New-York tribune., 1879-04-11
FrEEuANs IASUR4NCE METHODS.

Henry II. PiersOn, receiver of the Guardian
Mutual Life Insurance Company about weeks ago
caused of Frederick A. Freeman, president
OF the Reserve Mutual Life Insurance COMPANY for al
legged frauds upon ths Guardian Mutual Life Insnr-
ance Company. 1t charged that Freeman
entered into a conspiracy with A. W. Gill,
president of the Guardian Company Shepard
Homans, Everett Capp and John g. HolbroOke,
by which they able to obtain S252 in exchange
for worthless stock which they transferred from the
assets Of the Reserve Mutual and the Widows and
Orphans Life Insurance Companies. motion TO yacate
the order Of III the case OF Freeman, on the
ground that those who made the aidayIs OF complaint
did not have sufficient knowledge the subject,
recently made the supreme Court and denied. This
decision was affirmed on appeal 10 the General Term
and the COart OF Appeals
Anew motion to vacate the order of arrest made
Yesterday b Judge Barrett IN supreme Court
Chambers. VoummOus afiiduylts were presented upon
bOtA sides john j. PdrS rs, on oehai or the PRISONER
whp Is IN LIGlOW Street Jail in default OF $1,000 900
bail the ahdavlts of Freeman, Andrew W. Morgan
afiauts denied thai any conspiracy fraud
transfer OF ne insurance STOCK ana declared mat
the st ok Of IN. Reserve Mutual was worth fuzzy the
Guardian, comprising men Of the best reputation and
highest business standing had determined upon tao
purchase tins stock advantageous and proper that
he subject openly discussed aud there was no sug
respect and that the purchasing cOmpany's officers
sdcrcd that profitable bargain had been made
The atidavits of Thomas f. Mason and H. Il. PlersOn.
the pianu1, were read by Mr. Tiull n answer. Jr
PieTsOu alleged that OF March g, 1877 he becBme
celycr OF the Guardian the NewY State Life of Syra
cu-e, the Widows and Orphans the Reserve Mutual,
and the North America Lifo Insurance Companies.
The assets Of all these companies mad been conveyed
10 tie UuiVcrSal Life Insurance Company. The Guar
dan Conpany Lad purcnased at premium the stock of
the New York otate Mutual Company when II was well
known that thc latter company insOyent. In Oc-
tOber lS7l the Mutual Projection Company (afterwaId
the Reserve MutuaD Obtained tle stock OF the widows
and Orphans CONF pany, tho latter company receiving
pa.t and accrued interest. although Freeman all this
time knew that the stock worth less than par In
june 1872. tEe stock OF the Reserve Mutual, almost
yaluecss WAS sold 20 the Guardian Mutual at "a large
premium.
I'm March, 1874. under pretended reinsurance con-
tract the assets of the Guardian Mutual amounting to
more than 900 OOO transferred 10 the Universal
Lie which itscf weaker than either OF the cOmPa
mes absorbed by IT, These transfers made for the
benefit those engaged in the negotiations at the
pcnsr the policy yhUders by procuring the Iapsing.
surrenderng twisting of policies. When the stock
of the Ncw-IOrk State Life Company sold, IL lad
22gl running policies, covering an insurance Of 1886
coo; when Ae receiver was appointed there were l33
polce covering Sl7l 900 The relatives hOWug OF each
Of tne OtGcr Selling companies as bad During the
years 1872 and 1873 1900 policies were lapsed, sur
rendered or twisted and the policy-hOlders' money
lost; 1000 policies IN tine next year and 1000
/, WAS alleged that the sale Of the New York
state and ihe Guardian STOCK HJmanS GIL, CapD aud
others appropriated $4,000 that Mo gan, Sanford and
Freeman active agents II the sale ~ the widows
and Orphans. and tha $4,000 appropriated by
them or them Rud 800 600 were appropriated
by the defendants by the sale OF tAc T. serve stock
'Mr parsons r6Dei % these dt.idaVlts 1T lcng,l.