New-York tribune., 1908-02-21
TWO STATE RECEIVERS
attorney General 4cts in Mutual
Reserre Insurance Case.

On motion Of Attorney General jackson. Justice
Platzek in the Supreme Court yesterday appointed
Joseph J. O'Donohue and Joseph P Day temporary
receivers for the Mutual Reserve Life Insurance
C'ompanv and ordered the company show
on March why the receivership should not be
made permanent
The Justice authorized the receivers he appoint
ed to take such action in the premises they
may deem proper to carry out the ntents and
purposes Of this action and to assert such rights
as the post Of receiver gives them He named
the Union Trust Company and the Corn Exchange
Bank as repositories for the company's funds
As Judge Ward in the United States Circuit
Court has already appointed three receivers, the
position Of those appointed by Justice Platzek is
somewhat anomalous one and there may be con-
f1ict of jurisdctior The federal receivers have
possession of the property and assets of the Mutual
Reserve and administering the affairs Of the
company
To meet this situation the order says: 1t ap-
pearing that order has hereinbefore been made
in the United States Circuit Court purporting TO
appoint receivers ii IS ordered that the receivers
appointed in this action shall apply to the United
States Circuit Court for order directing the
federal receivers relinquisn possession and con-
troll the property and assets of the Mutual Re
Life Insurance Company and 10 transfer said
control of property and assets to the receivers
hereby appointed"
In the order the state receivers ARE directed not
70 n1oiest interfere with the alleged possession
of the said property and by the federal re-
CcjyerS by force or otherwise tndH UH SuCH ANC
and orderly proceedings the law affords
In asking for the appointment Of receivers the
Attorney General set forth that, 1t appears
from Superintendent kelsey's report that the Mu-
tual Reserve Life Insurance Company Is insolVeht
and unable 10 pay its debts it is unsafe and mex
pedient for the corporation 70 continue IN ousl-
IS
Mr. Mackey.. the Deputy Attorney General VINO
has charge OF the case. said yesterday that he
did not think likely that the new receivers would
take any action toward getting control OF the prop
c1ty and assets of the company until after March
the date set for the company 10 show cause why
the receivership should not be made permanent
In the opinion OF several lawyers Circuit court
order directing the receivers appointed py lhaI
court TO turn over TO other receivers the assets
and property of the company is the only legal re
source the receivers appointed ny the supreme
Court have and they predicted that such an ap-
plication for such order would be refused
There appeared 10 be considerable difference OF
opinion yesterday to which court hao Juli9u'0
ton. Some lawyers held that as the company was
doing business IL many states federal court would
naturally the court of jurisdiction ana iheS
asserted that the order appointing the state re
ceiers tactly admitted this when Il directed theHi
to apDlv 10 the United States Circuit Court Tor an
order of possession On the other hand. they ad-
rnitted that the Attorney General had not gone
outside his province IN asking state court to ap-
point receivers
Federal courts in Massachusetts, the District Of
Columbia Eastern and Western Pennsylvania and
Chicago have appointed the same men that Judge
Ward named to act as receivers and to conserve
the interests OF the Mutual Reserves polcyhoders
these states.
Lama {. Quintero. the New Orleans counsel FOR
the policyhoders' committee, reached New York
Yesterday and spent the day in consultation with
William Hepburn Russell and Archibald c. Haynes
at The compa ly's offices. He will spend week or
ten days in NV York looking into the affairs Of
the company The object of the committee said
he is not wreck the company, but TO obtain its
reorganization 1t will work in harmony with the
receivers and II hopes get them to approve
plan by which it viii be possible for the Mutual
Reserve to carry its business which at the
same time viii safeguard the policyholders.''
Mr. Quintero expressed himself unfavorabie
to the appointment OF receivers by a court
George. D. Eldridge. for years the company's
actuary speaking of its affairs yesterday. said the
number of replies to :he companys special call on
assessment policy yholders to make good the exist
ing impairment OF capital showed that class of
policy yholiers to be willing TO shoulder The burden
In his opinion the company would have pulled
through if il had been given the chance. and he
advised poIiCyholders to sell for per
centage of the value of their policies