The San Francisco call., 1909-11-08
LEGAL BATTLE FOR
FUNDS OF COMPANY
Court TO Dispose of $4,000 in
Golfers of Preferred Mutual
Life Insurance Company
Question as to Whether Money
Shall Be Divided Three or
Seventy Ways

There IS $1,000 clinking anuringly
in the rusty Golfers OF the discontinued
Preferred Mutual life association Of
Oakland, and the Alameda county
courts viii be called upon to decide
whether il shall be divided or 70
ways. There is sharp contest,
marked by serious charges over the
remains Of the corporation, with the
three officers who have cIung to the
name OF the organization on one side
and reputed policy holders and stock
holders on the other. The three men
Of the one party are Mayor Frank K.
Mott Of Oakland, a director; II. c. Cut
ting. a promoter of Point Richmond
and formerly 8 Nevada mining man,
president OF the association, and DR..
J. G. Thompson of Oakdale, medical
director. Opposing them are a number
Of policy holders from various parts of
the state. represented BY Attorneys AL
bert 3. Harris and A. 3. Weller OF this
city. Insurance Commissioner Z. Myron
Wolf, who has been on the trail of the
Preferred Mutual for more than a year,
has been introduced into the suit by
fhe attorneys for the policy holders,
snd Commissioner Wolf said yesterday
that he hsd cited the company q year
ago 20 stop its operations
INVESTIGATION Is THREATENED
While the $4,000 belonging to the
company is intact in the hands of the
state treasurer. Attorney Harris said
yesterday that the policy holders were
ready 10 press proceedings against the
officers 20 recover additional sums. The
position OF Mayor Mott is not brought
into question, but his associates in the
business are to be brought into court
10 face a full investigation.
Attorneys Harris and Weller Satur-
day last before Judge Harris OF Ala
media county, petittoned for permission
70 file a cross complaint TO the pre-
viously entered petition of the Pre-
ferred Mutual life association for dis
solution. The cross complaint is de-
signed 10 bring about q division of
moneys which properly belong, it is
alleged, 70 others than the three named
and the petition also asks that the in
surance commissioner be made party
20 the action, so that he can properly
appear in the case
ORGANIZED UNDER CRUDE ACT
Insurance Commissioner Wolf said
yesterday that he had been Informed
that he was made party in the action.
The Preferred Mutual life association"
continued Wolf. has been under exam
nation by my office. The company was
originally organized under the law of
1891. which was a crude act ! have
.Nied 10 have the law repealed, but
without success. Last year I cited the
company 10 show cause why it should
not be restrained from doing business.
There was a hearing held. and 1 re-
ported the finding TO the attorney gen
ersi. Since that time the officers have
fled & petition in dissolution, and they
did refrain from doing further busi-
ness. Under the law I have no further
jurisdiction in the matter. The ques-
tion raised by the cross complaint filed
in Oakland IS whether or not the three
men who petitioned for dissolution
Mayor Mott. H c Cutting and Doctor
Thompson-are the only three policy
holders and thus entitled TO the division
OF the $4,000 state deposit They con-
tend that the other policy holders have
iapsed. The contention OF the cross
conplainants Is that they have not
iapsed, but are entitled to a share Of
the assets OF the company"