, 1873-02-12
$500, 600 TO IS, 900, 600.
How Great Western Insurance Stock
Was Watered.
Startling Discoveries Alleged to Ilapo Deon
hlado by Mr. noss.
of Fraud md For
gory---Bogtls Claims, Etc.

A determined attcmpt is to bo mado to upset
the rocont ilooisious In tho United Staten District
Court ngainst tho stockholders Of tho Great Wost-
ern Insurance Company, and tn bill ysatertaay
illod by George II. ueBs, to restrain tho Assignee
proceeding further in the suit against him, and
for other purposee, aomo startling allegations
are made. Beginning with tho
HISTORY OF THE COMPANY,
Hess afflrms that tue papor pnrporting to bo
signed by throo-fo,uthB of tho stockholders CIV
Ing consent to tho increase of capital frcm
5000 900 to $5 COO GOO, such signatures boug re-
quirod by Inv, has been recently examined at
tho Office Of tho Auditor of Slate, md ho, Hess,
is informed that suoh pretended signatures nro
absolute forgeries, except as regards two of
thom; and he claims Tint all tho proceedings in
respect Of this increase, boing
BASED ON FORGERY,
are null and void, aud m absolute fraud, and
that all certificates for stock over and above tho
sum of $500, 900 aro issued without authority Of
Inv, upon forged papers Of all Of which conf
plainant WAS advised only within tho past month;
and upon hoarlng Of tho canHo ho will insist TINT
tho perpetrators Of said fraud nro
L1ADLE TO TIE CREDITORS
for tile paymout OF all the dcbta Of tho Company,
and that innocent purchasers Of tho non-assoBs-
able stock cortihcatea issued upon said pretond-
cd false, fraudulent, and illegal increase OF tho
capital stock, are not liable for any assessment
thoroon. Ho furthor shows that at moeting Of
tho holders Of the original 100000 stock, In
April 1870, It was voted TINT tho Executive Com
uittoo Of the Company DO authorized to adopt a
resolution to tho effect that 20 per cont
paid in and indorsod upon the stock cer-
ftf}eates should be in full payment
~ aa,., .,,h,orIor ~ ;ts ,.n,to, atoc and that
1ot on,4 4auDoo1pol W ~. r.,"4s"
after tho adoptlon OF aucn tosoAuslon, eers'nca'oh
Of stock should DO Issued by said insurance
TwryrY DoInAns on guAnE
.1.. .t.,1s =. l., 81, ,,1-,o.t -, ,1o ..r,o
thoreof should 20 III tuu payment OF the same,
and such stock Bhould be considered rs fully
paid-up stock, and that no further assessment
e,ou1d ho modo unon auoh eortificatea or auob
1., I,..t -, - 1o7o H.. ..;a E-oa,,t;,..
etocA tna' ~ "uno, Low, Wv o0.o LAooust'e
Committee adopted q resolution TO the el1eot
that the atock should DO sold upon the market
assessment should over bo mado on such stock,
which resolution was approved by tho Directors,
and spread upon the records OF tho Company
and thereafter all stock certificates were isaued
to all persona upon tho payment Of $40 for each
share, such certificates, by the terms thereof,
BEING NoN-AssEssApLE;
Ill Of which proceedings wore published IN tho
daily press Of Chicago that from June, 1870, to
I'll being nom n-aasessab1e under the preceding or
rangemonts,. the Company receiving therefor,
or being entitled to receive, 420 for each Of such
ahares that at tho time OF the fro the available
100000 hnd been received by 20porcent aBaoBs-
ment On the original $500 600 stock, and $780, 900
on tho non-assessable 5000 shares issued since,
THE LIABILITIES
the exact amount could not be aescertained, the
books, papors, and memoranda being destroyed
BY the fire. Tho astets exceeding tho liabilities,
tie Company decided to 70 on with business, to
| issue further policies, and to pay all 1osses in
full. in pursuance Of which General Hart L.
Stewart, In December, 1871, proceeded to Now
York for the purpose OF
NEGOTIATING LOAN
upon the faith and credit Of certain securities,
succeeded, and tho examination Of securities was
commenced, and arrangements nearly completed,
whom the General received telegram from Chi
cago stating that tue Company had been put in
bankruptcy, upon which ho closed negotiations,
returned to Chicago, and returned the securities
to tho Company. And now comes
TIE CATASTROPHE.
On the 17th Of january, 1879. n. n. Hooley
| petitioned tho Court for tho bankruptcy OF the
g. D. Hooker, then Secretary OF the Company,
and James Ba1tor, the then Treasuror; that said
Hooker Immediately after presented to bo fled .
confession Of the act Of bankruptcy, but Which
EQulGhH1uu MD AAGA tAAs nA4tt 3H "0o ~
tho time Of tho filing OF the petition tho owner
| By purchase Of tbe claim Of said Hooloy !;
| that on tho 9th Of February, 1872. the
! dav of ndiujicatiop said Hooker was appointed
Provisional Assignee Of tho bankrupts' @estato,
and In that capacity took and held possession Of
the asaetts, and passed upon and approved the
claims for losses and liabilities from that time
up to the 18th Of April, 1879, whom. Clark w.
Upton was appointed Assigned. He charges that
| these proceedings In bankruptcy were UNDER
takon by Hooker 4 Baxtor for the purpose Of
passing upon
BOGUS CLAIMS,
acquired by thom and their associates, for tho
| pUrpose Of making unlawful gains during the
abaence Of Stewart in Now York TINT In pur-
Buanco Of such IN arrangement Baxter and
othorg procured o very large number and
amount Of false, fraudulent, and bogus claims,
which Hooker, aa arranged passed as good,
honest, and valid all of which statements,
Hess ayers, arc not based upon nero suspicion,
but upon information received by him from
officers conueoted with snid Company and con-