The Washington times., 1894-10-07
FRAUD PRACTICED UPON HIM
Lawrence Gardner Sues the CONNER
ciaI Alliance Insurance Company.
HE CLAIMS TO BE DECEIVED
He Asks for Decree Annulling the Transfer
of the Washington Beneficial Endowment
Association Property, for an Injunction
Upon Interference, and for Receiver.

Mr.. Lawrence Gardner, formally and
gracefully acknowledged yesterday that he
had been deceived in the trade with the Com
mercial Alliance Life Insurance Company of
New York. This recognition came as suit
by the Washington Beneficial Endowment
Association upon bill sworn to by Mr..
Gardner Its president, for the revocation of
the transfer Of property made in that trans
action.
A decree annulling the transfer of proper
ty and the real estate deed, and directing
that the real estate be conveyed to the En-
dowment Association is asked, as also an jim
junction restraining the Commercial Alliance
from interfering with the business or per-
sonal property of the Endowment Association
and receiver to take charge of its business
and collect rents and profits while settle
ment of its affairs is pending.
The bill says the Washington Beneficial
Endowment Association was incorporated on
April 2, 1877, to carry on life insurance bus
mess here and elsewhere under the assess
ment plan. Copies of the articles of incor-
poration and its certificate are fled as exhib-
its. Prior TO August the Commercial ALI
ance, through its agent, began negotiations
for the purchase of the endowment associa-
tons business and its building, No. 4l9
Tenth street northwest. valued at S35, 600
On August an agreement was entered into.
THE SOLE CONSIDERATION.
The defendant agreed as a sole considera-
tion for the sale that in place OF the Endow-
ment Association certificates it would issue to
aach of tbat oro,anj7a+ionfe yol;cy boIdare n
policy for an amount equal that guaranteed
by the Endowment Association, and 10 keep
the holder SO insured as long as he paid to
the Commercial Alliance the sum required ac-
cording to the terms of an insurance policy
issued by the Commercial Alliance. copy OF
which is filed as an exhibit. These policies
were to be issued to all the certiflcate-hoders
of the Endowment Association without re-
quirement OF new medical examination. At
the death OF such policy-holder he was to
receive the full amount stated in his policy.
1t was agreed that the Commercial Alliance
should hold the real estate of the Endowment
Association in trust for the benehciaries
named in the policies issued to certificate
holders of the Endowment Association.
Under the bylaws OF the association its GER
tifcates constituted a lien upon this real es-
tate. and the new policies were to have the
same effect. In order to secure this agreement
the bill states the Commercial Alliance,
through its agent, falsely ana fraudulently
represented that it was New York organiza-
ton, duly created, perfectly solvent, and in
no way derelict under the insurance laws of
New York; further that il had $50 600, 900 of
insurance in force, S350.0OO of assets, and
$500 900 as net reserve fund from which to
pay policy holders.
IT WAS NOT SOLVENT.
On the other hand the facts were that the
Commercial Alliance had no such an amount
of insurance in force; had not $3.50, 900 assets
nor S2O0, 600 reserve; it was not solvent; it
was derelict under New York insurance laws;
its capital stock was exhausted, and it had
no assets in excess of liabilities Its fnan-
cial condition would not admit of its filling
its engagement with the Endowment Associ-
alton. For the exchange of policies and $40
the real estate had been decided TO the Com
mercial Alliance, but the important consider
alton had utterly failed. and the real estate
ought to be Immediately reconveyed. A. A.
Lipscomb appears as attorney for the associ-
alton.
Mr.. Simon Wolf, who was president of the
committee of nine appointed by policy-hold-
ers of the Endowment Association 10 take
measures to prevent the contamination of Mr.
Gardner's deal with the New York company.
was asked last night for his opinion upon this
latest phase of the matter. Mr.. Wolf said he
had not considered the matter and declined
to speak for publication.