Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-02
Second Application Filed by
Out-of- Town StockhoId-
ers of Company.
R. J. WYNNE is DEPOsED
AS FIRST NATIONAL HEAD
Board of Trustees of Fire Insurance
Concern Takes Action at
Special Meeting.

SAlleu states, HdO Oeen QepOSeu
Office at a special meeting Of the board
of trustees of that company yesterday
afternoon. another chapter in the his
tory of the First National and the Com
mercial Fire Insurance companies which
are managed by interlocking directorates.
was written today. when a second appli-
cation was filed in the District Supreme
Court for a receiver for the latter. The
application was made by out-of-town
stockholders. Yesterday a similar suit
was filed by John s. Clemence. local
stockholder.
The stockholders ask for the appoint
ment of receiver and also an in3unc-
ton to prevent the adoption Of a reso-
luton to reduce the capitalization of the
company.
Justice Stafford issued rules on the
company and the other defendants 10
show cause next Friday why the court
should not Intervene in the administra-
ton Of the affairs of the company.
The plaintiffs in the bill filed today
through Attorney w. Gwynn Gardiner
are Charles F. Roster of Weehawken, N
Robert W. Girvin. all of Lancaster. Pa.
Besides the corporations. there are
named as defendants S. w. Atkinson,
Frederick F. Dudley, Charles +. Carusi,
Fred T. Dubois. Paul F. Grove Elorlose
f. Jordan, Clarence A. krouse, John NC
Gee, Robert r. Tuttle. Richard weight
man, Robert Wynne and John Z. Sperry.
Cite Letter of April 20.
The plaintiffs say they received let
ter from the president Of the company
April % last. concerning proposal to re-
duce the capital stock.
In this letter, they aver, the president
wrote that he personally had a large
amount of money invested in the com
pany and that his personal rrlenas, 40
rectors, are heavily interested. Inc
court is told that the sworn state
ment filed with the District insurance
department as of December 81 1919.
shows the directors and officers OF the
company ito own only $6.575 par value
of the stock OF said company. which IS
about Ia per cent Of the total amount
of capital stock Of the company, -.
Southern building. the petition states.
is claimed by the officers to be $35O.O00.
The plaintiffs tell the court the COM
pany paid only $77.5o0 for this equity
and express the opinion that said
equity today is worth not more than
500, 0Oo." 1t is also alleged that there
have been no earnings of the COM
pany under the present management
On the contrary, heavy loss mas oeen
During 1912, when. it Is claimed. no
profit was being earned by the company.
dividends amounting to S2S633.6 80 were
paid. The court is asked to hold the
directors then serving as Jointly ana
seyerally liable for these dividends and
to award judgments for the amounts al
legged to have been improperly paid out
as dividends. The dividends are alleged
to have been paid out of stock sales.
Statement by officers.
Following the meeting Of the trustees OF
the First National Fire Insurance Com
pany yesterday afternoon the following
statement, signed by S. ]. johnson, sec
rotary of the company. was issued:
AT a special meeting of the board of
trustees of this company, held June l. for
the purpose of considering and acting
against the president, Robert j. Wynne,
at which meeting there were present the
following twelve trustees: Judge Atkin-
son, Col. Harper. Bates Warren Bestor
r. Walters, E. E. Jordan. c. A. krouse.
Richard Wightman. Frederick S. Dudley.
s. ]. Johnson, Robert r. Tuttle, John Nc
Kee and William F. Thyson, a resolution
was unanimously adopted deposing Rob-
ert J. Wynne from office"
Mr.. Wynne was Postmaster General In
Rooseyelts administration and later
served as consul general at London. He
had been president of the insurance COM
pany for about year and a hair at a
salary Of 5000 per year.
Internal dissensions which have oeen
growing for several months are said to
have been responsible for the action of
the trustees yesterday. Although none
Of the officers Of the company has pup
licly announced the immediate cause for
orally understood to have been dispute
concerning the possession OF stockhoid-
ers' voting proxies.
Had Mail Delivery Changed.
May o. it is stated Mr.. Wynne di-
rected the city postmaster to have all
mail addressed to him as president OF
the First National Fire Insurance Com
pany delivered to his residence on Rhode
Island avenue. Other officers of the COM
pany learned Of this action about three
days later and entered a protest at the
post office. An order OF the post ONCE
which is disputed shall be opened in
the presence of both parties to the dis
pute or held by the office until the right
full owner has been determined. At a
hearing to be held at 1870 o'clock tomor-
row morning at the Office Of William H.
Lamar, assistant attorney general for
the Post Office Department, decision
will be reached as to the course to be
day that until the matter is settled all
mail addressed to Robert J. Wynne,
president of the First National Fire In
surance Company" or THE President of
the First National Fire Insurance Com
pany," will be held
No definite announcement has been
made concerning the course to be pursued
by Mr.. Wynne with regard to the action
of the trustees who deposed him from
Office 1t is understood that the contro-
yersy will be taken into the courts to
determine the validity of the action of
the trustees. An effort made to locate
Mr. Wynne today for the purpose of as
pertaining his plans was unsuccessful.
At his residence on Rhode Island avenue
it was stated that he was mot at home"
A letter announcing the deposition of
Mr.. Wynne and requesting that an in
closed proxy be signed in favor of Rob
ert N Harper, Clarence A. krouse and
Frederick S. Dudley has been mailed to
the stockholders of the First National
Fire Insurance Company. 1t is signed
by Ashley NJ. Gould, Robert n. Harper.
George W. Atkinson. Eldridge E. Jordan, |
Howard C. Shober. Bates Warren. Bestor |
r. Waters, Clarence A Krouse, Rich |
ard Wightman. S. J. Johnson, John Nc |
kee, w. F. Thyson and Douglas, Ruffin |
& Obear, general counsel.
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