The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-07-14
CLOSED BY LAW.
An Insurance Company in
Diffic ulties..
BUT LITTLE ASSETS LEFT.
The State Investment and Insurance
Company in the Hands of Re-
Ceiver-Sued by the State.

The State Investment and Insurance
Company has had its last chance for life,
and now it must go out of existence.
This is bad news for people who hold
policies in the cOncern-bad because it is
like forlorn hope to expect that some
other corporation will step into the gap
and take the policies.
For months the State Investment Com
pany has been before the public as an un-
considerable affair. THE CALL has told
its history fully-how its patrons were
cruelty duped by an incompetent manage
ment, and how the State Insurance Com
missioner. after examining into the COM
pany's business meth DDS, revoked its GER
tifcate Of authority 10 conduct an inSur-
ance business.
From present indications the company
will soon be memory only.
Late last evening Acknowledgement
Hart with his associate counsel, Eugene F..
Bert, went before Judge Hebbard with
legal documents, iDjuDctions and COM
plants containing serious charges against
the company. Among other things it was
charged that the Sta e Investment Company
had impaired its capital three-fourths of
the limit allowed by law.
Judge Hebbard read the legal papers
and then issued restraining order ap-
pointing ex-Judge Van Reynegom tenn
porary receiver 10 take possession of all
the assets of the State Investment Com
pany and to hold them until a further
order of the court is made. Attorney Van
Reynegom filed bond for $1,000. where
upon he was legally qualified to assume
Office as receiver.
1t was further ordered that the corpora
H., IL
not be closed out. aud why it should not
be dissolved on the ground that its capital
stock is impaired.
The complaint which brings suit
against the corporation was filed at the
same time. Its title is. THE People Of
the State of California. upon information
Of W. H. II. Hart, Attorney General, VS..
pany. George l.. Brander, J. B. Mackie,
Fisher Ames. Charles M. Blair, George
Frier, c. A. Van Anden and j. w. Bell
stein, Directors"
This document sets forth that the COM
pany was organized December 1, 1871, as a
fire insurance company, with a capital
stock of $500. 600 fully paid up.
Last night Insurance Commissioner
Wilson entered the Office OF the corpora
ton, took possession of its books and ex-
amined its affairs. On January 1 last, he
d srOverrd its capital had been impa red
S227, 442 70, which left only $172, 557 81 to
the credit Of the company. From January
/ TO July 10 the business was impaired to
the extent Of $500, 100.
As the concern was drifting hopelessly
to utter ruin, its certificate was revoked
on the 10th of last May, and the company
then went out of business virtually. 1t
could no longer issue new policies nor re-
new old ones: An extension Of sixty days
was granted in which to repair the capt
tai Nothing toward that end was done.
however, and as the time expired last
Monday, Attorney Hart was notified and
legal proceedings were instituted.
The plaintiff alleges that the company's
directors are DESTROYS Of being relieved
from the responsibility OF closing up the
business. and have no objection to ap-
pointing receiver. Z
The objects of the suit are as follows:
To compel defendants to show cause why
they should not be closed out and be de-
clared insolvent; to restrain them from
transactIng business; that the affairs be
legally wound up and receiver ap-
point led.
Recently number of creditors Of the
company filed a petition calling on the
directors to explain why their corpora
ton should not be adjudged insolvent.
Under California laws. however. this
method Of procedure was irregular. as
that power rested only in the Attorney
General and Insurance Commissioner
representing the people. Then the stock.
holders were asked to make the capital
equal to the amount originally paid up,
and exclusive of assets needed to pay all
ascertained liabilities. But the SOCK
holders could not see their way clear to
throw more money away On the scheme.
They simply said. "Let it sink or swim
with what has been already invested"
George l.. Brander is held responsible
for he impairment of the capital, and it is
said he may have to answer for it before
the trouble Is over.