, 1872-11-20

ton OF A9slSnee u tue
"a decision which has
which, it Will be seen,
7ery particular:
1s1oN.
t, one Newton 8. Tay-
adrupt, fled his petit
tion making various cuas ges against y. .. FER
kins, the Assignee, who had been elected by the
creditors on the 18th Of April previous, and
aekine the removal OF Perkins from the office
and functions Of Assignee. On the 18th Of July,
John A. King, in behalf Of the firm Of
Tol1nan l. King, creditors Of the bankrupt,
6lel similar petition. and On the oath Of Au-
gust last Robert IT. Hale and large number OF
other creditors Of the bankrupt filed their petit
ton to the same purport. On the 25th Of Au-
gust said John A. King fled an amended or
supplemental petition upon the same matter.
To these petitions Perkins has made answer,
and volnminous proofs have been taken upon
the various questions OF fact raised by the petit
tions and answers. I have not time to comment
at length upon the testimony in the proceedings,
but after having carefully read and considered it,
Imust proceed to dispose Of the issues raised.
The charges against 11r. Perkins may be briefly
stated IS follows:
First That he was acting In the interest Of George
G. Smith, c. n Smith, J. Bradner Smith, and the Ma
tona1 Loan Trust Company private banking cor
and available assets Of the bankrupt In their possess
sion and CONTROL and not in the interest Of the gener
such Assignee bg The votes q the said Smiths, upon
claims held By them against the bankrupt in their In
erest and TINT he had been grossly negligent and IN
faithful in his conduct RS such assignee to the inter-
est Of the general creditors.
Second. That since his, election as such Assignee,
Of the bankrupt correct information regard to the
extent and vaue Of the assets Of the and the
probable amount Of dividends which would be realized
the-efron to the creditorG:
Third. That he has made fraudulent settlement,
compromise, transfer Of claim in favor Of said
bankrupt, agninst the Teutonta Insurance Company,
said claim being upon policy Of reinsurance issued
By the Teutonia Company sometime in February, 1871,
upon all the rsks of the State Insurance Company out
Fou1I. Tint after said State Insurance Company
became nzolye9t md before 1t vas sdjns;aed
had received payment in full OF demand for s40o
which he held agains said company for professional
services.
These, think. state fairly the substance of
the allegations against A1r Perkins, upSn which
his removal is demanded.
By his answers MI. Perkins denies all the i'm
pntations and charges Of bad faith and want Of
diligence and fidelity in the performance Of his
in which he disposed Of the claim against the
Teutonia Insurance Company, and his reasons
therefor, and also gives his explanation Of the
transactions upon which the charge OF obtaining
As to the first charge, or group Of charges,
the established facts seem to be,-that for soma
months prior to the great fire in this city on the
sth and 9th Of October 1871, the affairs OF said
State Insurance Company had been mainly
of Il. L. Hulburt. President, G. H. Smith, Vice
President, and Geo. c. Smith, Treasurer: The
same persons we're also the leading stockholders
pany, private banking corporation of this city,
and the deposits Of said Insurance Com
pany were kept with said Banking
Company. That at the time Of the
occurrence of the fire Of October, 1877, by which
said Insurance Company Was rendered inso1vent,
said Banking Company had in it's hands cash
and convertible bonds amounting to about three
hundred and twelve thousand dollars (Ss12, 0oo),
aud that all said assets we're converted INTO
money as early as the LIST of November, ISL.
Soon after the fire said Banking Company
purchased at fourteen to fifteen cents
On the dollar certificates Of adjusted losses
by said Insurance Company, to the amount OF
about two hundred and el1ty-one lhonsano aoi-
face upon the books of the bank, against the
indebtedness or deposit account due from the
bank to the Insurance Company Ihere WAS
also standing on the books OF ne oank an ltem en-
~ about s32. 600 for money advanced before the
IRE. on account Of the Insurance Company, Tor
the purchase of certain stock OF the Company,
which had been bought in and cancelled, or
bought for the purpose OF cancelnng. soon a.
out By the Company, by checks upon its
finds IN the bank, for ealaries Of e.: A. Hurl-
INT. President, c. II. Smith, Vice President,
aad George G. Smith, Treasurer, amounting III
Some time in November, 1871, the Auditor OF
Public Accounts Of the State; under the author-
ity vested in him By the statute regulating the
affairs Of insurance companies, caused Dill 70
5e fled in the Circuit Court here Tor Winding
np the Company's affairs, and the Court ar: A.
pointed T. A. Hurlbut Receiver, and directed MN
to take possession Of the assets. ne
ACCEPTED the appointments. entered upon LIS
autieH, and took possession Of all the books' pa
,ers and securities, and the bank, On ms demana,
Esd over or transferred to his credit as Receiver
On it's books the balance Of cash to the Com
pan7's credit amounting to about III ,ooo :: tnat
is tie bank, claiming to lave reduced Its 1ablll-
ties to the Company on the deposit &c noo ~
indebtedness before the FIRE, and payment o.
checks drawn for Salaries only admitted itself
io5e5:ed in the sum of SIT. 200, which was VIZ
tu1ii5 passed over to Hurlbut:
Corre on which the Company was subsequently
adiud:cated bankrupt. But all these steps to
MAZE net-oT against the main part OF the sum
6ue from the bank to the Company bud been
taken before the Receiver was appointed and be-
fore the beginning OF proceedings in this Court
as Court Of Bankruptcy.
II elso appears that after adjudication Of bank
,uptcy it was in contemplation between the Re-
eelyer and certain officers of this State to deny,
Nv proper legal proceedings in some form, the
Cover Of this Court to supereede the United
States Court in administering the affairs Of the
Company, and TO- that end the Receiver refused
for soma time after Mr.. Perkins Was appointed
Assignee to turn over the books, papers, socuri-
ties. or assets in his hands. But in May IN
arrangement was made between Receiver and
Assignee, by which the books we're turned over
to the Assignee, with the understanding that the
question as to the controlling jurisdiction Of
tn;s Court, as against the State Court, should
be made upon the money, which the Receiver
still retained.
It Will. therefore, be seen that at the time
Mr. Perkins assumed the duties OF Assignee, the |
bulk of the available funds OF the Company was
claimed to have been absorbed BY the set-on
claimed by the National Loan d Trust Com
pauy.
1t has become matter Of history that the
question Of the right Of persons indebted to
bankrupt insurance companies, to buy demands
against them, and set them off against the
41.41%r ryy-c1{