To deposit stock with

state treasurer.

Froceedings in case of loss.

first having procured a certificate of authority from the secretary of state; such authority to be granted only upon evidence to his satisfaction that such company has invested in stocks of the Uni ted States, an amount equal to the amount of capital or security required by this act for companies organized in this state, and that such stocks are deposited in the treasury of this state for the benefit and security of such as may effect insurance with him or them, and shall not be, withdrawn by said company until all of their liabilities are discharged, and in all cases where a loss, shall happen. and the company shall not discharge their liability within the time limited by the agreement of insurance, it shall be lawful for the party or parties insured, to present a petition under oath to the circuit court of the county where such loss happened, setting forth the fact of insurance, the loss, and amount, with the particulars as far as known of, how it happened, with a prayer that an order be issued to the state treasurer to sell so much of the stocks as shall be necessary to discharge such liability, with interest, costs and charges, of such sale, and upon the filing of such petition with the clerk of the circuit court, he shall issue a summons against said company, citing them to appear before the said court at the next term thereof, to show cause, if any, why the prayer of the petitioner should not be granted, and a service upon the agent or agents, or in case they cannot be found, by leaving a copy at their last usual place of business, shall be legal and valid for the purposes of bringing the parties into court. Upon the return of such process by the sheriff of the proper county, the case shall be proceeded with as in ordinary actions, and in case judgment is rendered for the petitioner or petitioners, the court shall assess twenty-five per cent. damages in addition to the actual amount of loss and interest for the detention thereof, with costs, and shall issue an order to the treasurer of state to sell so much of the stocks of said company as shall be necessary to pay said judgment and costs, with the cost of sale, and out of the proceeds to pay the same. The sale to be To give notice at auction, and upon twenty days public notice in some newspaper published at the seat of government of the state, and thereafter, the business of the company shall be suspended until such time as they shall make a further deposit of stocks, equal to the amount so sold. In all actions against insurance companies of other states of the United States, a service upon the authorized agent or agents, resident or doing business in the county where the action is brought, or in case he or they cannot be found, by leaving a copy of the process at the last usual place of business, shall be valid and legal service.

& c.

How capital to be invested.

SEC. 8. It shall be lawful for any company organized under this act to invest its capital or the funds accumulated by its business, or any part thereof, in bonds and mortgages on unincumbered real estate, within this state worth fifty per cent. more than the sum loaned thereof, or in stocks of the United States, and to lend the same, or any portion thereof, on the security of such stock or bonds and mortgages, and any company organized for

the purpose of marine insurance may in addition to the foregoing, loan their funds on bottormy and respondentia and change and reinvest the same as occasion may from time to time require.

SEC. 9. No company organized by or under the provisions of Limitation as this act, shall be permitted to purchase, hold, and convey real es- to real estate to be held, &c. tate, except such as shall be necessary for its immediate use in the transaction of its business, or such as shall have been mortgaged to it in good faith by way of security for loans, or such as shall have been conveyed to it in satisfaction of debt previously contrac ted in the regular course of its dealings, or such as shall have been purchased upon any sale upon judgments, decrees or mortga ges in their favor, or upon lands in which they have an interest, subsequent to such judgment, decree, or mortgage.

cers.

SEC. 10. It shall be the duty of the corporators of any and To set forth every company organized under this act, in addition to the other manner of provisions in this act contained, to set forth in their charter the electing offimanner in which the corporate powers are to be exercised, the mode and manner of electing their officers, a majority of whom shall be citizens of this state, and the filling of vacancies, the commencement and termination of its fiscal year, together with the amount of capital to be employed in its business.

SEC. 11. The charter thus filed by the corporation shall be Charter to be examined by the governor, and if found to be in accordance with examined and approved by the requirements of this act and consistent with the constitution and Governor. laws of this state, he shall so certify to the secretary of state. The corporators shall certify under oath that an amount equal at least to the amount specified in the fifth section of this act, if it be a stock company, has been paid in, and is possessed by it in money or in such stocks and bonds, and mortgages, as are required by the eighth section of this act, or if a mutual company, that it has received, and is in possession of the capital premiums, or engagements of insurance as the case may be, to the full extent required by this act, or if it be a life and health insurance company to the full amount, and invested in the manner as required by the sixth section of this act, which said certificate shall be filed with the secretary of state, whose duty it shall then be to furnish the corporation with a certified copy of the charter and certificates aforesaid, which shall be their authority to commence business and issue policies.

SEC. 12. The corporators, or the trustees, or directors of any May make bycompany organized under the provisions of this act, shall have the laws. power to make such needful by-laws, not inconsistent with the constitution of the United States, or the constitution or laws of

this state, as to them may seem necessary and expedient.

pany.

SEC. 13. It shall be the duty of the president, or vice presi- Duties of presdent, and secretary of each company organized under this act, ident or other annually, on the first day of January, or within one month there- officers of com after, to prepare and certify to the condition thereof, under oath, and deposit in the office of secretary of state, and also cause to be published, in at least one paper at the seat of government, and one paper in the county where the said company are doing

business, a statement exhibiting the total amount of premiums re ceived, and the total amount of losses paid and ascertained including expenses during the year, also the amount of debts owing by the company at the date of the statement, and the amount of claims which then existed against the company for losses accrued, showing what amount of such losses is payable on demand, what amount is considered fair or legal, the payment of which has not been matured according to the contract, and what amount thereof is resisted on account of alledged fraud, or for which the company do not consider themselves legally liable; also a statement of the securities representing the capital stock, and ail funds of the company; and also whether any of the securities held or owned by such company are considered bad or doubtful, and if so, speci fying the amount of such securities, and the gross amount of outstanding risks thereon, and a list of the stockholders, if a stock company, together with the amount of their respective shares, and if upon due examination it shall appear to the secretary, that the losses and expenses of such company during the year have ex• ceeded the premiums,and in consequence thereof the capital of such company has become deficient, or from any other cause has be come impaired, it shall be the duty of said secretary to direct the officers of any such company, within sixty days, to proceed to wind up its business unless within that time the stockholders thereof shall pay in the amount of such deficiency. Any company receiving such requisition from the secretary, shall forth with call upon its stockholders for such amounts as will make its capital equal to the amount fixed by its charter, and in case any stock. holder of such company shall refuse or neglect to pay such call after notice personally given, or by advertisement in such time and manner as the secretary shall approve, it shall be lawful for said company to require the return of the original certificates of stock held by such stockholders, and in lieu thereof, to issue new certificates for such number of shares as the said stockholders may be entitled to, in the proportioa that the ascertained value of the funds of the said compaay may be found to bear to the original capital of said company; the value of such shares, for which such new certificates shall be issued, to be ascertained under the direction of the secretary, and the company paying for the fractional parts of shares; and it shall be lawful for the directors of such company to create new stock and dispose of the same and issue new certificates therefor, to an amount sufficient to make up the original capital of the company, and it is hereby declared that in the event of any additional losses accruing upon new risks taken after the secretary shall have made the requisitions aforesaid, and before the said deficiency shall have been made up, the directors shall be individually liable to the extent thereof, and in all cases until the requisition of the secretary shall be complied with; the directors shall be liable for all damages occasioned by such neglect to any person or body corporate which may be injured thereby. Any transfer of the stock of any stock company organized under this act, shall not release the party making the trans

fer from his liability for losses which may have accrued previous to the transfer.

Sec. 14. The legislature may at any time alter, amend, or re- Right reserved peal this act, and in case of the abuse of the powers herein con- to legislature. ferred by any company, may dissolve and provide for the closing

up the business and affairs thereof.

SEC. 15. Suits at law may be maintained by any corporation Suits may be formed under this act, against any of its members or stockholders maintained vs. for any cause relating to the business of such corporation, and stockholders. may be maintained by any member or stockholder against such corporation for losses which may have accrued, if payment is withheld, in all risks after such loss shall have become due.

SEC. 16. All companies formed under this act shall be deemed To be deemed and taken to be bodies corporate and politic, and may sue and corporate bodbe sued, and shall be subject to all laws relating to corporations, ies. so far as the same shall be applicable.

SEC. 17. No company formed under this act shall directly or Shall not enindirectly deal or trade in buying and selling any goods, wares, gage in trade. merchandize, or other commodities whatever.

SEC. 18. The trustees and corporators of any company organ- Trustees, &c., ized under this act, and those entitled to a participation of the to be jointly profits, shall be jointly and severally liable, until the whole amount and severally of the capital raised by the company shall have been paid in, and liable. a certificate thereof recorded as hereinbefore provided. Notes taken in advance of premiums, under this act, are not to be considered debts of the company in determining whether a company is insolvent, but are so to be regarded as assets of the company.

made.

SEC. 19. No dividend shall ever be made by any company in- When divicorporated under this act when its capital stock is impaired, or dends not to be when the making thereof would have the effect to impair its capital stock, and any dividend so made, shall subject the directors and the stockholders receiving the same to a joint and several liability to the creditors of said company to double the amount of the dividend so made.

&c.

SEC. 20. In pursuance of this act it shall be lawful for any Mutual commutual company to unite a cash capital to any extent as an addi- panies may tional security to the members over and above their premiums, and unite capital, stock notes, which additional cash capital shall be left open for accumulation, and shall be loaned and invested as provided in the eighth section of this act, and the company may allow an interest on such cash capital and a participation in its profits, and prescribe the liability of the owner, or owners thereof, to share in the losses of the company, and sueh cash capital shall be liable as the capital stock of the company in the payment of its debts.

MOSES M. STRONG,

Speaker of the Assembly,

SAMUEL W. BEALL,

Lt. Governor, and President of the Senate,

Approved, February 9, 1850.

NELSON DEWEY.

Chap 233

bell.

An act to appropriate to B. H. Campbell the sum therein named.

THE People of the State of Wisconsin represented in Senate and Assembly, do enact as follows:

B. H. Camp SECTION 1. There is hereby appropriated to be paid out of any money in the treasury not otherwise appropriated, to B. H. Campbell the sum of two hundred and sixty dollars and thirtythree cents, being balance due for candles furnished the governor for the use of the state.

MOSES M. STRONG,

Speaker of the Assembly.

SAMUEL W. BEALL,

Lt. Governor and President of the Senate.

Approved February 9, 1850.

NELSON DEWEY.

Chap 234

J W. Seaton.

An act to appropriate to James W. Seaton the sum therein named.

THE People of the State of Wisconsin represented in Senate and Assembly, do enact as follows:

SECTION 1. There is hereby appropriated to be paid out of any money in the treasury not otherwise appropriated, to James W. Seaton the sum of ten dollars in full for publishing proposals for printing in the Potosi Republican.

MOSES M. STRONG,

Speaker of the Assembly.

SAMUEL W. BEALL,

Lt. Governor and President of the Senate.

Approved February 9, 1850.

NELSON DEWEY.

Chap 235

B. S. Henning.

An act to appropriate to B. S. Henning the suu therein named.

THE People of the State of Wisconsin represented in Senate and Assembly, do enact as follows:

SECTION 1. That there be and hereby is appropriated to B. S. Henning the sum of fifteen dollars in full for three hundred copies of the Winnebago Telegraph furnished the members of the legislature during the present session.

MOSES M. STRONG,

Speaker of the Assembly,

SAMUEL W. BEALL,

Lt. Governor and President of the Senate.

Approved February 9, 1850.

NELSON DEWEY.