Weir v. Mowe

81 Ill. App. 287, 1898 Ill. App. LEXIS 554
CourtAppellate Court of Illinois
DecidedMarch 10, 1899
StatusPublished

This text of 81 Ill. App. 287 (Weir v. Mowe) 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
Weir v. Mowe, 81 Ill. App. 287, 1898 Ill. App. LEXIS 554 (Ill. Ct. App. 1899).

Opinion

Mr. Justice Worthington

delivered the opinion of the court.

Henry Seiter was appointed trustee of James Biggin, an insane person, by the Circuit Court of St. Clair County, and gave bond in the sum of $25,000, with Madison T. Stookey, Herm G-. Weber, James D. Baker, Lucius D. Turner, Marshall W. Weir and Robert W. Holder, as sureties.

.On February 7, 1894, he received as such trustee $14,-644.78, which sum he deposited in the bank of Henry Seiter & Co., at Lebanon, a bank owned and managed by himself alone. Under the name of Henry Seiter & Co., he issued to himself a certificate of deposit in his own name, as trustee, for $14,644.78, due one year after date at four per cent interest.

On December 10, 1894, Seiter made an assignment to Marshall W. Weir, appellant. A part of the assets of Seiter coming into the hands of Weir by virtue of the assignment were debts due to the Henry Seiter & Co. bank, as follows: From the Illinois Farm Company $3,733.32; from the Lebanon Dairy and Creamery Company, $17,110.64. These are referred to as overdrafts made by these incorporated companies, on the Seiter bank. Seiter owned all the stock in these companies except four shares in each, which were held by persons acting as officers of the companies. In answer to the question, referring to these companies, “ You were absolute owner and controller ? ” Mr. Seiter answered, “Yes,.sir.” He further states that the capital stock of the Lebanon Dairy and Creamery Company was $125,000, and that its par value was $100 per share.

On January 14, 1895, Seiter, as trustee, rendered an account to the Circuit Court showing a balance due as trustee of $14,025.39,which was approved. He then resigned as trustee, and Lucius D. Turner was appointed in his place. He accepted the trust and on January 16, 1895, filed his bond.

On January 4, 1895, the assignee gave the statutory notice to creditors to file their claims, and on April 5, 1895, reported the claims filed, among which was the claim by Turner, as trustee for the Riggin fund as a trust fund. Ho objection was filed to this claim.

On September 4, 1897, the assignee made a report “ showing that the claim of L. D. Turner, as trustee of James H. Biggin, insane, amounting to $14,181.42 had been satisfied out of certain items inventoried as overdrafts, by-order and decree of the Circuit Court, entered in the matter of the petition of L. D. Turner, trustee of James H. Biggin, an insane person, against Henry Seiter and Marshall W. Weir, assignee of Henry Seiter, insolvent.”

The order of the County Court to show cause why this report should not be approved is as follows:

“On the 7th of September, 1897, comes Marshall W. Weir, assignee of Henry Seiter, insolvent, and it appearing to the court that Marshall W. Weir, as such assignee, has heretofore on the 4th day of September, 1897, filed a statement of moneys collected and disbursements made by him as such assignee, and praying for the approval thereof, and for an order of the court to pay a dividend to the creditors of said estate, and on motion of counsel for such assignee, it is ordered by the court, that all objections to said report be filed by September 14, 1897, at nine o’clock A. M.”

On the 11th day of September, 1897, appellees filed their exceptions to so much of the assignee’s report as showed the satisfaction of the Biggin trust fund out of the overdrafts as follows:

First exception : “ The $14,181.42 Biggin trust fund paid to Turner, trustee, by order of the Circuit Court, is in violation of Sec. 6, Chap. 10, Assignments for the Benefit of Creditors, and said order is not sufficient in law.”

General exception: The distribution of the assigned property should be fro rata to the above named creditors, etc.

On the 23d of September, 1897, these objections to the assignee’s report were overruled, the record showing this reason, as stated by the court, for overruling them :

“ And now on the 23d day of September, 1897, the objections to the Biggin trust fund claim, as set out in the first and second exceptions, coming on for hearing, and understanding that the objectors, by their counsel, consent thereto, the court overrules the objections,” etc.

At this date the hearing upon other objections to the report by other parties was set for October 8th. The placitum shows that these proceedings were of the July term of the St. Clair County Court, the law term of said court commencing on the second Mondays of March, July and November.

On October 9th leave was given to James D. Baker, representing the Kneisley heirs, to file objections instanter to the assignee’s report. On November 6th, a hearing on the claim of Louis Zerwick, who had filed objections, was heard and his objections overruled, and the hearing of objections' of James JD. Baker was set for November 12th.

On November 12th the appellees moved the court to set aside the order of September 23d, overruling their objections to the assignee’s report, whereupon the court set the hearing upon said motion for the 22d of November, on which day the motion to set aside the order of September approving the assignee’s report as to the Riggin claim was allowed, and a rehearing upon the objections of appellees was set for November 30th.

It will be seen from this recital that the consideration of the assignee’s report was still pending before the County Court when the motion was made to set aside the order of September 23d.

On the 30th of November, a hearing was had before the court on the exceptions filed by appellees, and on February 17, 1898, the record shows that the court “ sustains the objections to act of assignee in paying Riggin and .Nichols claims as preferred claims. Act set aside, and ordered that assignee recover money paid on said Riggin and Nichols claims, and account for same as general assets; ordered that the said claims be treated as a claim of general creditors and share fro rata with general creditors.”

To which ruling assignee excepted, and appealed to this court.

On March 28, 1895, Turner filed his petition as trustee in the Circuit Court of St. Clair County, making Seiter, and Weir as assignee, defendants. On June 20, 1895, the court entered its decree upon the petition. The decree finds that the court had jurisdiction of the subject-matter and of the parties defendant.

That Henry Seiter was the sole owner of and carried on the banking business at Lebanon under the name of Henry Seiter & Co.; that on the 11th of December, 1894, Seiter being insolvent, executed a deed of assignment to Marshall W„ Weir, thereby transferring all the real and personal property possessed by him, for the benefit of his creditors, including all the assets of the bank of Henry Seiter & Co.; that between the 7th of February, 1894, and December 10, 1894, there was paid out by the bank of Henry Seiter & Co. in overdrafts to sundry customers the sum of $23,546.07; that in said overdrafts were included the said trust fund belonging to said James Biggin, insane; that the defendant, Marshall W. Weir, as such assignee, is now collecting such overdrafts, together with the assets of Henry Seiter, insolvent. The court further finds that Lucius D.

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Bluebook (online)
81 Ill. App. 287, 1898 Ill. App. LEXIS 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weir-v-mowe-illappct-1899.