, 1877-11-10
GEORGE c. SMITH

GEORGE c. SMITH
AND THK Stair INSURANCE COMPANY.
The entering Of the order Thursday dis
charging the rule agafnst Gcuruc C.. Smith,
Treasurer of the ,lcfunct State Insurance Guns
pany, requiring hin to allDw ca,,*c why lie
should nut turn OYER certain ,nOncys, alna t1fs-
charging The petitions upon which the rule wns
based. and Smith fru,n n'ly further answer, pru-
yokcl souo speculation "a IL tho eatsSe Ut
this action. Tho general Impression was
that theirs had been connro-
misc, and, with n view Of learning
It's nature, a TRIBUNE reporter WIS Instructed
~ gct tic facts. II appears, however,, that tl,a
Impression had no foundation, The rtytlts,rs
iaylng become disguised at the laws dclay, and
consented to the dtsehargc Of the ruic In or,cE
that the suit against tho Stockholders might l'c
pressed. 4 summary Of this remarkable xase
mny not prove unintcrcstfnE.
On tho 9Th VI August, 1877. Judge Dlodgctt
entered an ortler against Smith tu show cause
why ,lu e!,oud nut turn over $;stl ,:.,l3%a5 tlle
ordcf being based on testimony taken tHfuro
tbs llcGsster, Including that of Smith himself
Tn tic IOth Of August following, thls rule was
discharged nsthout noi3rc 10 tho atturncys tDr
between Norn1an Z. Perkins, The tIctl AsstEtlrc,
anil Smith and the Nutlnnal }4aan y Trust
Company, Smith pairing : sl51, ST. = md linribllt,
tl5,Ooo, making thu whole amount about slS..
OOL As so,,n rs thu creditors learned OF this,
they touk the case heforc Judge Drumn'ond ol
a petition for rcvicw. The arguments took
tie tic matter uil,icr a,lyisc1nent. 4 few dnys
thereafter u decision was given, Judge Drum.
n10nA hctllnE that unlcss the matter could be
aulicahly arranged, tlle rule would haye to bu
rrlnstatet-thut enuug!l money Ilall mt bcctl
pai,, over, aud that the right II the crcd!tors lad
not been sufficiently guarded. After various
eilusts, extending Oscr Il pcrtod u !norc
tllun d year, counsel fer the creditors
~ Of February, 1874. IN which the Circuit
Court decided Tint tho rule against Smith. rs
originally entered tn The District Court, should
be tc,nstatca. II tho mcantine the Sat[uslal
President, canc into tho District Cour. anI
proved up claims against the estate In bank-
ruptcy amounting to sso, uo0-elaln.s which, It
is alleged. had been purchased tor ahont ~
cents IN the dollar, and which TIC Nat!onal
Loan T. Trust Company held werr MI ulIsct to
tbs money Of the Static Insurance Com
pany in thu natltls of Treasurer Smith. Tho
effort was male u prove up the claims fur their
iace value. it was agreed bctwccn counsel that,
subsequently, nil thu proecedngs should be bud
before Judge Drunlmun1, mud that wllnteycr his
DECISION was, II snuuId be entered III tic Dis
trict Court, the object being to sayc the costa OF
appeal, etc.
After the rule had hcen retnstatcd the rarttcs
went buforo Judge Dram1nonnl anl argued the
ausoula W snt to M pay oyer to ba'ance IL @ u
tms MONEY 'h & s .s, ua,, r. .s ue'
t"sy" pasy nnI III iiurSatp @ p" and Jul 5is.5s Tho TIC
% ovai sntan nv ,,onrv ,m,, @o .anra m
tho ii Of Xprll. isSi-whcn l,c decied t,lat ti.e
% 1htc soou or hsso WeD;s.o, iitio, I.I n,,,
% sultt 10 appss ~ oral csaustjou Under oat Us to
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