Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-10-06
\ E CH AR G IS FRAUD
Mr.. Gardner's Bill Against the Commercial
Alliance Company.
Says the New Workers Concealed the
Condition of Their Affairs-Wants
the Transfer Set Aside.

The affairs of the Washington Beneficial
Endowment Association were formally
brought into court this afternoon, when the
association. by IT'S president, Mr.. Lawrence
Gardner. filed bill in equity against the
Commercial Alliance Life Insurance Com
pany of New York. praying for a decree an
nulling the transfer last August of the
property and business of the complainant
to the defendant; for an injunction restrain
ing the defendant from interfering with the
same; for the appointment of a receiver.
and for such other relief as the court may
deem proper In the premises.
Tie bill of the complainant is quite volum-
inous. and sets forth that 1t is a District
corporation, " hile the Geferoant is one or
ganized under the laws of the state of New
York, but having an agent and place of
business here. After detailing it's incorpora-
tion here. April 2, 1877 and the mode of
conducting its business under the ASSESS
ment plan of life insurance the complaint
ant states that prior to August .. 1894. the
Defendant negotiated for the purchase from
the complainant of it's business and good
will thereof. and all the personal and real
estate owned by it at that time, the real es-
tate being 419 10th street, worth $SJ,UU
That August ., 1884, so says the conf
pia1nant. the agreement for such transfer
was made the consideration being that the
Defendant would, in lieu OF the certificates
OA Shdo"Hici by the complainant,
issue to each of the holders thereof a poi-
Icy of insurance by the defendant equal to
the sum agreed to by the plaintiff to be
paid TO the beneficiary named in the certit-
cate OF endowment, and to keep the person
so insured SO long he paid to the de-
PENDANT the sum required by the terms of
the endowment certificate, the policies of
the defendant to be substituted for endow-
ment certihcates without regard to the age
OF the holders Of the endowment certifi-
Gates and without new medical examina-
ton.
AS further consideration, explains the
complainant, the defendant agreed to hold
the real estate in trust subject to the claims
of all the beneficiarieS named in the certifi-
Gates of endowment, and would keep and
operate a place of business here for the
purpose of keeping insured and protected
the rights of all such certificate holders
The bill of complaint then goes on to
state that the defendant, in order to pro-
cure such transfers, and with an intent to
cheat and defraud the complainant. will
fully, falsely and fraudulently represente ted
that it Ghe defendanD was duly created
insurance company, perfectly solvent, and
in no way derelict under the insurance laws
of New York, with assets vastly in excess
of its liabilities. perfectly sound, financially,
having $20.UDWO of insurance in force,
SlS.008 and over. and that its net reserve
for policy holders amounted to over s2O0.OW.
At the time the defendant made such
representa- tionS, charges the complainant,
II was not peri. city solvent: 1t was derelict
under the New York Insurance laws: it had
exhausted it's capital stock; the other mat
ters set forth by it as true We're in fact,
not true and its financial condition did not
admit of its fulfilling its Ghe defendants)
terms of agreement. "as." says the COM
plainant. the defendant well knew and
fraudulently concealed
b. means Of such false and fraudulent
representations, continues the bill of COM
plaint, the complainant was induced to make
the transfers above mentioned. And, be-
cause no consideration was received there
for. the complainant contends that it is en-
titled to have the said transfer of said
business. goodwill. etc, and said deed of
said real estate set aside and declared null
and void. and said personal property, busi-
ness, goodwill and real estate reconveyed
to il Che Complainant) Therefore, the com
plainant prays as above stated.