, 1873-12-23
Claims on Policies Cannot Affect
the Payment Of Stock
Notes.
An Important Decision under
the Bankrupt Law.
A Judgment Obtained Prior to Proceed.
ings Held to Be a Good Lien.
Gratifying Report Of the Govern
ment Directors of the Union
Pacific Railroad.


Spcciai Dispatch to Tho Chicago Tribune.
THE CHICAGO BANKRUPT INSURANCE cAsEs.
WAsu1Naros, Dec. 22-1n tho United States
Supreme Court, this morning, opinions wore
read in the Chicago bankrupt insurance caBcs
by N1r. Justice Miller. Tho principal opinion
was in Sawyor vs.. Hong, Assignee Of tho L,lm-
born,on's Insurance Company. Sawyer had suh-
Bcrihod for $4,000 Of tho original stock, and
giron his check for tho full amount. Ho then
gavo his noto at por cont interest for "a, 500,
and took back tho money aa 10 much Of tho
aheck. As between tho parties this
WAS no doubt loan; but rs to
tho public, tho Court held it
stock note. So that Sawyer could not Bet'up d
bona tide claim agal.lst the Company as sot-or
against tho noto, but must pay tho full amount
oi the noto to tile Assignee and then take his
dividend for his debt against tho Company with
tho other creditors. In tho samo WY was do
cided tho cases Of jaeger va. Vocko, aud AIasgor
vB. Vocko, Assignee Of tho Gornlania 1nss,r-
nnce Company OF Chicago. both involving
tho same principles. Several other cases, inyolv-
ing tue Bame questions, including Jonathan X.
Scamnon vs.. tho Assignee Of the Mutnal Sc
enrity insurance Company, are still undecided,
cisions when rosclled, oil finding their origin in
tho great Chicago fire Of October, 1871.
IMPORTANT DASInurr DECISION.
In tho case OF Wilson ys. The City Bunk OF st.
by Mr.. Justice Miller, which tho Court, in bis
opinion, says is not in accordance with tic de-
oisiona Of most of the District Judges. Tho
case vas tnia: Vanaorhoof Brothers
noto previously giyen, took Judgment by de-
fault, took out m execution, mud 1oviod on their
stock Of goods. At tho time. tho action vas
brought both tho bank and its debtors knew they
were insolyoat, and had committed I'M net OF
bankruptcy. Aftor. tho judgment md levy
another creditor, Wilson. commenced proceed.
inGs in bankruptcy against the same debtors,
aud they woro adjudgea bank1uptB before The
aamo, aud tbo Assignee claimed tho goods thus
inE. judgements to go againat thon, by do
fault, wcro guilty OF q fraud Oh
tho Bankrupt IAN, aud of proforring
tho bank us creditor. On tho trial tho following
wero opposed in opinion; First, whether or
not m iutcnt on tho part of said debtors [Van-
derhoof Bros.) TO suffer their property to DO
takou on legal procosH-t to wit: tho Haid ozccu-
tien-with intont to give a preference to said
baak; er with intout tlloreby to defeat or delay
1ho operation OF tho Bankrupt net, can bo infor-
red frcm tho foregoing facts! Sccoud. whether.
nEdor eaid faoss, the said bank, in obtaining said
Judgment aud making aaid levy, had reasonable
cause t. believe that fraud On tho Bankrupt
rsat 49, i1. Ill o.. .r usuut eAio
cusion, valid lien on tho said goois as against
~ @ nsslnso H. ~ t,nKMInPtc!. I'M ING supreme
ihneis ~. ~; IVY llset QUERIES III the nesa-
asi' ally tnG s;,ta ~ tno naituaso, ana, IN an
elanorn'o opllAon, nolas inet tno debtors we're
uAae1 IIt;e Nv % u ~ 's6"' ui6ntoil ~ uelsho Tue
ndom ~, oao"SI; SiI,;not;55 uo pnuA' anu Moie
utuof ~ oui46aslol ~ 70 lnto VoluI!-
sray, sray n;n;r n;1H;rnp'ey ~ fa pre'ens tno PINK
n,, t1nt H. hnI usel uo ethor
.i4t;' ueu'toto' 'au su1t tao o'ih nas gulIy OF no
,n;4t!' ~ tatnu t; ap3t lng nauhtape Jaw II
III fly ~ aetloH o 1pIalh'ne tho Judgment,
unu tnls' nhslnG oota1nea ING 1unemont 1alrly,
!noy n.u secutou sa;iu nen on tho goods takon
an.cr1oEo; ana a. wns ony onttiSa TO tlto surplus
nt.Jt ..l lny!us ano panM ocos, lns settlos an IN
pottans qneatlon Which las long voxod the
eoulta anu tao bar.
no ToSp!l,os na of ImE VSloS Ste rAc1Fio hA1LwAY
r, Ino Government Directors Of the Union
~ iae'1c Isa.lsoao viii make tllelr report to
tne secretary oi ,ho Interior tomorrow
apoh npsa1 tno nj oSamlhanons 1or; the lust
nse' ycar iHoy Say tnas !no con.lltion OF tho
roau ~ vastly improved since tho Inst annual
examination, and spoal very enconragiugly Of
as l'suro prospects. Il9y @ assere a that tho road
can 10 made to pny Sl2,00o. .0I!o per a1lnum with
no oxor1!oh bnyond reasonably good munaso-
nscns. Caienlatlns operating expenses ut So per
cen'; tney cst!!hato that THIS Will pay interest gu
th9 i;' nrst inoItRaGo income and Government SUBJ
aldy 9oAus, besides per cont Of not earnings to
tue doSorn1nont: nnu lcavo 3700,00o for diyi-
uends on stock; o Iho &c earnings last year wore
ti,s !,.!o &C.. over ;iouoogpo. Ihey tako tho ground
.nat ,no roaala completed u the moaning OF tho
act that apl!les per ccnt OF tho net earnings to
aofm shRlllg lnhu'
SENATOR AAEs TO RESIGN.
ine curry departure ol senator Ames with his
aamlly iof a!sslss!ppl. 70 take hIs 19at as Cover
Aor ol ti4at otato' II announc:d 1la Will tondor
his leslgnat1on Immediately after the rcas-
se!ao!1ne OF congress. anu WILL proDAbIy succeed
Hl Illh un,e IN becoming bona 1de citizen of tho
o1ato ho nas 10 long represented III the senate.
.z.,3;o cohoNEp DELEGATION COMING:
a.. delcgatloh lg Or co!orod residents Of tho In
a una tutIteuff ~ GSpecteu hore Bhortiy to urEo