New-York tribune., 1908-04-12
MUTUAL RESERVE DEAD
DISSOLVED BY THE COURT
State and Federal ReceiCers in Fight
for Possession of .4ssets.

-h. Mutual Reserve Life Insurance Company
e 10 more. for application OF Attorney General
rscssou Joseph P Day and Joseph J. O'Donohue
.-. sppointed permanent receivers for n yester-
s.r and the court also ordered the dissolution OF
80 company. No opposition made TO the
,+.o-rev Generals motion by either counsel for
=. company or counsel for William Hepburn
puss.lI and Charles F. Rushmore. receivers ap-
,cinted BY Judge Ward in the United States Cir
c,iit Court
..-norsrv receivers by state court some two
-,,1-hs ago and several days subsequent TO the
sn7oinru7ent Of federal receivers One OF the
federal receivers said;
The appointment Of permanent state receiv-
as n my opinion. does not alter the status of
=. federal receivers in any way. The only way
q, which the courts order affects the federal re-
-.iv.-s IS that II makes the dissolution OF the
,o-,oarv obligatory upon them"
According 70 the Interpretation put rpon the
,-5Ar of the state court. the company is now dis
,4vsd ard neither set Of receivers can devise auv
-lsn whereby the Mutual Reserve Life can still
-ortirue 70 DO business. or retain its corporate
existence
While the federal receivers in actual pos
e.sstn7 q the assets Of the company the Attor-
re- General is determined tn use every legal
means - his disposal 10 dispossess them and n
stall the state receivers in their places In dis
r1ss!rr the situation last night, one Of the deputy
attorneys general said:
This of1Ce = determined 70 fight the issue TO I
finish We VIII use every endeavor Ia have the
fsse-aI receivers dispossessed and the state recev
.s pt n control Of the assets and effects Of the
company. The Attorney Generals Office has so far
scn every step its legal battle 10 gain this end
ard all. I think. eventually win it's fight"
n pursuance Of this determination. and OF the
advice o. Jhe Attorney Generals Office the state
receivers made motion before Judge Ward. in the
Tinted States Circuit Court TO oust Messrs. Rush
oYe and Russell from possession of the effects Of
ire company and have themselves installed instead
Arguments OF this motion were heard and a de-
cisio1 Is pending
To co-rlicate the situation Il was reported yes
tsrday that the executive board Of the Insurance.
company had net and voted for the dissolution OF
-re company. When this report vas called to the
s--sr-3or cf The federal receivers they said they
raj 10 knowledge Of any such action. and that
even assuming Il had been taken Il would have no
eject legally. that neither executive board nor
tie board Of directors Itself had any such power.
I -ep-esentative OF the federal receivers said
ma he considered a conflict between the federal
s7d state courts inevitable II the Attorney Cen
srsI insisted upon attempting to force the federal
receivers out Of possession OF the assets and ef
se,rs Of the company
IN al cases Of this kind said he. that hav.
h~er brought 10 my attention 1t has been decided
rat the federal courts have Jurisdiction. I do not
hsleve that there will be any change in the situa-
icr IL regard the receivers. I believe that the
federal receivers Will still remain il charge Of the
-r1-z-v and administer its effects. although
amt that there may be a long drawn out legal
ottIe over the matter. This, I think is the optn-
3r held by Mr. Russell and M Rushmore, and
. evidence that they consider the appointment Of
ornament state receivers merely a matter OF
7rr. they did not take the trouble TO go into
ou-- and oppose that action
T-e only thing seemingly certain is that the
Mutual Reserve Life Insurance Company has
ceased to exist.