New-York tribune., 1879-05-28
A DEFICIENCY OF 5000. 600.
EFFORTS TO SAVE THE COMPANY BY REoRGAN
EzATIoN-DIssATsFACTIoN or PoLICY-HOLDzR'

EFFORTS TO SAVE THE COMPANY BY \ REoRGAN-
NEUTRALITY-SUSPICIOUS. OF PoLICY-HOLDERs
WITH THE RESULT.
An examination of the Globe Mutual Life
Insurance Company made last Summer by Deputy
Insurance Superintendent Mccall, who presented a
port which was very damaging to the company, and
charged the members OF the Freeman family, who con-
troed its affairs with fraudulent practices. This report
made public until early this year. and after
ward AttorneyGeneral SchOoDmaker made personal
Investigation. He proposed. II possible. 10 save tho
company from gong into the hands OF a receiver. and
decided after consultation with Mr Mccall and william
Allen Butler, who was then made counsel for toe
pany, that an attempt should be made to do In tho
interest OF the poll yhOlders The trustees met March
IL, the AttOiney-Genera Mr.. Mccall aud William
Allen Butler being present. and reorganization
effected The Freemans gave up the large amount
OF stock held by them 70 be voted under the droc
ton Of the AttoneyGen ana they retired rom the
company. On March p the following trustees were
chosen George LOrillard, William sturgs. Gouver-
neur TillOtson, Richard Cox, Edmund w. Cories,
Appleton StIrgs ]. o. Kernoclan. John W.
Barrow John Stewart. J. A. Harienbergh, CHARLES G..
Francxlyn, Henry Randell. E. j. DOnne and Charles
sedler. John W. Barrow was made president, and q
committee was appointed to report what plan should be
adopted serve tho interests OF poicyhoders best.
This committee reported last Monday at meeting, tho
proceedings OF which all present enjonod by their
counsel to keep private.
One member Of the board, J. A. Hardenbergh, was not
satisfied with the action taken, and commuuica ted with
friends holding large policies in order to obtain unity OF
action opposing the plan which had been adopted.
From one Of these policy the following state
ment obtained:
81 hold paid up registered policy in the Globe Mu-
tIal for S. .000 and ten years ago trustee. At
that time Pny Freeman, the president, insisted de-
claring dividend which had not been earned; and,
when found this fraudulent action could not be pre-
vented, with three Others resigned Mr. Hardenbergh
was of the number When In March last he urged TO
become member OF the board he consented, beev-
that the company could be saved that an honest
effort would be made to save H. He was nrst dssatls;
ned when he found that everything bad been cut and
in the field. Then Mr.. Barrow was elected.
though he had never had any experience
engaged chiefly for several years as an assignee in
bankruptcy of insovent firms. Recently efforts have
to resign them for small In cash and new policy
| for smaller amount was urged to give up
up lve-year policy Tor $4,000 refused. On Monday
the trustees met, aud the committee reported three
sacrifice onefteenth Of their policies THIS amount to be
action was taken on this or on the second proposition,
| the nature Of which do not remember. The third
liquidation and that the Attorney General be re.
quested to obtain the appointment OF Mr. Bar, Bar,
in order that the matter might fully considered but,
Mr. Butler strongly advised Immediate action, and the
resolution adopted, Mr.. Hardenbergh alone voting
in the negative Mr. Butler impressed upon all present
the importance OF keeping the action OF the Board
ret and said that member of his firm would start for
Albany that evhns A sSSq as I5e mset &
! me AID with Others. and Henry L, Knox,
former counsel for the company, was authorized TO rep
resent us before the Atorney-General in opposition to
the resolution Mr. Knox or his partner, Commissioners
Macean, probably started on the train following that
which Mr. Stillman Mr.. Aliens partner. went. We
do not believe IN the wisdom Of appointing receiver
do believe tnat an honest effort has been made
| has been managed, that Mr. Barrow could
be sd in as receiver. Another thing about Tie
made that each member be paid $500 or his services
One OF the committee asked II this would be legal as
each trustee received 70 every time bo attended
meeting. Mr. Butler said IL was perfectly night aud
proper; aud then resolution was adopted adding tho
| President TO the committee"
| william Allen Butler declined to say anything about
the Globe Mutual saying that his Mowedgs was Of a
talk but was learned that his partner, Commissioner
MacLean, was out OF town.
STATEMENT OF PRESIDENT BARROW.
President Barrow gave a brief history the reorgani
cation of the company and added: The first
action OF the Board 10 appoint
committee OF pOicy-holders 10 Investigate
the affairs OF the company. This committee Immediately
began It's labors and continued at them almost uulnter
ruptedly until Monday when the report was Completed
Tue members OF the committee personally examined
and valued every piece OF the eompanys property and
thoroughly investigated It's aair The report pre-
sented Monday 10 the Board and showed large de-
fciency the liabilities exceeding the assets IN tho
opinion OF the committee by fully 100000 In view OF
this OF affairs II deemed proper " request the
counsel OF the company, who was present, To bring the
before the notice OF the AtorueyGencra Tor tho
of having receiver appointed ana lie leit Tor
Albany for that purpose Monday evening"
Mr. HardenbelgA confirmed TIE statement OF the
policy holder gwen above subs antiay correct lie
said that he had opposed the appointment OF receiver
at least premature. He had gone inO the boa.d
hoping that the company might be saved, and
he had had opportunity of satisfying himself
that 1t could not be saved. Mr.. Sewe OF former cOun
for the company said that he not surprised that
IL be CLOSED but he thought it unnecessary,
The real assets had increased in value lately and,
from his intimate knowledge OF the cOmpaDys con-
dtIon few months lie felt that under proper
management it might be brought into healthy con-
dltion. The worst thing that could be done COM
pany was 10 put It iutO the hands OF receiver.