New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-25
MAY BE SUED FOR LOSSES.
ON BOND OF TRUSTEES.
Action Against Aetna Indemnity
Com pany Hinted At.


Company believe It can be shown that the
IEtna Indemnity Company has forfeited its bond
of S250O00 guaranteeing Chief Deputy Customs
Collector Henry L. Swords and John H. Russell
as trustees was the intimation given by one Of
the lawyers interested in the case to a Tribune
reporter last night. II 1t Is shown that the trus-
tees have not sufficient collateral TO secure 100
per cent of the bonds. it is considered probable
that in certain other contingencies an action
will be brought against the Actna company for
this amount.
In view of the probability that the IEtna COM
pany's bond was with the Globe Security Com
pany. and that any forfeit would fall 10 the
Globe companys creditors. the order signed by
Judge Thomas on Saturday. to show cause why
the proceedings appointing James Mckeen re-
cever for the New-YOrk creditors should
not be vacated. as Receiver Black had
been appointed by the Jersey court. is of In
terest. The fact that B. Michael, whose firm
obtained a sherlff's attachment against the
Globe Security Company; Colonel Swords, who
made the application for receiver. and Frank
J. Higgins who. on behalf of three creditors.
filed involuntary petition in bankruptcy IN
New-Jersey, and is counsel for Receiver Black,
were all three directors IN the company, caused
considerable comment. In his testimony before
United States Commissioner Alexander on
Saturday Colonel Swords admitted the taking
Of the bonds to New-Jersey.
The full list Of the directorate. together with
facsimiles Of nineteen letters used by the
Globe Security Company as references. also
came TO light. the prominent names and insti-
tutions which figure IN the references provoking
no little establishment and perplexity among
business men in this city.
one OF these letters purports 20 be on the
letterhead of and to have the signatures Of
Howard Maxwell. president OF the Borough
Bank OF Brooklyn. and is dated March 3. 1905
Referring to the Globe Security Company. this
letter says in part:
believe that they are unusually capable n their
securities
Another letter is from George W. Adams
cashier OF the Oriental National Bank. Nos. 1872
ISL Broadway. Of which Richard w Jones' IT..
is president and is dated January 10 1904 1t
saws. in part:
To whom It may concern:
Mr.. William Murhead. OF the Globe Security Com
pany. for the last three years. His dealings with
consider him a gentleman OF good business judg-
ment and high character
Another dated June IL. 1908. purports TO be
signed by Henry p. Mckinney. Of the firm OF
Macintosh. Taft & McKenney. of No. 80 Leon
ard-st- this city. and No. 80 Franklin-st.. Bos
ton. The letter says:
curity Company OF New-York who are issuing
gold investment bonds. beg TO say that after per
everything claimed BY the company is fully cor
roborated
Colonel Swords, who was at time attached
to the District Attorneys office and Sergeant
alarms Of the Republican State Committee. is
quoted as contributing the following under date
| of May 3. 1908:
In answer to your inquiry. concerning the Globe
| Security Company OF New York. beg TO inform
of for the bonds they issue. and have
been acting m sucls capacity since January l. 1893
full and thorough Investigation of the business of
| the company. the character and standing Of It's
/ bonds. and entirely satisfied with the manage
associate trustee, John II. Russell and myself are
| perfectly good for the bonds they issue against
! The company's officers and directors are ener-
! responsibility. and my ASSOCIATION with them has
fully convinced me OF their ability and intesrity.
bonds to you Il first class y No. l investment
| Harvey s. Bush. Port Huron, Mich special
! agent OF the New-York Life December T.
| 1888: Il. y. Latting, of Grand Ledge. Mich.
| CMarch l.. 1903; Edward s. Jameson. OF Ma
rine City. Mich april 6. 1909: Horace \ Hig-
! bic. of Rochester and WeHsviIIe y. Y. March
| 2S. 1909: -. Clark Ralph. Of Buffalo, general
| agent Of the Eastern Department of the Pa
cidc Mutual Life Insurance Company of Cali
| fornIa March 81. 1893; L. ogden wad-
| leigh. Of Syracuse (April 1. 1903: F. w
Bush, OF Penn Yam. n. Y. March II. 1909:
Charles d. Parker. of Syracuse March %, 1903;
| Franklin Edgerton. Of Binghamton ((NIarch 20.
| 1903; George S. Hummel. Of Reading Penn
! (Bismyer Building. Reading. Penn, March %
! 1853; .. NJ. Nilsson. OF the First National Bank.
Mortoursville. Penn. December |, 1909; Charles
| l.. Doyle. of the Etome Savings Bank Marine
: city, Mich. December %. 1909. and several
others wrote letters, il is alleged. indorsng the
\ Globe Security Company.
These letters entitled Our References" fast
ened together and bound In green and gold were
| circulated extensively throughout the country.
In a talk with Tribune reporter last night
one time had account with his bank but that
/ it had been withdrawn He denied that at the
present time either David Rothschnd the Fed
eral Bank or the Globe Security Company held
any paper of the Oriental Bank or of his own
and vice versa.
He admitted that he had recommended David
| Rothschild 10 the Surrogate administrator of
! the Weissel estate. which has figured in the
/ Federal Bank collapse.
/ Mr. Rothschid came to me recommended by
| reputable bankers. and had reason TO be-
| Ieve him otherwise than he appeared" said Mr..
/ Jones.
Alexander Mcdonald. director of the bank
| denied any dealings with ROthschild. expressed
| implicit confidence in Mr.. Jones, and declared
/ that Mr.. ROthschild came To MIR. Jones recon-
mended by certain prominent Cincinnati bank
/ ers, who declared that, although a bankrupt, he
! had paid them in full
Any action against the <Etna Indemnity Com