Autobiography of Charles Clinton Nourse: Prepared for use of Members of the FamilyNourse, Charles Clinton
History
Autobiography of Charles Clinton Nourse: Prepared for use of Members of the Family
Nourse, Charles Clinton
Iowa -- Politics and government; Lawyers -- Iowa -- Biography; Nourse, Charles Clinton, 1829-
The discussion of law cases and the questions of fact and of law that
they involved may be a little tedious to a non-professional reader, but
they constituted so large a part in my life that it is impossible to
give much of an account of myself and what I have been doing for so
many years past, without at least a brief account of the nature of the
suits in which I was engaged as counsel.
Probably the most important case in which I was engaged during my
professional career was the celebrated impeachment case against John L.
Brown, Auditor of the state of Iowa.
Mr. Brown was first elected to the office of Auditor of State in
October, 1882, and took his office the following January. One of the
important duties of this office was the duty of having the insurance
companies, organized under the laws of Iowa and doing business in the
state, examined from time to time to ascertain if they complied
strictly with the law, and if their reports made to his office were
just and true, and their business conducted in such a manner as to
insure their solvency and ability to pay the losses of their policy
holders. There had been in the state of Iowa for a number of years a
number of failures of companies that were organized without capital and
without experience or strict integrity upon the part of those who
sought to insure the property of others, some of them having none of
their own. I remember one insurance company organized in Des Moines by
an enterprising young lawyer, without means, who obtained the names of
a number of persons that he claimed had subscribed stock to his
company. The law required twenty-five per cent of this stock to be paid
up before the company was entitled to do business. The gentleman, of
course, elected himself president of the company, and he drew his
drafts upon the supposed subscribers to stock for the twenty-five per
cent that the law required should be paid up, to constitute the capital
of the company. He took these drafts to B. F. Allen, then a prominent
banker in western Iowa and doing business in Des Moines, and deposited
his drafts and obtained from Allen a certificate of deposit for so much
money. This he exhibited to the Auditor of State, and upon the faith of
this certificate of deposit obtained authority to transact business.
His drafts were all dishonored so that he was proceeding to do business
without any capital whatever, and actually issued some policies. It was
only necessary to incur a loss to complete the bankruptcy of the
concern. Of course the foregoing is an extreme case, but it illustrates
how easily the law was evaded and how absolutely necessary it was to
have a strict supervision of these companies that could incorporate
themselves under the general insurance company laws of the state.
Public-domain text, read in full here on John Shaqi.
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