Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-21
CASE
POSTPONED BY
CUPID'SPRANK
Barry Wright Unable to Pre-
pare Firms Suit Because of
Approaching Marriage.

April ,, caused the pOStpOnement To-Day
Of a hearing on the Cherokee Life In
surance Company receivership suit in
the third division of the superior court,
Mr. Wright counsel for the insur-
ance company appeared before Supe-
rior Judge Bell at noon and requested
tina. the hearing be postponed until
conference of attorneys could be held
some time after April and fix date
agreeable to all parties concerned.
In seeking a stay Of trial Wright
stressed the fact that he was to be mar
ried on April and a hasty procedure in
B. B. Brooks suit. which asked a re-
ceiver for the company's affairs, would
interfere materially with his arrange
ments
He explained to the court that the
suit was without foundation in fact and
the companys attorneys had not had
time to prepare their case.
Expect No Intervention.
State insurance authorities to-day
contemplate no immediate Intervention
on the receivership suit brought by
Brooks, preferring to await action Of
superior court.
Assistant Insurance Commissioner
Copeland declared to-day that records
in the insurance department indicate
the company's solvency, and until new
features Of the case develop the au-
thorities will proceed on the company's
statement of December 81, 1912, indi-
cative of its soundness.
B. B. Brooks, holder of $500 income
bearing certificates in the Cherokee
Life Insurance Company of Rome, in
his petition filed with Superior Judge
George L. Bell yesterday, charged mis-
appropriation of funds mismanage-
ment of the company and asked that
a receiver be named.
Charges Dissipation of Funds.
The petitioner alleged that the funds
of the company have been dissipated to
an extent that endangers the invest
ment of the stockholders, and that the
company is being operated now at a
loss of from 81 200 to $4,000 per week.
1t is asserted also that S1.6S1 800, said
to have been the fund taken in by the
NOilpeIly SlICt the VI 5dlllNl Nlpil' lld9
dwindled to $35O,OOO.
The petition related that the COM
pany is engaged in both industrial and
ordinary life insurance and alleged the
officers have been endeavoring to sell
the assets and policies Of the company
an action, which if permitted, will
mean a loss to stockholders and credi-
tors alike.
It asserted that the promoters,
who afterwards became officers. at
tempted to formulate a plan whereby
the company would begin operations
without any cost or risk to themselves
and that they therefore settled upon
a plan to organize a mutual insurance
company without capital stock. This
said Brooks, they did without any re-
gard for the policyholders or the cred
itors of the organization.
Gives Income and Expense Figures.
Petitioner alleged that from the or
ganization to December 80, 1912, the
total income amounted to $SO7164.O7,
which was realized from the premiums
$4L83461; interest, $6,O6446; sale Of
certificates $653,225.
The total expenses and losses duriag
the period amounted to $437,944.96, Of
which amount, the suit maintained,
only $24156.1S was paid out for death
claims. while the salaries amounted 10
$9I139SS or almost twice the sum
derived from the legitimate business
income.
For the period between January /,
1912 and November 30, 1912 the suit
asserted, the total income was 1854
1888 which was apportioned as fo!-
lows: Total premiums, $211.31918: To-
tai interests and rents, $17.5O6.3S; IN
come from sundry sources, S127477:
income from sale of certificates, $524.-
SIS.
The losses and expenses incident to
operation, said the petition. during that
period of eleven months we're s61S.-
o7T90. of which only S92 $685. was
paid for death. accident and sick claims
and for cash surrender values The
items Of commissions paid agents for
securing business amounted to $126.-
40757. and in addition, said the suit,
the superintendent. officers and en-
ployees received 2S5.59152. making
total paid out to agents and employees
of $211.99O1O.
Defense Claims It's Solvent
BY subtracting from the expenses
enumerated above the sum Of 1926
S25.56, which, according to petition.
represents the legitimate business in
come, the petitioner attempts to show
the management of the company
wasted in the eleven month period
S3S9.252.33.
The assets are ttemized as follows:
100000 in bonds deposited with the
comptroller general, about $4,000 cash
in bank, about $4,000 in real estate
mortgages and equity in real estate
about $4,000. making a total of about
$3.50. 900.
Representatives Of the Cherokee Life
Insurance Company in statement
assured the public that the company is
the victim Of sensational litigation
against "a thoroughly solvent fnstitu-
ton with a net surplus of over $500.