New-York tribune., 1908-02-18
ASKS MORE RECEIVERS.
Jackson Unchanged IN attitude
Tosrard Mutual Resers,e.

Attorney General Jackson said yesterday that
>. would make application before some state
.ourt to-day for the appointment Of receivers
'or the Mutual Reserve Life Insurance Com
esny- On Friday the Attorney General said
shst Re would ask for receivers within a few
lays. The next day Judge Henry C. Ward in
The United States Circuit Court, following
ruit brought by two policyholders, appointed
three receivers
Nr. Jackson. however, is not at all satisfied
with the action Of the federal court and in spite
u the fact that these receivers have taken pos
session Of the company he viii continue on his
course This action may lead a conflict be-
tween tuo courts.
Il have not moved before in the Mutual Re-
rerve matter" said the Attorney General yester-
day. because L wanted TO assure myself beyond
doubt that the action I eventually decided on
would be the best for the preservation of the
Interests Of the policyholders and at the same
time fair 10 the officials OF the company. Now
after making & most careful examination, l be-
Iieve that the affairs OF the company should be
wound up and the corporation itself dissolved.
But in the mean time federal court steps in
The Attorney General sent to the offices of the
company in the afternoon for copy OF its
pleadings in the cases before the federal court
officials had assured the Attorney General that
the company was not insolvent, but in pleading
before Judge Ward the company admitted that
there was impairment OF its capital. In fling
ais papers asking state court to appoint receiv-
ers the Attorney General viii incorporate in
them q copy OF these pleadings.
Charles E. Rushnore, who has Offices at Nc.
40 Wall street. was appointed yesterday by
Judge Ward one OF the receivers for the Mutual
Reserve. TO succeed Charles ". Gould who had
declined TO act. Mr.. Rushmore and the other
receivers. William Hepburn Russell and Archi-
hafd c Haynes, gave the required bond OF s1co,-
90 each.
The receivers took possession OF the company
ana lis affairs yesterday morning. Their first
act was to cut down al unnecessary expenses
hv discharging all officials and clerks and other
e-,ploves not absolutely needed. Il has not been
decided whether counsel Will be retained
AT least two Of the receivers have strong
hopes that after careful administration of the
affairs Of the company they may be able TO put
= in such e position that it may resume busi-
ress They hone that in the not far distant fut-
IRE they may he able 70 submit proposition 10
-he policyholders that will prove satisfactory 10
them.
The receivers examination OF the affairs Of
the Mutual Reserve may take from thirty TO
sixtv davs. They then will present report 10
Judge Ward and await his further orders
Receivers appointed by the federal court can
rot Wind up the affairs Of a company OF dissolve
? corporation. They have power Only tc dulit
.eter its affairs 1t is for this reason, among
others that Attorney General Jackson desires
:h- state court TO appoint receivers lie NaillS
the corpora ton dissolved
Judge Ward signed order yesterday sub
s-itu,ing William Beverly Ninslow as ccunsei
for James g Robinson and Reuben O ScoFllle
~ their action against the Mutual Reserve MI
n-fnsIop- succeeds William Hepburn RusseA.
Tgdge Ward signed another order permitting
Ny. n-ins1o7v to file supplemental hill OF COM
r,ain+ in which j viii be set forth tnat Inc u
-eo-ors Of the company acted illegally al 1helT
,77ae-;rr on December is n assessing the policy
.ol5a-e n make good the existing impairment
The ,or7nsrz has twenty days in which 10 an