The New York herald., 1879-02-27
INSURANCE TROUBLES.


MOTION TO DISCHARGE FREDERICK FREEMAN
FROM ARREsT-AFFAIRs OF THE GLOBE AND
KNIcKERBoCKER.
Quite number of prominent officials from various
life insurance companies put in an appearance yes
terday in Supreme Court Chambers on the opening
of the court. 1t was anticipated that there would
be q lengthy argument on the motion to discharge
the order of arrest against Frederick A. Freeman.
Counsel on both sides were present Mr.. Freeman
being represented by Messrs. Mann Parsons. and
Mr.. william C. Trull opposing the motion on be-
half Of Henry r. Pierson. Instead. however. of the
lengthy arguments anticipated the counsel were
ceedingly brief. on the side 1t being contended
that the facts set forth in the adavits which the
order Of arrest was granted established clear case
OF fraud and would not justify the vacation of the
order. and on the other side it being claimed that
Mr.. Freeman had done nothing illegal in the
premises, but only followed long established pre-
cedent. The case was then submitted to Judge DON
ohue for his decision on the former papers.
afadavits or papers of any kind being presented
Judge Donohue promised an early decision.
Mr. Freeman was, of course remsnded to the GUS
tody of Deputy Sheriff McGonigal So far as any
criminal proceedings against Mr.. Freeman others
concerned, the assistant receiver Mr.. Frothing-
ham. said that steps had been taken to acquaint
the authorities with the matter. and he did not
know that anything would be done iDthat direction
THE DISTRACTED GLOBE.
The internal derangement of the Globe Life In
surance Compsy. sprnging from the opposition of
some of the officers and directors to Mr..
Frederick Freeman. is not yet settled. 1t
may be that certain Of the directors will in
| sist upon his removal, but just now they
appear to be waiting the results of Mr.. Person s
| suit. Insurance superintendent Smyth returned
to Albany yesterday. An officer OF the State
| was asked by the reporter what would become
| Of the much talked Of mortgage Of $120000
in case Mr.. Pny Freeman resigned. The answer
| the assets Of the company and Mr. Free
| man could not claim it. This mortgage that
recent history Of the Globe was first put among the
in order to increase the companys surplus to
the amount required by the Massachusetts depart
| and said to have been presented by him
to the company with the understanding that when
surplus it should by resolution Of the directors be
returned to him. When first added to the company
4 ment to premium receipts. This was discovered in
the recent examination by Deputy superintendent
was questioned. 1t has since. however, according
the statement OF one OF the officers, been sstsfac
| torily arranged. atK
| THE KxIcKERBocKER REPORT.
Deputy Superintendent Mccall examined the
| Knickerbocker Life Insurance Company as long ago
last May, yet his report to Superintendent Smyth
only printed within few days. 1t spoke of the
nismsnagement of the company several years Of
sity for the reduction OF running expenses. From
inquiries made by the reporter 1t learned that
when the examination was made or nearly year
ago, the suggestion made by the Insurance De-
partment relative to the reduction OF expenses and
immediately acted upon by the officers: For
| five years the management have had an
| uphill road, it is claimed. they had to
sustain the effects Of previous mismanagement
as sn a t
since the date of Mr.. McCals examination the
pany had added about slCoooo @ to to its surplus. 1t
and mstured endswments about 100000 of which
was in cash. .
In the face Of facts and the considerato tone
Of the Supcrintendents report 1t is currently be-
leved that steps will be taken to interfere with
tho business of the Knickerbocker
INTERVIEW WITH THE ATTORNEY GENERAL.
Attorney General Schoonmaker arrived in this city
yesterday afternoon from Washington on his way
homo to Albany and stopped at the Fifth Avenue
Hotel. where HERALD reporter saw him last even-
ing. when the following interview took pace:-
to institute proceedings against Of the officers
of the Globe Life Insurance Company on the ground
Attorney General scHooSxAKEn-It is; on Friday.
when LETT homo for Washington. instructed my
deputy to prepare the papers on which to commence
q suit in the Supreme Court for the removal of
of the officers Of that company. No report has
been made TO me against the corporation. but
the report OF Deputy Superintendent Mccall, which
Mr. Smyth transmitted to me about last wednes-
day, inculpates the officers Of the Globe Life In
proceedinSs ~ for the removal of such ',''e Of the
officers ought to be removed on the representations
made in the report. Accompanying the report Of
Mr.. Mccall was q communication from Superintend-
ent Smyth in which he callod attention 10 the ap-
parent mismanaecment on the part Of some of the
oiiicers aud stated that he had power to
move them he would leave the matter with me.
REPoRrER-May ask whether the proceedings you
are about to naugurate are of criminal character?
Attorney General SCHooSMAKER-No; the object of
the suit is only the removal from their official posi-
tons in the company OF such officers as shall have
been proved guilty Of mismanagcment they have
been guilty OF perjury or have sworn to false reports
of the condition Of the company that would be q
matter for the District Attorney of New York to
tend to.
REroHrEn-It is said that the officers of the com.
pany prepared to resign their positions; should
they do 80, how would that affect the suit you arc
about to corpmenceY
Attorney General ScHooEsfAKER-The suit can ac-
and II they do resign there will be necessity for
prosecu ting II, the object VIII have been attained
According to MIR. McCall's report there q great
deal OF mismanagemcnt. assume that all the facts
relating To such Encouragement are in Mr.. McCals
report. and IL those charges be proved they will
make strong case.
REroRrER-Do you contemplate commencing those
proceedings soon?
Attorney General scHooNxAKrn-I expect TO fnd
tho papers ready for my signature ON my return
home, ans 1t is probable that the suit will be
Incnced Immediately.
REronTEn-will It be tried In this city or ut Al
bany?
Attorney General scHoosMAKER-At Albany,
Think at least that place would be more convenient
for me.
REroRrEn-Has your presence in this city this
evening any Significance In regard to the affars of
the Globe Life Insurance Company
Attorney General ScfooNMAkER-None whatcvcr;
am simply stopping here temporarily while my
SCRANTON COAL SALE.