The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-09-08
SUING FOR THEIR PRO RATA.
A Complaint Concerning the Business Affairs
of the Franklin Life Insurance Company.

a petition was presented to Judge Ayres, of
the Circuit Court, yesterday, signed by Jasper
n Wright, Ell. G. Adams, j. G. Pendergast,
Albert Baker, ]. p Dunn, William r. Evans,
George t. Evans, Joseph r. Evans. George
Merritt Louis Vernia, j. K Maxwell, Joseph l..
Gerrish. Joseph A. Little M. Lipinsky, E. S.
Fisher, W. L. Colgrove, S. w. Morris, James
Layton, Jacob Chambers NJ M. Defrees and
Herman Borchers. The petitioners say that
the Franklin Life Insurance Company of
this city was organized as mutual
company, and that they insured in it, and, re-
ceiving policies promptly, complied with the
conditions imposed upon them by that transac
ton. They claim they are entitled to pro rata
share of any assets of the company, but that on
Aug. %. 1881, these assets were insufficient to
pay the debts and also to give each member the
full surrender value of his policy On that
A. H. Brown, w. D. Wies, w. S Hub
bard, J. S. Fraser. A. G. Walton,
Fred Baggs, A. D. Lynch, A. B..
Walker, J. s. Wildman. N. s. Byram. John
Thomas, A. R. Forsyth, John Marsh A. G.
Pettibone B. Baker II. NJ Little, c. S. Arthur.
j: L. Irwin and S. G. Hanna, decided to wind up
the affairs of the company. This was done, the
petitioners allege on the sole responsibility of
the directors, who did not submit the propriety
of it to the members of the company. 1t is
charged that they gave no information whatever
of their purpose.
1t is further stated that the executive commit
tee of the board of directors were authorized to
purchase outstanding policies at fair surren-
der value out of the assets of the company
This, the petitioners claim, was also done with
out their knowledge OF consent On the Oath of
January, 1882, it was decided to continue this
course In settling the affairs of the company,
and from September l, 1881, to September 6,
1882, policies valued at 1906, 462. IA
were purchased and paid for out
OF the companys assets
1t is charged that on the 9th of March, 1892
all of the cash and other assets having been ex-
hausted, the executive committee and officers
borrowed $37, 800 for five years from the North
western Mutual Life Insurance Company, of
Milwaukee, for the purpose of continuing the
business as above stated. To secure the lenders
mortgage was given on the real estate occupied
as the Office of the company. and this it is
claimed, the directors had no authority
to do, as it was an assumption of
extraordinary power The petition says that w.
S. Hubbard, Frederick Bags A B. Walker j.
S. Wildman, c. S. Hubbard A. S. Forsythe. o.
P. Cobb. l.. o. Clifford, and John Marsh had no
valid existing policies and they are not entitled
to perform the duties of directors under the laws
of Indiana, and, further, that. they did not be-
come entitled to act said directors at any sub
sequent time. On the 9th of May, 1882 it is
roclteu III Inc peLltlOn, an aSS1gnlneHI OF
the company occurred, and James s. Fraser was
appointed assignee. Up to this time the petit
TONERS claim they had no knowledge whatever
of the insolvency of the company or it's embar-
raised circumstances, and that they continued to
pay premiums on their policies, which are included
in value of $50, 900 not purchased. The petition
ers further say they have not received any part of
the assets of the company expended, and that
only $40, 900 remains, out of which the expenses
of the trust are TO be paid
&c hot ,n1 l; .ny,
among the directors May 6, 1882, to become as
signee and that he has paid large sum In
interest to the Northwestern Life Insurance
Company, and has taken no steps whatever to
have the mortgage declared null and void The
petitioners ask that Mr. Frazier be ordered to
institute proceedings to have the mort
gage declared null and void, and
that all Indebtedness for such loan be Cancelled.
1t is further prayed that all sums wrongfully
paid to any member of the company be recov-
cred. and that the ability of the directors for the
assets of the company and their doings aforesaid
be enforced.