Steger v. Northen

229 Ill. App. 529, 1923 Ill. App. LEXIS 66
CourtAppellate Court of Illinois
DecidedMay 31, 1923
DocketGen. No. 28,097
StatusPublished
Cited by6 cases

This text of 229 Ill. App. 529 (Steger v. Northen) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steger v. Northen, 229 Ill. App. 529, 1923 Ill. App. LEXIS 66 (Ill. Ct. App. 1923).

Opinion

Mr. Justice Gridley

delivered the opinion of the court.

The complainant, Chris Gr. Steger, seeks by this appeal to reverse a decree of the circuit court of Cook county, entered May 8, 1922, appointing Abel Davis (a vice president and the trust officer of the Chicago Title & Trust Company) as one of three trustees, and as successor in trust to John Edward Maass who had resigned, under the last will and testament of John V. Steger, deceased.

John V. Steger departed this life on June 11, 1916, testate. He left a large estate. He had-been the president of Steger & Sons Piano Manufacturing Company. His will was duly admitted to probate in the probate court of Cook county on September 14, 1916. He left bim surviving- Louise Eosena Steger, his widow, and Chris G. Steger, Marie Steger Northen, George F. Steger, Annie Nellie Johnson and Estelle Henrietta Hinman, his children, as his only heirs at law and next of kin. By the will he appointed as executors his two sons, Chris G. and George F. Steger, and his son-in-law, Thomas E. Northen, husband of Marie Steger Northen, and they qualified and acted as executors and were discharged as such on June 2, 1920. The widow renounced under the will and has been paid her legal portion of the estate. By the will also the testator appointed three trustees, viz.: his two sons, and John Edward Maass, a vice president of the Com Exchange National Bank of Chicago, and they accepted the trust. After providing for the payment of certain legacies and making certain bequests to old employees and for charitable purposes, the trustees were given the sum of $150,000, in trust, the net income therefrom to be paid to the testator’s daughter, Marie Steger Northen. Two similar trust funds of $100,000 each were created for the benefit of the two other daughters. All the rest and residue of the estate was given to the tmstees, in trust, and they were directed to pay the' net income thereof, — one-half to Chris G. Steger and one half to George F. Steger, in equal semiannual instalments during their respective lives. The principal assets of the estate were: (1) The Steger building, a 19-story office building at the northwest comer of Wabash avenue and Jackson boulevard, Chicago; (2) certain improved town lots in the Village of Steger, Illinois, and (3) about 1,470 shares of the capital stock of the piano company, the total number of shares being 1,620. The book value of this stock is about $2,000 a share. Because of the widow’s renunciation there were transferred to her approximately 480 shares of this stock, and approximately 980 shares (considerably more than a majority of all the shares) passed by the will to the trustees, in trust, which shares they or their successors are entitled to vote at all stockholders’ meetings. After the testator’s death, Chris Gr. Steger, his elder son, became and still is president of the company. George F. Steger, the younger son, became its secretary and treasurer. For several years he had acted as superintendent of the factories. The company did, and is now doing, a large business, amounting annually in normal times to about $2,500,000. Its factories are located at Steger, Illinois, where it employs a large number of men. Its executive offices, stores and display rooms are in the Steger building, which has an annual gross rental of about $177,000.

On January 28, 1921, George F. Steger was adjudged insane by the probate court of Cook county and the Chicago Title & Trust Company was thereafter appointed and is now acting as the conservator of his estate. In article 2 of said will, after making the appointment of Chris G. Steger, George F. Steger and John Edward Maass as trustees, it is provided as follows:

“In case of the death of either said Chris G. Steger or said George F. Steger prior to my decease or prior to the termination of the trusteeship to which he is appointed hereunder, or in case of his refusal, incapacity or inability to act as such in such capacity or voluntary retirement or removal from office as such trustee, I nominate, constitute and appoint as his first successor my son-in-law, Thomas E. Northen, to act in his place and stead. ’ ’

Pursuant to the automatic operation of this provision, Thomas E. Northen, after said adjudication of George F. Steger’s insanity, became one of the three trustees, as first successor in trust to George F. Steger. He has since been acting as such trustee, and he is also one of the three directors of the piano company. The other two directors are Chris G. Steger and Charles E. Byrne. After said adjudication Byrne became the secretary and treasurer of the company. For more than 10 years he has been connected with the company and active in its business affairs. He had the confidence of the testator, and before the latter’s death had been given full charge of the advertising department of the company. He enjoys the confidence of Chris Gr. Steger. He receives an annual salary, as secretary and treasurer, of $10,000. Chris Gl. Steger’s annual salary as president is $50,000. It was voted to him by the directors at the last meeting held while Gí-eorge F. Steger was a director and before the latter’s insanity adjudication. Outside of the 980 shares of the company’s capital stock held by the trustees, and outside of those shares which were transferred to thé widow after she renounced under the will, Chris Q-. Steger is the owner in his own right of 50 shares, Thomas E. Mor then of 10 shares, Mr. Hinman, husband of Estelle Henrietta Hinman, of 10 shares, and Charles E. Byrne of 10 shares. The balance of the 1,620 shares is in the treasury. Byrne’s 10 shares were acquired by him by gift from Chris Gr. Steger.

On June 15, 1921, John Edward Maass resigned as trustee. Chris Gr. Steger testified: “I asked bim to resign. It wasn’t because I wished Mr. Byrne placed in his stead. * * * He was requested to resign because we asked him to execute some transfers of real estate which were then in the possession of the trustees to my brother and myself, for which wé were going to pay the estate, but he refused to sign those, as he stated, on advice of counsel. * * * We could not get anywhere trying to convince him that he ought to sign those real estate transfers, so I told bim then that I would have to ask for his resignation.” It was also provided in article 2 of the will as follows:

“And if for any like cause, as to any trustee or successor in trust, a further vacancy occurs in said trusteeship or in case said first successor, Thomas E. Northen, fails or refuses to act or retires from said office as such trustee, then the Circuit Court for the County of Cook, in Chancery, shall, upon petition or bill filed by any party pecuniarily interested in my estate and due notice to others in interest, nominate, constitute and appoint a trustee or trustees to fill such vacancy or vacancies in said trusteeship, so that there shall be at all times during the term of said trusteeship, as hereinafter limited, as near as may be, three qualified trustees to act in the said premises, * * * provided further that no beneficiary hereunder shall be appointed at any time as first or subsequent successor in trust to said John Edward Maass.”

It was in pursuance of this provision of the will that Chris Gr. Steger, individually and as trustee, filed the present bill of complaint on July 14,1921, praying that “the court may appoint Charles E.

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Bluebook (online)
229 Ill. App. 529, 1923 Ill. App. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steger-v-northen-illappct-1923.