The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-03

His Testimony Given In the Proceed
ing Begun Yesterday Before
Judge Otis, in Which the State
Asks Receiver for the st. Paul
COncern-G. A. VandcrsIuis Gives
Expert Testimony.
1t was stated by Assistant Attorney
General Edgerton yesterday, in the
nearing IN special term before Judge
GUS OF the case Of the state VS.. the
Lfre insurance Clearing company. that
IL was the purpose Of the state to show.
II possible, that T. B. Scott, who has
peen prominently identified with the
association. was directing the affairs
OF the company in such way that the.
policy holders would surrender their
poucles or let them lapse. to the detri-
ment OF the stockholders generally and
the holders Of policies.
IT was expected that the usual course
would be followed in special term cases
and that affidavits would be submitted
on the part of the defendants in the
protest against the demand of the state
insurance commissioner that a receiver
De appointed for the company. The
state explained that this course was NOT
followed because the people whom r.
proposed to examine were office holders
IN the defendant company, and it was
desirable to put two of them at least
on the stand. They were Mr.. Hill and
Mr.. Sergeant. Afhdavits would be sub
united from other persons interested.
The court announced that it would
near the case and give up Monday to
followed as far as possible
Nearly all Of yesterday was taken I'D
by the attorneys in arguing technical
and complicated points of law. The
state was represented by ATTORNEY
General Childs and Assistant Edgerton.
Inc defendants attorneys are Messrs.
Mum and Thygeson., r. B. Scott was
present during the hearing
Assistant Attorney General Edgertor
stated the case for the state and told
what he expected to show as ground
Tor the asking for a receiver He con-
tended that the best interests of the
policy holders and stockholders would
be subserved by such action; that the
reports OF the company to the insur-
ance commission did not show the ac-
tual condition of the company at the
time Of filing the last report and that
interested parties were using the COM
pany for their personal gain.
1t was nearly noon before the first
witness of the Gay was put on the
stand. His evidence showed that he
had put upwards of $500 into the con-
Germ and had been induced to surrender
his policy for the sum Of $40. The wit
ness was Michael r. Farrell, a clerk
In the postoffice, living at Alt Winslow
street. His testimony in full follows:
How long were you policy holder of
this company"
give yearssand a half"
"How much did you pay into the COM
pany during that timer"
"s514.80"
"Haye you surrendered your policy to the
company"
81 have"
state to the court how you came to sur
render it, and when"
Objected to as immaterial and incompe-
tent.
Objection overruled. Exception by de-
PENDANT.
ION the 18th day of December my last
time, 1 believe, investigation was being had
by the state, or insurance commissioner,
rather and 1 called with my money to pay
the premium, and l asked Mr.. Sargent
coming out and I told him l didn't wish
to pay this premium unless I found the
thing was safe. He suggested that l give a
note for sixty days, pending the investi-
cation. gave a note for the premium, sixty.
days, which became due on the 18th of Feb
ruary-which was due on the 18th of Feb
ruary. On the 18th of February, 1 think it
was, l called with the money to pick up
that note, and asked him some more ques-
lions regarding the standing and outcome
and his opinion what he thought best to do.
l told him at the same time l understood the
company was paying cash-surrender values
on some policies. He then stated that there
was two policies then that came in that
were entitled to $500 cash. of insurance.
"Paid-up insurance." asked Mr. Mum.
"Paid-up Insurance. continued the wit
ness, that they agreed to settle for $100. 1
then asked him what he would allow me