Evening journal., 1910-11-16
HOLDINSURANCE
MEN FOR COURT.
Both LubIiner and TOwnSIey
Give Bail for Trial in
December
ALLEGE FRAUD In
USE OF THE MAILS


United States Commissioner William
G. Mahaffy to-day held Henry p.
Townsley and Victor Lubliner, both
Of New York, doing business here as
the National Assurance Company, the
National Stock Trust Company and
the State Trust Company, in $500
bail each for the federal grand jury,
which will convene here on the sec
Ond Tuesday in December. The de-
PENDANTS gave surety bonds. which
were accepted. and they were re-
leased
The men are charged with the al
/ legged fraudulent use of the mails by
misrepresentation in the sale of stock
of the National Assurance Company,
concern supposed TO be doing a fire
insurance business.
They were arrested about a week
ago by United States postofilce in
! spectors and their effects In the Ford
= Building, where the concern had Of
fees, were removed by the govern
ment officers and are now in the hands
OF District Attorney Nields.
Until nearly midnight last night
United States Commissioner William
G. Mahaffy heard evidence in the case.
The hearing began az o'clock yester-
/ day afternoon and it was not until
after IL o'clock that District Attor-
ney John p. Nields announced that
the government had concluded its
testimony. II. n Ward, counsel for
the defendants said he would offer no
testimony and an adjournment was
taken until this morning.
Many witnesses from all over the
United States testified to having pur-
chased stock from the defendants
which they say was misrepresented
to them.
One Of the witnesses was former u
/ S. Senator r. r. Kenney who tostih .
that Andrew d. Marshall, at that time
deputy insurance commissioner. Ed
ward G. Graham and himself were
the incorporators of the company He
said, however. that he knew nothing
about the affairs Of the company. Mr..
Graham gave similar evidence.
Miss Agnes F. Feeney was the first
witness called she said She hae
been photographer for the Nationa
Assurance Company since Februar,
this year and that she was paid her
salary in checks by sir Townsley.
District Attorney Nields produced
batch of letters signed by either
Victor Lubliner one of the defend
. ants. or II. A. Rosenbaum, and the
signatures on them We're identified by
the witness She said that Roson-
baum looked after the financial affairs
of the company and that he frequently
signed Lubliner's name to letters.
Some of the letters We're signed by
}, the witness as assistant treasurer OF
the National Stock Trust Company
She said she was so directed by Lub-
liner. She said. however, that she was
employed as efn-0~ er' or for which
service she received IS a weel
/ received no COM pel.aalJa as assist
! ant treasurer. She also signed as
treasurer. Rosenbaum telling her that
she could sign in any capacity se-
cause at that time there was no such
, company
? When Mr.. Kenney took the witness
stanI he was shown the incorporation
papers OF the company and identified
r his signature and also that of Mr.
T Marshall which appeared on the pap
; ers. Mr.. Kenney also identified his
p signature on a transfer of subscrip-
, ton
Mr.. kenney a Director.
Mr.. Kenney said Mr. Marshall asked
him to become one of the incorpor
ators of the company.
He was handed papers and asked
If they were in accordance with th'
facts, and he said that they were sS
= far as he knew; that he subscribed fol
g. three shares, for which he agreed t
E pay $50: that Andrew d. Marshal
l agreed to subscribe for 500 $40 wortl
Of stock and that Edward C. Graham
+ / agreed to subscribe for $50 worth o
stock.
e Asked II he was a director Of th'
! National Assurance Company. Forme
/ Senator Kenney said that he supposed
he was. but knew very little of IL
I business.
= A printed card was read by MI
? Nields, I'm which Il was Represented
o that General r. r. Kenney, Unite'
States Senator. will be an active mem
ber of the board" and further stating
that the company would be given tn
: benefit Of his advice. The card con
l cluded by stating that the compan
was very fortunate In getting such
(Continued on Second PaRe)