, 1877-12-02

W. \. EEyH0lu5, Galfc6lOn. lex. 410:su III
G!o5sky. New Orleans; r. lluFa' gGstSn Gyi5'n
Ss!sSt r 5o1psoa; s. ,I5ss Iss's; ~ g5i ydi. Pa
SAexu:un Nous<-Judse Il. .. HOPKINS, Peoria
I l. i. Warren. New York: A. Jones. Pit.shuEG
Fred Wild. hacine; .Ioseph II. Price. Newark, n
A. T. Klackson. Z. $. A., Zanesyille q. ".
Durlcigh Yankton, D. T.; Il. A. Nickcrson, New
/ York.
! TIE REPUBLIC LIFE.
AN INVOLVED QUESTION ON THE LIABILITY OF
THE STOCKHOLDERS.
The stockholders OF the dciunct Republil
Lifc-lnsurance Company have been enjoying
quite season Of rest, though doubtless
some Of them have been expecting 4
summons to make up tile little
deficiency Of IS or 50 per cent in the assets Of
tho corporation. Thut summons came ycster-
day in the shape Of petition by the Receiver,
S. q. Ward, against them, to enforce their la-
blity. From the petition It appears that the
liabilities OF the Company arc about Sl,0sS,
0377,20, exclusive OF contested claims. The as
| sets on hand will not pay more than 20 or 2j
per cent ot these claims. The Company was i'll
corporutcd by special act approved March -,
| 1869. The sixth section OF the act provides as
| follows:
The real and personal property of each indiyjtl-
ual stockhoder shall he held liable for any and all
losses and liabilities OF the Company tie amoont
| of stock subscribed or held by him Ind not actual
ly paid in. In all cases Of losses exceeding the
means Of the corporation each stakeholder shall be
held liable to the amount Of unpaid stock held by
| him.
+ 1t the first meeting, held April s. 1869, it ap-
subscribed for, and IS paid on each sl,are. r.
". Smith, William Sckcttlcr, c. n. Shpman,
Directors, and s!nith was chosen Prcsi-
! dent. schcfier yjce-presdent. and @Arc!y
Secretary aud Treasurer. On April ),
! 1870, Il preliminary meeting Of the stock-sub-
scriber:, aud Others interested in organizing
| iEc-lnsnral1te company, was held, j. Y. Far
well, G. B. Farwcjl, A. w. Kellogg, U. E.
/ Moore, ". 5. Carter, Paul Cornell, and s. ".
WAS appointed tu attend tue meeting o{ rhc
stockholders OF the Republic Life-Insuraucc
Company, rs it was then organized, and sec
that the stock WAS properly transferred to the
1iun, q committee to nominate Directors, aud a
committee on by-la"s were also appoint
cd. The Directors Of the Rcpub-
lie liz ~ hs!d ,a, 49, = + meetiny ;,o the ssms
Secretary, and stock subscriptions received to
the amount Of S1U5,o0o, on which $4,000 were
paid. Resolutions were passed releasing P. ".
Smith, G.. \. Shipnan, !: H. avery, and William.
Scl1etcr from their liability Oh stock. Smith at
tlla: time owned 1Ctf} shares. and the others
Farwrll. C. T. Bowen, /. u. Hardin, \. ".
Kellogg, and y. 5. Carter were elected the
new Directors. and the next DAY at another
meeting Farwcil VAS elccied Prcsident, 0, E.
Tile same day the stockholders helG a
session and agreed to increase the stock
10 S5,000,O09 c. B. Farwcu, Leonard
SWEET, Paul Cornell. and S. II. Moore were
elected additional Directors. i boly Of by
laws was also adopted
The first policy issued seems to have been in
July, ls.0, but after that down to 1873 the
Company obtained its fair share Of business. 4
and certificates Issued On payment Of 20 per
cent on the subscriptions. The capital was al
ways represented to bc $5,019,0OO and
THUS MANY PERSONS WE'RE INDUCED
to insure Oh the faith OF such large security. It
appears from the report ot the Finance Com
tnittee in january, 1872, that the stock actually
subscribed Tor then WAS 81, UT >0oo, the amount
. settled was 50, III. $50 on which iast-,,anlgd
amount 2o pcr ccnt, o. S153, ,5GD, had been paid.
Soon after this some steps we're taken toward
calling Ill amt canccllng certain stock. The
opinion Of BcclSwitl, Aver, and halcs was asked
Oh the following points as to the cancellation
Of, rst, stock delivered to- sabscribers payment
oi thc ~ per cent; second: stock delivered and
note taken for ~ per cent M condition that if
the subscriber wished, he might surrender the |
certificate 1T or after the expiration Of q year
and receive back his note; third, stock issued |
On payment oi part OF the 20 per cent, with The
*
per cent, and the pledge OF the stock as coltatcr-
al security to the iiote and fourth, stock issued
and delivered to the subscriber when the collcc-
tion OF the 20 per cent was not made, aud the I
subscriber subsequently, became worthless. The |
attorneys replied that the Company act
i'm. III cood faith, and for what il |
dccmc1 best, might sell any stock and !
ctly it back at pleasure, and might take the |
surrender oi any OF inc classes OF stock men
toned above except the first, s2yc up the stock
notes aud cancel the subscriptions, provided
always, that the eapltai stuck TIC not reduced |
below $;o, ooo, and that The S10O,0c0 mentioned
IN the tblra suction OF the charter be not rc- !
duccl in amount; and also provided, that the
Compauy's assets should not thereby be reduced
oclow the net value OF its policies on the nor |
ccnt combined rate, it being understood that no
creditors.
uuder such high sanction resolution was
immediately PASSED By the Company to do
waat aat.o might az H. be required for the best in
standing stock. What the s.best interests
dcn1anded is not known; but whutever
tne Secretary did was approved by the
Conpany: June II, 1Sis at All annual
tanesane, LIZ Secretary reported in favor Of re-
those iuiiy paid up, aud issuing u new certili-
cate To each stockhoiuer for tho humber OF |
shares st par represented BY the amount OF
money ne had palu Or secured to be paid on bis
original subscription, auu then not fssnnr stark
except ol payment Of its ppr value. Yhat
would leave 81, ,U0U.U00 OF stock to h. nlnced |
where it would DO the most good, and also re- :
!!eTc NC! the Lhcn stockholders IRON all further
LIABILITY. This report was adopted, and rcsolu-
Llons TO the sa1uc effect we're passed. uuLcr
shich a large amount OF stock was surrendered
m ma iuil-pai1 stock for one-tifth tic amount
ssueu instead. :
me liabilities OF the Company are almost Gu ]
.uelg on policies Of insurance, and the larger s
oart were incurred prior to .juiy, 1913, Wien :
nc Change IN the stock was made The cre;iit- .
9ls al ela1:n that this attcmpt to substitute !
u.l-paia stock was void and irautl GU them. | !
:pat the subscribers were and arc liable for tn
lst that this liability shall pe eaforceG. The S
tockho1dcrs On the contrary, DENY their 1ianjti-
: ior the " per cent unpaid on their old stork j
'h'sh WAS cancelled. No certificates. Of fulI. !
aid STOCK! were issued except iu e. u
hanee Tor partly-paid s,ock. There
re no assets beyond this probable liability Of Il
NC stockhol!lcrs with which to pay the Com | c
any's liabilities. There is, loweTer. sumo
onot as to the stockholders liability, and The
xpe!ises OF suiug them will be large, so tiat Il
nc Receiver asks that the Court viii instruct
Im What to do in the matter.
'HE EXPOSITION BUILDING.
TIE LEASE TO FIELD, LETTER co. 4,