The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-02-26
LIFE INSURANCE TROUBLES.
FREDERICK a. FREEHiN MAKING
MOVE FOR HIS FREEDOM

MOVE FOR HIS FREEDOM
Judge Donohue to Consider his Case To- Day |
What W. n. Opdyke and sheppard Iomans |
say-Compiications OF the Globe Mutual
Frederick A. Freeman did not succeed yes
terday in procuring the 5000 900 bail in the suit
brought against him by Henry r. Pierson. re-
ceiver OF the Guardian Mutual Life Insurance |
Company. and remained in tho custody Of Dep |
uty Sheriff McGoniRal. He spent most Of tho |
day with his lawyers. The result OF II was that |
Judge Donohue was applied to for an order
returnablo this morning. for Mr. Pierson TO
show cause why the order OF arrest should not
be vacated. Tho motion was based upon tho
affidavit Of Mr.. Picrson on which tho order Of
arrest was granted. Judge Donohue granted
| the order, and the hearing will take place this
morning.
Although summonses have been served in the
same suit upon Sheppard Homans. Everett
Clapp. and ]. @. Holbrook. who Mr.. Picrson
charges. conspired with f. A. Freeman to de-
| fraud the Guardian Mutual Life Insurance
Company out OF t252 900 by purchasing Mt an
exorbitant rate stock OF the widows and Or
| phans' and Reserve Mutual Companies. no fur
ther arrests had been made up to the closing OF
tho Sherins ONCE yesterday. The reason why
| Mr.. Freeman Is held to bail while similar pro-
ceedngs have not been taken against the others
is because II Is averred that he Ia non-resl-
dent. he having spent much Of his time recently
| In Europe. Another cause assigned for tho
more rigorous attack upon Mr.. Freeman is
on account OF his recent election to the Office OF
Second vico- President OF the Globe Mutual Life
Insurance Company. OF which his father. Piny
Freeman is President. his brother. James Frce-
man. is director. and another relative. Mr..
Sturgis. is also director. There was strong
opposition in the Board OF Directors OF the
Globe to any increase OF the Freeman family
influence. and the report OF Mr.. Mccall which
bore strongly against the Freemans. at
fas Insurance SHnSSP pspartment last May which has
lust been made Pupuc'r mas oesn m usTd ii
recently acquired position in the Globe, At Mr..
Persons once yesterday. however, this idea
was repud9ted. Mr. Plerson himself was de-
sentative, Mr.. rockingham. said he WAS GER
tain that Mr.. iieTson had but one object IN his
was to secure assets OF the Guardian Mutual
Insurance Company which he firmly believed
had been wrOngfully retained by MIR. Freeman.
The fact that Mr.. Freeman is at present in hot
water in connection with the Globe Muiual's
enter into Mr. Persons motives.
A similar view was taken by Mr.. c. Seton
insuraSce e." Company. Mr.. Lindsay said: The
action taken against the Freemans is an action
against indiylduals. and not against the Globe
Company have no hesitation in saying that
the Globe Is solvent to-day. and is so consid-
cred by the lnsnr@pss zee RRepSrtpen, upon ~ NE
Fre@man's election as Second Vice, President
OF the Globe not because | had anything
slight relations we had had were agreeable. 1
opposed him on account OF the rumors
in eonnection with other compan les. Com
plants had been made that the Globe was run
@ add "S another % to our % iist Mr.. Mccall examined
our affairs in May last. and reported that We
valuing some OF our real estate very low,
, aud by throwing out mortgage that
: in the mortgage that he, objected TO was
/ Immediately remedied. and Mr.. smyth the
/; In octo5er that our surplus was s2ss oOo and
he reported that our surplus had ooe been I'm, m,
proved from iae nrs' & 2I 1aPy1h by mn IN n.a a
I up policies which enabled US TO decrease our
reserve lnnd bpt u w"s tne 9nly e09abde w nad
4 | up policies in force. and about one,third ot
our Liabilities Is IN thM Iorm, Wo SUI, s,1hie,
! | currency. as all large companies did. The
:. newspapers should distinguish between attacks
upon persons and attacks upon the cqmpany.
| The Globe is Rt present pronounced solvent by
the Insurance Department, and whatever may
r proceedings against the Globe Company;
Among the directors OF the Guardian Mutual
l. trnnsaetion , Tor which Mr.. Freeman is under
arrest was William $. Opdyke OF 20 Nassau
i street. Mr. Opdyke said yesterday that he was
n counsel 10 the Guardian Company Mt the time
n the stock of the Widows aud Orphans and ke'
'. the directors sanctioned. He gave his opinion
r. nj th, time that the purchase wis a prohtnbl,
d one for the Guardian Company. rms opinion
: WIS based upon tho Investigations made 10y III,
10 officers OF the company, ANA the bphru %
r. Directors were guided by those Investigate ions
m He believed then. and believes now, that th'
" purchase was a legitimate and proper operation
% ior the Guardian Company, He secuted th'
"A though he did not claim to have made persona
~ Investigation at the time he voted TO make ~
~ purchase. lie expressed the opinion that th
ot suit against Mr. Freeman would inot hold ant
~ thnt no conspiracy would be- proved.
u Mr.. Sheppard Homans said yesterday that ~
=. was prepared to prove that he had not ,prohte'
Ia a penny by the sale OF the stock OF the widows
p and Orphans and Reserve muIua, compsni,,s ,,s =
10 company At the time As TO the check Tor s5i ~
which Mr.; Person claimed to have found IN n
nt was sure that he did not have that money 10
is his own benefit. He believed thnt II me chec
n. passed through his hands 1t was mere lorna
gentleman who formerly held a responsible
is position in the GUARDIAN Company said yester
le day that although Mr.. HumHus was not al
: officer. the books OF the company VIII show ina
erty. and negotiated the sale Of the Wl1ows
At and Orphans aud Reserve Mutual 20 III
III Ciunrdinn with the understanding that he W,
II to have some OF the Gu.rdiuns cash ogned t
I'd him; that the cause OF i; A. Freeman's lon
rS absence in Europe whs a threat OF pros 'cutlo
he hy one OF the stockholders OF the Widows an
in Orphans who WAS much incensed ut the sale q
n, Alter Mr. +. A. Freeman's roturn from Eu
ld rope he was little seen and his election TO IN
ut Vlce-Presideney 81 the G.ope was ths nrst ~
in many Of his old qunintnnces.
he The Guardian Insurance Company was III
e- grave Of a number OF others that 1t nj sorhe,
Besides engu!nng the widows and Orphgns!
=, the Reserve Mutual. and tho New York Stat
es started by ths members OF the Twre
T. Ring When il was found that the Guart
40 ian. with all its auxiliHrics. could n,
,is stand an effort was made to keep It up
''' reinsuring nll its risks and turning over Il
lin assets to the Universal Life. But the UniNors
No. Life dsclaimed res possibility. and the Guar,
TX TX ian went into the hnnds OF Receiver Plersol
iaas while the Universal Life continued to do bus
70 ness Receiver PiersOn has n heavy cail
,ot pending against the Universal Company, grow
~ ing out of this transaction. He alleges that IL
=" assets Of the Guardian were wrongfully kept
of the Universal