The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-02-27
PLINY FREEMAN RESIGNS.
PROGRESS or THE INSURANCE COMPILE
CATIONS IN THE CITY


Judge Donohue Hears the Motion to Di.-
charge Frederick a. Frermnn- Meeting OF
the Globe Omccrr TO Elect New Directors.
Three events OF interest in tho pending in
surnncc complications occurred yesterday The
first was tho hearing 10y Judge Donohue OF tho
motion 10 vacato tho order OF arrest under
which Frederick A. Freeman has been in the
custody OF Deputy Sheriff McGonigal since Fri
day last, trying In vain 10 secure 1900 900 bail
In the suit brought against him by the Receiver
OF the Guardian Mutual Insurance Company.
Tho hearing by Judge DOnohue was very brief.
and took place in his private room. Tho re-
portcrs who had waited In Chambers. expecting
the case Of Freeman TO como up in Its order
with other motions. were finally informed
that the Judge had taken the papers
and would give his decision at some
future time. Tho lawyers who were present
at the hearing said it was but brief incident
the motion being made on the papers M already
submitted to Judge Donohue. The principal
claim of Mr.. Freemans lawyers was that there
WINS no evidence In Mr.. Persons affidavit upon
which +. A. Freeman can be held for CON
spracy M all he sworc to WIS on information
and belief. Tho prevailing opinion among
lawyers Ia that tho snme reasons that induced
Judge Donohue to grant the order Of arrest will
operate to prevent his setting Frederick A.
Freeman at liberty. Deputy Sheriff McGongal
therefore remained In charge Of his prisoner.
who continued to occupy his comfortable quar-
| ters i'm room 1O4 Astor House Mr. Freeman
again declined to give his reply to the charges
against him. and said he would make public
| statement as soon as his application to Judge
The second event Of interest was the an
| nounccmcnt that the Fr"emans had resigned
| their on 'inl connection with the Globe Mutual
Insurance Company Pliny Freeman the prpsi-
| Gent, who II now about 80 years old, founded
| The Globe in 1864 and has managed it since
| that time by the aid " his sons and other rela-
| tives. Previous to that he was ono OF tho
! founders of TIE New York Lie Insurance Com
| pany, with which he wns connected until he
established the Globe. His name has been as
sociatcd with life Insurance. matters since tho
| infancy Of the business. He WINS one OF the
| founders o. Greenw, od Cemetery. and always a
| director. Ol lnte years he has been in feeble
| honlth hui his mental lncultirs have been clenr
| and be has stoutiy defended the action Of his
| son. Froderick A. Freeman. making him tho
| Second Nicc-Pr"sidrnt Of tho Globe in the
| Of tho Board Of Directors not connected with
| the tmily. The resignation Of the Frcenans
h, May when Mr. McCals report against the
| bluir was nlndo g. Superintendent Smyth. II
| u suid that Mr.. McCnils report WIS withheld
| rom puhIicatinn. ana the roniunny got its Ger:
| TN 'ntr in cuu~ruurncr OF this PROMISE. and
| there WAS trouble amun- the directors be-aus"
| N promise WAS not kept sooner. meeting
Of the Board OF Directors will be- held to-day for
| th" purpose of liilng tue vacancies occas oned
| hy tho RESIGNATION oi the Frermans and that of
| Mr.. q. T. sheldon who resigned on account of
| the election of T. A. Freeman. Mr sheldon in
! formed ths Fr.smnns L.fnra ~, nls.tion tbnt
| he would vote agnin-t them. ns he had got tired
| 90 sitting IN board whcro he WAS outvoted by
/ family. II u also IN contemplation TO call a
| view To giye them some voice in the manage
| in"nt OF the coiuuany. II il considered an
dl1d. ihai ihc stock holdrrs. with an interest OF
| only minority 81 the 500 .OOO stock. should be
enabled to control the s6.OO0,0OO belonging TO
The problem now to be solved by the Globe
| Company will be- To get directors who will he
| satisfactory TO all tho parties Interested. The
| Immense sums OF money loaned to the FREQ
| manr and their friends on large part of which.
| Mr, Mccall GAINED. no interest has been paid.
| Will mako necessary the forerloSure Of several
| are taid Ia ho now ~ layor ~ thorough re-
| organization OF the Globe with now directors.
| PInv Freeman is reported to be worth
| 81 lnutOO0. and other relatives hnve III" rcputn.
| ton oi being wealthy. llo was cheerful. and
| looked the picture " rudiy health when pop
| uts Sheriff " Goulgal look him INTO the Globe
| Office to transact solne business.
| The third event Of interest WIS the nnnoun 20,
| mrui tHai Ass'mhiymnn, "dsWnr', hgi - ni,fHr,u H
| II omtion requc-unE Mr.. John = SmEh, 70
resign the position 81 Superintendent of the In
| suranee ID D'pnr,mrnt Ihe reason a-sisngd py
| Nr. MmlsWultn WIS the delay of Mr.. S,uyth IN
| t.mpoiisius with ihc officers ni the Globe near
| Is "a year alter Mr., Mccall had reported against
| tho FrrrmAns. Insurance men said last night
! TINT tine rt,,i.nutlon OF the lroemNns would un-
| d1uhtrdy H. hold M hy Mr. Smyth's friends IA
| - Ju-; ;ihcation of his delay.
ATTORNEY. General Schoonmaker arrived at tho
| Finh Avenue lloinl last night from Washing
| ton IL, said that before he went away from
! Albany lac had given instructions To- lrrpar,
| the papers in "a suit tor the removal OF somo ot
| the oifircrs ot the Globe. This he hal done on
| account o; the developments In the Nav report
| of Mr. Mccall. which Mr. Smyih forwnrded 10
/ him at the same time II WIS sent ~ the ll"glsla-
turc Mr.. Smyth did not recommend the re-
movnl of tho oNi 'eis of the Globe. hut simply
submitted Mr.. McCal's rrport for the Auorncy~
General To take such action as he thought
proper. Mr.. SchoOnmHkcr said TINT the statute
docs not require the Insurance Department. To
intinte any proceedings where officers ot con-
unnies are removed. In cases where proceed
ings nre to be- taken ngninst "A CORPORATION, tue
law plainly requires the Superintendent OF In
| surnnce to initiate the proceedings by bringing
10 the attention Of the Attorney General the iacis
which would Justify action against the corpora
| tion. In the present cns" thero ia no nciior
contemplate ngainst the Glohe us n corpora
tion for both Mr.. Smyth and Mr. Mccall agree
that the company IL solvent. and that II th'
| Treomans nre removed from the managemnn
| the company can 30 on and do business MIR
SchountnAker de- lined 20 say what officers OF IN
Globe he intended to remove. but admitted tha
| his action was based on Mr., McCall's report
which is strongly REninst the Freemans.
Having arrived late last evening, Mr. Schoon
maker was not aware OF the fact that tho Free
mans had resigned. and that his suit to elec
them from their Offices would be UNNECESSARY
lie was also unaware Of the fact that Alr. McChl
had made q report adverse To tho managcmon
Of the kuickerbocker Life Insurance Company