Evening journal., 1910-11-03
TRUST COMPANY
CHIEFS ACCUSED
Government Charges Pair
With COnSpirinG to Use
Mail to Defraud
ARE HELD In
DEFAULT OF BAIL

Charged with conspiring to use the
United States malls to defraud the
public, Henry r. Townsley and Victor
both OF New York, doing
business hero as the National Assur
ance Company. the National Stock
Trust Company and the State Trust
Company, were arrested late yester
day afternoon by Deputy United
States Marshal John Mitchell, in their
Offices in the Ford Building.
The warrants we're taken out by
Postoffice Inspector John c. Koons,
who with Inspector Robertson, made
the investigation, which resulted In
the arrest OF the men. The accused
were arraigned before United States
Commissioner William G. Mahaffy. and
were held in s2,5O0 bail each for a
further hearing on next Tuesday.
They were unable TO give bail and
were turned over TO the United States
marshal The defendants have re-
tained II. II. Ward as their counsel.
The bill of complaint, among other
things. alleges that the mails we're
used by the men to distribute letters
and circulars falsely and fradulently
pretending that the company was to
do the business OF a stock fire insur-
ance company. incorporated under the
laws of Delaware; that the persons
engaged In promoting Il we're to be
men of high financial standing and ex-
perience; that the entire amount to
be paid by subscribers for capital
stock would be applied to the capital
and surplus; that no promotion stock
would be issued and that the insur-
ance press indorsed the company.
These names are given as those
with whom the concern had negoti-
ated: Augustus Kipp. of Yonkers,
n. y; w. o. Polhemus, of Nyack, N.
Y. Max Aronson, of New York city;
John II. Ashton, OF Rochester, N. y;
Francis n. Slater. of Tupper Lake.
N. Y; Paul G. Nowag, Of Johnstown,
Pa.
Townsley. who is said to be the
organizer and manager of the concern,
is an elderly man. Lubliner is vice.
president They started business here
during the latter part of February,
and prior to that we're engaged in
business in New York. The name
of Samuel II. Buck appears as the
president OF the company.
In a New York paper early last
month appeared a dispatch from Al
bany telling of the exodus from that
State of certain promoting companies
as result OF a new law going int,
effect there. The artNle in part fol
lows;
Unlike the Consolidated Life Sc
curities Company OF Chicago, The Ma
tional Assurance Company of WI
mington. Del. seems to have left II
State two or three months before Il
new law became effective. It's of
!. GERS and directors are, however, larg
= ly citizens OF New York. Hence,
: prelini ninary investigation was mad
: with the fop owing result
This corporation was organic
Z under the laws Of Delaware, in o.
tober, 1909. It's organizer being Hem
! =. Townsley, formerly president {
the Union Life Insurance COmpan
(who. however. doas not appear as a
officer of the National Assurance Com
pany), and it's officers and director
men formerly connected, In one ca
pacity or another with the Union Lif
Insurance Company. The latter com
pany was taken over by the New forl
Insurance Department n year ago ans
is now being liquidatcd. Prior 10 III
removal TO Delaware. early In 1910
the National Assurance Company hat
an office at No. 64 Wall street, New
York, and from SUCH olice an active
stock selling campaign seems to hav'
been conducted. One Of its stool
statesmen who operated in New Yorl