The Washington times., 1894-08-31
TAKEN INTO THE COURTS
Decision Relative to the Beneficial
Endowment Matter.
A RECEIVER PETITIoNED FOR
Robert Ball, Hannibal D. Norton, and Solo
mon J. Fague Are the Complainant
Charge Gardner With Having Plunged
the Association Into Insolvency.

| The committee Of nine. appointed by certif-
cate holders OF the Washington Beneficial Asso-
citation, to prosecute the inquiry into the recent
| transfer of the association to a New York con-
| cern, apparently got little satisfaction out OF
the statement coming grom President Lawrence
| Gardner, published in THE TIMES OF yesterday.
They held meeting at noon in the office OF
| Mr.. Wolf, the chairman The statement by Mr.
| Gardner was discussed, and the general feeling
| was that 1t explained nothing and made very
little difference in the relations of tho protest
| ing certiicate-holders. Letters from New York
| and Boston were shown, relative to the company
| to which the Endowment Association sharehold-
ers were to be transferred 1t is understood
they were of a character unfavorable to the
latter.
By vote H. o. Claughton, Simon Wolf and
w. j. Miller were appointed to prepare a state
ment TO the policy-holders whom this committee
represents This statement is intended TO fully
and accurately preseut what the committee has
done.
Two hours after this meeting adjourned the
bill in equity on the part of the stockholders,
sworn 10 by Robert Ball was hled
Mr.. Gardner was talking with gentleman on
the steps of the Shoreham at 10 o'clock last night
when a TIMES reporter called with a copy OF the
bill As the writing was unrolled before MIR.
Gardner's eyes he recoiled slightly and said:
mo, don't care TO read don't care any
thing aboutit-"
"You see what it is, Mr. Gardner"
Yes, saw partly. don't care 10 say any
thing
There is charge of fraud"
"Ohl that's nothing. / will not be drawn into
controversy over the matter"
TEXT OF THE PETITION.
The petition is as follows:
"In the supreme court of the District OF Co
lum bia, 29th day of August, 1898.
Robert Ball, Hannibal d. Norton, and Solo
mon j. Fague, complainants, vs. The Washing
ton Beneficial Endowment Association, Law
ronce Gardner, and the Commercial Alliance
Life Insurance Company, defendants:
ITO the supreme court of the District OF Co
lumbia holding an equity court
1.-The plaintiffs state as follows:
~. They are citizens OF the District Of Column
ba and bring this suit upon behalf of them
selves and of all other persons having life claims
who shall come in, contribute TO the expenses
thereof and make themselves parties TO the
defendants.
"Ths Washington Beneficial Endowment Asso-
ciation (Which is hereinafter termed the associa-
Iion) Is corporation created and organized
under the laws of the District Of Columbia and
having its office in the city OF Washington.
'2. The defendant, the Commercial Alliance
Life Insurance Company (Which hereinafter will
be termed the company is n corporation said 10
have been created and organized under the laws
OF the State Of New York and having its prin-
| cipal offices therein, but also having onice
within the said District
/
zen and resident of the said District
THE defendants are sued in this action on
| the grounds hereinafter set forth.
''3. The said association was duly Incorporated
! under the laws of the said District ON the 2d
day of April, 1877, for the purpose las out in
its certificate of Incorporation Of providing an
endowment fund TO pay TO the persons entitled
/ thereto upon the death Of the party named in
/ the certificate of endowment, with perpetual
/ existence and capital stock of $1,000, divided
/ into 200 shares OF S5G each. And thereupon the
J wa hp Y
! paid, the association duly organized and the
! business of life insurance entered upon in ac-
! cordance with its charter
~, Upon the 23d CT March, 1880, the stock
| holders of said association resolved to increase
Its capital stock so 900, and to extend its bus
/ mess 20 term endowment; and accordingly such
| additional shares were duly taken aud paid for.
SUCCESS OF THE ORGANIZATION.
"5 From tho date of its original organization
until the present month, as the plaintiffs are
informed and believe, the said association has
continued successfully to transact the business
! of life insurance upon the basis in part of an
endowment fund composed of its own incorpo-
rate property and in part of the proceeds of as
sessments made from time 10 time upon the
holders Of its certificates as usual in mutual in
surance companies In this way during the
seventeen years of its existence IL has received
| by assessments and otherwise and paid out on
account of debts of persons holding its certii-
| Gates more than million of dollars; and at the
time of the assignment, hereinafter stated, it
had accumulated an endowment fund consist
ing of property, both real and personal, to the
value of at least $4,000
80 Upon information and belief, majority
of the shares OF said capital stock which
heretofore were in the hands of many diff
srent persons within two or three years
last past have been acquired, the
amount of 261 shares or more, by the said Law
renee Gardner, and these continued to be held
by him until the time of the said assignment
In the same way, at the instance of said Gard
ner, and since his acquisition of majority of
the stock, many of the shares thereof-which,
when taken together with his own, constitute,
as plaintiffs are informed and believe, the whole
of said capital stock or very nearly so-have been
transferred by their former holders to the as
sociation itself and thus virtually to the said
Gardner.
az Also upon information and belief, in the due
course of its business from time to time since
1877, the said association has issued policies of
life insurance under the name of certificates of
endowment TO many thousands of persons, who
thereupon punctually made payment of cash
and executed notes in that connection re-
quired, and subsequently ever since have also
from time to time made payments of assess
ments when ordered, and in all other respects
have complied with their obligations under said
contract, and of these persons some 200 or
more are yet surviving, and holders as afore-
said.
IS The plaintiffs are three of the persons just
mentioned, and of them.
THE THREE PLAINTIFFS.
"Bobert Ball is insured by the said association
in the sum of 5000, and holds five certificates of
endowment for that amount in all, and issued
thereby from the year 1877 to the year 1884, being
dated accordingly. And that upon assessments
made upon him at various times, In respect OF
the same, he has paid in all about s. $50, with
out reckoning interest thereupon
Hannibal ID. Norton is insured in the same
way by the said association in the sum of s., 200,
for (which he holds like certificates, issued ac-
cordingly in the year 1S7 on account of which
he has been assessed from time to time, and has
paid in all several hundred dollars, without
reckoning interest; and
Solomon j. Fague in the sum of 81 900, with
like certificate issued June 20, 1881, and on
such account he has been assessed and has paid
several hundred dollars, not reckoning interest,
fully and punctually complied with their oblga-
tions in respect of such contract
"9. The operative parts Of the contract upCo
the part of the association by said certificates OF
endowment, emitting names, dates, amounts,
etc. respectively as follows: Now therefore
this certificate witnesses that in consideration
of the representations made TO said association,
etc, the Washington Beneficial Endowment
Association hereby agrees with (naming one of
| the plaintiffs, etc., to pay to (naming benef-
ciary) or their legal representatives the sum of
the death of (the plaintiff named as above) has
| been received and accepted by said association.
40. Further upon information and belief,
| about the 9th day of the present month, said
| defendant Lawrence Gardner, who at that time
| was, as aforesaid the sole stockholder in the
said association of his own will, and in con-
tempt of the rights of the plaintiffs against the
association, and without notice to them, and
without their knowledge or consent, after ne