The Commercial League Ass'n of Am. v. People Ex Rel. Thomas B. Needles

• Decision Date: 30 September 1878
• Citation: 90 Ill. 166,1878 WL 10128
• Parties: THE COMMERCIAL LEAGUE ASSOCIATION OF AMERICAv.THE PEOPLE ex rel. Thomas B. Needles, Auditor, etc.
• Court: Illinois Supreme Court

90 Ill. 166

1878 WL 10128 (Ill.)

THE COMMERCIAL LEAGUE ASSOCIATION OF AMERICA

v.THE PEOPLE ex rel. Thomas B. Needles, Auditor, etc.

Supreme Court of Illinois.

September Term, 1878.

APPEAL from the Circuit Court of Cook county; the Hon. JOHN G. ROGERS, Judge, presiding. This was an information, in the nature of a quo warranto, in the name of the people on the relation of the Auditor of the State, against a corporation, organized under the laws of the State, known as The Commercial League Association of America, in which it is alleged that said company, a corporation incorporated under and by virtue of the laws of the State of Illinois, and having its principal office in Chicago, for the space of two months now last past, to-wit, at the county aforesaid, has exercised, and still does exercise, powers and franchises not conferred by law upon said corporation, and without any warrant, grant or charter therefor, in this, to-wit: that the said corporation, during the time aforesaid, at the county aforesaid, has carried on and prosecuted the business and exercised the franchises, and does still carry on and prosecute the business and exercise the franchises of life insurance, within the State of Illinois, as a life insurance company, without having a guarantee capital of $100,000, paid in in money, and invested in stocks of the United States, or of this State, or of any city or town in this State, estimated at their market value, or in other stocks or securities approved by the Auditor of Public Accounts of the State of Illinois, or in mortgages which are a first lien on real estate in this State, worth, at least, twice the amount of money loaned thereon, with an abstract showing a good and sufficient title to said real estate, and a certificate of two reputable land owners, under oath, certifying to the value of said property. And also, in this, that said corporation, during the period aforesaid, to-wit, at the county aforesaid, in the way of its said business, has, from time to time, issued, and still does issue, policies of insurance to the several members of said corporation, in the form of certificates of insurance on the lives of its said members respectively, for premiums and annual assessments in money paid and to be paid by the several persons so insured, the Auditor of Public Accounts of this State having never issued any certificate authorizing said corporation to issue policies or certificates of insurance, contrary to the statute in such cases made and provided.

To the information the defendant corporation filed two pleas, in which it is averred, that on the 4th day of September, 1877, nine persons, whose names are stated, citizens of the United States, desirous of associating themselves together for a lawful purpose other than for pecuniary profit--that is, for the purpose of securing pecuniary aid to the widows, orphans, heirs or devisees of such persons as might become members of their association under an act of the General Assembly, entitled “An act concerning corporations,” in force July 1, 1872--signed and acknowledged articles of association set out in the lea stating the name of the association; that its particular business and object should be to secure pecuniary aid to the widows, orphans, heirs or devisees of its deceased members; that its principal office should be at Chicago; that on the 4th day of September these articles of association were filed in office of the Secretary of State, and, on the same day, that official duly issued a certificate of organization to the association, which was, on the next day, recorded, and thereby the association became and since has been a body corporate, entitled to use and enjoy all privileges and franchises conferred on it by its act of incorporation and the law of the land; that the association adopted certain by-laws, set out in the plea, not inconsistent with the laws of the United States, or this State, and afterwards received members in pursuance of such by-laws, and issued to each of its members so received a certain certificate of membership in the association, a copy of which is also set out in the plea, whereby the association agreed, ninety days after receiving evidence of the death of the member to whom the certificate was issued, to pay to his widow, orphans, heirs or devisees, as might be provided in the certificate, but to no one else, a certain benefit, therein specified; that the certificates of membership so issued by the association, and the agreement to pay the benefit to the member's widow, orphans, heirs or devisees, as the case might be, were issued and made in consideration of an initiation fee of $50, and an advance assessment of $10, paid by each member at the time, and also, in consideration of the agreement of the member to pay to the association, for benefits to the widow, orphans, heirs or devisees of future deceased members of the association, and for no other purpose, and to no other person, a certain sum of money, which, in each case, was graduated by the age of the member agreeing to pay the same, according to the form and effect of section 1, article 5, of the by-laws, and to pay all assessments made by the trustees of the association for expenses, not to exceed the sum of $20 in any one year.

It is...