The New York herald., 1879-02-26
INSURANCE TROUBLES.

~" n riEEMAN IAN DE IhAoONLh
PERSONS REcEIvERsHIp--AFFAIR OF THE
GLOBE MUTUAL LIFE.
MIR. Frederick A. Freeman. the former president
of the Widows and Orphans Life Insurance Com
pany. is still under arrest. He went about town
among his friends yesterday. accompanied
by Deputy Sheriff McGongal. but made no
effort to his 5000 900 worth Of
bondsmen. At four O'Clock he had long
interview with his counsel, Messrs. Mann & Par
sons. and afterward returned to the Astor House,
where he spent the night. Messrs. Mann Parsons
went before Judge Donohue in the afternoon, and
applied for order to show why the order of
arrest should not be vacated The order granted
and the case set down for argument this morning in
Supreme Court, Chambers.
To the reporter Mr.. Mann afterward said Eve
regard the affidavit upon which the order OF arrest
was granted as bald-that is founded on informa
ton and belief and not on knowledge of the facts
The affidavit was made by one connected with the
insurance companies at the time of the alleged con-
spiracy. but by clerk in the Office of Receiver Pier
son. We deny the illegality of the trans
fer of the Mutual stock to the
seven years ago for one company be merged into
another. Should our views OF the be supported
by Judge Donohue tomorrow morning, shall
move to quash the whole proceeding affdavits
clearly showing the merits OF the transaction that
has been termed conspiracy. In conclusion Mr..
Mann insisted that the case had been magnted far
above its real significance.
Mr.. Sheppard Romans said to the reporter in re-
ation to the charge made against him of recei wing
S54 900 of the Guardians money in exchange for the
stock of the reserve Mutual. that he remembered a
sum money was deposited in his hands to be given
in exchange for the reserve Mutual stock when
properly delivered. He had been asked to do this
being the Guardians consulting actuary and re-
sponsible third party. The bargain made with
out his knowledge. He delivered the money at the
proper time without receiving compensation in any
manner, and this was his only recollection of the
transfer.
AN EMPTY RECEIvERsHIP.
Mr.. Henry r. Pierson. receiver and plaintiff in the
action is still at Albany His assistant, Mr.. Froth-
inghaln, informed the reporter that he thought
no more arrests would be made, but that the
suits would be pressed against the several de-
in law, but he believed in their ability
to recover considerable for the
policy holders. Their main difficulty lack of
money to press their prosecutions. This, he said
was one reason why the two suits against the Uni
against the Atlantic City Bank its last
appeal. Unless the last decision reversed
about $4,000 would accrue to the Guardian
the company had only deposit of about
100000 in Albany This the Court of Appeals
had declared should not go to the receiver and
Judge Barnard, OF Albany, now endeavorng to
fix upon method for its distribution by the Super
intendont of Insurance. The liabilities of the
Guardian would hardly fall short of 81 800 0OO OF
the Widows aud Orphans Mr.. rockingham said the
whole assets consisted of deposit OF 100000
at <ADduy, SOME pou,uuU Oh WHICH cOuN not
be used The New York State and Reserve
Mutual companies had each deposit Of
100000 in Albany. which would probably cover
all their remaining liabilities. The affairs OF
the North America, OF which Mr. Pierson is also
ceiver are in very unsettled condition, and the
Court has granted until May next for accounting.
In addition to the usual deposit Of 100000 with the
Insurance Department the North America has quite
large fund in registered policies, which are now
being received.
Mr. FREEMAN AND THE GLOBE.
AS before related in these columns. Mr. Frederick
Globe Mutual Life against decided opposition. The
reporter informed that at the election fourteen
directors were present. seven Of whom favored Mr..
Freeman. and. as one Of the opposition
declined to VOTE he elected. One di-
rector resigned in consequence Of this result.
Until his arrest Friday last Mr. Freeman acted in
the place of his father the absent president Ycster
day informal meeting of the directors held at
the Office of the Globe having for its object the re-
moval from Office OF Mr.. Freeman. Nothing def
mite, however, was accomplished. Regarding the
financial condition of the company and its recent
trouble with the Insurance Department it was stated
yesterday that Attorney General Schoonmaker had
in his possession the papers in suit TO compel the
of trust suggested in the report Of Deputy Super
intendent Mccall. 1t was said that Mr.. Schoon-
maker. who has been in Washington for a
few days, would reaching this city begin suit for
the above purpose. The reporter, however. learned
that Monday Mr.. Frederick A. Freeman wrote
to the Attorney General that he was authorized to
offer the designations of both Pliny Freeman. the
president and James M. Freeman director in
case the Attorney General 80 desired No mention
was Iiiaue oI Ills own ONCE III WHICH IL was sllu u
change would also be demanded. A director OF the
Globe said the Attorney General would need to bring
suit to remove the officers, they ready to
resign and place the affairs Of the company in any
shape he might deem best.
SUIT AGAINST SUPERINTENDENT sMYTH.
motion was made before Justice Gilbert, in the
Kings County Supreme Court. yesterday, in the
suit of Henry L. Reynolds and others against
John p. Smyth. superintendent OF the
Insurance Department, for an injunction to
restrain defendant from distributing . trust
fund, APPOINTING to $4,000, among policy holders.
Counsel for plaintiff claimed that the fund would