, 1877-07-15

1
given by stockholders in payment fol
| stock, which had been issued and
reported by the Company paid for in cash 81.
! The property was assessed for taxation IN 1s't
over, the mortgage was not q frst mortgage, ou
| was outranked by another for $l0,o00 to secure
the purchase money. The Company afterwards
agreed to assume this first mortgage BY M Issuing
its holder stock to the amount OF $500 ant
paving him 5000 in cash; and subsequently
the Company caused the mortgage tc
be forec1osed, aud its President bought
it in, paying for it By issuing stock to the
amount ol S., 600 aud 5000 In cash, and issuing
stock for $4,000 in payment OF accrued interest,"
making the entire cost Of the property $l3,O0t
in stock and money. Then the Company re2u'
diate4 the issue OF $4,000 of its stock fo1
which the second mortgage was given, and re-
fused to recognize the stock. Then the Com
pany caused the title Of the property to be
vested in Hllliard, who executed a. mortgage on
it to the Company to secure
PRETENDED LOAN OF $4,000.
In the report Tor 1874 the Company state that
the property cost $l1 900, and was subject to m
fncunbrance Of S15,00 and they have. reported
this mortgage as one OF the mortgage luans, and
also TINT the value of the property was S37 900.
Substantially the same Incorrect statements are
made in the reports for 1879 and 1Siti
In its annual statements for 1871, 1874, 1875,
and 1876, it reported that it had tirst-mort-
gage loan to the amount Of $4,000 on property
Ut
reality it WIS not worth s., 600. and assessed
in 1876 for 81, 900. Other property has been
represented as worth S2l 200, whereas it was
assessed in 1876 for $7l0.
The Tc1ator also goes over at great length the
agreement made with Charles j. Hess in Janua-
r., 1o12, by which Hess was to be its General
Agent for the State OF Ohio, and the corporation
was to furnish him 5000 policies Of $5,0OO each
duly executed and filled out ready for delivery,
except that ti!c name Of the insurer was lett
blank, aud Hess to pay the corporation s.
for each policy. Hess organized through
out Ohio large number of trust associations,
and, notwithstanding the improper manner
10 which they were gotten up, the Protection
has continued to recognize and deal with them
BY making assessments, paying death losses, etc.
1t ~ alleged that these trust associations had no
insurah1c interest in the lives OF any Of the
persons in whose names the policies were
issued, but were issued for the benefit Of the
trust associations upon tho lives OF third per-
sons, and that the sole interest which
the associations had in the policies
was contingent on the death Of these
third persons, all these policies being wager
ones, contrary to law, and known to be such
by the Protection. Under this arrangement
bad risks have been taken Intentionally. The
Protection. by issuing its policies to these trust
associations, and assessing its members for
death-lusscs under them, has perpetrated o
great wrong upon its own p0licy-hU1ders, and
dcIlauded them out OF large sums of money.
The rclator alleges that the Company, Tor the
purpose Of defrauding its members, has repeat
edly, since it begun business, made and collected
assessments for the
PRETENDED PURPOSE OF PAYING DEATH
LOSSES,
but really to appropriate the sum so collected
to Its own use; AID, to prevent members from
asccrtalning the actual facts, has willfully
notices Of assessment. Thus, in 1S76, the Com
pany collected an assessment for tue supposed
death-loss Of one C. kale. of Chicago. I.
is alleged that the assessment was in sfact
made for the death-loss Of Peter
Kennedy, OF Oshkosh, and that the names OF
attending physician, undertaken, frient, aud
notary public were all slightly changed, so as to
clude the Investigation OF policy-holders. Then
the rclator gives the facts regarding an assess
mcnt for the death OF J. Lober, OF Chicago, 9TH
been already set forth in other bills. lie also
alleges fraud in the assessment notice for the
death Of F. Goldenbv, Of Chicago,
alleging that the man who real
that he had no policy Of insurance in the Com
pany, and that, on his death, the Company,
knowing he was friendicss and unknown, caused
and fraudulent proofs OF hts death to
be prepared, basing the pretended claim on
some lapsed policy issued originally to Golden
berg or some other person OF similar mime.
The names Of attending physician, notary pub
lie, and undertaken were, it is alleged all fraud
ulentlF changed. It is also alleged that the
made for the death OF Helen
Read, OF Chicago, was made for the death Of
Henry &. Read, of Decatur; that she was in-
sured; that the Company settled her claim by
paying few hundred dollars, and fraudently
appropriated the balance OF the assessment to
its own use, t'lat the assessment for the death
of H. Smith, Of Chicago is fraudulent, as well
as those Of 4. 5tahl, Of Columbus, aud Henry
E}ertram, OF Columbus. For whom they
we're in reality made the relator is un-
able to state. It is alleged that, in
he cases Of Phoebe Bothwick, John Henry,
Elizabeth Parker, F. W. Fisher, Patrick Nc !
Cormick. Eliza Vfgus. ?. Bennett, Elizabeth |
Luft, Charles Flint, and others, the Company
collected the full-facc policies,
COMPROMISED WITH THE CLAIMANTS |
'or q small sum, and pocketed the difference. !
The rclator has been for thirteen years |
:itizen Of Cook County. On the 2Oth of March, |
S13, he bccame policy holder IN the Protection,
md paid all his assessments until March, |
ST, when, having been informed Of the alleged I
and illegal acts above set FORTH be |
tIused to pay any further dues.
The States Attorney, upon the relation afore-
aid, gives the Court to understand that the |
Company has, By reason OF the above facts, !
orfcted its rights, privileges, and franchises as
corporation, but, nevertheless, it has con-
inued to use and exercise, anu still dues use /
nd exercise, the sail rights, privileges, ETC.,
therefore the petitioner asks, etc.
nAODl Cpc nj PTrptTFIDT