, 1873-01-08
Tt}I: LAW COURTS,
What is n Contract 2---hn Important
Decision.
Who Shall Rule tho Illinois Land
and Loan Company?
Hotes from the Bankrupt ourt...Mortgago
DOnl Purchase.

a Valuable Land TRANSACTIONS
a EIcnyy Settlement.
The pcntling questions involving the constr,lc.
ton placed by Inv OH tho contracts entored into
by certain parties, to Rccurc tho debts OF tho
Knickorbocker aud Stock AIutual Insurance
Companies, which had boon raisod bycouneel for
tho lofcnilants wore yesterday decided by Judge
Porter, Tho cnses wore fully reported In THE
Tr1nuxE Mt tho time, and II is not necessary
hero to do moro thar to brioIy refresh tho NOM
o:y Of tho roatcr MS to tho points raiaod. Tho
declaration IN tho suit, Rozet v. Bnrkor md
o:isors, WAS taken III test cago. ROGET, policy
l,olde. In Tho Iiniclerbockor Insurance Com
rn1,y, sued Tho defendants for the amount Of hfs
lo:s BY tho Chicago fire, tho lattcs having taken
tho assets Of tho Company, mud, ii, roturn thoro-
for, giyon thcr guarantee for tho payment all
outstanding debts. Tho counsel for tho defends
ants lemurred tu tho suit Oh varoun grounds
chief nnlong which were, that tho contract
WAS not binding iu tho cnEo Of Rozot,
us his rolity wns not dobt ut tho timo
the guaralatoo was given, and therefore not conf
pretended by the terms Of tho guarantee; ttiat
oyon sunposing such dobt lad been contom-
plated, the rartioa woro not bound by thor
agreement, it not bning contract in law, thcre
being only ono party thoroto, and no counidora-
ton mentioned, and that it was not competent
fer tho Auditor to give up tho ssot1 Of tho COM
pany to suell yl1nrantors for the extinguishmont
Of possible or future dcbtB TINT might arigo.
ThoHo nro in oifcct, although not precisely as
then stated, Tho grounds upon which tho Do
feudants 1omurred.
The Court, In announcing itB decision, briefly
stated tho contents Of tho declaration, md lond
tho guarantee (botl of which havo boon pup
liuhcd in tlig colulnu). lie said that the docla-
ration ar1nod that at t.c tinse Of tho execution
atanding, policy OF Tho Company which Ind
previously boon executed in favor Of tho COM
plai,,ant wns in forco, for q term Of FIVE years,
Tor tho sum Of $5, 500, expiring IN 1875; y was
until Oct. 0, 1871, wllen a loss occurred to Tho
cgainst tho Company, and TINT by tho issue of
tito Promise tho dofondRnt WAS obliged to ray.
Tho declaration fnrtE,or alleged That nbout tho
time tho aimo tho contract was nado tho Com
pany waB doing buHinosa, nnd had nsRotB on llhnd
amounting to 100000 or moro; that tho defond-
nnts in this Buit, desiring to take these aHsots
and convert thonl to their own use, for the pnr-
tho necessity Of appointing Receiver, executed
this promise and deposited 1T with tho Auditor
for the benefit Of the complainant and othor
creditors ana this being dono d;' took MI tue
1t was claimed that the Auditor had no right to
mako my arrangement Of this character, that
tile ontro transaction was illegal, and TINT tho
contract was fud,tna pactu1a, or Of no c1oot in
law. He reforred to tho contention by tho do
Pendants that thoro VAS no consideration e1-
pressed in tho promise; aud was Of opinion that
tho fact Of fhe, defendants takingt ho assets
itself constituted consideration; 1t showed
AI..Li |. - -f
further contcndel that there was no mutuablt-
ty. He did not think 1t wns necessary TINT tho
promiaoo should bo named in tho promiae. 1fo
did mot think That this was promise to tho
nj individuals. With reference to an objection
that tho promise was Of no effoct undor our
statute Of frauds, no did not consider tho objeo~
tion good It was further contondcd TINT the
promise did not include debts to accrue.
Ito described the nature of Il debt, aa
contracted with n liability, and WIS Of
opinion that III estimating this promise it 1nuat
be Looked at with tho circumstances THAT s'lr-
reasonable tint it should weigh against tllo prom
ises. Ills opinion was decided, that tho inten-
ton was 10 convey by tho word "dobt" tho
ntnpoHt, fulloBt idca that could he given of tho
liabilities both tllon due and to become due Of
such mature as TINT under consideration. His
Honor spoke at somo length elucidating a,1d
sustaining the above vioWBt ind concluded by
ovorruling the demurors.
A discussion ensued ia to tho next step, mud
twonty days wero given to file fnrthor count
to tho declaration, AIr. SAufoldt having stated
TINT from facts tint lad como to his knowledge
snco this action Ind been commenced such Il
course was, in lliB opinion, necessary. The de-
fondnnts to plead to tho bill III two days.
THE ILLINOIS LAND AND LOAN COMPANY.
WIN. X. Rocd yesterday brought suit aEninBt
Tho President, his brother, mud the Cashier OF
the Illinois Land aud Loan Company, to onjoin
thoir tranBfolrinE certain OF lis shares on
t,f mi p1fin
with them. II Ills bin ho aiirns TINT
ho borrowed 81 600 Of William B. johnson, Of
Hartford, Conn, giving security on fifteen
ehares Of The above Company, each Of tho nom-
from tho lat Of January, 1868, nnd condition
attached tAeroto that tho shares should bo ro-
turned to him on tho payment IN full Of tho
principal and intcreat. On tho 30th OF Decom-
Der, 1872, ho Forwarded the balance duo on the
loan to L.. H. Holt, residing at Hartford, ro-
.quosting him to pay tho amount to Johuson, and
forward him the shares. Meanwhile, ho holds
proxy from Johnson, authorizing him to yoto
with tho shares. On the I'd inst. he received tho
following telegram from Holt:
No. lO5 lYart street, Chieago: Day iAto. Johnson
refuses tho tu0ney. Fisher sold to oalon. ;, ,,..
Hc goes on to rolato TINT there arc two parties
who arc contosing for tho controlling manage
ment OF tho Company reforresl to-, and that iu
this conteRt, tho ownership Of these sllaroB Inns
ntco1to VI Rfel lulVortHlico, DoL TO l1l11 ana 10
the Company. Tho lcalor Of tho OPP
position party In tho Company il Calob
Claop, followed by his brother tophas, md
George M. prlco, tic cashier, sud tho formor OF
possesses proxy for ,1ao at tho lnaoting for tho
election OF Directors anl ofllco-bearerH, to take
plnco yesterday, and lo asked tho intervention
Of thu Court to prevent TINT lao Of tlom. IIo
Bessos st43, 900 stock III tho Company.
Tho Sumo complainant filed another suit
for. similar purpose against Thoma 7.
Fisher, Of 1larfortl, and tho samo officials Of the
Company having borrowed $4,000 from Fisher,
who also refused to receive payment, afl to giyo
up tue aharoa. Tho injunction waa granted in
caeh case,
BANKRUPTCY NOTES.