Leonard Glass Works suit against Chicago Insulating Co.

THE COURTS.

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A Too Confiding Bondholder.

A lengthy bill was filed Thursday in the Circuit Court, but suppressed for service, by the Leonard Glass Works of Detroit against the Chicago Insulating Company, asking for a receiver. The defendant company was incorporated in 1882, with a capital stock of $200,000, half of which was in the hands of Nathan T. Fitch, but he soon acquired title to 7,000 out of the 8,000 shares by exchange of some stock of the Martin Electric-Wire Company. Finding it necessary to raise more money the directors of the insulating company in December 1882, issued $25,000 of bonds, secured by a trust deed on the company's property at Nos. 104 and 106 Franklin street and an assignment of its patents and some contracts for work. Sixty-six of these bonds were bought by the Leonard Glass Company, but default was made in the payment of the very first coupons. An investigation was then had, when it was discovered that the property covered by the trust deed was only worth $1,000, instead of $20,000, as had been supposed, and that the assignments of the patents, contracts, and stock to the trustee had never been made. The company owed $13,000, the Treasurer was without funds, the President was in New Orleans, and other officers refused to do anything. The complainants, in order to save something, ask that the company may be enjoined from disposing of its property, that a receiver may be appointed, and the assests applied to the payment of the bonds. An injunction was granted by Judge Tuley.