Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-11-08
STATE GETS INTO
COSMOPOLITAN
LITIGATION
Intervention Petition to Take
Over Management Of InSur-
ance Company Is Filed.

state authorities today decided to
take hand in the affairs OF the Cos
mopolitan Life Insurance Company,
and. If possible. obtain control of the
companys management in the interest
~ policyholders under the provisions
OF the new insurance act.
AT the instieation Of Insurance Com
missioner ". A. Wright. Attorney Gen
oral T. S. Fielder, who has held the
possibility Of states Intervention under
advisement for several days went be-
fore Superior Judge Bell and asked for
q rule requiring the company's attor-
+ eys to show cause why the state
SHOULD not assume the management.
The formal Intervention filed by the
ate's attorney simplfles the litigation
over the affairs of the company now
under way in third division Of superior
court. II Judge Bell sustains the
states demands and names Insurance
Commissioner Wright as receiver for
the company under the new lax. many
OF the stakeholder suits now pending
viii be Withdrawn
est OF NOW Law, ~
Such an action on the part al the
court presages a lengthy fight over the
constitutionality Of the insurance act.
for officers Of the Cosmopolitan we're
authority today for the statement that
rae company viii fight state interven-
ton as consistently as It has fought the
stockholders suits.
we are all right" said Joel r. Ar
nistead. general agent of the company
end defendant In the numerous suits
and we expect to show the people of
Atlanta that we are. Not only is the
standing OF the Cosmopolitan attacked
in these suits, but the majority Of the
Southern companies organized in the
same manner"
Coincident with the states interview
ton. and probably unknown 10 the
state authorities directors of the Cos
mopolitan met In the offices in the Third
National Bank building last night and
ratified a new contract between the
company and Armistead, which reduced
by 80 per cent the latter's commissions
of the sale Of insurance as general
agent 1t was the contract existing be
tween Armistead and the company that
has played a conspicuous part in all the
litigation and finally caused the state
10 take "a hand in the company's af-
fairs.
Claim Contract o. X.
Officers of the company said today
that both Insurance Commission
Wright and Deputy Commissioner
Copeland had said that such a contract
as ratified last night would be accepta-
bic to the state James l.. Anderson,
one of the attorneys for the company.
SAID at noon that he had not been no.
tilted that the state expected to inter-
yene, and declined to state how action
on the part of the state would affect the
court cases now being tried
The original suit against the Cos
mopoitan company was brought sew
eral months ago by Dan O. Suddertb.
former stock salesman. Since the
iilipg Oft Sudderth suit and it's be-
ing placed on trial, numerous stock
holders, dissatisfied with the GONNA
ny's affairs, have interviewed on Sud
derth asking the court for a receiver
II has been maintained that the com
pany was not properly organized, has
been lavish in its expenditures. has a
contract with Armistead that will even
tually wreck it If it is not now insolv-
ent.
These charges the company's attor-
neys in answer and demurrer have de-
nled In toto and have introduced into
court evidence to show that the COM
pany is solvent and that the contract
between Armistead and the company is
no different and dangerous to the com
pany's welfare than the contracts made
by other insurance companies.