The evening world. [volume] (New York, N.Y.) 1887-1931, 1909-02-19
FEAR TAMMANY IS
IN SUIT AGAINST
WASHINGTON LIFE
Murphy Would Like to See Re-
ceiverS Named, Say Men
Who Oppose Move.

Twenty-eight thousand policy holder,
OF the Washington Life Insurance
Company to-day are following with In
creasing anxiety the outcome OF flgh
In the Supreme Court Of New York FOL
possession OF over SIS, cnO,OIO OF their as
sets OF this sum tl.GcCo0 In cash Is or
deposit with the Trust Company OF
America, while the remainder consist
ing Of stocks, bonds, chooses In action
and deeds for real estate, Is held In thu
vaults OF the Trust Company under ar
agreement that they shall be pledget
as collateral to secure the Performance,
OF a contract made by directors OF the
Washington Life Company with drec
tors OF the Pittsbnr9 Life and Trus
| Company. Of Pennsylvania.
The Evening World on Jan. told oil
the secret removal from the State Of
| New York Of the books, records and as.
/ sets Of the Washington Life.
/ Following this revelation Attorney.
| General O'Malley. acting at the request
! of former Insurance Superintendent
| Kelsey, compelled the return to this
] jurisdiction of the assets which had
been spirited away under cover Of
night.
Ard now comes an action brought
! by William Hepburn Russell which
will result in the appointment by JUS
tice Erlanser of receivers to take pos
session Of the flS,OO0OOO odd assets.
! Opponents of Mr.. Russell in his action
declare that Charles +, Murphy, leader
of Tammany Hall, Is interested In the
outcome OF this proceeding for receiv-
ers, as well as his personal counsel
Daniel +, Cohalan, and a member OF
the law firm Of Blumenstiel 4 Blumen'
stiel
Has q 5000 Policy.
Mr.. Russell brought his action as
poicyholder Of the Washington Lie
He Is the owner of policy No. n,sS Tor
5000. For some months he has been
receiver Of the Mutual Reserve Life IN
surance Company, following an action
brought against that company similar
to the one he is now pressing against
the Washington Life, Mr.. Russell, who
comes from the South, broke into the
Tammany fold by way OF the Greater
New York Democracy.
II represent others In my proceedings
against the Washington Life MI Rus
sell stated to an Evening World re-
porter who saw him to-day at the
deserted offices Of the Mutual Reserve.
No 500 Broadway.
Altogether, l should say that the in
terest that represent amounts to $780,
co.," he continued. "One policyholder
alone has paid in $1,000 on a $4,000
policy. Justice Erlanger will probably
name the receivers to-day as the result
Of my proceedings"
Ten days ago petition was filed with
Justice Erlanger by ]. Howard Van
Amringe, dean OF Columbia University,
William Holt, editor OF the Independent;
Gen. Benjamin F. Tracy. former Judge
Alton B. Parker and Paul Fuller, Of
Coudert Brothers. all policv-hoiders, re-
questing that they be made party de-
fendents In the action begun By Mr..
Russell. This was done BY Justice En-
LANCER although opposition was made
by Mr.. Russell on the ground that Gen.
Tracy and Mr, Fuller, admitted they
had
was member o. the law Arm OF
Parker, Hatch Il Sheehan, counsel to
the Washington life Company.
Up to Hotehkiss Nov
"Just what position the new Superln-
tendent OF Insurance, William II. Hotch-
kiss will take In the matter Is a prob.
lem which has not been fathOmed. said
a representative OF the Attorney-Gen.
, erals office to-day. MIR. Hotchkiss Was
sworn into Office yesterday, and ven
ture to say he Will lose no time in get
ting into the adjustment OF the Wash.
ingtOn Life transaction.
THE Acknowledgement! had contented
himself with getting the 3lseD,cNo OF
assets within the Jurisdiction Of the
courts OF New York. II Is up to the
Superintendent OF Insurance. acting In
behalf OF the $500 pOlcyholdcrs OF the
company. 10 see that their interests are
SaleSlaruei,
/ The Pittsburg Life and Trust Com
pany was originally Incorporated In 1853
under the name OF The Cooperative
| Life Insurance Company Of Western
Pennsylvania" by special act OF the Leg
islature OF Pennsylvania. In 1902 the
name vi The company was changed TO
the PIttsburg Life and Trust Company.
On July Il. 1903, the capital stock was
Increased from !2j0.O00 to 81 ,0oO, 100. $780,
wv worth being paid up In full.
Watered Stock, He Says.
Concerning the later development Of
the company Mr.. Russell says in his
complaint, In 1905 the capital stock
paid UP was increased TO 1853 oE. but
upon information and belief large
amount Of such increase was b. water
ing the stock OF said company by rails
ing the estimated valuation OF its home
office building and issuing stock to the
then stockholders to the amount OF such
increase OF valuation, such watering
amounting to about s3lj 90"
Alr. Russell MAKES numerous other
specific allegations against the Pitts.
burg company In lis complaint which
on their face are nothing If not sensa :
tlOnal II was TO the men In control OF
this company that Thomas F. Ryan and
others sold their controlling interest
in the Washington Life with It's 5000