The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-06-23
CONTINENTAL LIFE
DIRECTORS SUED
Prominent Salt Lake Men De-
PENDANTS in Action in
L. s. Court.
SECURITIES COMPANY
Is ALSO INVOLVED
Suit Is Brought to Prevent
Transfer Of Assets by
Corporations.

Alleging that. the defendants. T. Il Cut
Ter. John Dern, +. j. IIagenbarth H. G
Edwards, Wv, Rice. w s. Mccormick
II, y. Mayo and w. If. Cunnlngbam
were officers and directors of the Con-
tincntal Life Insurance and Investment
company and of the Western Securities
good faith In attempting to distribute the
assets OF the insurance company among
the Western Securities company in the
first place. and later on in attempting To
take over the assets Of the Western Sc
curillcs company for certain indebtedness.
a complaint was fled In the United States
circuit court Tuesday morning By Gcorge
s. kmball of Berkeley Cal
Mr.. himballs who asserts that he Is a
bona tide stoclihnIdcr and policy holder
OF the Continental Life Insurance and In
yrstmcnt company alleges that prior to
December IL, 1907. tho Western Sccuri-
ties company owned liGl shares of cap
ital stock Of .th" Continental Life lnsUr
snce and Investment company out Of the
total 2IS0 shares OF stock issued Also,
that the Western Securities company
owned ali Of the stock Of tho Western
underwriters association. and that the
Western Underwriters association bor-
rowcd large sums Of money from the Con
tincntal Life Insurance and Investment
company.
Objection Is Made.
About this time. according TO the com
plaint, tho insurance commissioners of
various western states made objcc tions
10 The arrangements existing between
the three corporations. on account of The
fact that the heavy drafts made by the
Westcw Underwriters association Oh the
insurance company threatened its eN-
istcnce. ON account of this. the Western
Underwriters association was retired and
Mr.. ki1ball alleges that the Western Sc
curitlcs company assumed all obligations
TO make payment to tn" life insurance
company OF tn" Indebtedness due from
the underwriters association.
My kimball then alleges that while the
Continental Life Insurance and Invest
mcnt company and the Western Sccuri-
ties company were under the control Of
tho defendants, Il contract was entered
Into between both companies on Decem~
Der L. 1907, and that under the arrange
ments of this contract and the assump-
tinn of the Indebtedness of the under
writer's association. tho Western Securi-
ties company became indebted TO the life
insurance company for Sl20, l23 SIS TO So
cure thc payment OF which the Western
Securities company put up 1894 shares OF
the capital stock Of the life insurance com
pany.
The complaint also states that the
Western Securities company owed the
Mccormick Banking company S23. 00O. part
Of which was secured by endorsements
of John Dcrn and T.. j. Hagenbarth. There
was also owing, according TO tho COM
plant. $l5 900 to certain other persons.
Then. states Mr.. f[mball in the COM
plaiut, the life insurance company sent a
notification to the Western Securities
company, telling the officers OF that com
pany to pay up. and in settlement the
Western Securities company paid TO the
Iifc insurance company the sum of S2iI
i'm cash and the remainder Of the in
debtedncss in assets. alleged in the com =
paint, to be greatly overvalucd, the total
amounting to S21I.6I3.l3