New-York tribune., 1879-01-15
THE COURTS.
,POOKIYN INSURANCE SUIT.

A BROOKLYN lNStRANCE SOIl'
r-pGE GILBERT ASKED TO SET ASIDE AN ORDER
MADE By JUDGE wESTBROoK-CHARGEs AGAINST
TIE INSURANCE DEPARTMENT.
Charges against the State superintendent OF
,osurance are made in connection with proceedings
yesterday before Judge Gilbert in the Kings County
srD,eme Court. The action is that OF Ann
poose against John F. Smyth, Acting-Superin-
,ordent Of the Insurance Department Talcou H.
Russell receiver o. the American Na'ona Lie lnsuI-
,nce and Trust Company, OF New-HaVeh anu '"e
National Capital Life Insurance Company. OF "asnhH
on The plaintiff is the widow OF Danel NJ t'eese'
xbose life was insured for 5000 IN the
sational Company of this city This com
,apv was organized in 1868 In September
is-3 an examination by the Insurance Department.
showed that the company was msoiYent' ana P'oo'eu
ngs were taken wind up its affairs. IN Deceinoo'
following Eli Beard was appointed receiver ne "I'i
ward rensured the risks Of the company ID tne Ainer
can National Life Insurance and Trust company u.
New-Havep This company in turn became insoVent ana
M sks were relnsured In theNat1oual Capital Company
when the National Company organized 1t deposited
100000 with the Insurance Department at Albany
This sum has since been accumuating. on November
o1 1875 Superintendent Smyth pettl0ned the supreme
Cort AZ Kingston for the appointment Of receiver, 10
take proof and s.cerain who the pOlievhoders in
the National Company and who are entitled
10 share IN the distribution OF the fund on
deposit az Albany. The petition granted
bv Judge WestbroOk, and James W. Hustled
was appointed referee. The referee advertised
that all persons having claims against the National
Company should appear at his office in this city on Jan
uary 27, 1879.
Iu the meantime the suit Of Ann Reese. whose hus-
band died in April 1870 to recover The amount or the
policy upon his life, pending IN the supreme Court
in BrOOklYn On January her counsel John G. Perry,
obtained from Judge Gilbert temporary injunction and
an order TO show cause why Of Judge West
brook in appointing Mr. Hustled referee should not he set
aside. The order retuTnabe YESTERDAY Mr.. Perry
argued the referee should be permanently restrained
from distributing the fund mentioned at least until he
HcatOn the counsel OF TalcOtt H RUSSELL receiver or
the American National Life ana Trust Company, read
company had claim upon the money on deposit nj
ALBANY, and alleging that neither ne nor MS cneht
(Mr. Russel) received any notice OF the action had
before Judge WestbroOk, although the claims OF
panY well known 10 the Insurance Depart
Ipent the receiver that company had IN hs pos
Company, which were necessary 10 the proper dslrDu
tion Of the fund The affidavit SAYS that the order OF
the Court seems TO De arfuy ana Intentionally drawn
To exclude the receiver OF the American company
and the policy y-hOders and claimants upon the
fund from any claim therein. The proceedings are
declared to be the result Of "A corrupt scheme
Of all claimants this fund. II further alleged mat
said Hustled" caunOt be filr referee In this matter
because at the last session Of the Legislature OF New
York. said Hustled actively engaged IN the passage
NJ "a bill! whereby the rights OF the American National
Life and Trust Company IN or To said fund were tx
pressy and in terms cut Of TO which bill the Governor
refused his assent"
on the other hand, an affidavit of superintendent
Smyth presented setting forth that he had 10 In
and most equitable manner. General Tracy, VINO also
appeared for he plaintiff said that her rights should he
protected The order provided that claims against the
fund must proved by certain day and IN a very
the publication Of certain legal notices (which nobody
Eeads." Judge Gilbert reserved his decision