, 1875-04-15
THE COURTS.
THE STATE INSURANCE CASE,

AhIEF3SlS.
WHEATON,, April la.-sone tlms ago LNri, Rrnlll, Il
Co., of CAcago, Thought sui. sgaln.: the o,re,. au
aRchts OF ts lxts State Insurance Company In Cook
County, 10 $2soo, ths amount Il policy held
in raid Company " them At Tho tf.ns Of the great
nre 1f 1871. They charge that they were, by falss
Representations tbs part Of of the ojcer1 of
tito pauy 10 is financial conlit.ou
after tie dre induced TO sell their c1a to some uu-
known party for 10 cents On The dollar. change Of
yenus WIS taken from C5ok Couhty 10 Du Page. nn,}
tho caso CAMS up today befora Judge Cody ri this
Elace.
Tic officers OF tic Company against whom tho suit
Ia rei.ltng arc: II. 4. uAr!but, Fftsilcu.: George
Smith, Treasurer; .. II. smith, Vice-F1esldent: q,
". McMulisn, General Agonf; James van Iuxa8en.
Secretary; and William H. Park, Director. Tue ,,lain-
tns sse represented by Cooper, aaruett l. Packard.
and the defendants by tho Hon. Leonard swe ali Of
Chicago. ......-..
THE pnosEcuT1oS.
MIR. Coorer, Of Tho counsel for ile plsIulrs.
opened the case this morning 1t II O'Clock
nith three-honra speech. lie reviewed tue history
wlsl, tic Salioual Loan sud 'Tfast Company, aud
charged UPON &Ao officers of tue former. ~iU vers
also tns oincers Of tho latter. TINT tuey
alter tho hfe entered Into cons piracy to deEraud
yolcy.holders, At ths u,e knowing tha the Cu.urany
solvent no said tha the SECRETARY Of tue Company
ciauls snd surrender tAelr policies, snl that The
bad b~on r14ctieed upon other poscy-holdosp,
The enre Liabilities of the cunpany stes ire were
bonds xl4,Uot. Tucse xas also Outstanding about
s.OooW of s.ock wh!eh only % per cent lad been
Ia,a III. Tao public did not know Of tho.e facts, Lut
tho o cfs Of tho Company did, and wttn tails kow.-
edgs the Secretary represented TO ha ctsas and 9TH
crs that ~ per ocut w4s II tAat could 10 Ad and
leccirer aroiascd tho percent5g: wouiu 10 eyen
leks. They Icpsssen that Tue liabilities wefe
s4o,oo and has tue assets were onls sbea s!oovt.
aud now pail-up stock listed. He claimed tua., 10
make ths latter rep sentlon apptar 'rur. tie books
h,d beea mu.ila!el. md up t. Ar 10. is7l. the
Letter CO., Is per cent; toll. .. Maaou 20 pr cent
tia parsh4.cr wa iii blank ia tha assignment but
aikerw-rd .ts1 out BY tho dtfsad4llts with ths
name ot J. badu snth, TO whom dHk- ,ls werc Is.
1uc1. Tue du = lii we're tLol acl1 to the National
Loan aul TfGat Company for II cent. OIL the tlo4r,
tho bank at the time hAsug enough Of tho Insurance
los.es. Tue nsuk charged tbs dus-oil .gus. lbs
Insurance Company q their f4co Value, realizing \
lront thereby oi t4iio which W. en.srvi 10 'te
is7a whsa i hsa q Il. possession iour.aisn ot il:
ent!ra liabilities. .... .. ....
The proceedings in bankruptcy were claimed to DO
part Of the constiraey and that usbut sworo f4iely
~ to tue rsseta aud liabilities at that un in urler
dectiYe Ruch poltcy rota1nsd telt clAiHa
and that N. q. Perkins elscIed Afsigneo by tho
votes Of tbs consrratofa. and was pyy to .he fraud,
csn.s tho dollar. lie sa!l thu question was now
rendlug bafoEo Judge Drummonl whether tho No
tionnl Loan aud Truzt Company could prove up tho
pany for tue due bllla hell ttlj Gvl, sud whether
leorgs @. Blnith could ba hcII uccoautabe for the
casa = lch the Insurance Company had on baud 1t
THE Defense. .-.. ..
Ths Hon. Leonard Hwett lepalel for The deteudan.s
u apeeeh Of Ill hour and y hall, liz dcllcd taat
there lad been any cunsrracy dArau1 the creditors
" the officers Of the Company, Or tuat they bad
nroi!sd by the purchase Of sl4t.li against. Months
t1slA IN the Teut0uia, uf Cleveland, with Il yisw tq
etaitn0 aucw aud Oh the Ya!d-up c.pilal Of stojuo
Up to lhs time Of ths fire tlta Esosg g4uized Ca1p4uy
y Tho are W.. seesonoa Il shs s to 10 aboa: out
wue,s Tho old tshs lad been r.iusused 'S: wss
1uta compaates WIS in,ossns. wa.o H., b,
TeItouia had positively failed. uu.er th.
circumstances ]. usaauer Bmith bought up claims
against too 6Ats Cop4ny at from ~ to Il per cent
representing through liz .geuts that tha poItcps
n1s worth mora than that amount. Tue l0!csc4
subsequently, sold to the National Loan aud Trust Com.
paEy, 4u4 tAey wtre used Ae-oH aganst the duht
OF tue bunk to tho ssats Insurance Company, With
course had been adyIsed " attoruey, Tas 1usuT-
aad On ascoan Il pro9.on u ts T isw, tns .st.oa
was not allowed, Tue representations ,n+de oy tho
OIL. or9 Il tho Company were made In good fAh they
shafe OF The Teutonia loss was fonu however,
the claims had hecu bought that tie Tsutou COMPANY
hAd taken Up psixa'aythe stats pol ess and ts.ue s.
9'06 o01. The inonsy deioaItel With the National
Loan aud Trust Company, As claimed, invested at
ths pO ns nt Of ras 3a se
reach Of tbs defendants. Ifo ciastd BY the
attention Of ths Jury to tho fact ta nearly ii a-
thoso who sold theft claims sinarly will bring similar
suits to tho amount Of over sSo9,6u0.
The casa Ia likely 10 last several weeks. Tho tes-
ony viii colNineuce this ta1Eninx Dt. Bmlth, Of tho
firm Ut Lord, Smith Co., beiug tho t1st witnsss,
rcht,.t