The New York herald., 1879-02-25
RECEIVER PERSONS SUIT.

FREDERICK A. FREEMAN STILL IN THE CUSTODY
OF THE sHERIFF--wHAT OTHER DEFENDANTS
IN THE ALLEGED CONSPIRACY HAVE TO SAY.
In the suit brought by Henry II. Pierson against
Frederick A. Freeman. Sheppard Homans, Everett
Clapp, Andrew w. Gill and John q. Holbrook. the
only arrest made thus far is that of Mr.. Freeman.
AS already reported. he taken in custody Friday
night on order issued by Judge Donohue. and re-
quired to furnish bail in the amount of $4,000.
The suit has made quite a commotion i'll
insurance circles, where the defendants all well
known. and various motives have been assigned for
the action. On the face of it the suit is to
from the defendants $3.50 500, with interest, which
sum they charged with having appropriated by
fraud.
MIXED ACTION
The history is rather confused one. The Widows
and Orphans Life Insurance Company sold
or transferred to the Mutual Protection. and the
joint christened the Reserve Mutual
Some 1888 shares of the Reserve Mutual stock
sold to the Guardian Mutual Company
for $252,5Oo. In the affidavits upon which the
der of arrest for Freeman granted it is claimed
that the defendants, who at different times held
Office in the three companies contrived to give
Messrs. Gill. Clapp and Holbrook q controlling in
terest in the stock of the Reserve Mutual and then
exchanged 1888 shares at the par value of
$25 and declared to be of less market value
for $252, 800 of the Guardian Company's good money
This, the affidavit declares, Offering large
bonus stock of little value, and the defendants
are charged with appropriating to themselves both
the money and the stock purchased. Mr. Freeman
is charged with having received $150OO0, Mr.. Ho-
mans $4,000 and Mr.. Holbrook $4s.500 OF the pur-
chase money. Messrs. GIL, Clapp and Holbrook are
charged with appropratng the reserve Mutual stock.
AN OFFICER OF THE GLOBE.
Mr. Freeman is the Second Vice President Of
the Globe Mutual Life Insurance Company, of which
his father Piny freeman, is President The latter,
old gentleman of eighty-two, was compelled to
seek warmer climate for the benefit of his health.
and Is now in Georgia. Another son, James NJ Free
man. secretary of the Globe until their certifi-
cate was taken from them by the insurance depart
ment and change in the management demanded
in order that business might be resumed and the
policy holders secured Then Mr.. G. Seton Lindsay
elected secretary in place of James NJ. Freeman.
When Pliny Freeman went from the city Frederick
A. Freeman elected second vice president, after
much opposition and in his fathers absence has had
pany. In view of the Globe troubles
many persons construe the present suit as
being in the interest OF the opposition to
removal from the Globe of Frederick A.. Freeman.
Such at least was an opinion offered several times to
the reporter Of the HERALD yesterday Anything,
however. that may be recovered by the prosecution
of the suit WILL OF course, result to the advantage of
the unfortunate Guardian policy holders. e. the
insurers the Widow and Orphans and Reserve
Mutuaas well as those who took out policies in the
Guardian direct.
Frederick A. Freeman was about town all yester-
day, accompanied by Deputy Sheriff McGonigal He
left the Astor House early in the morning. for the
the bail is fixed at $3O0,O00. and his bondsmen will
have to qualify in double that amount, it is thought
that he will experience great difficulty in obtaining
fhe necessary sureties. 1t Is understood that his
counsel, Mr.. John f. Parsons will to-day move to
to ON Of s
to the reporter, and appeared much affected by the
situation he occupies His friends say that his
may produce the management and welfare of the
Globe Company Deputy Sheriff McGonigal said he
should probably not take his prisoner to Ludlow
Street Jail for another night at least but allow him
to remain at a hotel at his own expense.
Mr.. Andrew W. Gill, another defendant. is said to
be somewhere in Colorado, and thus for some time
out of reach of summons. He was president of the
Guardian and it is alleged. resigned that office to be
elected president of the Widows and Orphans and
trustee OF both the Widows and Orphans and Reserve
Mutual, in order to carry out the so-called con-
spiracy. The prisoner Freeman was president of the
Widows and Orphans, and resigned as 1t is said, to
make room for Gill.
The attorney for Receiver Pierson in these pro-
porter that summons like the others had been
issued for Everett Capp, but not served so far he
knew.
MR. HoMANs' REPLY
Mr.. Sheppard Homans has received q summons,
but not copy Of the complaint. Until the latter
a statement. He had, however declared that he was
neither officer, director stockholder in the
Guardian Reserve Mutual. So far AZ the transfer
of stock concerned he believed 1t had been
sanctioned at the time by the full boards Of directors
of both companies. He had not one pcnnys interest
in that transfer. Mr.. Homans said he once q
director of the widows and Orphans, but that
before Mr.. Freeman was attached to it.
He connected with any company
with which Mr. Freeman Was connected at the same
time. He had sometimes been consulted by the
Widows and Orphans in his capacity OF sctusry and
had been paid for such services and for none
other He heartily opposed the transfer of the
widows and Orphans to the Mutual Protection
when the plan was hrst discussed. When
$4,000 alleged to Nj have gone to to him hi as n. his
and that il any such amount passed through his
hands it was for other parties than himself He con-
ton. tar he was concerned, was very different
from what it appeared to be.
Mn. HoLBRooK EXPLAINS
Mr. John G. Holbrook has also been served with a
summons but no complaint He was found yester-
day ut the Office of the Globe Life, of which company
he is called the superintendent OF agencies He said
employed expert in adjusting technical differ
ences." The affidavit in the suit charges
that Mr.. Holbrook was elected secretary of
and and Orphans when it became necessary to
give them Q set of officers to preserve
their franchises. But he explained that his real
adjuster of technical differences. He declined to
discuss the merits Of the suit to any extent, deny
ing. however. that he had profted ANYTHING by the
alleged conspiracy. He had no recollection what
ever Of ever having received $4s.5O0 his share.
When the proper occasion arrived. Mr.. Holbrook
said he would be able TO furnish good account of
himself.
Receiver Picrson and his assistant. Mr.. Frothing-
ham, could not be yesterday having IL WIS
said. gone to Albany in connection with affairs of the
Guardian Life. superintendent OF insurance Smyth
was in town. and IL was supposed his coming had
reference the affairs of the Globe, but
to that effect could be obtained
THE MANHATTAN BANK.