Evening star., 1897-02-09
A FAMILIAR CASE REVIVED
Affairs Of the Washington Beneficial Endow-
ment Association in Court.
Hearing of the Suit of the Receiver
of the Commercial Alliance Life
IhsuraAce Company.

The Court of Appeals met today, after
to consider the case of VIM. T Gilbert re-
oeiver Of the Commercial Alliance Life In
surance Company of New York against
the Washington Beneficial Endowment AS
sociation of this city and others. The hear
Ing will probably be concluded tomorrow.
The local association, it will be recalled,
was Incorporated in April. 1877. with a
capital stock of $4,000. which was subse-
quently increased to $2O.O0. Until August
o. 1894. it conducted its business when the
New York company succeeded to its busi-
ness. under a deed from President Law
renee Gardner. the transfer, for the nom-
inal sum of SO. including even the real
estate of the local concern. said to have
then been worth $35.OOO. At the date of the
transfer the Washington association was
indebted to beneficiaries in sum of more
than $4,000. besides existing certificates of
endowment amounting to more than S2,ONo-
600. of which the New York company was
aware.
Details of the Transfer.
At the time of the transfer $4,000 was
paid by the New York company to Pres-
dent Gardner for the purpose of paying
all the persons holding shares of stock in
the local association, and no other sum.
The trustees of the Washington association
had no knowledge of and took no part in
the transaction. Neither did the stock hold
ers KNOW or consent to sell the said prop
erty. Living certificate holders August 81,
1894. instituted proceedings, praying for
a receiver. an accounting, etc, claim
ing that the transaction was a fraud
upon their rights, and that the as
the local association instituted pro-
ceedinss against the New York COM
pany. claiming that the latter concern had
willfully, falsely and fraudulently repre-
sented its ability to assume the business of
the Washington association and carry out
its obligations falsely saying that it Uhe
Alliance Company had $20,OO0.oW of in
surance in force, with assets of over $50
600 and a net reserve of S2OO.ooO
Other Proceedings Instituted.
Heirs of deceased certificate holders also
instituted proceedings against both
Germs, claiming that the unpaid certificates
were liens on the assets, receivers having
meantime been appointed for both asso-
Citations. Judgment creditors of the local
association also sued.
The 9th of last June, sale CT the Wash
fnSton associations real estate having been
previously made. Judge Cox. all the suits
having been consolidated set aside the
deed of transfer to the Alliance Company
deciding that the sale of the proceeds OF
the sale of the real estate about S22,tsw
should be subjected to the payment of the
claimants. He therefore referred the cause
to the auditor of the court to report upon
the rights of the various claimants.
Meantime the receiver of the New York
company had claimed that receiver he
was entitled to the return of the Sl4Vn
which his company had paid to President
Gardner. Therefore he appealed from the
decision of Judge Cox. and on that appeal
the Court of Appeals today considered the
case. Attorneys Henry ID. Hotchkiss of
New York and'Thos. NJ. Fields represented
Receiver Gilbert. Messrs. Samuel F. Phil
Fps, A a. Lipscomb, Philip Walker Padg-
EFT II Forrest, o. 3. Hallam and Edwards
d Barnard appearing on behalf of the other
side ~ 0N'