Savannah morning news. [volume] (Savannah) 1868-1887, 1886-06-28
THE COTTON STATES.
A Salty Bill Asking for the Appoint
ment of Receiver.

From Sundays Mqccss Gal 7elecraDh.
The bill asking for the appointment OF
receiver, ETC., for the Cotton States Life In
surance Company should have been heard
by Judge Simmons yesterday, but in con-
sideration OF the original bill being
amended on June 81 the CAGE Is set down
for a hearing on July IA. The complain
ants to the bill are q. ID. Harrison, OF At
lanta, and others VS.. William B. Johnston,
George S. Jones, John S. Baxter, and
John w. Burke. The fOllOwlngl is the text
of the bill:
z. ID. Harrison and his wife, Laura H.
Harrison, as trustees for herself and his
children, g. b. Scott, guardian for Lach-
lin j. Winn, aud Harriet B. VIM, a tTus-
tee for herself and the children of her hus-
band. the said Lachlan j. Winn and j. p.
Girardy for himself and next friend of his
minor children, and Martha Girardy,
bring their bill against the Cotton states
Life Insurance Company, and against
William b. Johnston and his confederate
stockholders of said company, asking
that:
l. That a receiver be appointed to take
charge of the property and assets of said
company and preserve the same until the
final hearing and determination of this
cause.
g That the defendants be enjoined from
Interfering with the assets or property
of said company or from disposing OF the
same.
8. That the debts due by said company
be paid and that the remaining assets be
applied to reimbursing the policy holders
for the amounts expended by them, as
premiums, in proportion to such amounts.
A. That such other and further equit-
able relief be granted as may be meet aud
proper in the premises, and such as will
protect the rights Of parties interested.
The 1iers Of the bill set forth that GER
tain claims and presentations made by the
company on each and all are false and
fraudulent and are and have been made
for the purpose of carrying out and con-
summating the design OF defendants in
respect to said company, namely: To buy
in its policies at n nominal figure. settle
debts Tor small amount, quit business
and divide the property and assets on
hand, thus fraudulently taking from tho
use of its policy holders and creditors
for the individual berefit Of said VIM. b.
Johnston and his coDfederates. In
pursuance of this design, the said VIM.
Il. Johnston and his cOnfederates have
stopped the business of the company as a
lie insurance company, have caused the
Issuing of policies therein TO cease, have
Withdrawn their agencies, have failed
and refused TO make reports to the Gov
ern0r and Comptroller General of the
state, as required by law, and even in
such reports as they have made in the
past have made deceptive statements,
not indicating the true and exact condi-
tiOn oil the business of said company, but
SO wOrded and arranged as to deceive and
mislead those who might have dealings
with them, and keep them in the dark as
to the actual condition of the affairs of
said company. For more than
a year no report or information
at all has been given or filed
by said company or its officers as by
law required, and as compliments are in
formed and believe the reason assigned
therefor by SAID w. b. johnston, no is
President OF said company, and lis con-
federates, is that they have practically
stopped the business of the company.
Still further, in pursuance of the design
OF applying the assets of the company to
the private benefit Of the said Johnston
aud his cOnfederates, they have recently
sought, as cOmplainaatS are informed and
believe, to withdraw from the hands
Of the Comptroller General the bonds de-
posted by said company with him, which
are above parin value and safe and secure
bonds OF the State OF Georgia, and 10 sub
stitute IN their stead certain certificates
of Indebtedness of the Central Railroad
and Banking Company OfGeOrgia, which
were OF mucn less imam par Nblae. Inc
cOmplainants charge IT, the said COM
PAW a'1h - aHails are entirely con-
trOlled by the said Johnston and his con-
federates, and that each and all of said
acts are being done for the purpose of
WreckIng the said company, stopping its
business, depreciating its policies and
buying them in at small prices, and thus
saving a large amount of assets and prop
erty to he divided between the said john
stOn and his cOnfederates. Compliments
charge on information and belief that il
the assets of the said company were
fully and properly applied to the payment
and protection OF tue outstanding risks
and Indebtedness of the company they
would be all consumed, aud that said
company is in fact insOlvent. Complain
ants further charge that if the said John
stOn and his confederates be allowed to
continue the conduct of the business and
the management Of the assets of said
company, that the said company will
have retired from business and It's assets
Will have been disposed OF long before
many Of its outstanding policies have
matured, etc.
The case was set down for a hearing on
yesterday, but the filers amended the
original bill, and Judge Simmons has set
July ii for the hearing.