The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-04
IN a RECEIVERS HANDS
MUTUAL LIFE INSURANCE COMPANY
OF INDIANA FINDS TROUBLE.
Question as to Whether It's Acts Were
Legal Prompts 1t to Take Shell
ter in the Courts.

At $50 o'clock yesterday evening the Mu-
tual Life Insurance Company of Indiana,
with offices in the Lemcke building, this
city, passed into the hands of a receiver.
The action was taken in Room 2, Superior
Court, Judge Harvey naming the Union
Trust Company as receiver to take charge
of the assets of the company.
The suit for receiver was brought by Will
liam r. Myers, president of the company,
who was represented in court by Attorney
Albert j. Beveridge. The other officers and
directors of the company were present,
being represented by Attorney John c.
Green, who filed an answer admitting the
allegations of the complaint and recon-
mending that the receivership be created.
John II. Holiday, of the Union Trust Com
pany, was also in court and accepted the
trust.
The Mutual Life Insurance Company of
Indiana was organized in 1882 under the act
passed by the Legislature of 1865, authoriz-
ing the incorporation Of mutual life in
surance companies. The complaint filed by
the president of the company shows that
the i~ncorpOrators. acting on the theory
that the organizers of the company should
be the owners of the concern inserted q
clause to this effect in the articles OF in
corporation and proceeded in good faith to
do a regular life insurance business. 1t
was set out in the application for receiver
that the Legislature in 1893 to
pass an act which would legalize the in
corporation of the company and make legal
all previous action of its officers and di-
rectors. This adtionjof the Legislature, 1t
is averred, was attempted because of an
act of 1888 passed by the Legislature Great
ing assessment companies. The question
had been raised, 1t is claimed, as 10
whether the act Of 1883 did not repeal the
act of 1865. In orderltO dispose of this ques-
ton the Legislature passed the act OF 1873.
The complaint for receiver men SHOWS
that soon after the act of 1873 the oiflcerS
of the Mutual Life divided the FRANCHISE
and property of the company into seventy
two shares and issued certificates Of stock
to each. Recently, 1t appears IN the com
plant, the question was raised as to the
legality of the action of the original in
cOrporators or the company and the Of
ficers consulted counsel They were ad-
Vised, it seems, that some doubt did exist
as to the legality Of the original action, be-
cause it violated that part of the Constitu-
ton of the State of Indiana provldlng that
legislation by special act shall create no
private corporations except banking. A Few
days ago the officers and directors OF the
company held a meeting and discussed the
questions raised at length. Yesterday w.
r. Myers, president of the company, de-
clined to continue the business and refused
to permit the clerks to open the mail. An
other conference resulted IN the recelHer-
ship which was created last night. The
Union Trust Company will take entire
charge of the cDmpanY'S assets, which Will
aggregate something like, $lO9l0l0O after sal
aries and expenses are palq; tlhe oIIceTS OF
the company aregS W.tR. Myers, president;
Denton s.. B~illiHgslys vice president; Henry
Malpas, secretary,
The application for receiver does not
state the amount of assets. but it is assert
ed that the policy holders will be paid in
fun. The officers and directors of the
company claim they have never drawn a
dollar aside from their salaries; The state
ment of the company in 1894 shows it had
on hand 1886, 505.2 of assets and $l66, 1893
liabilities. g
All those interested in the company will
be furnished with Information desired by
communicating with the Union Trust Com
pany.