New-York tribune., 1911-12-13
INSURANCE MAN BROKE
Suit Brings Out That Henry P.
ToWnsIey Is Minus Carfare.
SAYS WIFE FINANCES HIM
Figured Prominently in Hughes
Inquisition Because OF Poor
Security Notes.

Henry p. Townsley who figured in the
insurance investigation in 1906 as an official
Of tho Life Association Of America and
subsequently promoted other concerns. be
coming president Of tho Union Life lnsur-
ance Company. has not enough money TO-
dav 10 pay his carfarc about the city. ~
least. so ho testified in supplementary pro
ccedings. the report Of which was hieo
Yesterday i'm the County Clerks othco
Tov.nslcy was sued on two notes, and
Judgment fer sl,5l3 was rendered against
him i'm tho Supreme Court last January
II was found impossible 20 collect on 'ne
judgment so the supplementary proceed
tnes were begun. Towusey SAID on INC
stand that ne had absolutely no assets anu
that nc had to obtain money for his n.eus
from his wife. Mrs. Helen H. 1oWnsIeH
They live At the Beresford. i'm CenUa'
Park West where they pay S,"0 Nea'
lcnt or at least Townsley SAYS thal MS
wife paws H.. Before Justice Erlanger IN
,hc supreme Court. Townsley viii be re-
! ouired 10 again appear as defendant IN an
! action brought on still more notes, amount
! inc To S.7Nn.
Tho action on which he was examined as
/ well as the one which Is on tine calendar Tor
TO-DAY. were brought by Joseph g. tenS'''
rs counsel tor the stockholders OF the ION
/ roI6atcd Agency Company. another oi
Townships promotions. which Is now IN
Nquidatiou While ToWnsley was president
O. the Union Life. i'm october. 1892. th"
state Insurance Department took charge
of tho concern. and IL IS now I'm liquidation.
That action made it unnecessary for the
continuance Of tho consolidated companH'
a. tho latter was organized 10y To"nsleY
20 sct as q soliciting agency for the Mon.
Thomas ~ Simoutou was 'he president.
rut Tovnsley controlled the Consolidated
Compauv through dummy board ot a.
rector-. it is alleged. whose members we're
emrioyes of the Union Life. The Consoh-
dated had 4 capital stock of 10000.
Whom g 100 worth Of tho stock had been
sold ToNnsloy borrowed the money. TOT
which ho gave his notes. with i3a4 shares
OF tho Bankers Life Insurance Company
and note of the Knickerbocker Finance
Conlpanv as collateral. The Bankers com
papv was compelled TO cease taking busi-
,oys by tho state Insurance Department
Now. through his influence over the affairs
OF the Consolidated company. IT is alleged
that Townsley was able 10 get possession
o. tho notes that he made and also Of the
collateral that he put up as security ior
tho paper.
I'm June last Justice Seabury appointed
william B. Walker as receiver for Towns
Icy.
When Townsloy was examined in sup
Elementary proceedings he said that IN"
f7O.Oo worth OF stock in the Union Life
Insurance Company, now held by the STATE
Superintendent of Insurance, which ap-
pears in his name was bought FOR his wife.
lie SAID he was penniless, and that when
he needed carfare he had 10 Get IT from
his Wife Townsey said that Mrs. Towns
lev hao assigned or sold the stock last
January to George ". Ogilvie. In Octo-
bcr. 1910. he had some trouble with the
federal officials over the National Assur-
snce Company. which he had organized III
Wilmington Del. Townsley said he had
done nothing Of late that brought MIN IN
any money. and that the account which
lie had with the stock brokerage firm Of
Webb q Praw was being operated for his
wife.
Townsloy was president Of tie Life As
socation OF America. Eugene Van Schalck
was another official of the company, and
he also is a defendant with Townsley IN
the suit TO be brought to trial to-day.
Townsley was examined by Charles T.
Hughes, now justice Of the United States
Supreme Court. IN the insurance investigs
ton about a loan Of $1,000 Of the funds OF
the Life Association which had been made
10 Townsley and Van Schaick. The money
was lent 10 them to enable them TO buy
stock OF the company. It was also re-
Nealod that there had been many loans on
worthless stock. While under examination
by Mr. Hughes. TOwusley said: why do
/ YOU mention that stock? To call the at
lIGtiUn of the newspapers To it, Mr..
} Hughes replied Because | want to SHOW
, that YOU loaned money On worthless col
literal"