The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-21
TOuScOTT'SSALARY
AMENDED COMPLAINT IN CASE OF
DORR VS.. LIFE INSURANCE
CLEARING COMPANY.
MORE ALLEGATIONS MADE.
CLAIMED THAT THREE MEMBERS
OF THE COMPANY RAISED THE
PRESIDENTS PAY
WHEN IT TOOK -FOUR TO DO 1T.
Further Alleged That the Report of
the Transaction Is Not a Cor
rect Record.

An amended complaint was filed in
the district court yesterday in the suit
of Russell r. Dorr against the Life In
surance Clearing company and Thomas
3. Scott and H Burton Strait The
suit was begun on Oct. 2 last, when
Mr.. DORIS attorney filed a voluminous
complaint, charging Messrs. Scott and
Strait, who are members Of the board
of directors, with fraudulent misman-
agement Of the business Of the COM
pany and making a false report of the
condition of the company to the insur
ance commissioner.
The amended complaint filed yester-
day prefers additional charges of I'M
lawful and fraudulent conduct on the
part of the defendants, Messrs. Scott
and Strait, as follows:
Further complaining, plaintiff alleges that
under the laws of the state of Minnesota and
under the charter and bylaws of the said
corporation (the Life Insurance Clearing
company, the board of directors of said cor
poration consisted of seven members, and q
quorum of said board, competent to transact
business, consisted of four members. That
on or about the Sd day of September, 1897
there was held a pretended meeting of said
board of directors, at which pretended meet
Ing there were present only three members
thereof. and no quorum was present at said
meeting. That prior to said time the salary
of the said defendant, Thomas B. Scott, as
president Of said company, had been fixed
at 1,SCO per year; that notwithstanding the
absence of quorum of said board of direc-
tors at said meeting said Thomas B. Scott
wrongfully, unlawfully and corruptly caused
to be passed a resolution increasing his salary
from $1,000 per annum to $4,000. and in fur
Their increasing his perquisites and compen-
sation as president of said company, by fur
Their providing. in and by the said resolution
that the said Scott should be paid commits
sion of 212 per cent on the gross premium re-
ceipts of the said company, and that the
said commission should commence Sept. 1,
1897 and that two OF the said board of di-
rectoIe who were present at said alleged
meeting, at which passed the said resolu-
ton. consisted of the said Thomas B. Scott
and said H. Burton Strait, and that there
were present at the said meeting no members
of the said board. except the said Scott and
Strait and one other director.
That the said Scott and the said Strait
at and after the time of the said meeting
fasiied the record thereof and caused it to
appear IN and by the said record that there
were four members and a full quorum Of
the said board present when in truth and
in fact there were only three members Of
the said board present, as hereinbefore stated.
And plaintiff further states that ever since
the passage of the said alleged resolution
the said Scott has been drawing said salary
at the rate of $4,000 per annum, and has
been drawing and appropriating to his own
gross premium receipts of the said company,
beginning Sept. 1, 1897, and that the passage
of the said resolution and the appropriation
of the said moneys is a gross and unlawful
appropriation of the funds and assets of the
said company; and that plaintiff was not in
formed of the fact of the said meeting and
the passage of the said resolution at the
time of the commencement Of this action.
The prayer for judgment is as follows:
Wherefore, this plaintiff prays that the said
court decree and compel the payment to said
corporation of all payments of money and the
value Of all property Of the company that
the defendants, Thomas B. Scott and H.
Burton Strait, or either of them. have &C
quired for themselves, including any increase
of salary compensation commissions that
have been paid the said defendant Thomas
B. Scott, under the said resolution herein
before referred to, that has been lost or
wasted by the violation of the duties of the
said defendants or either Of them, as such
officers of said company, and that the said
defendants, Thomas B. Scott and H. Burton
Strait be suspended from exercising their
Office or interfering with the business. prop
erty of affairs OF the said company, during
the pendency of this suit; and that a re-
ceiver of said company be appointed pending
this action and its final Determination and
that the said defendants be removed from
Office, and prays for such other and further
relief in the premises as may be meet and
proper