The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-02-24
ORDER SOLD OUT
NEW IORkERS PAY DIRECTORS
!SJ.OOU EACH TO RESIGN.
Alleged TO Have Got A7SO,OOO In Good
securities which We're Traded for
cats and Doss''--BrOkers' Clerks as
DircctOrs-Suit TO Dissolve Concern.

Dircct0rs-Suit 10 Dissolve Concern.
| HARRISBURG. Feb. % Officers and di-
rsctors of a fraternal insurance society y
secretly selling their positions Of trust TO
strangers from New York for s.. 100 apiece
and then permitting the New Workers TO
remove the assets of thcir society TO New
York To be exchanged for what Deputy
Attorney General Cunningham termed
"A lot o! wild cats and dogs" was the
story told to-day in the Dauphin county
court.
The keystone Guard. a fraternal insur-
snce concern organized in 1905 with
home offices in Athens, Bradford county.
| and s,7i+ policyholders scattered through
| out the country. though principally in
this State. is the organization involved
in proceedings brought by the Attorney
General TO have the society dissolved.
/ Counsel for Joseph W Beaman Of
Athens, the president. appealed To the
court for protection of the witness onl he
ground that Mr. Cunningham was laying
the foundations for charges of criminal
conspiracy
President Beaman 5 testimony inv DIV ed
oil the other officers. who are also men
Of prominence. and il was also brought
out that several of the men wanted 10y he
Dauphin county court have left tn. State
since proceedings were started
! II is charged by the Office of The A,tor-
ney General, acting upon the advice Of
Insurance Commissioned McCulloch hat
the society, which issued policies chiefly
to poor persons. has been looted of N
leas, $2s9,o0o. though attorneys for the
policyholders say the loss may he nearer
$5oO,OO0
Admissions made under oath 10y Pres
ident Beaman startled the pohcyholder2,
present. B.lmans testimony III effect
was that for sS.OOo each five of the nine
supreme directors" If the company at
its last biennial convention. in June.
| 1910. agreed not to be reelected out TO
let five New Workers take their places
II was shown that this agreement was
carried out. partly by means of appointed
, delegates who elected tn" men upon
promises 20 pay for .h'Ir pO-it ions.
These new directors we're promoters
and brokers or brokers clerks.
A. soon A. they were elected. Badmln
testified. they handed him their sigma
ton-. to h. held 10y him until N. retiring
directors had received 5000 each. When
, Iilul WIS ubll' IjtdlilH1 1'1ll'ut'tl 10 'llt'
new directors their res iEnatIou- they took
charge of tn. societv's assets ard carried
s2Spu IN securities with them To New
lOrk because 1T wg- NOR" Conv"ul"nt
for them.
I And after these men POT the S"sa wJu
of r-li assets of Tins i"Lu~yivau,d cor
y poratIDn over 20 New y NOrk they oN-
changed them for Wild cats and dus-. "
I -ald p'puty Attorney -',"u"rIl canning
/ han
/ Securities Of u gold dredging company
, and ot The Standard Oh, Coal and Lumber
! company If Washington w"r" among
! th" paper that IN" N"w YORKER, turn" /
. over to the insurance -OCirit instead Of
[ th" securities they took away
/ R"aiuan ~ "A prominent attorney Oi
Athens and superintendent of Il Sl.ud7N
school h. men inv"ly'd toy his t",tl-
mony ar.. : : Maurice. SUI rem" vice.
president Of the society formerly a ~, M
H-r of the firm Of Kellogg \ Maurice.
win, h sold "ut 10 IN" american Rrldgo
, Company. Narric" did not apf@dt IN
court aud Hclmnu explained tnl' tho
reason IN" shnri" could n.' find ham wa~
that h" left tor lekvll Island, Tia. after
tn proceedings WEI" started and l.
not "Npr,t.d lInil, Aprl.
o |. ilav"rly. -upreUe tr'a-,irrr. ca -hur.
| of IN. Farmers Na'iona! Bank Of Athens
| Haverly declares thai l." has uoi spent a
cent OF the 81 600 he received. but ylac,d Il
II IN 'rust
10" nitlNh supreme lieasur'n' pres
uei't "' 'he fariNtrs Nas!rhdi baiN pi
A'h'hf' i"l'i''r S,"t'I 'iu lorin"r ountV
on'lhl7sioh"r o' hrauloIu 'puh'N 'ilHlh
"as 20 ~ 10 "plrar III 'ou.' ,"-"aS
the Athens National Bank.
! - = N,ah'on "hir'''h' secretary ne
i'l' Tor florhia ''h'h'dia'ely all"r IN"
proceedings We're instituted. Beaman
SAYS
! r. VI 'o"el'' supreme W"dl'a examiner
VINO according I" r'"'n"h' as" W"h' "a
f'"tloh /, ,,:u.
natI'S r. M''lT. attorney lor in' poii'F
hold'rs sh'd stanton ana owen mao three
a't3ihnnl'es shiplen l" 'h"' from A'h"h-
10 fI9rlna YESTERDAY
J." HnNl. supreme al'"rh"N 'nr me
society, u l"rin"T ineinn't n' inc i"rls-
| lh'ur" ana poS'HlhH''r o' N'hehH
u, IhnSlhor"' Supleiue "uditor ot
IN" so'l"ly, a' i,r'Seh' Assistant hited
States I'is'rlct ATTORNEY III 'hr iniddI"
! DISTRICT on fcnhSVlNanla ana Sia,so fo'