replied that he did propose going into The
cause OF action and then continued He SAID that un-
der the provisions OF charter the Guardian Mutual
was required divide its profits among the stockhold
ers and policy holders, wnile the North America had
taken advantage OF reservation in It's charter to call
In It's original capital stock, leaving 1t purely
mutual institution. IL alleged in his bill
that the Universal conceived the design
OF approprating the assets OF the Guardian Mutual and
ANN dar wis af arQ IN
reinsurance. The Universal did rensure eighty per
cent OF the Guardian risks IN consideration OF eighty
per of that assets OF which the poorest
were certainly not selected The trouble o. the PLAIN
tfs Mr.. Hill said, lay in the fact that certain num-
Der policies found to lapse, thereby relieving
the company from maintaining the reserve upon them;
aud IN This present instance sucn bencnt OF iapsing
did not accrue to tho Guardian at al. but to the
company which rensured II. lie Claimed
that such reinsurance ultra vires and void and
he should move 10 set II aside altogether. He held
that under the Revised statutes the policy holders had
q right to these abuses. He argued tnat the
defendant companies were to-day insovcnt whereas
II they were paid what belonged them tney would
the plaintiffs had asked for. he claimed that the new
law afforded them that privilege The old statute ieit
no alternative but to destroy a company which was
found insovent, but this was entirely contrary ~
what the plaintiffs desired.
A GAME HE DID UNDERSTAND
Mr.. Hill was again asked to disclose the motion upon
which he speaking bat he avoided dong so, and
proceeded to relate the way IN which the companies
Genera--a version that was gwen on the previous
Saturday in Brooklyn. Mr. Hill spoke very pointcdly
regarding this proceeding before The Schenectady
Court. He claimed that the plaintiffs had agreed with
defendant upon the advisabity oi the Attorney Gen.
erals obtaining receiver Tor the companies, but the
former did not desire did they expect the com
panies should then he dissolved. Just as the counsel
had reached the point OF his narration where, as he
said, the guotine fell and five heads OF teless cor
poratons fell into the basket, Mr.. Tremane again IN
ierposed objection He insisted that the mind Of
the Court should not be thus mised by the counsel,
and that he should come down to the real motion
whatever IL was
Mr. Hill retorted by referring to scene Of his boy
hood, who're he fired his gun AMI did not know he had
hit a duck until he heard 'quack" He then cortn-
ued without molesation 10 detail the dissolution oil the
Mr. vandcrpoel asked the counsel, If he had
cuded his stump speech, to inform the Court OF his
Mr. Hill followed in his previous vein. aud said
that since all these facts had ransprcd he should
move to make the receiver party 10 his suits, with
leave 10 Tile supplementary bill against him. He
would ask Tor an order To show cause why the referee
Judge Leonard, should not be relieved from injunction
ana allowed To proceed with his investigation. He
should also ask that the order OF Jscontnuance in the
action OF Tremalne ct al. VS.. the Guardian Mutual
should only stand in SO lar as 1t related 10 Iremaine
himself
Mr. sewell argued that no paper in the last mentioned
matter had been served upon the defendants and they
would decline, o course TO answer H. Mr. Hi! offered
to the papers once but Mr. Sewell declined
accept them without eIght days. notice.
THE DEFENDANTS REPLY.
Mr.. Green then opened Tor the Defence begin.
ming with criticism OF the irregular proceedings of
the other sde which said calculated TO convey
o wrong impression. He read an affidavit made Uy Mr..
A. A. Redheld to show that plaintiffs counsel
familiar with the so-cacd ''scheme" to dissolve he
companies long before the dssoutions happened Mr..
Green clamed that the whole matter was known
10 Mr. Redield upon March 7. the day preceding
the action at Schenectady. He disalowcd the asscr
ton that there had been any understanding ut Brook
yn the previous Saturday 10 The effect that the
Of the companies not to be changed. Regarding
the order appointing referee and the question OF
visitorai powers he argued that the order made
under the suit of Belknup vs. the North America and
even II the defendants admitted. which they dd not
That Mr. Beiknap was creditor OF the North America
he In creditor OF the
Unversal Even conceding him to be creditor of
me FIRST named company, the counsel said he had no
standing invoke the mary extraordi-
Of the Universal Counsel argued that there was no
common law in this country providing Tor visitoraI
powers, and they were only granted In exceptional
cases. where expressly provided for In tho statute.
The court had now been sitting until nearly nvo
O'Clock, and Mr.. Green proposed 10 give way 10 Mr..
Sewell who had an argument make. But there
was considerable to be beurd Justice Dykoman tho
request OF counsel postponed the until
urday, at White Plans
THE WORLD MUTUAL DECENT INTEaMENT
PROPOSED BY THE ATTORNEY GENERAL
The officers OF the World Mutual Life Insurance Com.
pany have been notified by the Attorney General to
appear Schenectady on Monday, to show cause why
q receiver of tho company should not be appointed.
This corporation rcinsurcd by the Universal IN
1874 and according TO its last Heal report had assets
amounting to Sl97, ,000 and liabilities aggrcgating