New-York tribune., 1879-03-17
LOCAL MISCELLANY.
MORE INSURANCE TROUBLES.
aEcElvER PIERsoN DECIDES TO BRING SUI
AGAINST PROMINENT INSURANCE MEN.


RrcrlyRR PIRRsON DECIDES TO BRING SUI
AGAINST PROMINENT INSURANCE MEN
Receiver Pierson, after consulting with Sen
.,or Conkne and other legal advisers has decided to
tnsttutc legal proceedings against several prominent
insurance managers for acts growing out OF the conso
daon OF the widows and Orphans, the Mutual Reserve
and the Guardian Mutual Life Insurance companies
and their final absorption by the Universal Lille lnsur
ance Company. The suits will be Of civil nature 10
recover the assets OF these companies ana as al
oct Of Justice 20 the policy-heldcrs
II was officially stated on Saturday that the suit
against and the arrest of Frederick A. Freeman was
not undertaken until Receiver Pierson had received
egal approval OF the proceeding from senator Couh
ling; and that the made because Mr. Free
man was a non-resident. As he was cOnsluereu pecu-
riarily responsible IL was feared hat he might slip
over 10 England where his wife now resides, unless he
was nut under bonds when this step was taken"
said gentleman intimately acquainted with the pro-
ceedings, "it only the beginning OF
series OF suits against several welLknOwn insur-
ance meu OF this city, who at different Times
hocame mixed up in the wrecked companies
The widows and Orphans Company went into the
Mutual Protection and the name was changed 10 the
Reserve Mutual. The latter company went into the
Guardian, which was aiterward swallowed up py 'he
Universal The Mutual Protection bought the stock OF
the widows aud Orphans which was aftcrward sold TO
The Guardian The Guardian found itself in possession
Of the Widows and Orphans and the Reserve MUTUAL
and consequently had all the assets in its cOntrof
when the Universal Life Insurance Company
secured control Of the Guardian 1t entered
into a contract for reinsurance, and received
as con nsideration all the Guardians assets "heh MT
Pierson was appointed receiver, all three companies
were substantially under the control Of the Universal
that company by processes Of amagamaton having po
come possessed OF the Offices and property OF the GUAR
dian and in fact consolidated with IT, The business "I
each of the three companies at the date OF their dSou
lion was conducted under the same roof and by the
same directing hand that Of the Universal Company
The directors OF the Guardian Mutual on March H.
ls74 authorized a reinsurance or indemnity contract
with the Universal, covering Ter cent OF the pohcy
risks Of the Guardian The officers of the Guardian at
This time were A. " Gill. president, Everett CIapP,
yjcc-rr,s ,stdput aud Iucius McAdam, secretary. In
March ls74 these officers were r elected, and ii.
9dopted creating Office Of treasurer and Mr. Furher
was appointed with powert to take charge OF the care
and custody OF the securities or inc conpahy AZ tue
same meeting Messrs walker Bcwcy, Lam mucTt ana Mon
tague officers and directors OF the Onveisi
Company, were nominated as directors anu on Uo'ooCl
ii. 1874, they were cece0. Under cover OF thS cor
ract large amounts Of the assets of The Guardian were
immediately transferred to the Universal and IL al
vance the reports called for by the contracts. IN
10 the Universal Building with the absolute control ana
direction Of the business and affairs OF the Gardian ana
the other companies consolidated with It, In TINS ull-
seenly haste S2,4O0OOO OF tie assets OF tue Gu"Iu"A
were transferred to the Universal Company. , .
'In speaking Of this transaction, Receiver Person, IN
pccriyrr was brought 10 the conviction that not only
was the Guardian Company not pOwcrcss In the hands
Of the Universal Company and IT'S officers but that the
Universal COMPANY OF right should respond 10 INC
demands Of the Guardian Company Tor the property III
It's possession belonging 10 the Guardian, Whlch hau
been ched away from it 10y fraud ana conspiracy, ana
that the officers who had been connected with the
original transaction should be required to explain Why
suCh tOrtuOus paths were taken by them Whle
conducting the affairs the company The receiver,
on advice Of his counsel has determined 10 DFug TO
Justice all who guilty III wTcckmg the companies
now hands. Many OF the men, 10 be sure. are Ms
warm personal friends aud while he behevcs some OF
them were ciinnally guilty be feels satisfied that
there were moving spirits somewhere, ana that some
one was largely benefited by the frauds committed
The responsible men IN business here ana are
abundanty able t0 respond TO a Judgment, ana no
arrests, therefore. VIII he made"
The obstacle in the way OF the suits II Is stated
is OF limitations To meet this technical bar
recovery, bill has been carefully drawn, which II Is
claimed, will all distractions and enable
receivers corporations 10 reach those whose mlscon
duet NAV have caused their rum. When tne suits are
brought the Hon Roscoe COnklng VIII act counsel
and W. C. Trul as attorney for Receiver PlersOn.