, 1874-10-10
tho mortgages foreolosod, for tho benefit Of
tho Company. - ..
'Tho co,np1atnnnts then go on to ray that

tI0 company + -....,
'1,ho co,npTannnts then 60 OF to ray tllat
TIE OFFICERS or THE COMPANY
botweon October, 1871, and :Jarunsy, 1872, paid
ont largo sums Taken: from tho asssSets If tho
Comrnny for their own Ia personal bonoit.
npy a !" noton a G aoq' IN au n ' od
nEainat lilo COMPANY, mud nbant twonty days nf~
tor tho Company filud confession, and wero
adjl,dlcated bankrupt. During thcBo twenty
days Jamos l3axtor acted ma Treaauror. ANIL 1t ia
s3704.G0, III fraud Of Tho lishts of tho other
creditors. DaStor aftorwart c,aimod lie hail
procurol 1onn for tho Company Of sl0,00O,
ont Of which llo had paid tho 93,70i.Go, a,tl
tllorofore asked that I,o might 10 patd for his
trouble and ADVANCES. which was t9no. Thls
claim, It ~ now alleged, was fraudulent; tint
Dnxtor only drow orttors on himself, Or. II my
woro paid, ihoy woro pnld nfor tic ndflstlicaton
appointed Ansignoe, md A: n. Waterman Attor
noy, .rnno II, 1879, judgment for s5,4s9
waa obtained by tho Company against
II. y WATERS,
which HnH afterwards satisfied on payment Of
sd0D, Oh tho representation by tho Assignee TINT
Wate,s could not pay my inoro. At tho Bn.no
time an order WA nlntlo by tho judge for tho
raymout Of ss70oto Waters for services ~ Wit:
ness This satisfied tue Judgment. and still
ostate:. complainantB claim TINT Mt ttis very
time Waters wnH auting rs Vice. president Of tho
Atlantic Il pncifo Insurance Company, at the
comfortable salary Of 1910 year. besides !'AY.
ng ample inoans to pay tho Judgment outside Of
thsR eniAry.
Tho con,plainants then state TINT Stewart,
besides tho mortgage dobt Of 81 600, vas In
aobted to tho Company iii tho sum Of 915, 000.
Nov. ~, 1878, Upton etl petition j., tho bank-
ruptcy caso OF tho Company, asking that
ALL CLAIMS AoA1Ss7 STEWART stianr ne BET
TIED
on flfs releasing to tho asB1gner mortgage on
cortau swa1np-lnnda hold by J. 9: Stewart, thcBo
anls being worth not over 90, QUO, which waa
grai,.oa BY tho Judge, and Stewart reloased,
10 induce the granting Of this petition, the As
signaa alleged that Stewart was In ill-hoaltli,
and that tlicro was somo legal doubt az to bis
liability, willie compla,nants claim that Stowart
was at the tino in good health. aud worth al
lenBt $500, ,000
The Assignee il then cfargoA with hnvipg BOLD
1nrge number OF lots OH milwaukee, ayonno,
worth 225,0o0. for tho inadeqtlata amount Of
Seycral of tho creditors reconstructed with tho
Marshal md a1r. Waterman, tho attorney, about
tho sacrifice Of tho land, but intellectually. and
Upton claimed to know nothing about It.
ad}nsoo claimed At ilrst that tho liabilities did
not oxceod 100000; that within two months
afterward they adulittel they wero 390o,0 a
part Of which howoyor was subsequently 70.
jectcd as fraudulent, but oyon nov tho admitted
clains an1out to 100000,
Not oniv this, but It is charged that, between
tho tlmo Of adjudication and lilo appointment of
Assignee. tho oftlcora and agents OF the COMPANY
mada up y largo number Of
FALSE AND FRAUDULENT CLAIMS
on policies against the Company, which wero
admitted aud allowed as valid, and exist ~ legal
clnina. Fictitious names wcro inserted III Tho
policies, and tho parties represented as living n
Chicago, whereas tho Directory failsto give such
nan,es at all. Tho agente' names were also i'll
serted In sono policies. Tho policies woro moi
numbered consccutiycly, lut largo broaka !wcro
made, occasiollinG many mistakes. For instance,
tue policies rurportills to have beon issued in
lumbcr than those iBsued tho month proceeding.
aud mhny policies wore thus duplicated. Tho
Assignee, when called. on for explanation, it ia
clalned, declined to mako my Or Investigate the
matter.
1t tho meeting held Sept; 80, tbs Assignee
road a report allowing hs FeccirtH to hRyo been
about a130, ,00D aud disbursements for Expenses
anl foes about ai5,0U0. leaving balanee OF
$s5, 600 out Of which to pay tho dividend.
AMONG, THE ExpESsEs
had boon $4,000 to 4. N. Waterman for legal sor-
ices, $4,000 for elorl-hiro md $1,000 for Office
rent. These fees arc all claimed to he oxotht-
sant. aud it Is alleged that Upton has himself
shared tho legal fees with his partner. As TO
occupied his own law~otllco ony, with tue firm
Of Upton Boutcilo j. Waterman.
Complainants next Htato tint the Assignee
should layc 1natle hiraaost familiar witt! tue d,1
rupt'B oatato thai ho should lavo ascertancd
whit sums hal bccu paid ont. aud t]le amount Of
loaRos occaeioneA br the ire TINT ho should
have sought to discriminate between good md
bad clainlu. and should have Mt onco proceeded
to recover all debts duo Or fraudulent aud profer-
entiat payments n,alo. lle Should havo COIN
PEELED tue stockholders to pny up tho amount OF
unpaid stock, instead Of allowing them, or snmo
OF them, to settle OH nn unjust bnsis. 1t ID
claimed that he has failetl III all thcao respects
np1 tttnt. ha hna NiG0 p{ Ills