The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-03

missioner a certain false, fraudulent and cor
rupt statement, purporting to be the state,
ment required by law to be made and filed
as aforesaid.
That in or about the month of February,
1897, the said company and the said defend
ants, Thomas B. Scott and II. Burton Strait,
for the purpose of procuring retaining for
said company authority, permission and l.
cense to carry on its said business in each
of the states aforesaid, wrongfully, fraudu-
lently and corruptly made, subscribed, swore
to and exhibited to and filed with the proper
officials and in the proper Offices of each
and all Of said states a certain false, fraudu-
lent and corrupt report and statement In sub
stance and effect the same as and identical
with that certain report filed with the in
surance commissioner of the state of Min
neSota as aforesaid.
That said statement so made and filed with
the insurance commissioner of the state of
Minnesota as aforesaid was them and there
false, fraudulent and untrue in the items
and particulars hereinafter stated, to wit:
That the said last item under the head
I'll. Income during 1885, namely, "for sur
plus fund $125O0, real estate acquired 5000
SIT, $780,, was false, fraudulent and untrue;
that in truth and in - fact said company had
not received as any part of its legitimate
income for said year the said of $12,
500, or any other sum or amount whatever,
except as Heretofore stated under SAID head
and that in truth and in fact the said COM
pany had not acquired as a part of its income
for said year real estate Of the value Of
s., 600, of any other greater value than
$1,000, but that said company had through
said defendants Thomas B. Scott H. Burton
Strait, and certain other of its directors
just prior to the making of said report
fraudulentlY borrowed from the Northern Ex-
change bank of st. Paul, Mimi, the said sum
of $12, 500 on accommodation notes of 81 500
each, made by said directors for the purpose
of fraudulently increasing the apparent income
OF said company, and that at the time of max
ing said report said company was justly in
debted to said bank or to said directors for
said sum. and that within q short time after
the making of said report and filing the same
in the Office of the insurance commissioner
of the state of Minnesota. and after the max
ing and filing of said statements and re-
ports in the proper Office of each of the o. her
states aforesaid. the said company repaid
the same to said bank CT to said directors
to whom the same was owing.
That the item under the head "IV Assets
as per ledger accounts" namely, 81. (a)
cost value of real estate exclusive of all in
cumbrance as per schedule A, 5000, was
false, fraudulent and untrue; that in truth
and IN fact the cost value of real estate ac-
CURED during said year was the sum of ST.
coo and no more.
That the item under the head "V. Liza
bilities." namely, 49, Claims for death los
ses and matured endowments in the process
of adjustment, adjusted and not due,
$3,95592 was false. fraudulent and untrue:
that in truth and IN fact there was on said
31st day of December, 1896 lawfully ex St
ing against said company claims for death
losses and matured endowments in the pro
cess of adjustment adjusted and not due,
which amounted in the aggregate TO s147c6 a.
That the item under said last named head,
namely, So Claims for death losses and
ether policy claims resisted by the company,
5000 was false, fraudulent and untrue:
that in truth and in fact there existed on said
31st day of December. 1896. against said com
pany claims fer death losses and other policy
claims resisted by said company, which
amounted no in the aggregate to $10,57s5o.
That in addition to all the other liabil'
ties stated in sal report there existed on said
31st day Of December. 1896. just and valid
claims, liabilities and debts against said COM
payable to Brown, Treacy G Co., of
s.. Paul, Mimi, and the sum of So. 500 paw
able to said Northern Exchange bank, or 20
the SAID directors of said company from
inbefore stated: that therefore the total
amount of liabilities of said company on
policy holders account, which EXISTED on
said day, instead of s42,530.13, Jas therein
falsely stated, should have been and was in
fact the sum of $75, 40S.95.
That the said statement in said report that
during the year 1896 twelve policies of said
company had ceased to be in force by reason
OF the death OF the person upon whom the
same were issued, and that the same amount
ed in the aggregate to the gross sum of s22 500
was false, fraudulent and untrue; that in truth
and in fact during said year 1896 eighteen
policies of said company had ceased to he in
force by reason Of the death of the persons
upon whom the same were issued and that
the same amount in the aggregate to the
gross sum of $42, SEQ; that the total number
OF policies of said company which had been
terminated during the year 1896. instead of
LIZ, as IN said report falsely stated, was
LILO, ana that the amount Of the policies
SO terminated instead, of So, IA, 155. So, as in
said report falsely stated was So 761 i55 So.
that the net number of policies in force
at the END OF the year 1896 instead of 1197,
as IN said report falsely stated, was in TACT
Lib policies; that the amount of said poll
cles so in force or outstanding at the end
OF the year 1896, instead of 81, 533 Isl. as in
SIS, 151.
That that certain item in the paper writ
ing attached to said report, of which ex-
hlDlt b, hereto attached, is copy namely.
surplus on December 81, 1896, S135 $40 &C, .
was then and there false fraudulent and
untrue; that in truth and in fact the sur
plus OF said comp my on said dat was s9) OIL 50
and no more; that therefore instead of max
ing net gain in the sum of 500, S36. AZ during
SAID year, as in said report falsely stated
SAID company during said year had suffered
loss of $13, 992. 35.
That at the time Of making verifying and
ming SAID report, as aforesaid sad defend
ants. THOMAS b. Scott and H. Burton STRAIT
well knew the same to be fa-se, fraudulent
and untrue in each and all of the particulars
and items here:nbefore stated
VII That prior to the year 1896 and until
the same was transferred as hereinafter
stated, one L. G. Fouse of Philadelphia, Pa.
was the owner and holder of more than 200
shares of the capital stock of said company,
and that the said L. G. Fouse was indebted
said sum was to be paid by said Fouse to
said company by rendering to the said com
Fany his services as the consulting actuary
thereof during his life and that such serv-
ices were well and reasonably worth and of
the value of said sum CT So, $50 and that the
said sum OF So $50 was duly charged to the
said l.. g. Fouse upon the books of account
of said company; that some time during the
year 1896 the said capital stock so he'd and
owned by the said L. G. Fouse was. at the
instance and request of of the said defendant,
Thomas B. Scott, purchased by the said Scott
and transferred to one A. NJ. Due Bord; that
the said A. NJ. Du Bord has ever since held
and still holds all of the said capital stock
heretofore owned by the said Fouse for the
sole use and benefit of the sad Thomas B;
Scott and not otherwise, and that the said
Thomas B. Scott is, in fact, the owner and
holder thereof; that as a part of the pur-
chase price and consideration for the
said Fouse to said A. NJ. Du Bord, the said
Thomas B. Scott wrongfu-iy and fraudu-
lently released and discharged the said L. G..
Fouse from said Indebtedness of $780, and
from any and all liability to said company Oh
account thereof, and thereby in effect ap-
propriated to himself the said credit and as
set of said company, amounting to $S'oyo TO
be paid by the services of the said L. u.
Fouse in the manner aforesaid.
VIII. That for long tina prior TO the 31st
day of December, 1885, the said company had
outstanding a large number and amount OF
It's life insurance policies known the
Dividend Accretion Policies" the exact
number and amount of which the sad plain
tiff is unable to state that by the terms
of each Of said policies the insured agreed
to pay to said company certain premiums,
and that said company agreed that a sum
specified therein, amounting to about two
thirds of the premiums Paid upon said poll
cies for each year, commencing one year from
the date of the issuance of each of the same,
should be deposited by said company in the
insurance fund.- for the exclusive benefit
of such policy holders or the insured, and
that the remainder Of such premiums should
be deposited in and belong to the general or
surplus fund of said company, and by the
terms of each of said IC.icies the said com