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

of said company on the S1st day Of December,
1896; that the said statement so printed and
exhibited as aforesaid contained each and all
of the false items in said statement and
report contained under the head of liabilities
as hereinbefore- stated, and contained the
false and fraudulent statement that the as
sets of said company had increased between
the LIST of January 1896, and the list of Janu-
airy, 1897, in the sum Of $26, 062. 46, whereas
in truth and in fact there was no net in
crease of the assets whatsoever during said
year, but there was an actual loss OF SlS,-
1925 during said year. as hereinbefore stat
ed; that, among other things, the said state
ment so exhibited and circulated as afore-
said contained the following false and fraud
ulent statements and Misrepresentation, to
wit
The Financial Report of the Life Insur
ance Clearing Company, St. Paul, MINI
AS given on the opposite side of this card
evidences plainly that the company has been
managed On a conservative basis, and strict
ly in the interests Of it's policy holders.
No better argument could possibly be Of
fered why al life underwriters should place
their average and "under-average" bust
ness with this company, as well as to induce
poiicyholders to speak in it's favor.
Send us your declined applications. The
greatest variety of policies-the most com
notwithstanding the most equitable
options-and the safest and best-are the
inducements offered.
The financial statement for 1896 tells the
story.
That plaintiff is informed and believes and
Der of persons relied upon and believed the
! said printed statements, and were thereby
deceived as to the character and response
| biifty and management of said company,
and were thereby induced to pay large
amounts of money to become insured by and
poHcyholders in said company, and that said
| company, by reason of said false and fraud
ulent representations and p1etenses, is liable
| to each and all of said persons so paying
premiums and procuring policies on the faith
| thereof as aforesaid. for the amount OF such
re fnr uysth
| since the date of making the same.
! X. That by the circulation and exhibition
| of said false statements hereinbefore men,
toned, a large number of poicyholders and
persons heretofore insured by said company
were deceived thereby and induced to pay
| premiums upon said policies for the purpose
! of continuing the same IN force, and that
each of said persons so deceived by said
! false statements and SO induced to pay
premiums thereon is entitled to recover from
said company the money so pad and fraud
| u.ent.y obtained, together with interest
! thereon since the date OF such payments
! XI. That the said Thomas B. Scott, long
prior to the year 1896, was, ever since has
| been and still Is stockholder OF sad COM
| pany, and now owns and controls, including
| the stock which stands In the name OF A. M.
Du Bor2 as aforesaid. more than 400 shares
of the capital stock of said company; that
the said defendant, H. Burton Strait, for a
! long time last past has been and is stock
| holder of said company, and now owns ana
| controls more than forty-five shares Of the
capital stock of said company; that said de-
| PENDANTS, Thomas B. Scott and H. Burton
Strait, with five other persons, duly elected:
| qualified and acting. constitute the bard or
| directors of said company, and tnat the
said defendants, Thomas B. Scott and II.
! Burton Strait, during all of the years 1899
/ and 1887, have been and still are in the ex.
said company, and that the other directors
| of said company, or majority OF them,
have wholly failed, neglected. and refused,
| and still fail, neglect and refuse to discharge
! oil dutj
| the said Thomas B. Scott and H. Burton
! Strait to control and manipulate the affairs
of the said company, and to mlsappropr, ate
and impair its assets as aforesaid, and that
sufficient number of the stockholders of
said company are controlled by and operate
with the aid of said defendants Thomas B.
Scott and H. Burton Strait. to continue the
| said defendants in office as such directors
and officers of said company, and in the ex-
| elusive charge, control and management
| thereof
That unless the said defendants and each
| Of them be restrained and prevented from
! the further fraudulent and corrupt misman-
! agement of the business and affairs Of said
company, the said company will speedily be-
| come insolvent and it's authority and license
| to carry on its business in the state of
Minnesota and In all states wherein it is
| now authorized or permitted to do business
| will be revoked, and that the capital stock
of this plaintiff in said company, and of all
| the other stockholders will speedily become
| worthless, and all of said stockholders be
rendered liable for and required to pay all
| of the debts and liabilities of said company.
| That this action is brought by this Plaintiff
| in his own behalf and in behalf of other
stockholders of said company, and in be-
! half of said company, for the reason that
said corporation and a majority of its board
| of directors are wholly under the control of
said defendants, Thomas B: Scott and H.
| Burton Strait and because the said company
and the said board of directors have refused
and neglected, and still refuse and neglect
| to restrain or prevent the said Thomas b.
/ Sc1tt and H. BurSln Strait from the wrong
full and fraudulent mismanagement and con-
! duct of the business and affairs of said de-
PENDANT as aforesaid, and refuse and neglect
to take any steps whatever to protect the in
! terests of said company CT to obtain the re-
| lief hereinafter prayed for.
Wherefore, this plaintiff prays that said
court decree and compel the payment TO
said corporation of all money and the value
defendants Thomas B. Scott OR H. Burton
! Strait have acquired for themselves. or that
has been lost or wasted by the violation OF
! their duties as such officers of said company;
! that the SAID defendants Thomas B. Scott
and H. Burton Strait be suspended from ex-
ercisfng their office or interfering with the
business, property CT affairs of said COM
! pany during the tendency of this suit, and
! that the said defendants be removed from
| Office and prays for such other and further
relief in the premises may be meet and
! proper
EXHIBIT B.
GAN and loss exhibit of the Life Insurance
Clearing Company for the year 1895:
Debts. Credits.
! Surplus on Dec. 81, 1895. .$113 GOA 10
Premium receipts ....... 1G9 80
| Interest earnings ........ t. 445. O3
| Surplus fund ............. Il 800 90
Real estate ............. 100000
| Increase of market value
| of bonds over COST. 331 80
| Increase of reserve liabil-
lty ..:.......:....: Sio,44o.V1