, 1876-08-12
TIE COURTS.
Important for Creditors Of the La.
mar Insurance Company.
Messrs. Cushrnan & Hardin
Required 10 Hand
Over.
Record of Business in the Chicago Courts
..-NeT Suits and Judgments.
INSURANCE DECISION.
wtStx

Ths Supreme const IN tho case Of Melvin VI. The
Lamar in,aranes Company has Intel, given dc.
Of The t.nmar Insurance Company. Tue hlll 'a the
slt tho stocklojaers, CHARGED .hat e;ushmsn liar.
din In 1850 had sulsrr,bcS for s. Zoo ,bsrcs Of the
s,oct ot the I'm ,sma, comn."Y on mhsh
note. for the reminder, la the usual
. ray . csrt.e.tes ,s s H., Of stock were were ,,as also
de'cd THIS stock IN accordance with iraudoleo.
Maid and notes given. The eomn,nnants thcr, tore
sssca 1So, ~. sarrn,,,tan - ,ha nn .hnrr. NJ
stock be cot aside, ami tia. cu,hsnan llardlr be
compelled 10 pay The money Withdrawn and to sub:
H. msn Il II Il s1 o. e ,s sss eH e7 cf 9y h.t
e t ss 70 ss thy Il, @s a.
thar JOCK rtn s{ ''s yeae ~ thsy w.hsd, md
receive back The 20 ncs cent advanced This con.
trast so In a 1s set Snt that te Gomnsn;y
b deposited viii, lin; that Ga.hmsn i Hardin.
.tocE pay,sE s55 ooo in ea.h I'D Ev,as mortgages
til, made 20 per esnt, md the remainder y.
call Of tho stockholders. In consideration
Of paying, this 20 rer cent Immediately IN;
daS seoont si wsi:h S tSey pRi9 psia giving o1
shares OF stock on which payment Of ~ per cent
whs lndorsed. II was nlsu ngrecd that IN case
cushman & Hardin should not wish to retain tho
stock that, ut the expiration of year, tho Com
pany shoaid fe9ell 9r rcp.,scllasc II ana Enaantse
to Gnstlinnn Iiardn tsc same amount they paid;
II May, 1870. S1o0. COD q stoek was CANCELLED aMd
Ii 0ttober following, $l?0, 600 more. IN April,
1871. the remainder Of tile stock was takon up,
and tho amount advnnccd wns repaid.
On tue henring in tho superior Court the bli was
dismiasca Ed an appeal VIZ t9sen i;,1: ,.,,r,a
! by Justice Bhcldon, all the Jndgeh astentlng 1t
was held that under the written contract Of Sep:
| tcmbcr, lHGD, Cushrnan d Hardin were actual
stockholacrA In the Insurance Company With re-
Bpcct to tho g. TOO shares Of stock, and thht they
although that wnn tho real Transaction ns between
the parties, and ns Intended. The frat clause Of
the contrnct wna m absolute stipulation ''to sub.
! scribe for and pnrchhee &, 500 ehafct Of the
| capital stock of tho Company. and TO
| pny therefor tho sum Of $3.50, 900. :"
20 per cent required VIZ paid, cnrhman 4 iIsriin
thcreupon became the ntlsotnts. owners Of the
stock. Whether It should be tcso1d or repurehased
trActed fro lhe completeness Of their tite. cnsh-
| man d Hardin represented TO- others that they
weso bona ade .tockholaeEe, and The agent o. tho
| Company no 1tatctl to the Auditor Of State when
be demanded that tho Company Should comply With
| the Law Of 1850.
Other persons anbscribed OH the Atrcngth n
| Cuehu,nn 4 lIarlln's snbacrtpttop: They had no
reason 10 suspect Tint Cnahman & Hardin wcTu or
any different fuottng from thsnselTe@ AL sub;
seriptiona were presumably on the same basis and
to the same tur1leus. In tho Subscription OF each
| rer1on nao, every other subscriber had direct
interest," Such privnte right ue Cushman d Hard!t
had waa In law fraud on the Other subsctabcrs,