The morning call., 1891-10-09
AGAINST -" MUTUALS."
Crusade Upon Kind of Insur-
ance Company.
Prosecution of NJ C. Thielman in the District
Court-What the Government Proposes
to Show.

American Eagle Association and Secretary
and Treasurer Of the Eagle Insurance Com
pany and German Land and Cattle Com
pany, 1913 California; residence, Oakland"
Such is the address given in the directory
of NJ. c. Thielman, but the Government
proposes to divest him of part of his secre-
tary aud treasury ships by wiping out the
institutions which he has promoted and
which, the Government alleges, he uses for
fraudulent purposes.
To do this the Government has had him
indicted for misusing the mails, and the
case came up for trial yesterday in the
United States District Court before Judge
NJ orrow This is the Judges first criminal
case in his new position.
The Federal Grand Jury for the March
term, of which Robert Sherwood was fore
man, returned a true bill against Thielman,
containing three counts.
A SCHEME TO DEFRAUD.
The first count charges that NJ. G. Thlel-
man devised g scheme to defraud certain
persons and to be effected by opening CORE
spondence and communication with them,
and by distributing advertisements, elrcu-
lars, postal cards, ETC.. through the Post
office; also that on or before December l,
1855. c.. Z. Elliott, Z. b. OveracTe, George
w. Elliss, CARL Dahlgren and NJ. c. Thiel-
man formed and became corporation under
State laws, under the corporate name OF the
Eagle Insurance Society, claiming by its
laws and articles of incorporation that its
objects were to insure its members on the
mutual plan, and to find and give work to
its members In good standing, and to impose
the duty upon it's members Of protecting
each other.
Thielman and his fellow incorporators
then devised scheme OF membership so
that might DppOmp member OF
the incorporation and hold one or more
memberships. Every applicant was re-
quired TO pay at least $40 entrance Zee and
81 % monthly dues, all persons paying
the entrance fee and dues to be considered
in good standing and be entitled to single
membership.
Additional memberships were charged for
at the rate of So entrance fee and 81 %
monthly dues, and upon his admission TO
membership each person was gwen GER
tifcate of membership for each membership
applied for, all certificates issued being
numbered consecutiyely. The mberships
should not be limited; indeed. should be in
creased by every method possible.
DIsPosING OF THE MONEY.
OF the moneys paid in as entrance fee and
% cents for the monthly dues of each men--
beTship of $1,000 were to 60 to the General
Fund, from which all commissions and cur
rent expenses should be paid, the surplus to
go to the Reserve Fund The 81 of the
monthly dues was to be applied to the pur-
pose of paying off the certificates OF men,
berShip as they matured. which they we're
to do 10 the order of their Issuance. A fail
ure to pay one months dues was declared
enough to forfeit the membership and all
rights and privileges.
The Indictment under this count added:
The objects and purposes OF the said IN
corporation were impracticable
and impossible of performance, and con-
bod opti 70 afr md
the persons who might be induced to be-
come members thereof by obtaining moneys
from them as entrance fees and dues with
out consideration or benefits to such per-
sons, and was devised by the said Nj. c.
ThieIman, then and there well knowing
the said Incorporation should not
insure its members on the mutual plan, or
to find and give work TO its members or to
impose the duty upon its members to pro-
tect each other, and well knowing and
fraudulently intending and devlslng that
the purposes of the incorporation should be
impracticable and impossible of perform
ance."
EXHIBITS PRESENTED.
The other counts of the indictment pre-
sented receipts from the Eagle Insurance
Association to Lucy n. Justice and Frank
\. Rose for entrance fees and monthly
payment of dues; also copies of circulars
and advertisements sent to each through the
mail, and the accusation against Thielnan
was based on these exhibits and the show
ing in the first count that the Incorporation
was formed for fraudulent purposes.
Thielman was arrested on January 14th
on the strength of an indictment return ed
by the Federal Grand Jury for the NOvem-
Der term of the previous year, but the bill
was found faulty by District Attorney Gar
ter, who had tue March term Grand Jury
return another. Thielman was released on
$4,000 bonds, afterwaTd reduced to 5000.
When the called Yesterday H. e..
Van Ness appeared for the defense, and
Assistant United States District Attorney
Charles A. Shurtlif for the prosecution.
The impeachment of q jury was then pro-
ceeded with. and the entire morning was
spent impaneliDg the following jury:
Peter c. Oakley. 139 Kearny street; James
Higgins, 40 Sixth; L. Z. W. Miller Bella Vista
Hotel; a. NJ. Newmark, Second aud Bryant; Fred
X. Wiltram, 2lO Montgomery; Julius Plat
shek, 4IO Townsend; Charles &. Bush. Brook
Ign Hotel; A. c. Robinson, 337 Kearuy; George
Haas S24 Market; Benjamin +. Barton. 2l1
Sacramento; James c. Pennie Jr., 600 Walnut
avenue, and James Scott 4o5 Front street.
TESTIMONY TAKEN.
The afternoon session began with mo-
ton on the part of the Government that the
case go over day or two on account of the
Jewish holiday, many of the witnesses be-
ing Jews. But the defense protested. ana
the hearing proceeded.
G. Z. Elliott President of the Eagle In
surancc Association. was the first witness
called, and he said he thought the incorpo-
ration is founded on a sound basis, and he
had the utmost confidence in the probity
and ability of the defendant.
Mrs. a. l.. Newman, who had served in
Thieman's Office as a paper-fOlder and adj
dresser, was next called. The prosecution
wished to show by her that certain adver-
tisements had been sent from that Office,
and by her, hut it is very questionable
whether the jury will consider that point
settled by her.
The trial then went over until to-day 1t
will last several days before all the evidence
is In.