, 1873-08-01
Disclosure Of the Inside Work.
ing Of the Etna Manufac-
turing Company.
Dean Stanley, Of Westminster, Lon
don, to Testify in tho
Cheney Case.
Patent 0ases---In Bankruptoy---Bills
in 0hancery---New Suits.

In tho suit in TINT Court instituted by Edwin
Burnham and Edwin II. Durnham againnt tho
Lamar Insurance Company, Leonard swett, VIM.
Il. W. Cnshman, Isaac N. Hardin, Wm. K. Ackor-
man, Gurdon s. Hibbard, Paul Cornoll, Laban s.
Major, Leroy Church, Chas. 3. Farwoll, and Van
II. Higgins, on the 23l day Of October, 1871, scs-
ting up that said complainants, at tho Juno torn,
1872, obtained certain Judgments ngainst said
Company, ETC., and praying for tho
appointment of q Receiver, tho bill Was
prdored takcu aB confessed rs against
Tho Lamar Company, but not against said
Bwott and Higgins, or either Of thom, nor woro
any efforts made to bring tho other defendants
Into court, SO far as appears from tho records,
and afterwards tho bill was amondod by making
Tho Peoples Insurance Company Of San Fran
cisco defendant, as debtors to the Lamar In the
sum Of 5170,000 for reinsurnnces and on tho
23d Of November, 1872, on tho motion Of COM
plainantB, d dccreo was entered appointing
George Chandler Receiver. who duly made his
report, which las boon duly published in The
TRIBUNE.
The comp1ainants dip dooply into tho history
OF the Company down to the timo that 1t RuH-
pended, in the spring of 1871, when its aul,-
scribod capital was 81 200 900 losses not OK
traordinary and charges that it's ombarrasBmonts
arc largely duo to tho woll-known agreement
giving Cuahman j. Hardin $50 shares, with 20
per cent paid thereon, aB premium for thoir
subscribing for $500 sharoa, representing $780,
300, on which thoy paid $4,000, md on which
shares tho complainantsinHiSt CuBhman L Hardin
are liable for assessment.
On Cushman l. Hardin subscribing tho $780,
600, it is further alleged, tho Company mado out
the certificates for the $50 shares, with 20 per
cent paid up, and haudod thonl to Cush1nau g.
Hardin nj d gift, and tho $4,000 pnil in by
Cushman L Hardin On their s550,o00 Bubscrip-
tion was taken back by them, in small amounts,
May, 1871, and the stock certiticntoa turned buck
to the Company and Cancelled, as though
the amount they 1opresonted lad never formed
the capital stock Of the Company, thus eerlouBly
large sum Of money, eithor in cash or cash &C.
curities; they also further Withdrew in small
GUMS, about March, 1871, further aggregate Of
$4,000; all OF which thoy applied to their own
use.
CuBhman was then the Treasurer, having
charge Of all the securities, and Hardin was
Vice-president, having activo management Of
the affairs OF tho Company; and complainant
charges that tho said pretended subscription
a@ouaa ssS4 ia tGaoe Ge ssd sss
subsequent withdrawal Of the $4,000
and cancellation Of said stock, we're
accomplished by oollusion with tho executive
without tho knowledge Or consent Of tho bona
ddo stockholders except tho executive officers
aforesaid.
Complainants further charge TINT said Cush-
man 4 Hardin hayo been guilty OF taking from
Tho Company other largo sums Of money, the
particulars Of which they do not give, for tho
full amount Of all which moneys complainan.s
ineist that thoy are justly liable; showing tint
thoy arc bankers doiug business in this city, and
amply ablo to make good all assets thus wrong
fully Withdrawn, as we'll as to pay the asaess-
monts upon tho capital stock Of the Company so
subscribed for By them.
It is further affirmed that, at tho time the
eecurities amounting to s10l, ,000.ol tint, oil tho
Slst of December, 1870, it WIS shown by tho
annual statement Of tho Company that thero
@aa duo to tho Company on call $13, ,885.70, for
which personal 8ccurity was held, sad amount
consisting, aa complainant III informed aud
believes, OF money loaned to Leonard 8wett
President, a8.ol5.17, and to Isaac N. Hardin
Vlco-presidont. $500. which amounts have
mover heon repaid; which assets aro not among
those turned ovor to the Nocoiver appointed
under the order Of tho Court; that Van II.
Higgins has mover rendered M account OF tho
bonds aud securities turned oyer to
him by the Lamar out Of which
Peoples the!r roinsu,ranco premium i;'t that e ho
flfiggins) holds bonds and securities tint have
never been used for TINT purpose and complain
ints insist that, beforoany proceedings arc taken
moneys soretainedby Van Higgins, withdrawn by
Cushman l. Hardin, and loaned to SWEET l. Har-
din shall bo applied to the purpose; auch moneys
aggregating 43U0,000, or theroaboutB, greater
part Of which could 'havo beon collected with
reasonable caro- aud diligence, Buffloont, at all
oyontB, to pay all tho outstanding indebtedness
Of tho Company, I'LL expenses incident to tho
settlement, and o considerable dividend to tile
ktockhpldorR.
Next they complain Of the acts OF the RoooIvor,
In respect of tho outstanding assessment, AZ un-
Just and inequitablo, aud pray that it may bo
suspended, ho having mover taken cognizance or
informed the Court Of tho existence OF Cusl,-
man q Hardlns $500 sharoB, or taken any Hteps
to compel them to pay their aEnossmont thereon,
and having acted Oh tho assumption that ono
half OF the stockholders arc insolvont, without
giving particulars, wheroas tho complainants
aver tho contrary to bo the fact, and that tho
great maj jority Of stockholders wero and still are
perfectly solvent.
They chargo. also, that after the Chicago fire
enid Cushman Hardin bought up largo NUM-
bor Of the claims against tho Company for the
S5posS went o' HoaE of o lG bp up a sa ~ os IN IN
the Company, payiug therefor about as per cont
Of their face value; or, In tho event OF said
moneya not being demanded of them, to speou-
Of In full by othor atockholdors; and that tho
said bill Of complaint OF unid Duruhnm haA boon
filed, and proceedings takon Hereunder, by col
fusion with sad 0uBlnau Hardin, and mainly
" tnoE lntolehta, LOT tho purloHo OF covering up
their liabilities, and enforcing tho payment In
full OF tho policies 80 taken up mud hold by them
az aHafoloBa1.
Farther, that by Affidavit OF Leonard swott
dated It'll March, 1871, a.l fled at tho Office Of
the Auditor OF Public Accounts that In addition
to tho other aHsots, 10 paid into tho Company
s20,50o in casls, being absolutely and without
reBeryo tho property Of tho Company, subject to
itH liabilities but which has not In any nlas,nor
boon accounted for by tho officers, received by
the Dnceiyer aDnontOl bY order Of tho Court
The complainanta conclude by showing that
they arc bona lido Stockholders, who have paid
tlei1 assessments; that they have never con-
gontod to any of tEe aotings aud doings rotated :;
that tho whole Of tho proceedings taken against
The Company have been by lofault tho officers