The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-03-19
ROCK ISLAND STOCKHOLDERS IN THE
LAMAR INSURANCE. COMPANY.
They Resolve to Fight to the Bitter End.


In January, 1869, the Lamar Insurance
Co., was organized in Chicago. Not long
thereafter branch was organized in this |
city, with DR.. Truesdale as President |
There were some 60 subscribers to stock
in the company, who paid their first assess
ment and also insured their property in the
company. About six months previous to
the Chicago fire the Lamar failed, it is said
owing to alleged complications with firm
which subscribed heavily to the original
stock in order to organize the company, and
then, when it was organized, cancelled the
stock. The stockholders here and else
where reinsured in the Pacific, of San
Francisco, which company also failed soon
after the Chicago fire. The result was
that all who subscribed stock, or who in
sured in the company, suffered an entire
loss of all they paid in.
A Receiver was appointed for the Lamar,
and he, claiming to act for creditors, has
made another assessment on the subscrip-
tons to stock. Messrs. Parker & Twomey,
Of Davenport, act for the Receiver, in this
vicinity, and they have been endeayoring,
for the past year, to collect the Receivers
assessment. Failing to do so, they en-
ployed Connolly & McNeal, of this city,
and, last Saturday, brought suits against
SO of the subscribers to stock in the Rock
Island branch of the Lamar, returnable at
the May term of our Circuit Court.
Last evening there was meeting of the
sufferers, at A F. Cutters Office. Some
Is or 30 were present. DR.. Truesdale act
ed as chairman. Sharp speeches were
made, severely censuring the managers of
the Lamar as swindlers, and denouncing
attorneys who aid them in swiuding citi-
gems. There was good deal of feeling
exhibited and it was unanimously decided
to contest the assessment in the courts to
the last bitter end. A paper was signed
agreeing to pay all expenses of the contest
and Messrs. Sweeney & jackson, and
Messrs. Osborn & Curtis were employed to
manage the cases.
In the court reports of the Chicago
Times, of last Tuesday, We find the follow
ing in relation to similar suits in Edgar
county, this State, viz:
''The creditors of the Lamar should take
courage, as every step taken in the htiga-
ton in which the Receiver is now involved
only makes it more certain that he will
eventually be able to distribute very graf
flying dividends. Messrs. Schufeldt &
Ball. attorneys for the Receiver, on yester-
day received information of decision
lately rendered by the Edgar county cir
cult court, in the cases pending there
against the stockholders, which virtually
decides these cases in favor of the compa-
NY These suits were begun some time
since, and the defendants demurred to the
declarations, urging that the Receiver had
no right to sue in his own name, and that
the decress of the superior court of this
county, making assessments, and allowing
the Receiver to compromise and settle,
were erroneous, and not binding on the
stockholders
THE court, however, held that the suits
were properly brought in the name of the
Receiver, he being expressly authorized by
statute to sue in this form; that the de-
crees of the superior court might be erro-
neous, yet they could not be impeached OF
attacked in this proceeding. The court
mad jurisdiction of the subject matter, and
the DEGREES were binding upon the parties
until reversed; that the stockholders were
parties to the original suit, through the
corporation, and were thus bound by the de-
crees, which they could only attack by pro-
ceeding in the superiour court. The de-
murrers were therefore overruled, and the
defendants ordered to plead to the mer-
its. This ruling virtually decides the cases
against the stockholders, and they must
/ now settle or appeal to higher court.
What bearing the above has upon the
merits of the case we are unable to per-
ceive. 1t only shows that the Receiver
had the right to bring the suits in his OWL
name,-but decides nothing as to the mer
its of the cases.