The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-05
SERIOUS CHARGES MADE
MISAPPROPRIATION ALLEGED IN
THE MUTUAL LIES AFFAIRS.
Cross-COmpIaint Admitted in ReceIv-
ership Case-POlicy Holders to
Meet Next Tuesday.

A new complication arose in the affairs
of the Mutual Life Insurance Company of
Indiana yesterday morning which prom
ises to prolong the litigation. AS soon as it
became known that the company had gone
into the hands of a receiver, Attorneys Mer-
ril Moores and William r. Crawford, rep
resenting Sullivan NJ. Hillgoss. policy
holder, appeared in Room 2, Superior Court,
and asked permission to file a cross-com-
plant at the same time making Mr.. Hill
goss party defendant in his own behalf
and in behalf OF other policy holders.
Yesterday afternoon the court took up
the EIiligoss petition for consideration.
Attorney Albert j. Beverage, representing
the Union Trust Company as receiver, was
present with w. r. Myers and the other
officials of the insurance company. Attor-
ney Crawford stated the grounds on which
his client asked leave to file an intervening
petition. The cross-complaint denied he
said, the statement of the officers in re-
gard to the proposition that the incorpora-
tors or shareholders constitute the company
or in any way have right to control the
affairs of the company. 1t would be shown
that ever since the incorporation the Off
GERS. affairs and properties of the company
had been in the hands of the incorporators
as pretended shareholders and not members
as required by the act under which they
were incorporated. The attorney said it
would be shown that there had not been
a single meeting held required by law
of the members of the company; that the
cross-complainant Hilligoss sought the Of
fee of the company and demanded the priv
tlege of examining the records of the COM
pany and the list of policy holders, and in
fpy~ 4,1 NJ
he would call at any time convenient. 1t
would be alleged that the cross-complain-
ant last Saturday, together with his attor-
ney, visited the office of the company and
it was then agreed that the examination of
the records should be made in the COM
panys office Tuesday morning. May 4. 1t
would be shown that late Tuesday evening
the cross complainant, John c. Green one
OF the defendants, informed Mr.. Hilligoss
that he might examine the books, but
should not bring an expert.
The attorney went on to say that the
Charge would be made of collision and mis-
appropriation of funds They would aver
Inat w. II, myers, as president OF the COM
pany, went into conspiracy with direc-
tors and officers with knowledge of the
fact that the company was in no danger
OF becoming insolvent, for the purpose Of
Wrecking the company; that for the purpose
of inJurIng the rights of policy holders the
company under cover of darkness had the
mtted the solVency of the company but
believed the allegation in regard to the non
distribution of assets to be false. He said
the assertion that William r. Myers, as
president, received 1921 a month as salary
would be denounced as false; that his client
had been informed that the president re-
CelVed last month the sum of $l25 as salary,
but that the remaining $96 was monthly
dividend on twelve shares of stock. The
same would be alleged to be true of Henry
Malpas, secretary, who received $3.50 salary,
and of John G. Green, attorney for the COM
pany, Henry f. Barnes, medical director,
and Denton S. Billingsly, vice president
The attorney declared, further it would
be charged that the monthly dividends have
been running for over ten years at So and
board OF directors, annually re-eecting
themselves have received in the aggregate
nearly $4,000 by this method. However,
the attorney admitted his client had had
no opportunity to verify this charge but
he believed it was the intention of the pre-
tended officers to wind up the company 5
business and divide about $135, 900. A further
claim was made to the court that the plain
tiff Myers and the defendants Malpas,
Green, Barnes and Billingsly are acting as
directors or the company without any right,
are mere intruders in office and have appro-
prlated as such directors, large sums of
the assets without right In conclusion the
attorney declared his client would ask that
the order of the court creating a receiver
ship be revoked and that the defendants
be directed to call general meeting of the
policy holders to elect new officers.
Attorney Beveridge, acting for the Union
trust Company, and W. r. Myers resisted
the motion. He was not willing, he said
to have the cross-complaint of Mr.. Hill
goss filed until after the policy holders had
held a meeting. He claimed that Hilligoss
had been a policy holder but a few weeks
and that he had become identified with the
company for the purpose of harassing the
litigation. Hilligoss, the attorney contend
ed, had not acted in good faith and was
a party to a conspiracy with w. r. CraW-
ford, an attorney from Chicago. Hilligoss
obtained a policy on April or 5 and had
paid out $50 on it, Mr.. Beverage declared
that all rights were protected by the re-
ceiver who would determine the questions
of the misrepresentation of funds
Judge Harvey, after hearing the state
ments of the attorneys, said he would adj
ably be filed to-day. Monday argument on
the demurrer of the policy holders to the
original complaint for receiver will be heard
by the court. Next Tuesday a meeting of
policy holders will be held.