, 1873-01-08
A COMMERCIAL" SYNDICATE.
Another Of Nfr. Scammon,a Nlco Iittlo
Insurance Jobs.


To tbs Fi'tor ef Tic Chicago 1ri1unn:
Bin: Tho Commercial 1n,,rnnco Company, M
many doluQod policy-holdora arc aware, waemado
inBolyont by tho Gront Tiro. THO losses Of tho
Company woro 10 enormous, aud tho assota 10
Insignificant that Il majority Of tho creditors
considered 1t wasto Of money to attcmpt to
collect tho 1noioty to he dorivod from them. A
few Of tho policy-holdors, however, took alvau-
tage Of this apathy, and soon after Tho conlagra-
tior, through hcssrs. Goudy aud Chandler, their
attorneys llol bill in tho Circuit Court for tho
winding mp OF tho atrairs OF tho Company
under The Slate lava. ThlB document
was fled OIL bol,nlf of tho partioH
who had joined III tho proceedings,
eight or ten III number, MD Of all others who
should dosiro to como In md pny their propor
ton Of tho expense. Subsequently, q petition In
bankruptcy was filed against tho Company, but
tho ofilcorn denying bankruptcy, tho ,uattor was
allowed to rost. Tho proceedings In tho Circuit
Court wore thon pushed forward, and q default
obtained, tho officers mailing no defonco aud
offering no objection to tho aottlcment OF It's
affairs by tho parties iii tho suit. Instead Of
doing what thoy ought to hnvo done, dcfondtng
tho suit, and permitting Ill tho creditors to
share under tho bankruptcy proceedings, tho
officers allowed this default to 10 takon In tho State
Court, and dofcnded tho suit to adjudicato tho
Company bankrupt. Wlon tho parties repro
nenting tho case i'll tho State Court had proceod-
ed 40 far as they could, mud while tho bankruptcy
proceedings wero pending, they went to tho
creditors who had filed tho petition in bunk
ruptcy, and arranged with thom to havo tho pro-
ccodings diamiased so that they could go on in
tho State Court and soil tho ren1 estate belong
ing to tho Company, and divide tho proceeds
among themselves. They obtained an order
on Friday for tho dismiHan1 Of
tho proceedings III bankruptcy, II no
objections wero nsndo on or before tho following
Monday. This order waa suppressed from NIL
tho newspapers except tho Inter- Ocean, i1c1ud-
Ing tho Daily Lafo Record. In consequence,
very fow Of tho creditors know anything Of tho
order. hIr. acamnon roads his own papor, anl,
OF course, wan aware Of tic ordor having bco1ii
mado. On Monday Mr.. Jonathan Y. Scan!mon
Mr.. John Forsytll, and aoyera1 other creditors
who Incidentally heard Of tho propouition, made
thor appearance in tho Untod States District
an object in 30 doing, mud woro not
backward in onsoring. into ell arrangement
proposed by tho State Court Syndicate, to llavo
Tho proceedings dismissed in nccordanca with
cult Court, md Ind llccoiyer appointed, who
sold i lot belonging to tho Company. This
lot is located OIL East Washington Htrcot md tho
building occupied by tlo Commercial Insurance
Company wns located upon 1T previous to tho fire.
Tho sum realized from thiHsalo waH about SIT 70p0
which WAS divided among tho members Of the
6y1ldicato, Jonathan Y. scamnlon included. Tho
property wns bid IN by ono Mcyors mud afterwards
lilo tttlo was tranforrol to GoUly aud Chandler,
who have ailco orcctod q building on tho nito.
A now petition has lately boen filed in bank
rnptoy by tho t1cfraudea creditors, and tho Com
pany llas boon adjudicatad n bankrupt.
Thoro is another phase, in tho case in which,
scalnmon, for 4 wonder, is not believed to be
11s4 S+&A1u n{o1 Hin
onlcers OF tho Company isBrsod certificates, Of
tnaebtednesa to tho poisy.a'oaors, ana IT IL
up for q triding sum BY parties who had
glyon atock uotoa to tho Company. These GER
tilchtoB sayod tho makors Of tho stock notes
Thousands of dollars, aa tho officers OF the Oom-
pany generously delivered the stock notes to
tho Majors upon receipt of tho certificates If In.
tiehtetlnosa. This transaction, alno, ia claimed
to have been Illegal. When tho caso comes lo-
fore tho United Statos Court for = hearing, tho
revelations will agtonish tho poop1o Of Chicago.
PoIoY- HOLDEN.
GuTcA1o. ian. 7. 1873.