New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-03
INSURANCE DEVICES.

FRESH CHARGES OF CORRUPTION.
WHAT HE COMPLAINT IN THE SUIT OF IL. c. IRE
MAINE AGAINST THE GUARDIAN MUTUAL, UNI
vERsAL. AND NORTH AMERICA ALLEGES
henry J. FURBER AND OTHERS ACCUSED OF
FRAUD.
In the Kings County Supreme Court yester-
day morning Judge Dykman appointed Charles II. Win
field referee to examine into the books and papers OF
the companies defendant in suit brought by H. C. Ire
maine against the Guardian Mutual Life Insurance Com
pany the North America. the Universal, Henry j. Fur
Der, George L. Montague, George T. Hope and
others. The Guardian Incorporated in 1853,
the North America in 1862, and the Universal
in 1865. IL is alleged in the complaint that
the defendant insurance officers have enriched them
selves at the expense the policy holders that unit!
1874 the Guardian prosperous. but that the Uni
versa officers Henry j. Furber and Others entered into
corrupt and fraudulent agreement to obtain possession
of the GUARDIAN divert its property for their own bene
At, and wind mp the Guardian. and through unjust
and corrupt influence and practices ON the officers OF inc
Guardian obtained control its Board of General Man
agemcnt 1t is further alleged that they ihduceu inc
directors Of the Guardian To approve falsely caieu COZ"
tracts of reinsurance by which the Universal In FORM
stipulated to einsur the Guardians risks to the extn.
OF per cent i'll deration Of the receipts OF lie soou
assets and O. its e. which they did receive to the
extent of S242s 600 the Universal thereupon IN FORM
rcinsuring the remaining risks OF the Gardl W ''o
eyept of 20 per cent the consideration being the assets
aud reserve Guardian, $607256 OF the reserve De-
ing tran fcrIed All this, ii is alleged, was peyoho e
power aud gross breach of trust
Part Of the scheme, II is avcrred was 10 orihg large
ersona profit 10 Mr. Furber aud Others through the Tor
fixture Of policies, which to be effected by sehdg
ont agents TO represent the Guardian To De nsoen ~
that policy holders might be induced to THINK tha' IL was
useless TO pay any premiums, aud allow their pom
cies TO 90 by default II is also alleged that Mr. Furber
fray ut y
that Mr. Furbrr fraudulcntly appropriated part OF the
reserve and levied commission OF 10 or 10 per cent on
all nolices he procured BE- lapsed or forfeited and 20
or 80 per cent Of the reserve OF Otnef cdSss aJi %
dspoSiug the piunder among his associates us Tic cor
sidcled their SKILL dlg, nee, ana energy III aus "o
alleged conspiracy deserved -, ,.,.o, ,,o,o
II ~ further aycrrcd that officers of the UNIVERSAL were
nut in the Board Of Directors Of the Guardian ana inc
policy holders swined the Guardian stflppeu OF
ms property outstanding risks IMPAIRED, ana hc stovk
holders and uOicy holders OF the Universal epoy me
benefits of the money invested in the Guardian 10 'Ie
extent of - ,5OOG0O. a large part OF tl> sum, u IL
alleaed has gone to Mr.. Iurbcr and others elIsed III
the conspiracy. and cannot he traced, Inc t h ia" "
stored. The company cannot and the officers NH n"'
make any effort to recover the moneys so miS"ppro-
The defendants it further alleged are collision to
have appointed who SHAH ad IN coVeimS ny
their actions. The ainti on the behalf o hliScllid an
others smarl situated ASKS tlat me coHian,rS aud
fcndaut be visited and examined; that MI rnIpi aiu
Others officers in both companies. be suspended anu
found guilty. rrmoyed that tie contacts o
be declared mall and void that an mnncol ,>u' no -,
,iu c further carrying ont ~ the contracts tdt the
Guardian and creditors have their money ana prop
cry returned: that compensation for the INJURY he al
loWcd that if the Guardian be found hOpc'csSly hlsol
vent receiver hc anpoued: that Temporary receiver
take charge the GUARDIANS property. Nc; ana that
such Other relief be granted as appears meet
An order show cause why a temporary receiver
should not be appointed was grant d retuLIahIe io-d!
Judge Dykman yesterday granted an order III Ia SUI
of Ethclbcrt Bclknap against the North America Ill
ycrsa and Guardian Mutual Life Insurance companies
giving power to Mr.. Hill, counsel for painful 10 lake
The testimony before a referee of Mcssr" Montague NC
KenZic and Others for the purpose OF 0aIlnS PROOFS
for his action. The order OF Judge Dykinan command
ing the defendants show cause WHY receiver o TIE
North America should not be appointed Is retulnaDc AT
a. a.. to-day.