Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-05-03
ST. LOUIS.
Serious Charges against Insuranc,


Serious Charges against Insurance
Directors.
ST. LOUIS, May IA suit was COM
mence1 to-day in the Circuit Court of this
county by Fred. Settle against the St. Louis
Mutual Life Insurance Company. The pc
tition of plaintiff states that previous to
1859 the Company did large and remuner-
alive business, and the annual income from
its premiums was million and half dol
lars, but that the Directors have wasted
and misappled this fund in purchasing
aground and erecting a building costing
nearly million OF dollars, thus unlawfully
and improperly diVerting the funds of the
Company which should have been applied
to dividends 10 policy holders; that many
Of the Directors of the Company were TO-
terested in the said building as contractors,
and charged prices for the work and
materials largely in excess of current rates
at the time; that the directors have loaned
to themselves and their relatives aud
friends la. sc sums af money belonging to
the company, aggregating over hall a mil
lion Of dollars, on insufficient or no secu-
rity at all, they knowing the loans to be un.
safe and imprudent investments; that the
business of the company has been conduct
ed in wssteful and extravagant manner,
its expenses for the past year having been
three hundred dollars in excess of what WAS
necessary, and this simply to enrich favor
ties and friends; that with careful man ge-
ment two dividends of at least 20 per cent
each could have been paid; that defendants,
10 keep their wasteful aud fraudulent acts
secret from the policy holders, have, by
purchase, contracted the capital stock of the
company in their own hands and that of
their friends, and that they retain their po-
sitions by q small minority vote; that
the directors have failed and re.
fused during the past two years
to make full explanatory reports of the con-
dition ard transactions OF the Company,
and refuse to permit the policy holders to
inspect and examine the books and papers
of the Company; that the directors, to de-
ceive the policy holders, have issued aud
published Ease and fraudulent statements
of the affairs and condition of the Compa-
ny. Still other charges of irregularities and
wrongful acts are made against the defend
ants. The plaintiff asks that receiver be
appointed to take chargo Of the assets and
affairs of the Company, pending decision of
the cause; that the building on the corner
of Locust and 9th streets be sold and the
proceeds be applied according to the act of
Incorporation; that loans past due be col
lected,. and salaries and expenses be re-
duced; shat defendants shall reimburse the
Company for the loss sustained by reason
Of their wrongful and fraudulent acts, and
be forever enjoined from further interfering
with the assets or business of the Com
pany.
Compromise of Competing Gas Com. |
pRnies.
The Laclede Gas Company to-day paid |
TO the st. Louis Gas Company 100000 dol
lars and took possession according 10 previ-
Gus arrangements, of the main pipes and all
the property of the old Company In that
part Of the city lying Dorth Of Washington
Avenue. The old Company will continue /
to furnish gas to all that portion of the
city lying south of Washington Avenue.