Omaha daily bee., 1896-03-08
HAS NO STANDING IN COURT
Auditor Moore Ruled Out Of the Omaha
Fire Insurance Company Case.
POSITION TAKEN BY JUDGE POWELL
Any Policy Holder for Himself or
Others Might Intervcne-Direc-
tions Given TO the Receiver
Some OF the Testimony.

The hearing on the petition Of State Aud
itor Eugene Moore for leave to intervene on
behalf of the policy holders in the case of
E. L. Stone against the Omaha Fire Insur.
ance company, a case brought to wind up the
business of the company, was held before
Judge Powell yesterday afternoon.
The afidavits of Auditor Moore and his
expert examiner. Frank H.. Wilson, in sup
port OF the application to intervene, as well
as the answer of Receiver Gannett. have
been published in The Bee. Another affi-
davit by Examiner Wilson was presented to
the court. in which 1t was stated that sss
examiner had found that the amount of the
outstanding business Of the company, which
was alive" amounted to about 81, 1000 900,
the cost of which, to reinsure, was stimated
at about ST.. 900. The. cash value of the
assets of the company was estimated at
$65 900 or S67, 900, and the total liabilities
at $27 600 or $2s, 900, including the cost of re-
insuring.
The attorney for the receiver and the
company attacked the accuracy of Wilson's
figures, informing the court that the notes
given in payment for stock, some of which
contained the names Of prominent business
men as signers or endorsers. were outlawed.
being demand notes made in 1889, and never
presented for payment. The checks which
Examiner Wilson included in his figures of
assets, the attorney stated, we're given by
some of the stockholders as leans In order
to strengthen the reserve fund on account
OF the heavy losses. These checks were
deposited in the banks for collection, and
at least one of them was returned marked
payment refused for want of funds" The
stocks included in the examiners list of as
sets were also loans by the stockholders, ac-
cording to the attorney. Some of the stock
was good and part Of it was worthless.
When the attorney had gone through the
list of assets in this manner there was very
little LEFT.
The affidavit Of Receiver Gannett was in.
troduced on the part of the company, in
which it was stated that the total assets oil
the company were $64 $50, and the liabilities
$40, 634. 30. The cost to reinsure the live
risks of the company was placed at 1884, 900.
Auditor Moore was subjected to a severe
process of cross-questioning in an attempt tC
show some Interior motive in the interest o.
some other insurance company, on the par
Of the auditor. He testified that he wa!
requested by not less than $50 policy bold
ers in the Omaha company to intervene il
some way and protect their interests, blu
was not influenced in any way by the agen
of any other company. He pronounced thu
plan of the receiver a scheme to scalp tn
policy holders and leave them at the mere,
of the agents of other companies. He wa
certain, from Investigations he had made
that the live business Of the Omaha com
pany would be rewritten by other com
panles winch would be willing to take an as
signment Of the return premiums and fl
them with the other creditors of the com
pany.. taking their chances pro rata wit
other creditors.
Examiner Wilson created something of
: sensation by saying that he discovered anon
the alleged assets of the company severa
forged notes, which were turned in byathre
agents of the company for premiums. H
said he asked the bookkeeper of the com
pany about these notes and the bookkeepe
said that they had not been charged off III
books because the business wouldn't wal
, rant it," "
The case was argued briefly, after whic
+. the court ruled against the application c
the auditor, the court remarking that tn
company was in court and there was no. la
authorizing the auditor to intervene in sue
!, a case. Any policy holder would be Above
TO. intervene for himself or other polio
holders, but the auditor could have no stant
ing in court in such a case. An order wa
made directing the receiver to ask for bid
from other companies for reinsuring tn
live risks Of the company, the bids to b
filed in court. the condition of the bid
to be that the companies rewriting tn
insurance file their claims with other cred
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