Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-11-11
EINANCiER AND lNSUR-
ANcE HEAD WINS SUIT IN
DISTRICT COURT.
MADE BIG PROFIT IN
/ SALE OF COMPANY STOCK
Other Stockholders Who Disposed Of
Holdings at Smaller Price Thought
Mrs. Rswson Should Be Compelled to
Divide Profits - Court Rules That
Stock Was the Woman's.

Des Moines, Nov. 11.-Judge Hugf
Brennan. OF the equity division of the
district court, handed down an ora
opinion late yesterday afternoon, re-
fusing to set aside the sale of the Des
Mones Life Insurance Company to the
National Life Insurance Company of
Chicago.
The court denied the request of
Charles Beidenkopf, owner Of one share
of stock in the Des Moines Life. for an
injunction on the ground that Mrs. L.
c. Rawson. its vice president and AL
bert Johnson. president of the Nation
al Life. had entered into conspiracy
to defraud the minority stockholders.
Max HoltZ, also owner of one share Of
stock. Joined with Mr.. Beidenkopf in
asking that the sale be set aside.
To Receive Higher Price.
Beidenkopf and Holtz still retain the
two shares Of stock they held in the
Des Moines Life. The court indicated
that they would be allowed a sum
equivalent to that for which two shares
of stock could be purchased in the Ma
tional Life at this time. Maurice Locke,
counsel for the National Life. conceded
yesterday that plaintiffs shares are
worth s640 each.
The court declared that he had been
unable to find irregularities in the pro-
ceeding Leading up to the sale and as
serted that in his opinion it would be
inequitable to set aside the reinsurance
contract at this time.
Accepted Woman's Story.
=, 49, 10
tween Arthur Reynolds and Mrs. Raw
son at the Des Moines National Bank.
where the latter is said to have fraudu-
lently induced the banker to sell his
stock at sum much smaller than she
received, the court says:
When the question was put up to
Mrs. Rawson in the bank as to wheth-
er she was getting more for her stock
than the 5000 she was then Offering Mr..
Reynolds and Mr.. Nourse. she said she
was. They asked her no further ques-
tons and did not insist upon knowing
how much more She told no story
there: she made the statement she was
getting more"
Continuing the court said: "Alr.
Reynolds in his letter from California
seemed to be pleased and congratu-
lated Mrs. Rawson on what she had
accomplished. All that was poetic.
Thought They Were Defrauded.
When they (the minority stock
holders) finally discovered that Mrs.
Rawson had got a great big price and
they wanted to share it. they thought
they We're defrauded out of that amount
Of money because she got it. That was
her property, it was her stock and she
could sell 1t at what she pleased: she
mad a perfect right and jurisdiction
over it, to sell it for what she pleased
and what she could get. and she did
not have to tell the other stockholders
what she did get.
i do not think It would be equitable
to set aside the insurance contract
after this lapse Of time; after the
stockholders of this corporation and it's
board of directors resolved that this
sale might go thru and after the board
OF insurance commissioners of the state
hao said 1t was correct and allowed it
to go thru. and after the property and
assets Of the company have been trans
ferred to another state and the COM
pany that is now acting, paying out of
Its mortuary and other funds, meeting
all the obligations and expenses. I find
that the National Life has not failed In
one item. one iota in meeting all the
obligations it provided it would meet
IN the contract and that it is bound to
meet"