, 1874-08-07
Motion by the Attorney Gonoral for
q Receiver.
The Halter Is Argued and Goes Over
for Two Weeks.
Tho Company Proposes to Make Good
Any Impairment.
And Challenges tho Auditors
Report.

Tho Attornoy.d .dnnprnl, on bohhlf Of tho roop'o
Of tic State Of Illinois, filed bill ycBtcrluy I'll
tho Superior Court againat tho Atlantic l. pa-
oifu Iusuraucn Gomrauy, asking fur tho
APPOINTMENT or RECEIVER,
and for MI injunction. rho complainant atntcs
that tho Atlantio Il taoiilc INSURANCE Company
comnlonctil doing general flro-!nsuranco bust.
ncss abot,t tho 1Ath day ot ntny, 1873. From iii
examination OF tho nfratra Of Tho Company,
niade by JOSIAH Kellogg and Dahiol shepard,
sliott limo ngo. In pursuance Of It'll appolnt-
tneut Of tho Auditor Il appears tho capitnl stock
Of tllo Company aa fixed by its charter was
s500,U0o, Of which 1924, 600 Ind bnon pad in,
and #aa In possession Of tho Company. by 4
statement Of tho Company, made July 20, 1874,
tho assets footed up $415, $3.50, but Kellogg
mud Slsopard's report showed that this report
was inaccurate aud ovorstnted the value md
n,nount Of tho assetslby about s2o5, ,412.O3. no
that tho Company's aaaotB woro act,,-
ally only s2o9, ,002.97 tShtlo It's liabilities
werc s22a,u83. Tho Company l,aA
since its organization, md paid only soo,005 Of
lnAscs, Tlio uxpoI,aos Of tho Company, by tho
statement Of its oilicorB, including brokerage,
commissions, salaries, ro'it. stationery, taxos.
advertising, aud poatago, ntilosint to about 40
wllnlo subtracted from s4So,OO0, leaves balance
OF 922s. 000 to 10 nccoilnted for, III addition to
tho paid-up capital stock. Tho greater part Of
this, 1t Is clargot, Iayo bcon
BQuANpEnEp, wAaTED, on LOTT,
by itljudiclons Investments thu payment Of OK
travagp1t ynlarfos ai,d commissions or in some
other unknown or illegal manner.
It Is aiso alleged TINT thoro IL danger, unlcss
tho Company DO taken nntler control or tito
Court, Tint The remaining asscts will bo lost.
Tho Auditor, in the dsaehargo Of lis official
duty, conuuncatot! to tho Attorney -Genelal OH
tho Ath Of August tho result OF his examination,
and found rs the result that tho Company. was
insolvent and ita condition H',cl, rs to rcndcr 1t
hazardous to tLa public to allow 1t louEer to
continue business. It Ii also chargcd
that about $4,000 Of tho stock is
held luder eontractB that ut tho option Of either
tho Or Company on tnly aya
stock and receive buck TIC money, notes, or
other securities they havo pAld for tho same.
In viow Of all these considerations, anu lest
tho assotB Of tho Company bc still further ill.,
Of the aiIal1a Of tho Company and tat tho Com,
pany nnl its officers bo rcstsained from further
lssuing policies, dispuaiug Of tito Company's
fuuda or aascts, or further proceeding iu any
manuor With its l1usineaB.
3llcd two ndilayits-ono by NJ. D. Derrick, tho
President, tho ot.or by 4. j.. Waters. tlle Yice-
President. Derrick stated tllat he vas couscr-
alut With tho nIArH of tho GQnluauv, hud With
tho rcal-estato eetnritu5 Owned by 1t; TINT he
was familiar with tho sccuritlos when tloY woro
first rccctve.], nud TINT III eycry caHo tlloy wore
accompanied by u valuation Of tho properly in
writing ma 10 by dIsintoreated roa:antaio INC /
aud that by nuet valuation tho properly
was worth 30 t,er cent moro tllan tho
fncntnbranrcH, and ho thinks the RcouriticA aro
worth nuw .52420O0.
Waters, tho Fius-rrestt1ont, duppecl TINT tho
Company Inns bobn engayel III business sinco
1iay, 1873, TINT at tile time 1t comnlcuccl It lad
good senl.ostato Beeuritics worth 3l23,UnO, atld
cAAh Mnd lohds atlunhttng to s3i 1000. Tho He-
curitoB wcro examined mud approved by tho
Auditor, nnd valued nt SIG. .U0u. The Company
then commsncol doing buBinoBs. III Jn,unry,
1874, tho aforementioned securities tugethor
with otlors. wrro ngaill examined mud rel)urtod
to DO worth al24, 600. Sihco then, Waters
gays tho Auditor llas nDt isa,tcdd any
certificate Of tho value Of tho securities, nor Il:
lle officially advised auy Ut tho olilcors Of tho
Company that tho Hscur(tics wore impaired. Fur
tllertnuro, ance tlD Inst repult III January tho
Company Inns added $1B, 900 to its real eaGo &C.
c,lritics, making about a242, 600 nj itB tua &C.
curitIeH. Yhe orglnal Hecurties aro now in tho
pohaobRion Of tho Company, except abort Sl9.0OU
which was Withdrawn aud replaced by like
atnou,,t IN its pacu.
The following ID Btntea to be a trio account of
the Cunlpauy'B ruu1itiun.
ABsEts.
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