Daily Republican. [volume] ([Wilmington, Del.]) 1874-1890, 1883-12-18
A SERIOUS CHARGE.
SUIT AGAINET THE FIDELITY
lHACRANCE COMPANY OF
PHILADELPHIA,

l ~ AAA ANAALA AAAAs
A suit has been entered in Philal
phla against the Fidelity Mutua!
Association by William jerks Fell
nephew Of Judge Fell, who claims tt
after he hsd failed in business in Il
lefty in 1873, be met l.. q. Fouse, v
unfOlded the life insurance scheme
which the Fidelity il b4sed. MIR. Ecu
bad no money, and as Mr.. Fell "
. favorably impressed with the plan, ,
: agreed to loan him $1,000 for payil
the expense Of organization, and II
company was Incorporated Decemb
2, 1879.
On November 9Th, 1873, nearly OF
month before the Incorporation Of Il
company, l.. &. Fouss and Villa
jerks Fell, with Frank Pease, W.
Campbell, Joseph S. Harvey, Howar
VanCnurt, Joseph Il. Lynn, F.S. Fous'
l. Whitney Jones, Charles NJ. Morr
and Ellis II. Masters, appeared befol
James Fl. Wolfe, a notary public, an
under oath made and subscr r bed to th
following remarkable agreement
| W AL al llGlC Vi tkI ISSt1Iu6Il
and application for charter bearin
an even date herewith having been &c
tered into by the undersigned for tn
purpose of becoming body corporal
and polite in law, under the name O
The Fidelity Mutual Aid Association
it il hereby expressly agreed that l.
u. Fonse and his associate, William
jerks Fell, who hereby agree to pro
vide the necessary funds 10 establish
az carry Oh the business contem plated
by said corporation, shall have the sole
and exclusive control Of the business
and finances of said association, and
shall have the exclusive right of select,
ing and appointin' tn" officers, framing
and adopting by laws for the purpose
OF conducting and re ula.ing the bust
ness of said association
The object of the association, accord
ing to the papers filed III the suit, is to
carry on the business of life insurance
on tho mutual principle, and thereby to
secure to those having an interest in the
lives of members payment of a speci-
ned sum Of money on their death by
assessment on the surviving members
In addition to tn assessments on sur
viving members tho association receives
a membership fee the first year of s. on
the first 81 900, and 81 on each additional
fl 900 insurance and s. annual dues or
premiums for the first five years, and
thereafter$2 SO annually on every 81 900
insured !; also, an assessment of one
eighth Of one per cent on the amount of
insurance in force 10 form contingent
fund, and 1t also charges a collection zee
OF fifteen per cent. on all assessments
levied on surviving members.
Mr.. Fouse was made president of
The company and Mr.. Fell treasurer.
In January, 1879, Mr. Fouse and Mr..
Fell made another remarkable agree
nent between themselves. By this
generous document, after saving that
Mr.. Fsuse and Mr.. Fell had secured
for themselves the sole and exclusive
control and management" Of the cor
ooration, 1t was agreed that as re-
ward for Mr.. Fouce's services as origi-
lator OF the ingenious insurance scheme
IND as president Of the company ho
hou.d receive can annual salary
quail to One-half of the net annual
'rotits or earnings of the said associ.
tiOn."
Mr.. Fell, who had advanced the
] 900 working capital, was also provi-
ed for and the agreement fixed his sal
ry.as treasurer at one hal OF the net an
ual profits of the association. Thus
be president and treasurer were to di-
lde equally between them the net an.
ual profits of the associa ion. Their
18th Damon and pylhias like affection
ley bound themselves to use their
est eIGeavOrS and do their utmost
'intly and s4verally to maintain and
old for th' m .elves and for each o, her
leir rehpec iy, utiices.'
This interesting agreement also sfipu-
ted that the letters of attorney 10 vote,
be executed by the memh hers of the
'soclation, . shall be granted to said
ouSe, who shall execute letter of at
rney to said Fell, empowering him to
Ist one-half Of the votes rthe election
directors. Aud it is clearly under
ood that no person shall have first |
edged himself to act in harmony with
e above-named parties, in accordance {
lth the bylaws, and particularly not
Interfere in any way whatever with {
& Ulcers Of the association, who hold
cir respective offices during good be-
'vtOr, nor with their compensation as
rein provided, nor with the finances,
lich shall be under the control and .
bject to the disposition of the e1ecu. ',
re committee.
The president and treasurer were to !
vide the profits Of the company on the
;ond Saturday of February, June and
tober each year.
resolution was also adopted by the
reCtors on the 9th of January, 1880,
reeing to pay Mr. Fell seventy-fve II
lts year on each and every $1,000 .
.urance then in force or which might u
ereat,er be underwristen, and six per
Mt. on all dnes Or premiums then col.
ted or thereafter to be collected on
3 limited term insurance during O
, life. t,
A iter his death like amount was to %
paid to his heirs as long az any of
} insurance in foice at the time of his =
lth should thereafter continue in i
ce All this was in addition to his &
Are of the profits of the concern M. ;.
Il on November ., 1881, ceased to be =,
officer Of the company. He then j
lined that the company owed him a
ge amonnt of money under thea agree :,
nts and resolution. For the purpose :;
recovering the money that, he says, A
1uA him be brought he present suit, q
OF which VIII come many breezy oI
velopments, showing the peculiar >
d mysterious methois of the Fidelity y
ltual Aid Association, Of PhiladeI- p
ia. Mr.. Feli's claim amounts tol ,.
ny thousand dollars, and its masni- Of
le appa!ls the directors fthe finances "
The company. 81
During the five years of its existence 10
company have done u tremendous v
'iness. In 1881 they had in force N
II whole life:policies, and !, 1889 limit .
term policies, covering an insur. a,
% Of 81, 226, $50 and in 1882, 4,6O6 l.
icies, covering an insurance Of &c. ne
,O5O The report for 1883 will not e
'ear nnti January, but il the amount sst
insurance increased in 1888 az it did