, 1875-04-16
THE COURTS.
Trial of tho state Insurance Cnse
at Wheaton,.
Doginning Of tho Testimony Of the
Plaintiff,
Record of Proceedings In Tho Cllfcage
Courts.
Estimated Vafuo of q Kiss
THE STATE INSURANCE CASE.
NEnfNNfNn ny TIM YE4TtMnNY

THE STATE INSURANCE CASE.
uEdiSSiSd or TIM TESTIMONY.
Special Correspondence ~ The CA,eago Tribune.
WHEATON, April M.-Ths case Of Lord, Smith
& Co, W. tho officers and agents OF tho lAse
State Insurance Company, onterod upon Tin Sec
ond day This morning a. D O'Clock, before Judge
Cody. The attendance, Notwithstanding tho In
clcmtns woathcr, was considerably Increased. tho
crowd being divided between attorneys. nit
nossos, reporters, and tho ordinary Courtroom
loafor. 1t was evident IN advance ot Tho calling
Of tho tlrst witness that but ttle headuay would
10 ado from tho fact That the attorneys on either
aldo woroincfinod to dispute about tho admissible
lty Of q celta Character Ut ovtdence, which, de-
veopod more fully tsttcr ia tho day. Tho attorneys
for the plaintiffs wanted to prove sher charge
against tho doscndhnts that they lad conspirod
together to defraul lilo creditors OF tho Com
pauS, frst by presumption. aud second BY lung
limo Of circumstances. On the other hand tbs de-
fonso wantod sonc illegal act first proved on
tho part OF Tho defendants. md that thcro was u
conspiracy among t1som, Tllon tho burden Of
Testimony woull ba admitted. This state Of
opinion led to an almost continuous " Oh jectEon"
from onc or tho other Of tho attorpcys, followed
by yollulinous arguments. The Judge, whilo
lucliuol 10 do juatlco 10 nl conco,ncl tnauifest-
cd desire TO eoonomize in time byurgEaE theex-
cus!on OF all lrrolefant testimony. aud uponao
oral occuatonB was obliged to object 10 tho tedious
presentation Of tue merits OF The case, Which In
view Of tic attorneys either aids having moved
their families hero: rromtsed, II uninterrupted.
to psoloug the trial through kosotal Of the sun-
unr moulin.
LAFAYETTE II. sN1rn,
ono Of tho plaintiffs, was tho frat w'tncss. lie
took out policy tn tho State 1nau,ance Com-
pany for 81, 800 on bis building, No. SO Wabash
avenue, and on hiH stock OF goods, which wctc
destroyed in the lire Of 1871. 11e made his proof
Of loss, and disnosed Of h!s policy to tho eccro-
for 10 ccnls on the do lat, on his Representation
that the Company could only pay That amount.
At the tinso he disposed of hia policy Ao did not
know tnas the Teusousa hsd scsnAurcd the State
rieks.
trossc1amincd: Tho f}rs Of 1871 burnt ovor
SSo ssres Of r5opes:y esasaE loss q sbout
$500. .00Q, 900. Ile "itncsR read lBt Of the va
.ioua po|lcles lo held At Tho time i1i various
companieH. lio thou detailed bis settlement and
ealo of ls,a yatious claims. showing that ho re-
cclyed from centa to 100 cents on tho dolIar.
Among tha policies le.d he sold tho Hibe,nikn,
Teutonia. btate, aud Allemapia. Lie made the
saica because 10 regarded the compauea -
do. The former testimony OF tho Nitncse, TAKEN
bofoio Judge Diodgett in the United 6tatca
nlatriot Court uas read to him and recognized.
uo was Ia the olllco Of tho Company when no
ho was engaged III ohor Lusioees. He received
cheek from Van lnwagen for $3.50 on th1
! Natlonal Losn anil Trust Company. and sur
rcndeyed Ill. c'aim., Ho had gotten Fisk j. Co.
ease. 1io spi,oached ". ". K!mb.Il, Lyon i
lIosioy, aud otneta to join in lAe prosecution,
but ihay rofused.
ISAAC r. COATES .-..
~ ~ w1,' sworn. lls w.s tle Assignee o. tn, Bank
papers. etc.. IN July, 1874. Tho individual
ledger OF The bank for Santouhor, Qctobor, and
November Of 1871 had noVer been tcceiyed by
him.
Cross.czamtna!ion-A la,ge number Of boolss'
we!e turned over to witness. from which 10 waa
| satisfied that tho bank was plhssically Lrohcn.
UEonaE LORD,
cashier Of the firm OF Lord. bHatt d Co., HwoIn
IIc went with Or. Smith to the s,a.o Insurance
Company'a office nttuf tho llFc, and heard Van
| Inwagcn oilev 10 pay 10 cents on tho dollar for
Lila t6mlsh's) claim, and replesent that tue
Smith agreed to accoot the offer, loft tho proof
Of loss. and WEE given check for s2b0 on tho
| National Loan snd Trusk Company When he
signed the tfauetor. tho pame of tho psrhon to
whom Tho transfer was mado wsa loft blank.
10 did not know that J. D'adncr Smith WAS
| baytng claama at tho time. nor ANYTHING OF tho
condition VI tho Company. except what had
been represented BY yan wagen.
orcss-erdnlined: ua had botoFe boon sworn
ns to the conversation with Van lnxagcn. Van
lnsagen stated tho nsse:s of tho ComGnny 10 10
e400,00u and tho liabilities to DO o. ,000, 900.
Witness Mhs ahown his testimony given ia 1872,
whe rein he stated that be did not remember any
hhseasenls made to him by Van 1nwagcn A. to
The nssgnuont was maac on tho policy Nov. 2.
| lS7l, In EHs PRESENCE aid tho writing WaB doue
by Vnu Inwagon. He know tho nfa,gnmcnt was
made n, III blnnk' aud hc knew lhe blsuk could be
Redirect: Ho had . general reooll cotton Of
tho liabilities aud assols "a e:atod by Van Ipwa-
gen. Lie could not rccal! any recollection OF tue
!ist shown Him BY Van 1LWagcn Of thosa who
had x17r }ftAtr u1A &t@n 31ita
l2e-cross: Ho had thought over the oonscr-
satlon had wisA Van 1nNsEe sluos hia former
examination. and Remembered a. to tho QaIili-
| ties and eseets.
uas aworns I1e wsf N attorney, p.sotlotnR In
Chicago. Ho know The dsIendant; Lad dona
bubinees With the National Loan aud Tlust
Company, aud bad policy III tho State Incur.
tae st4te ts insurance Company IN ban4tupto, il
April. 1872. and blu bonds1nen woro G. Al. aud
George @. Smith. O. ii. Smith spoke to him
about bong Assignee. lie got ths books Of
H. ing' Eoimg.ny Kin sf.sT n.,.'sa soma esy bnt
over tho c,.l, about 1850, because he thought
10 bad light 10 retaln the sama under the law.
lla knew that ihe Company bad credit Of
conrany. Ho depoaited about gao. 900 Of h's
colieclous ss Assignee ~lth G. O.. Smith i
upon hs o"n responsibility. lie obtained a lulc
o. ing Court gu IT, to compel George Q. Smith, Treas
&!5700o whlcl, wAs doposited 10 tko sechAnIcs'
Eank. In September dividend Of 40 1er cont
naa dec aEcd. and pa!d to c1altnante. IIe did not
wliother Of not It was deposited. 1t was oredlted
up On hts bank-booE, however. aud ,ns drew
| sgaihst IT, The witness then produced 4 lisk OF
those to whom dividends wore paid, being some
200 In number, which was admitted ~ oyldeuco.
| The dvdeud warrants wese also produced and
Sxamfref1. shaving that 4 caYthiu norton -