Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-09-15
LIFE INSURANCE
FRAUD ALLEGED
IN MAGU|RE CASE
Widow of Contractor Declares
Banker EiseIe Had Policy
Cancelled on Deathbed.
cHANcERY COURT WRIT is
TO REVIEW PROCEEDINGS
Petitioner Seeks to Have Poll
cies Renewed-Charges
Cancellation Was illegal.
cHANcERY COURT WRIT is
TO REVIEW PROCEEDINGS

Vice-Chancellor Howell has signed
a rule directed to the Equitable Life
Assurance Society of the United
States, and requiring it to show
cause why two certain insurance
policies on the life of the late Frank
N. Mcguire, formerly of the corpora
ton of O'Gara & Mcguire, should
not be revived and their cancellation
revoked.
Argument ON the rule will be had
before e-chancellor Emery next
Tuesday.
There are now pending in the Su-
prerne Court two suits to compel the
payment of the policies, one of which
is for $500 and in favor of Jane L
Mcguire, widow of the insured, and
the other for $4,000, the corporation
of O'Gara & Mcguire being the bene-
f1ciary.
In the complaints. made through
the office of Lum, Tamblyn & Colyer,
1t is alleged that on June rs, 1914,
John c. Eisele, president of the Wash
ington Trust Company and an agent
OF the Equitable, procured an appli-
tion to be made by Frank N. Mcguire
for Insurance In the sim of $500,
Mrs. Mcguire being named as the
beneficiary, and another application
for insurance in the sum of $4,000.
with the contracting corporation the
beneficiary.
Both policies were allowed by the
Equitable. The premiums were paid
and afterward Mr.. Mcguire became
Ill. While he was sick, 1t is alleged
he was visited by Mr. Eisele who In
duced him to sign cancellation of
each policy Mr.. Eisele 1t Is said, also
obtained the signature OF Mrs.
Mcguire to the cancellation of the
policy in her favor.
Mrs. Mcguire now declares that she
did not know the nature of the paper
she was signing, and was not made
aware of 1t until after the death of
her husband on July 81, 1914. This
cancellations were. dated July II. 1914
O'Gara q Mcguire also seek the refor-
nation OF clause in the policy which
permitted the insured to change the
policy from one beneficiary to an
other. McCarter 81 English, appear
ing for the insurance society, will op-
pose the motion. -
The petition filed In Chancery, and
on which Vice Chancellor Howell
made his order, charges that Mr..
Eisele "wrongfully and improperly"
procured the cancellation of the two
policies. All the charges have been
specifically denied by Mr.. Eisele, who
sets up that the Equitable was re-
leased "by the voluntary act OF
Frank N. Mcguire" and Of Mrs. Ma
guire. He further asserts that the
policies were surrendered for a 'valu-
able consideration"
The O'Gara & Mcguire Company, IN
its petition to the court, declares that
II had an account with the WASH
ingtop Trust Company and that Mr..
Eisels, as president Of the financial
institution, suggested that the $4,000
policy be taken out to protect the
trust company in loans made by 1t
TO the contracting concern. In pay
ment of the first premium $366.20 was
taken from the company's account
with the Washington Trust.
It Is then charged that on July IL,
1914, Mr.. Eisele called at the office Of
the contracting corporation and, rep
resenting that he desired to discuss
some features of 1t with Mr.. Mcguire.
took the policy of insurance from the
office, He then went to Mr.. Maguire's
home with another representative OF
the insurance company and secured
the release. 1t Is asserted that tho
amount of the premium was then
used as part payment Of loan and
not turned into the O'Gara & Mcguire
account
The answer Of the insurance COM
pany, filed by McCarter & English,
sets up that the policies were both
applied for by Mr.. Mcguire and that
the corporation Of O'Gera & Mcguire
did not seek to have either OF them
issued. The answer further states
that Mr. Mcguire voluntarily sur
rendered the policy to Mr.. Eisele that
he might take 1t up for cancellation
because of misrepresentation made
by Mcguire in his application.
IT Is further denied that Mr.. Ma
r,Iire was exceedingly ill'' when he
executed the surrender of the policy
or that he was in such condition as
not to be able to apprehend the ma
ture Of his act. 1t Is also denied that
the premium paid on the $4,000 pol
lev was applied to O'Gara & Ma
p1,ire,s loan from the Washington
Trust Company.
Mr.. Eisele Is one of the most promi-
nent figures in local finance. In addi-
tion TO being president of the WASH
inston Trust Company, he Is d
director in several large institutions
and is senior member of the firm of
Eisele & King, dealers In securities
and members of the New York Stock
Exchange.