The herald., 1896-08-31

| they were not accepted in the ordinary
course of business. BY this course hold
ers of these certificates and abstracts
| were and are being compelled to take
| out a title of insurance and this is rem
| dered much easier by the fact that the
| stockholders of the Title Insurance com
| pany includes many real estate dealers
| who, doubtless, do not fail to illustrate
| the immense advantage in having a title
| like life rendered absolutely safe by in
| surance.
The customer Is not reminded, how
| ever. that in life insurance when man
| dies the sum of his policy is there await
, ing Just such a catastrophe while in this
! title insurance If the title proves ulti-
mately defective the sum of the policy
| Is, so far as any guaranteed deposit is
| concerned, like California flea
| when you put your finger on it it isn't
| there.
SO much for the methods made possi-
| bic by the practically collusiVe scheme
, between Insurance Commissioner Hig-
| gins and the Title Insurance and Trust
company, whatever 1t may have been in
actual fact
FURTHER. SECURITY NECESSARY
AS might be inferred after reading
that clause of the company incorpora-
ton papers. given above. there is a wide
latitude in the business aimed at. AS de-
poSitory and trustee the Title Insurance
and Trust company appears to do what
must be very profitable business. One
illustration only will be given of this.
ON July l, 1896, the Main Street and Ag
ricultural Park Railroad company con-
Veyed to the Title Insurance and Trust
company of all its property in trust for
the benefit of the bondholders. or in
other words, $3S0,000 worth of bonds.
But the law again interposes here in
order to protect these bondholders and
inst how a shall hnnd1a
their property. Article 1850, section Z.
code of civil procedure, being an act
authorizing certain corporations to act
as executor and in other capacities, and
to provide for and regulate the admins
tration of trusts by such corporation"
says:
Each corporation, before accepting
such appointment or deposit, shall de-
posit with the secretary of state, for the
benefit of the creditors of said corpora
ton, the sum of 100000, in bonds of the
United States, or municipal bonds of
this state, or in mortgages or improved
and productive real estate in this state,
being first liens thereon, and the real
estate being worth at least twice the
amount loaned thereon. The bonds and
securities so deposited may be exchang
ed from time to time for other securities,
receivable as aforesaid. aid bonds of
the United States or municipal bonds of
this state, to be registered in the name
OF said treasurer officially, and all said
securities to be subject to sale and trans
fer and to the deposit of the proceeds by
said treasurer. only on the order of a
court of competent jurisdiction, and as
hereinafter provided"
ANOTHER GUARDIAN DEMANDED.
The secretary of state is thus appoint
ed as guardian of the interests of all
those for whom any corpora ton may as
sumo the duties of trustee. By just
observance of the spirit and letter of
this law no corporation can mal-admin-
lister or make away with the interests of
its clients and it was drawn for their es
pecial benefit
Has the Title Insurance and Trust
company deposited this 100000 with the
secretary of state, to cover this phase
of their financial trade? Well, not much.
As in the case of insuring titles the COM
pany takes the profits and the outsiders
the risk. If the Main Street and Agri-
cultural park bondholders are willing to
pin their faith to the integrity of the
Title Insurance and Trust company,
then so far as they are concerned it is
their own and nobody elses business,
but when this is done under guise of
legal procedure. and the bondholders in
the case, as well as the public generally,
are led to believe that every require
ment of the law has been fulfilled there
Is then another side to the transaction.
The law presumes man to be inno-
cent of all offense until proved guilty;
but primarily every man is expected and
specifically required to prove his bona
fldes and honest intent by obeying the
law.