The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-08-21
AN IMPORTANT SUIT.
A Chancary Case of Complicated
Character.

Quite an important chancery suit is
pending before the September term of
court The complainant in the case is |
John II. Wilson. who has brought suit |
against the Rock Island Paper company |
and Others, which includes about eighteen
insurance companies, and number 81
private citizens. The bill was filed by s.
w. kretsinoer, of Chicago, and Sweeney,
Jackson e Walker, of this city, who are
compliments solicitors 1t alleges that
Mr.. Wilson loaned the Paper company
$500 prior to 1879 large portion of
which loan was for the purpose of i'm
proving the mill property; that the loan
property to Capt T. j. Robinson and
Charles L. Walker, as trustees for Mr.
Wilson In each of these trust deeds tie
company covenanted to keep Its mill prem
scs insured in an amount sufficient to
II is further alleged that these trust deeds
were duly recorded, and that the com
pany took insurance to the amount of
$35, GOO SIS, 600 of which was made
payable TO Mr. Wilson's trustees, Messrs.
Robinson and Walker The balance of
the insurance was made payable to Holmes
IIakce,. G NJ. ID. Hakes, S. S. Guyer,
Stephen \. Main, and Mitchell & Lynde.
The insured property was destroyed by
! fire on March 8, 1888, and the company
made out proofs of loss, showing
the damage to have been something over
| 1921 coo The insurance companies,
under the pro rata clause in the policies,
were each to pay about sixty per cent of
| the total amount for which they had in
sured, which would give Messrs. Robinson
and Walker about $4,000. The theory Cf
the bill is that Wilson's trust deeds are a
first lien. and that the recording of the
deeds was a notice to all other creditors
to all insurance companies, and to any
others interested, that Mr. Wilson's lien
WAS 10 he first paid oat of the property,
or out of any insurance fund which might
be payable by reason of the loss of the
property. Hence the bill claims that the
insurance monty must first be applied to
the payment Of the Indebtedness to Mr.
Wilson
After the company had furnished proof
of its loss the property was sold by Capt.
Robinson al public auction, for So 900
under his trust deed leaving still due Mr.
Wilson, after he receives the $4,000 in
surancc, something like $4,000
About July 10 last Messrs Mitchell &
I.ynde were fortunate enough to have re
crived 81 800 or Whereabouts, the amount
payable 10 them under one of the policies.
This was the only insurance which had
been paid mp to the time of filing the bill.
The bill, prior to being filed was present
ed TO Judge Glenn. who entered an order
appointing Mcssrs ". II Gest and E. ".
Hurst cnstodians, in the nature of receiy-
ers, of the drafts in their possession (the
bill alleging that they held large number
Of the drafts of the insurance companies),
and directing them to pay over to Mr.,
Wilson the amount Of insurance payable
to Mcssrs. Robinson and Walker This
order has already been Obcyed by Messrs,
Gesi and Hurst, who have paid to Mr..
Wilson a little more than 50 900. They
Were also directed to hold the balance of
the fund about $4,000, until further
Iorders OF court. The only reason the III
surance companies had not paid over this
money without an order of court, was that
they were unable to procure proper Re
ceipts from the officers Of the PAPER
company
Yesterday the attorneys in the case met
in Monmouth Charles l. Walker and
5, ". Kretsinger appeared for the com
plainant, and E. II. Guyer for his father
estate, and Judge Wilkinson for the Hakes
estate. 1t was agreed that TIE drafts
should be cashed, invested in government
bonds. and allowed to remain so invested
until The case Is decided in court