Evening star., 1916-09-21
court SAYS ORDER
| HAS Sheen VIOLATED
]. B. Kinnear and S. J. Masters
Must Purge Selves or Face
Contempt Action.

= In an opinion issued this afternoon
by Justice Siddons in the Supreme
Court of the District of Columbia John
B. Kinnear and Samuel ]. Masters are
declared to have failed to obey an order
OF the court involving the assets of the
Royal Life Insurance Company and the
Modern workmen of the World. The
court declares an order holding the IN
surance officials guilty of contempt OIL
court will be signed unless they purge
themselves by complying with the orig
inaI decree.
Z The action against the defendants
was brought by H. Winship Wheatiey;
10 receive all the assets due him.
{ In answering a rule to snow cause,
the insurance officials declared they had
turned over all assets as far as they
matter be referred to the auditor or
the court to determine the amount que
fhe receiver. 1t was also declared IN
the answer that some assets had been
Invested, and that the investments
failed to be productive.
Sales at Own Peril.
Justice Siddons declared that "if they
have been exchanging or selling the
assets of the Royal Life Insurance Com
pany they have done SO on their own
responsibility and at their own peril
IL they nave made expenditures or dis
bursements, whether for, the benefit OF
the Royal Life Insuranceipolicy hoiders
as they conceived 1T or not, they d1d. SO
on their own individual responsibility
and at their own peril.
( S5 Per Cent Is Held.
As to the requirements of the decree
Sof August 2. directing the defendants
to deliver the certificates of stock OF
the life insurance company of the par
talue of $4,000. the defendants. accord
ing to Justice Siddons' opinion. say
that there Is in the possession of the
defendant Kinnear S5 per cent thereon,
and that IS per cent of this belongs to
the plaintiffs. Hartman and Cohfll, but
Il subject to a garnishment issued In
An action brought by the defendant.
Masters & Kinnear. while expressing
. . willingness to surrender the S5 per
cent of stock, say that the order re-
auiring its delivery should be made
kubject to any claims of the owner OF
The stock or to any claims by reason
1 the garnishment mentioned.
sAttention is called by Justice Siddons
that in oral argument it was conceded
by their counsel that the stock should
X turned over. and that in the hands
81 the receiver 1t would be subject In
kny event to any lawful claims or liens
against 1t.
Further Refusal, Contempt.
.-The further refusal to deliver this
stock to the, receiver is, or Will be- in
contempt of this courts decree. and
1t will be so adjudged in an appropriate
order" the opinion continues
The court declares the answer OF the
defendants is vague and general in its
terms, and argumentative, and through
but it Is constantly averred that on
an accounting before the auditor All
the matters in controversy can pc
cleared up, and that they stand ready
70 comply with any anal decree that
may be made after such an account
ing before the auditor
Not Purged, Court Says.
The Justice said It IN his opinion that
fendants Of the contempt alleged against
them by the receiver.
i In closing the opinion the court said
from the order adjudging the defend
ants in contempt. should be excluded
all assets thus far delivered by them to
the receiver and the Is per cent Of the
capital stock Of the insurance company
which their counsel stated In open
court was not, and never had been, in
their possession. He said there should
also be excepted from the order certain
other items, but that 1t should include
the real estate known as premises 210
Florida avenue. which they were said
to have failed to convey to the receiv-
er. the interest Of the Royal Life In
surance in exchange being an equity
amounting to $1,000, as stated in the