Evening journal., 1911-10-19
TROUBLES UP
TO CHANCELLOR
Argument on for appointment
Of Receiver in Americas
Assurance Case
MANY LAWYERS APPEAR
FOR WARNING OFFICERS

Chancellor Curtis today heard argu-
ment in the American Assurance
Company's case. Robert H. Richards,
Daniel o. Hastings and James H
Hughes. appeared with Arthur NJ.
Sager. of ST. Louis. for one set of Of
ficers Richard r. Kenney with John
Leahy. OF ST. Louis, represented the
contesting set OF officers while Attor-
ney General Andrew c. Gray and
Henry Ridgely appeared for the Insur-
ance Commissioner of the State of
Delaware.
The case before the Chancellor to-
day was on a bill to show cause why
a receiver should not be appointed
for the company on the ground Of
alleged insolvency
Mr. Richards argued that some ac-
tion be taken TO determine which set
of officers represented the company.
Attorney-General Gray said he favor
ed the appointment of a master to
analyze the mass Of exhibits I'm the
shape Of afiidavits and wished TO fle
three afiidavits in rebuttal and was
given permission TO do So
Chancellor Curtis said that at the
outset he had been impressed In this
case upon reading the answer filed
He did not think the court should
80 into the question Of the officers.
The Insurance Commissioner had
taken action to protect the policy
holders. the Chancellor said
The court further remarked: "As-
Stunning to be true the answer Of the
lsIf apItqnQtf a.
IS shown il has no license and stopped
cancelling its policies ! don't see
what more is to be done, as the de-
sire OF the Insurance Commissioner
has been met decline to wade
through afidavits fled
Attorney General Gray said ques-
fion which had come TO him was
whether the state should not protect
the stockholders and creditors.
Henry Ridgely followed and said |
that insolvency or not having suiii- |
cient assets TO continue business We're |
sufficient grounds for the appointment |
of a receiver and the business wound |
up No one can say what the la
bilities are but the state. Mr.. Ridgely
said He said the public demanded
action In the matter.
Mr.. Leahy said he was surprised at |
the suggestion of the Chancellor He |
claimed that by this company's acts |
banks had been impaired and while |
$200.000 worth OF bonds were secured
yet he claimed the securing properly
was land In Washington county, Mo-,
not worth s65,000.
Mr.. Sager said that he and his as
x eociates represented the officers
chosen by a board of directors Sc
lected by two-thirds Of the stock
holders. Action was commenced
July %, he said. and the Insurance
Commissioner held $4,000 worth Of
bonds and $4,000 cash
mr. Saser .wak followed by Mr.
tipehssf'~- argument viii continue
liss afternoon.
Mr.. Richards next addressed the
court and drew attention that the
company Is mot doing insurance
business. Mr. Leahy, representing
some OF the parties, admitted the in
solvency but claimed that the state
has no right to go beyond the insur-
ance bonds He differed with Mr..
Ridgely regarding the policies and
the bonds which have been re-
scinded
I'VE submit that the banks mem
toned will pay 100 cents on the dol
lar TO their depositors There Is no
contingent liability. This is a serious
matter to the people we represent,
said Mr.. Leahy.
Acknowledgement Gray said he felt
At was his duty not to take sides in
the case Mr.. Gray said: 1T is for
the state to take care of the state
and the public under the insurance
laws of the state. There are several
reasons why a company should be
compelled 10 wind up its affairs The
expression Public has a very broad
meaning This statute of the State
OF Delaware Is framed TO protect the
public. II seems that If the couri
finds a proper case. such as on &
stockholders bill, then Il would b,
proper to appoint a receiver, although
the bill was filed by the State o.
Delaware. If any such facts appeal
the courts duty would be TO appoin
a receiver.
Mr. Gray then suggested the ap
pointment of a master to so ovel
the mass of documents filed and pre-
sent to the court a resume of theil
contents
Chancellor Curtis asked Mr. Gray i
there's was anything to come befor,
the court regarding the contendinl
sets OF officers. Mr.. Gray maintained
that the application for the appoint
ment Of a master would be th'
proper one 10 take up. He could con
slider the afhdayits and report con
cerning the whole case
Chancellor Curtis said he believe,
a master should be appointed 10 pre-
sent a report on the affidavits an
answer filed The restraining orde
in the meantime stands as we'll as tn
order TO terminate the bonds an
policies.
The master will be appointed a
soon as the form OF the order can b
framed. Attorney-General Gray sue
gested the appointment Of S. /
Townsend. Jr.. as the master.
Court took a recess until this al
ternoon.
HEPTASOPHS REVISE LAWS.
The Grand Conclave, Heptasophs q
Seven Wise Men hold d r,,ootf,,.- 4