The Washington herald., 1908-03-06
ASKS FOR RECEIVER
Grave Charges Are Brought
Against Treasurer Cave.
ROW IN AMERICAN HOME LIFE
NOder Accuses His FeIIOv-officiRl of
UsurpinE the Authority of other
Officers, OF Making Unauthorized
Expenditures. and of Paying Him
self Larger Salary Than Allowed.

IL a bill in equity. fled yesterday by
Secretary Charles T. Yoder, Of the Amer
lean Home Life Insurance Company, Of
this city. for receiver to take charge
Of and conduct the affairs OF the company,
serious charges are made against Gilbert
W. Cave, treasurer OF the company
Cave is accused OF usurping the powers
and rights of the other officers OF the
company. making unauthorized expendi-
tures. paying himself more than the sal
ary allowed him by the company, sc.
A rule was issued against the defendants
named to appear and show cause why
a receiver should not be appointed.
The suit is filed by Yoder. and names
Cave, James II. Cation, of Alexandria,
Va. assistant secretary. and James II.
Vernilya, president. as defendants. While
the latter is named as defendant, he is
acting. Il is understood with Yoder.
Cave Principal StOckholder.
Yoder sets forth that the company was
Incorporated in the District of Columbia
az June Q. 1886. with a capital stock OF
Sle.ooo, atterward reduced to 5000, and
later again. Increased To $4,000
According TO Secretary Yoder. he owns
160 shares. Treasurer Cave so. Assistant
Secretary Cation, 80, and President Yer
milya, 20 shares Of the capital stock OF
the company
Hoder charges that Treasurer Cave, own
ing a majority Of the shares of the COM
pany, has usurped the rights and powers
OF the other officers and directors. and has
exclusive and absolute control and pos
session OF all books. 1t is alleged by
the secretary that the books are kept IL
an irregular manner. Treasurer Cave
makes payments OF money not author
lied, says Yoder. and is indebted 10 the
company for more than $4,000. although
Treasurer Cave claims that the indebted
ness is between 5000 and 5000.
Money Not In Bank.
Secretary Yoder also charges that at a
meeting Of the officers OF the company.
held in August last. Treasurer Cave rep
resented that the company had on deposit
at the Columbia National Bank between
$4,000 and 5000. and on deposit in the
Washington Loan and Trust Company
about $3.50.
The secretary states that preceding this
meeting. accompanied by President Yer
milya, he visited both banks. and found
that the company had S4l0 in the first
named and SIC in the latter When con-
fronted with these facts at the meeting.
Secretary Yoder states. the treasurer ad-
mitted the latter sums represented tine
amount of money the company had on
deposit In the two banks. and promised
to make deposits within two weeks to
bring the totals up to the sums he had
stated TO the meeting were on deposit
The charge is made that Treasurer Cave
is wasting the assets Of the company.
and is now engaged in business in Alex
andria, Va, running a stock brokerage
commission business. and has used 81 900
Of the funds Of the company TO purchase
an automobile and for paying TO lobbyists
and lawyers the SUM of 5000 to push al
legged legislation"
Fees for Directors.
Another charge made against the treas
urer is that from February 12. 1904, to
October IS. 1906, he entered on the books
Of the company 800 per month as paid
~ NAAN NiifNNp4o AOA dANtlltldnfe AT meet
ings, while. as a matter of fact. but 500
and s25 per month was paid to directors
for attending these meetings during this
period.
II is also charged that the treasurer
pays himself so per week as salary. not
withstanding that the officials Of the
company authorize the payment OF but
$55 per week salary To him.
Secretary Yoder also charges that
Treasurer Cave and Assistant Secretary
Cation have conspired and confederated
together for the purpose OF conducting
the affairs of the company independent
Of the secretary and President Vermilya
II is charged that Cation is under the
domination and control of Cave. Cation
has signed checks of the company in
blank in his capacity as assistant secre-
iary, declares Yoder. checks which Cave
filed in for large amounts.
The court is asked to appoint a re-
ceiver TO manage the affairs Of the COM
pany. TO require Treasurer Cave to ac-
count fully for all matters complained Of
in Secretary Yoders bill. and 10 re-
strain Cave from interfering with the Of
hcers or receiver appointed pending final
determination Of the suit.
Attorney Malcolm Hufty filed the bill
upon behalf OF Mr.. Yoder and other
stockholders