The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-10
Hrs. DevIin's Claim to Life In
surance DisalIowed.
n II. LOOmis, Referee, Says She
Waived Her Interest.
BIG sum INVOLVED.
Asked for S62O,OOO Paid to
First National DepositOrs.
Supposed Than Appeal From
Decision viii Be Taken.

The claim of S620,661.42 against the
DevIin estate brought by Mrs. c. J.
Devlin has been disallowed by n. H.
Loomis. special referee.
The amount of the claim is the
equivalent of the life insurance turn
ed over by c. J. Devlin with the con-
sent of Mrs. Devlin, beneficiary. to the
receiver of the First National bank as
collateral security
Upon the death of Mr. Devlin the
receiver of the First National collect
ed the above named amount of insur-
ance and applied it in nquidating the
affairs of the bank, large portion of it
going as the first dividend of 55 per
cent paid by the receiver to the cred
itors on the first of January, 1906
On June Is Mrs Devlin filed claim
with the referee against the estate Tor
the amount of the insurance. A Drlel
argument was heard later before N. II.
Loomis. referee, who this morning
renders his opinion, dlsalloWing the
claim in no uncertain terms
The order dasaHowing the claim viii
be entered in the United States district
court but there Is every belief that an
appeal Will be taken ana the case
fought out before Judge pollock
news for Mrs. Devlin. it Is claimed, viii
contest the disallowance to the bitter
The opinion says: "The claim is
based upon the fact that during the
month Of June 1905, as beneficiary,
Mrs. Devlin Joined her husband In an
assignment of certain insurance poll
cies to the First National bank for the
purpose Of securing a large amount OF
Indebtedness owing by the said C. j.
Devlin to the said bank. After me
death of c. J. Devlin on October 81,
1905 the proceeds of said insurance
policies amounting to $500, ,661-42 We're
appropriated by the bank and credited
upon its claims against the said @ j.
Devlin Mrs Devlfn bases her claim
against the estate of her husband
upon the theory that her action in as
signing her interest IN said policies of
insurance to said bark benefited the
estate of her husband 10 the extent OF
the amounts collected by the receiver
of the First National upon the insur-
ance policies and credited upon the
claims of the bank against the said c.
J. Devlin.
"The referee is of the opinion that
the action of the claimant amounted
in said policies for the purpose Of en-
abling her husband to sustain his cred
it and financial standing without any
expectation or intention of making
claim against her husband or her hus-
bands estate therefore. Her husband
filed a petition in voluntarily bank
ruptcy upon July Z, 1905. and at the
time she Joined in the assignment OF
the insurance policies the failure of
! her husband must have seemed fnmln-
ent The moral effect Of assigning
more than 100000 of life insurance
must have appeared potent. The ten
dency of it was to allay suspicious and
/ bolster up the waning financial stand
/ ing of her husband. The moral effect
would have been entirely destroyed II
4 it had been given out. or if it had been
1 imagined that Mrs. Devlin intended to
recoup herself by making claim
/ against her husband or her husband s
| estate for any amounts which the bank
might realize upon the policies.
Furthermore the inability to keep ur
/ the premiums may not under the cir
| curnstances have appeared SO bright
/ and the surrender of what as a matter
of fact was a mere expectancy, requir-
! ing the annual payment of large sums
to keep alive, may not at the time have
appeared to be such a great sacrifice
At any rate the referee is of the opin-
ion that it is not a claim which should
be allowed, either legally or morally
and formal order of disallowance wi
be entered"
ITS just the same as if you gave
some property and then tried to take Il
back said Mr. Loomis discussing the
order II have no doubt but the case
will be appealed. After making this
bluff they would not stop here