New-York tribune., 1909-01-09
WILL RETURN ASSETS
PITTSBURG LIFE ACTS.
At Same Time Justice Erldnger
Issues Restraining Order.

The F,ittsbure Life and Trust Company in q let
ter TO Attorney General OMalley made public iast
night pledged Itself to return 10 the jurisdiction
of the New York Insurance Department the assets
Of the Washington Life Insurance Company which
IL transferred to Pennsylvania Now Years Eve
Almost at the same time Justice Eranger Issued
a restraining order. enjoinins the Pittsours COM
panv from disposing OF alternating in any way
the assets of the Washington Life company already
in its possession or any further assets IL might
acquire.
Justice Erlanger's order is not as drastic as
sought by certain policyholders OF the Washington
Life According to counsel for the Pittsburs com
pany. expressly omits enjoinng the COLLECTION OF
Washington Life premiums. and the clause in the
order reading, nothing herein contained snail De
deemed to restrain payment of any lawful ooEga-
ton Of the Washington Life Insurance company
out Of any of said assets allows the Pittsburg
Life and Trust to pay all death claims and others
arising in the ordinary course of business
William Hepburn Russell. who wanted tenn
porary receiver appointed for the washington i>iie
10 conduct it's business. taking it out of the hands
Of the Pftsburg company. had asked that untii
that question could be settled the Pfttsburg com
pany be enjoined from collecting the premiums OF
in any way transacting the business OF the WASH
ingtor Life. ,
The return Of the Washington Life assets 70 thls
jurisdiction will remove from the Attorney Gen
erals hands the power to procure dissolution OF
the company on the technical charge of insolvency
This action on the part of the Pittsburg company
lessen
tween Mr. Russell and the Attorney General over
the question of shall seek to regulate the rea
tions between the two companies
The return Of the assets. however. Will not ol-
recIy affect the action brought by Mr. Russell for
a temporary receiver. At hearing yesterday JUS
tce Eranger took the question of the courts uTis-
dicton under advisement AMI heard argument on
the merits of the motion reserved decision and
gave counsel until Tuesday in which to file briefs
In the mean time he said. he would issue re-
it,TpH- nrda Of nd and
both sides appear before him at his home at 7so
o'clock last evening, after seeking to agree over
the form such order should take The meeting
resulted in the order already noted
The hearing developed some heated discussions
between Mr.. Russll and ex-Judse Edward W
Hatch. who appeared for the Pittsburg company
Mr.. Hatch started out by contending that. as the
officers of the companies had not been properly
with the papers in the the court lacked
Jurisdiction. and that notice should have been
given the Attorney General before the beginning
of the action.
Mr. Russell maintained that proper service of the
papers had been made and that under the new law
it not necessary TO send notice to the Attorney
General except in cases seeking the dissolution of a
corporation
Mr.. Russells principal point was that the Pitts
burg company. in rensuring the Washington Life
poIicyholders and transferring the assets Penn
sylvania. made a saving of about s675 000. since
the Pennsylvania insurance laws require only
about two-thirds the amount OF reserve against
policies stipulated in the New York statutes He
intmated that the directors of the Pittsburg COM
pany would appropriate this amount pay for
the Washington Life stock they had bought from
Thomas F. Ryan and Harry Payne Whitney. thus
getting the company practically free
Il want TO prevent the Pittsburg company from
paying out moneys for the stock Of the Wash
ington company which they have treated as la
biity" said Mr.. Russell
That is false, and you know it, broke In Henry
A. Rubino. who is associated with ex-Judge Hatch
as counsel for the PfttsburK interests.
Repeat that to outside this courtroom said
Mr. Russell angriy. and l will slap your face
Justice Erlanger nterposed. saying that one coun-
court.