2l6
THE GREEN BAG
defeated party seeking to have -a decree against be compensated by the repayment out of the pro him put into full force and declined to compel ceeds of the policy of the amount of his advances the wife to take a decree to which she was of premiums or assessments with interest, and by entitled but did not desire. the payment of a substantial sum in addition. FEDERAL PRACTICE. (Diverse Citizenship By their agreement he acted for them and could — Corporation Existing in Different States.) U. be held to the performance of the contract, if S. Sup. Ct. — The Supreme Court of the United necessary, as their trustee. States recently passed upon the right of a corpor NEGLIGENCE. (Places Attractive to Child ation coming into existence by the consolidation ren.) Ohio. — The doctrine of th'e turntable of various companies organized in different states cases receives consideration by the Ohio Supreme to remove to a federal court an action instituted in a court of the state of incorporation of one of Court, in Wheeling & L. E. R. Co. v. Harvey and its constituent companies, and held that the fact Swarts v. Akron Water Works Co., decided to that it was not only incorporated in the state in gether in 83 N. E. Rep. 66. The first action was which suit was brought but also in others, did for injuries to a child playing on a turntable and not make it a nonresident and that consequently the second for death of a child drowned in a res it was not entitled to removal. The title and ervoir. The court refers to the decision in Sioux City citation of the decision is Patch v. Wabash R. Co. & Pac. R. R. Co. v. Stout, 17 Wall. (U. S.) 657. 38 Sup. Ct. Rep. 80. 21 L. Ed. 745, as the leading case holding owners INSURANCE. (Insurable Interest.) N. Y. Ct. of premises liable for injuries from instrumental of App. — The question of insurable interest of a ities attractive to trespassing children but re person keeping up a policy payable to the insured's fuses to follow it. A great many cases, some children, is discussed in Reed v. Provident Sav following and some declining to follow the Stout ings Life Assur. Society of New York, 82 N. E. case, are cited. Rep. 734. Plaintiff made an agreement with insured, whereby insurance was to be taken out PARTNERSHIP. (Limited Partnership — Lia on his life, of which his children were to be the bilities of Partners to Creditors.) Mich. — In the principal beneficiaries, and to be named as such case of Wood v. Sloman, 114 N. W. Rep. 317 is in the policies. Plaintiff was to keep the policies disclosed an example of what may, perhaps, be in force until insured's death, by paying all pre appropriately called " frenzied finance." The miums, and from, the proceeds was to be re Manna Cereal Company, a limited partnership imbursed for his advances of premiums, with organized under the laws of Michigan, having interest on his payments, and be paid a substan been adjudged a bankrupt, action was brought by tial sum in addition. The policies were obtained the trustee against the subscribers to the stock to in some of which the children were named as sole enforce contribution for payment of creditors on beneficiaries; in others plaintiff was joined with the ground that the representations as to the them, and one was payable to plaintiff and his capital being paid in full were fraudulent. It assigns. It was argued by the company that appeared that the firm was organized with an plaintiff had no insurable interest in the life of alleged fully paid capital of 8500,000 consisting of assured, and that the policy issued by it was, $2 cash and a breakfast food formula of the sup therefore, void. The court points out that a life posed value of $499.998. insurance policy is not a contract of indemnity, A portion of the stock was transferred to a but is a contract to pay a sum of money on the trustee to be sold as treasury stock and the pro death of the assured, in consideration of certain ceeds turned over to the firm. The tangible payments being duly made at fixed periods dur assets at the time of bankruptcy were between ing his life. If the insurance is made on appli four thousand and five thousand dollars and the cation of one who has no insurable interest what debts more than twenty-three thousand dollars. ever in the life insured, it is a wager policy, that Demurrer was interposed to the bi'l of complaint is to say, a speculative contract, which the law on the ground that it affirmatively appeared that condemns. But a person may insure his own life the statutory statement of organization filed and provide in the contract that the money shall with the register of deeds fully disclosed the be payable to any one whom he may appoint or nature of the assets of the firm, and that as it was assign the policy to. The court holds that plain a matter of public record no one could be misled tiff had an insurable interest in the life of insured 'by any statement relating thereto. The court because all the insurance was procured in pur overruled the demurrer and intimated that the suance of a contract between the assured and his payment for stock should have been by property his children, for their benefit, and plaintiff was to of substantial value.
