, 1873-05-14
THE "MERCANTllE,"
The Attorney-Goneral Calls on the Cir
cult Court to Wind Up an Unsafe -
Insurance Company. -
Tow to Start Company on NotllIng.-.
" Ono Of Tho Last hodges.
Not Ono Cent Paid Of tho "Fuly pa'dr Carl.
iaI'..'The EniIro Stock chargod 10 Dl. .
recsors as Loans.

ia..'The Entro Stock Charged 10 Dl. .
recsors as Loans.
The people OF tho State, by ]. X. Edaall, Al
torney uoneral, yesterday commenced suit !,
chnucery against tho Mercantile Insurance Com
pany. Tho bill deolnros tlat tho Company VA
orgauizod Under the laws Of this Btato IN lB5
for the purpose of carrying on the business o
fro insurance iii this and other States, the prin
cipal office being located In tho City Of Chicago
That during the fall Of 1868, by voto Of thu
Directors, It waH roBolvcd TO discontinue issuint
insurance policies, md that aftor paying al
accrued losses and dobts the stock should bt
cancelled by II. n. Richmond and oil tho rights
and in,munisios OF said stockholders bo convoyoe
to said Richmond, his associates and SUCCESSORS,
With power to roorgenize Mt any time thcroaftor.
Tint tho business was discontinued in accora.
anco with tho above arrangement, until the 9Th
OF July, 1870, when eafl Richmond aud tho Bub-
eoribora to now stock III said Company, uu-
dertook to revive and roorganizc satd Company
and on tho 7th Of July, 1871, by vote oi
the Board Of Directors, undertook to increase
tho capital stock to 100000. That by Sec. 2(
Of I'M act of the General Assembly Of this 8tato,
entitled "Au net to incorporate md govern fire,
marine, md inland navigation insurance oom-
pauies doing business iu tho State of Illinois, II
approved March II, 1860, 1t is provided that it
Bhall DO tho duty Of tho Auditor of Public
Accounts Of tho State whenever he shall deem
1t oxpedient go to do, in person. or by ono or
moro porsons to bo appointed by him for that
purpose. to examine into tho afTairs of anynaur-
anco company incorporated In tho Stntc, and
wAen II ahall appear to said Auditor from such
examination TINT tho assets OF nny such COM
pany aro insufficient to justify tho continuance
in buBinoss Of said company, ho shall communi-
cato tho fact to the Attorney General, whose duty
= It shall be to apply to tho Circuit Court Of tho
county in which tho oAco Of tho Company is
situate, for an order requiring 1t to show cause
why tho business Of such Company should not
upon, proceed to hoar allegations and proofs, and
II 1t appeared to tho Court that tho charge Ia
well founded, and that tho interosts OF tho pub
10 demand tho dissolution Of Of said Company tho
January last tho said Auditor, ayailng llimBelf
Of tho aervicos Of George W. Smith, Josiah u.
Kellogg, and Edward ". Russell, obtained from
them report Of tho aifairs Of said Company,
from which, md Ills own knowledge, he CON
sidors that tho aaacts aro Insufficient to justify
tho continuance III business Of said Company
wheroupon this action was brought.
That the report Of tho sad Company, mado
pursuant to atatuto on tho 31st Of December
1uat, showed that tho amount Of risks written
and poiices then outstanding md in full Of tho
enid Company wan 957,1U5; which amount Inns
not sinco diminished, the assots Of tho said COM
not paid up, not exceeding $4,000, which
amount the complainant Inns reason to bolioyo
has not since been increased tho capital stock
subscribed Mt tho aano time amounting to $780,
Or II any, but q very small portion thereof;
that the stock isauod by said Company, as full
paid STOCK, has boon iaBuod for otlor than cash
conside1otion sh TINT tho aad Company has nocash