, 1874-11-27
Reasons for Employing Col. Wa.
ternan, Etc.
Anirnus Of tho Charges.

stock. It was also alleged that Arr. Tn
lon had sold largo amount Of prop
osty Of tho Company at groHsy inadequate
rrlcoe, his partuor, a. N. Waterman, being in.
torosted tint ho had neglected tho afTairs O
tho Company, charged oxorbitant foos both fo
services mud rent; allowed tho attorneys Of til,
Company, his partners, to recoiyo oxcosay.
sums for legal services, and gcncrally purauet
such course that it Was necessary thnt somt
other Assignee should 10 soloctel. Tho bill
therefore asked that AIr, Upton might DO re-
strained from further interference With tlle
alrairR Of the Company, and might DO romogod
from lis position.
The records Of tho caso will soon bo Increased
AN ENORMOUS ANSWER
of over 100 pages pages, prepared by Mr.. Upton,
Ill his exposition Of the condition OF tho Com
1}any'B afraire, mud his conduct in reference
thereto, aud. as it is already writton, full ab-
atract is given.
In I'll, 1879, 11r. Upon says, he was. without
Lis solicitation or knowledge, appointed Assignee
Of th Great Western Insurance Company, With
no knowledge Of tho CompanS's affairs or ac-
quaintanco with any Of its officers. Uo aoon
ascortaineu TINT tho assets Of the Company wero
notes, bonds, aud mortgages, and largc amount
CLAIMS AGAINST STOCKHOLDERS
for unpaid stock amounting to some 800, 600 or
31,00D,0D0. The books having boen destroyed,
no written evidence "aa to DO had Of tho names
or residences OF rho stockholders, or tho amounts
due from theno. The claims thon proved up
amounted to about $0O00oo, some Of which Lad
baeu nd justod Oh u pro rata basis whom part Of
tho claim Ind been paid, and sonle l,ad not boen
adjusted at all. Sumo OF tho mortgages also
ware found to bo onlv loans, which woro to be
surrendered on certain conditions not apparent
on their face. This confused condition of af-
FL. .Anxn u&,A FAk.A
GERS who wore Interested, Mr. Upton Says,
obliged him TO either employ some Of the OIL
GERS or
ronaEn EMPLOYEES
acquainted with the GompnllYs condition to pa-
siat INN. lilo choss tho Inter, and solectod
Peter G. Gardner, I. former bookkcoper OF tho
Company, whom lie retained Mt a salary Of
e2,UO0, tho Same ho had been receiving, untsl
Aug. 81, 1873. ]. H Philo, who bud been preyi-
o,ssls In tho service of tho Company chiefly to
make sales OF stock aud collections thereon in
tho nulghboring statos, was hkewise employed
tsse by hs A.ssnsq far for as tbs pp55s sa Of
stock book and names Of tue Stockholders, he
being tho most familiar with this branch Of tho
Company's business. BY his means Alr. Upton
claims ho has been abo to obtain proof Of
against the Stockholders for a considerable por-
tlt,u ttc-aot. IN such business plilo has tray
clcd over great part Of Michigan. Iowa. COL
orado, Wyoming, and Utah, encountering tile
imprisonment. Bo'h he md tho Assignee it is
e4atnso' na'o ooeh ,
BITTERLY Ass31LEo
notn az nome ahd abfoau, oy apoeches and
tNlonen LUG FTess' LOT tho stlnpie reason That
They unainching'y endeavorod to do their duty.
In regard 10 the employment OF
Mh, \. n. WATERMAN,
air. Upton says That TIC was employed by the
having frequently examined nbstrnctB, was far
n1ar with tho location of tho real estato OF tho
company: mr. Waterman, therefore, by dlrec-
LION o. we plstrict ouaGe, on pet1son' was mp
=. sults were Immediately instituted against de-
nnqaent stocAno",are nero rePreBeptlnG $780,
uo 81 UNPAID Stock, WHO c!ained TINT by certain
cou"l1ous aHu W tue !osult o. Inc acti0u OF tho
siomnhhy oetofo 2arkuptcy, they were rclcased |
trom taeiT reao''ty, ana prosecuted to judg- |
ment. Other counsel ware also employed, Alr. |
ut1na cG 10 a his dsf,s1n s would be 5o
. ~" answer s thon goes on to specify moro par-
heularly tue duties in connection with tho |
suits an and TIC a,s;. labor neccHsary. hlr Up
Mcssrs. Doute!lo and Waterman, havo |
advanced ahout Sl,700 on behalf of tho ontate |
which forms ono OF tho isems ofhis account, aud |
that ho has beou obliged iii tho course OF lis |
saa coofado 81 if wyoa S Il set"g 90 dnu cais
and has, altogether, devoted ono-llalf h'a time,
6luCo nlh appointment, TO the GoMpany'B anar5.
1n regard to tho troatnent Of those claims, on
which portion has been paid before tho Com
pany's fniluro, tho Assignee eayB that there was
lEAsoNABlE CAUSE
for the creditors to suppose TINT the Company
was insolvont but still it was' a debataplo q,os-
ton. Two mathods wero available to recover
the amounts thus prcforentinlly paid Ono, to
Buo tile parties Immediately, tho other to caro-
fully examine the proofs nB made before tho !
Register, mud exclude from dividend alt those
whercon any monoy had boon paid until tho re-
naming creditors hMd beeil paid an equal
amount to Aucl preferential Payments Tho at-
to. course, as being much mora economical, was
adopted, aud n ruio to that effect mado BY tho
Nogistos on objections boing filed.
ln regard to tho allegation that ho favored
Mn. Il. l.. STEWART,
aud allowed linn to cancel his mortgage to the
Cn3hpany, hlr. Upton says that, Originally,