New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-09-27
SUITS AGAINST DIRECTORS
A LESSON TO GOOD MEN WHO LEND
THEIR NAMES CARELEssLY.

WERE TRUsTED-How SENATOR DEPEw-
WAS DRAWN INTO THE TRADERS.
INSURANCE COMPANY.
0rlHnal and civil suits are to be brought
against the officers and directors Of the Traders
insurance Company. formerly at No 33 Liberty
ST. which went into a receivers hands in Au-
gust last, and whose accounts, according to the
0tate Insurance Department, were grossly fasi-
hed. District Attorney Gardiner yesterday af-
ternoon received the papers charging the Off
clals OF the company with violations of the
Penal Code and he declared last night that he
and his assistants would probe the scandal to
the bottom
Cardoza & Nathan, counsel for the L. D. Gar
Ielr company, insurance brokers at No. 80 Lib
erty-st., have prepared the complaints in more
than a dozen different actions to be brought
against Senator Chauncey NJ. Depew, John
Jacob Astor, General Benjamin F. Tracy Levi
+. Morton. James A. Roberts. w. f. D. Stokes.
D. Seaver Page, President William A. Halsey
and Secretary Theodore Sutro. and other direc-
tors of the Traders company
When the company went into liquidation in
June last, the L. D. Garrett Company contracted
II Is said, to pay $4,000 for the old business col
Iect outstanding accounts and settle the claims
OF the agents. 1t was at that time that the
business of the Traders was largely taken over
by the North British Mercantile Company. of
thls city. Senator Depew, ]. Seaver Page and
u d Appleton assert that they were induced to
go into the Traders company by a newspaper
man, director in the company. The only news
paper man in the company is c. w. McMurran,
OF Hightstown n. J., who it is said, is a New
Jersey correspondent of 1.-The New-Yorl1 World "
me only trace of McMurran obtainabIe yester-
Gay was the following card on the empty rooms
formerly occupied by the Traders Insurance
Company at No. SO Liberty-st
Please Put Mail for
c. ". MMURRAN
in This Door.
The janitor in charge Of the premises said
that Mr.. AIcMurran came every day for his
mail, but did not stay long
The complaint in some of the civil actions will
charge that S90,0OO was taken from the treasury
OF the old Traders Lloyds before it was merged
with the Traders Insurance Company, and that
certain directors personally received portions of
this money, which rightfully belonged in the
treasury as the Traders company after taking
over the Traders Loyds, was practically in
solvent
Frederick j. Stimson. of No. % Liberty-st
counsel for William A. Halsey. president of the
defunct Traders company, said that his client
IL
room Mr.. Sutro, the secretary. was reported to
be at Blanchford. Mass.
UNABLE TO LEARN DIRECTORS NAMES
One Of the singular features of the situation Is
that r. S. Johnson, of No. 40 Pine-st counsel
for the receiver Harry A. Hanbury. has not as
yet been able TO ascertain definitely who the di-
rectors Of the wrecked company were at the
time it went into the hands of the receiver. Mr.
Mitchell, Mr.. Johnsons associate was asked
by Tribune reporter yesterday to permit
brief inspection of the minute book, in order to
determine the names of the directors
"As matter of fact said Mr.. Mitchell, we
ourselves don't know who they are, and we can
not allow an inspection of the book There
were two or three meetings just before the con-
cern collapsed. nearly we can make out.
At the first of these meetings there were turned
in several designations. Certain were
elected in place of those who resigned. At the
following meeticg the newly elected directors re-
signed. and the old directors, who had
withdrawn before, were put back. Then there
were more designations" added Mr.. Mitchell.
with a quiet smile, and that is why it is not at
all clear to who the directors at the time of
the receivership really were"
On some of the later policies issued by the
Traders company the following appeared di-
rectors Benjamin T. Tracy, George A. Helme
Warner Miller, Levi P. Morton. James a. Rob
erts Howard Gould. Edwin Could W. z. D.
Stokes J. Seaver Page, Theodore K. Pembroke
J. Jennings McConb, John Jacob Astor. Will
lam T Baker, Chauncey NJ Depew, William A
Halsey. E, s. Sutro, D. Sydney Appleton, John
S. Silvers. Charles w. McMurran. Theodore
Sutro. James G. Beemer. Frederick Booss John
p. Simpson, G. W. Gail, ]. B. Duke, William A.
Clark. William T. Wardwell, Frederick Sayles
and Sheffield Phelps.
]. sEAvER PAGES STATEMENT.
I Seaver Page, a member Of the Executive
Committee and also Of the Finance Committee
Of the Traders Company. made the following
statement yesterday to representative Of The
Associated Press:
I'VE are in the dark as much as any one. We
trusted the managers of the concern, and we
s,e-ned the reports submitted to us by them be-
cause we believed them to be all right"
But L. D. Garrett says that he informed you
that there was not sufficient money in the con-
Germ 10 pay its Indebtedness on June last,
nrfor to the appointment Of the receiver. How
do you explain that?
You have struck the keynote of the whole
affair" said Mr.. Page. Mr.. Garrett is at the
1o++oro Of the whole business. Last June Mr..
Garrett after a thorough examination of the
hooks of the concern. offered to buy the stock Of
tba COMPANY for % cents on the dollar. He
a,a7.e the concern a check for $4,000 He is
s,,nnosed 10 be a shrewd business man. and IT is
eunnosed he knew what he doing at the
.,roo IN buving II. Some Of the Board of Direc-
tors thought at the time that the concern was
I,11tfh fha1rf DaIl lV