The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-04-03
INSURANCE STOCK CASE.

In the suit brought by John w. Weed, as admin.
IsJrator or John r. Gardner, against the Great
Western Insurance Company particulars OF which
have been published, Judge ]. f. DAILY OF the Court
OF Common Peas gave decision yesterday. de
holds that the transaction between Mr. Parker,
the president or the company, ana Mr.. Gardner,
who at that time was director and member OF
the Finance Committee, was not a loan made by
the company upon the pledge OF the companyis
stock, but was without the knoaledge or sanction
Of the directors or the Finance Committee and
undoub euly secret so lar the company was
concerned. Tue company was prohibited ny law
rom loAnIng any part or IT'S FUNDS upon pledge
Of It's own stock. and although Tue PRESIDENT mad
discretionary power from the Finance Committee
10 make loans he could not make unlawi ul con-
tracts. On the 27tn OF October, 1871, ne loaned TO
Gardner $4,000 OF The company's lunds taxing rom
the latter certificate OF 100 shares oil the com
pany's capital STOCK, with blank assignments or
powers OF transfer IL was evident tnat bOtn
knew that valid loan BY the company upon ITS
own stock could not be made, aud their opera Ion
was no other tuan concerted action OF Two trus-
tees 70 enable one 81 them 70 privately use part
oil the trust funds, with clear intention 10 place
certain property or security Of the party using
the funds IN sucn a position as ~ become an
indemnify 10 the com any lie, holds lurtber,
that the taking OF the unds o. company anu
substituting his own stock IS fraud upon the
company; that the latter Is entitled 10 every legal
and equitable remedy against him aud TO avail
1tsel, o. every indemnify he may oner, ana thaJ
the yielding vi the stock on the demand OF the
administrator could not DC defended. he hOlls,
In conclusion, that the circumstances oil the case
give the defendant an equit aOe lien upon the
stock Tor the benefit OF the stockholders as the
sole security IA their power, tue estate ol the
pIalntlns lntestate being insoivenC and defend
ANS having no oJner resources. Judgment was
accordingly ordered lor defendants
SINGULAR CONTEST FOR AN ESTATE.
About q year ago one Anthony Jones, an ex-
Virginia slave, VINO, Tor some years hal been the
janitor OF me Fanwood Insane Asylum, died
testate, leaving about $4,000 IN cash. When the
Public Administrator attempted 10 administer
upon the property two sets OF contestants ap-
peared ana demanded the monev. Patsey Minor
ana neT cold co.ored RESIDENTS " virginia, claim
II as the VIE ana SOD oil the deceased. wnie Mary
6mith ana Dave smith, also ex-slayes, clam IL as
tne brother ana SISTER. Tue argument IN the case
was made YESTERDAY be ore tue referee, MI. Van
BchaicE, TO whom lt was referred ny the Surro-
gate. when some nice points vi law as 10 the laws
ol virginia bearing upon tue marriage o. colored
persons were raised, Pubic Administrator Da,-
ton, who appeared Tor me state, Maintaining that
the laws OF Virginia, at the time VI the alleged
marriage with Paisley Minor, did not recognize
marital relations, and therefore the properly must
escheat 10 the state. Decision reserved.