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Un des symboles suivants apparattra sur la darnlAre image de cheque microfiche, seion le cas: le symbols — ► signifie "A SUIVRE", le symbols V signifie "FIN". Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Lea cartes, planches, tableaux, etc., peuvent Atre fllmAs A des taux da rAduction diff Arents. Lorsque le document est trop grand pour Atre reproduit en un seul clichA, II est fiimA A partir de Tangle aupAriaur gauche, de gauche A droite, et de haut en bas, en pranant la nombre d'images nAcessaire. Las diagrammas suivants illustrant la mAthode. 1 2 3 1 2 3 4 5 6 U^-.'/^/:^^'^ \ HISTORY OF THh J^ Iis/£ A LO- j^Is/I A-TIOIsT Ol' lllK — "NOVA SCOTIA MUTUAL" AND Royal Canadian Fire Insurance Co's. WITH A BRIEF ACCOUNT OF THE SPECIAL JURY TRIAL. S. EUDL-A-IR 7;.s'. BOTAl CiADIAN fflSDMCE COMFM. liKLlJ IN 111 I-; 8UPEHiOR COURT AT MONTREAL, November 26th and 27th, 1878. 4f3r ^^•ii"iP»P mmm^ it N Roj ip HISTORY OF THE — -A.iwd:j^LC3-A.ii^jLTionsr OF THE — ii NOVA SCOTIA MUTUAL" — AND — Royal Canadian Fire Insurance Co's. WITH — A BRIEF ACCOUNT OF THE SPECIAL JURY TRIAL, vs. ROffl CMADIM fflSiANCE COMMY. HELD IN THE SUPERIOR COURT AT MO^'TREAL, November 26th and 27th, 1878. '•• ■»«■ ROYAL CANADIAN INSURANCE COMPANY.^ » ♦ » The JoUowing Telegram-t, LeHera, Agreemmh, te., d-c , d-c, ore copies a f those fy ltd in tUia caae in the 6iipei iur Court, Montreal' III the eununer of 1873, when tlie Hon. John Young and otliei> were actively eti- pas^eil ill e^'tablishiiiir the Coiiipaiiy, (Jet'en- dant.) Mr. Young, induced the I'laintitt" to virtit the Maritime Province.- to secure nulr ficriptions to tlie capital .Stock of hi» Com- pany, agreeing to pay the Plaintitt" a com- iiiit-Hioii of one per cent upon sucii capital as might Ite secured to liiHOompany through the services of tlje I'iainliti'. The Plaintitt" accordingly left Montreal about the 8th of July, and' on his way to the Maritime Provinces conceived the idea that the quickest way to promote the rapid extension of the Company's operations in those distant parts of the Domini< n, would be to confine his ettbrts to absorbing local Insurance Companies, instead of inducin;.r capitalists to put fresh capital into the business ol (ire Insurance, to injure the capital already invested in the business. Before reaching Halifax, the Plaintitt' gained a good deal of intbrmation about the local Fire Insurance Companies of Halifax, and poon after leaching that city he called upon the President of the "Nova Scotia Mutual Fire Insurance Company", Mr. James B Durt'us, and made known to him the object of his visit to Halifax, mentioning at the same time, that he considered it would be to the advantage of the shareholders of his Company to retire from business, and trans- fer their capital and risks over to the Ruyai Canadian Insurance Company. The pro- position w .8 a bohl one, but Irom the first It was looked upon with favour by the Pre- sident of the Nova Scotia Mutual. Finally, the Plaintitt' decided to commu- nicate with his principals at Montreal, which he did as follows by telegraph :— Halifax, July 12, 1873. To the Hon. John Young. Royal Canotiian Ins. Co., Montreal. Favnurnble opportunity for amalsrnmnting the Novii Scotia Mntu.'il Fire [nsuranceCompijny, pnid capitiil hundred thousand dolliirs, at risk nearly two millions of dollars. They want twenty-five per cent bonus, what say you ? (Signed,) S. PEDLAR. The above telegram wap the first intima- tion the Company had of the Plaintifrs project, and as it indicated a ditt'ercnt line of action from what was exi«'clid;, it must have been an agreeable surprise. The fol- lowing letter was also forwarded the same day :— Halifax Hotel, July 12, 1873. To the Hon. John Young, President Royal ( anadian Insurance Company. Sir.- The telegram just sent you. doubtleits will convey the imprecsion to your mind as well «u« ihe Dirovtori<, that llalitiix people have been made aware of the obj«'Ct of my mission hither. I hiivo now attained ;•• that stage that it is highly ncces- SMry that 1 s'lould give a full dcscriptidii of the matter up to his date. I found the city had sevoml Fire Insurancu Compaiics. and the Foreign ones, lowering their nites. The .^tna of llartford, in the handii of a most excellent agei t. w.is not in the tariff ci'mbination, thus roinoviiig the objections which existed so favourably to our work iu Mon- treal. I decided to sound through Mr. Kinncar (of Kin- near is. Jones . the Nova .*>colia Mutual Kire In- surance t'«impiiny, a company of two years standing, in a healthy state, with a good paid up capital of one hundred ihcmsand dollnrs, to see if it could be got to transfer its capital. I entered into this Mea, believing it the best and quickest way to accom- plish rapid w< rk in getting stock. I felt sure >ou would not care how so(m I earned a handsome com- mi-s.-iion, only that results were secured Mr. Kinnear this n. m. told me he would go with me totheolTiceof the Nova .'^cotia Mutual, and there the President J. B. Diitfus, and tn\self could talk over I he matter. Mr. Kinnear. Mr. Duffus. and one or two other (lentlemen. thereupon expressed them- selves tavourably uoon their transferring their business, capital, and all. over to the Royal Cana- dian, calling the one hundred thousand dollars cash paid up to be the ■(• per cent call urux one million dollars subscribed stock. In enbsequent co' versa- tion with Mr. liuHiis. he stated that while th'e stockholders as a body had not been consulted, the principal ones felt there w< uld be consent of the whole, providing a reasonable bonus, they stated twentv five percent of the entire oai>it:il handed over) were allowed for the goodwill of their business, also, that no marine business be trans- acted for thf present. Their bu-iness is supposed to be healthy, for the shareholders are themselves the heaviest insurers, only one loss has taken pi ice si' ce commencing. After pa>i"g a lihcral dividend ihcy show a hand- some surplus, notwithstandii'ir the large risk of over one and a half million ot dollars. I have no doubt in my own mind about the rare opportunity which presents itself through my effort! in thia instance, lu one transaction the Koyal _ 4 — Cnnndinn »rnlr« not only n splendid oliiMof wenlthy poli'i Kliiiri'lioldcni, but ii timiribln nvniliblo iim>cI, bfKirF, II pliic! to do it in, :< oaimblc niiin- iiirtMiitMit. iiiid b(-iii (if nil nil iiil(>rRi*i«'il, cn-opmliiifr, iiiiluKntiiil, body of inminT'i, Kiviiifr ili« Ho.vitK'iiuii- diiiii II holii iii>on the .Mnritiinc I'mviiict-x, tliiit to c iiiLMico lit the bntlom could nut be iittiiiiiod W over ill II niiiirU'r of ii ci'iiUiry. How to hriiiir tlio Irniixlur Mboiit iR the r|iicicr eent iiciirer ibo vn'.uu thiiii twenty-five i«er cent. Wo sliould iiiuku the best poiiHiblo biirirnin. The pontleiiicii referred to ki ow llio lincird Muckbol- ders ill ii purely U.c.il t fflee riiii. iind nodoiibt be- lieve in my cinttinent thiit it wmild be a fiiil'er Fitii.'ition fir tbein to be holders of one niillion dolliirs of Mibseribrd shnres in the Toyiil I iinndiiin, thiiii bolder!' of tuo hiiiKlred thriismd doihirs in the .\o\ii Veofiii Miitiiiil to !< ly iiotlii; k iiboiit bonii^, oven, hence we iiiny tio iible to have a fair burKnin- niid ,i d'ltly on iclu lo an arniinreino'it niiitii illy sa- tisif ictory. I nil II iiwint further in^'trllcfionf. Should you consider the fchcine a valiiiooii be u nt-iii, nli'iil'lr, iiiiliirii)fi fact, ''lease deliiy a reply no lonrcr than y< ii can help. 1 have not called upon Tobin. nor Coi-hranc. I remain very truly, S. PEDLAR. After inailinjr the nltnve letter, tlie I'ollow- ing telegram was received : — Montreal, July 14, 1873. ToS. Pedlar. Esq.. Halifax. "At present cannot act till new Board is elected. Write mo fully on bubject. (Signed.) JOHN YOUNG. On receipt of tlii.*, the Plaintiff sent th( Halifax, July 14, 1873. following telegram rny that T do not consider the price nnmed by me ''/-.IK at all excesHive, ooiisiilennti the pi-renl pn. sitinii of the Nova >^eotiii .Mutual •'(>.,»« II. business could be very much increased In.m October to Jiiniiary, 1^74, if umalffainntcd with u Cumpuuy uf liirKc capital. Yours respectfully, JAMES D. DIJFFU.'', Proiiineiit N. S. M. To the Hon. John Younp, Montreal. Have wriltco. I start early for Montreal to ex- plain mutters. (Signed,) S. PEDLAR. Before leaving for Montreal, Mr. Duffus. the I resident of the Nova Scotia Mutual, hail addre^-sed the Plaintiff the killowiiij; letter wliicli may be saiil to form the basi.- of the negoc.ations which linally resulted in uii agieement of amalgamation. Halifax, July 14, 1873. Mr. S Pedlar, Halifax Hotel. Dear Sir, In refcronco to the communication with yon, res- pcctini' tbe Koyal l.'anadian insurance Co., I coin- municited the spirit of the suae to my Co- Direc- tors. Tlioy would bo prepared to recommend the accept inco of say s-iu .(«ki in stock in tho Royal Ciinadian Co., to the Sharoholdors of the N'ovii Sootia .lutual Firo Insurance Co.. provided they cm sell to thM Koyal Caiiutiian Co., at a. fair price the Kood-will of the Nova Scotiu Muiuul Co. I may Montreal was reacdied iti due time, atid at an interview with the Directors, the project was considered to he (d'so much inijxirtance that no time should he hi-t in having it ae- (■om|ilished, and Mr Young, the Provision- al I'resident of the ("omimnv, defendant, was instructed to proceed witiiout delay to Halifax with the Plaintiff to secure thifl tnd. Halifax was reached, and at a conference of the Directors of the Nova Scotia Mutual Fire Insurance Company, Mr. Young and the Plaintiff, an agreement was duly entered .iito as lollows : — AOHEKMENT. Memorandum of Agreement entered into between the .Nova Scotia Mutual Fire Insurance < ompany oil the one hand, and tho Koyal Canadian Insurance ' ompany of Montreal, on the other hand. That IS to say, that in n conference held on the twenty-fiflh day of .July, 187S. of the IHreetore of the N'ova Scotia Mutual Kirc Insurance Company, and the lliin. John ^ oiiiig. M. I .. the President of the Koyal Canadian Insurance Company of Montreal, it was agreed : That it would be mutually advantageous thnt the Vova Scotia Mutual Firo Insurance Company «hould be merged into the Hoyal Canadian In- ouranee Company of Montreal, on the following conditions: .St. That the risks now rem-iining of the Nova '^cutia Mutual Fire Insurance Company, amounting to tlio sum of about one million five hundred thousand dollais. should bo assumed by the Roviil <'anii(tiiin Icsurai ce Company, and that the Pro- iniuins which have been received from these risks listM of which both ot the risks and preiniuuiH to be made out) should b" equally divided between both comiianies. The amount received being $ll,5(J(i, m.e naif to be kept by the Nova Sco'ia Mutual Fire nsmaiice Company, and the other half being paid 'iver to the Ko>al Canadian Insurance Coinpiioy, they take the risks for the fifty per cent of the Pre- miums of eoveriiigall lossesfrom the Policies issued lip to this time by the Nova Scotia Mutual. 2nd. The shareholders of the ^ ova Scotia Mutual l''iro Insurance Compam*, agree to subscribe stock in the Royal Canadian Insurance Company of Mon- treal to the extent of five hundred thousand dollars, with liberty to subscribe seven hundred ind fifty thou.«and or one million dollars, and to pay over ten per cent of the said stock to the Direc- tors of the Royal Canadian, or in other words S^t'.C) ) fifty thousand on the five hundred Ihou- cand, and in proportion for a larger amount. ■' rd. For the uoodwili of the business surrendered by the Nova Scotia Mutual, to the Hoynl Canadian, It is agreed that at the end ny over to the original shareholders of the Nova 'cotia Mutual Fire Insiirnnce Company, one per Rent on all stock subscribeck in- Ind hd to BC- Irds pu- ied iny Iva Icr |)e |ve P rontiniie'1 an nt prrBont. (nftrr flic nrrnnjrcmpntf nru coiiipluteil) in tliu ninnc Miiy of Mui truiil, tint nil I'nlicic* fhiill be i^'l'u^ il III ilH iiiitjif, liiHf llif l>Msiiifs« nt llii' (oinimi'.v i" i^">ii >c<>li ' ►Iwill l>e poii'luctpil l)> lli« i>rt'.«eiit rn'(iiriii cc < iiiii|>iii y "liil Lvilm |iri'- peiit Sft'i'Ptirv. midiT hih-Ii inctriii'linim jis iu:iy Iroin time to liinu lie i». prcHt'iit ('oiniiiiny nt Miiiiti'L'iil, t'lir tilt! Ki-iiiTiil iiiiiii.iiicu and uuiitluct ol the busiiifss of the ''omtiaiiy. r>th Th:it till! |irps«'iit Ipiiso of thn nffce on the corncrof Prince Street iinil Drtll'onl How. with all the riKhiH and |)ri^ ilexes of hire, arc hereby iiiven by the Nova Sedtiit Mutual Kire L snranee Coiii- ixiiiy to the KflViil I'aniidian Insiinnee t'ompaiiy, iit the price paid by the ''mniviny for the I.c.ice, i;nd that llie Furniture of llu' dflicp be aH^||llll(*'l by the ]ro Shall I accept ? (SiKucd.) S. PKDLAR. The f llowing is Mr. Youtig's reply : — Montreal, August 19, 1873. To S. Pcdhir. Jas. U. DufTuR, Halifax. "Our Tlonrd think >ou Fhould ncocpt, nlfhouRh we would have liked the whole- liutiiicss continue to How iu. tSigned,) JOHN YOUNtJ, President. The Plaintifl'attended the meeting referred to, and unswend such (luestions a.s were put to itim hy shaieholders of the Nova .Scotia Mutual. It will he seen hy the following resolution that while not expre-sed in so many words the Halifax people felt that they were husty, in transit ring their capital and husiness to thf Cotnpanj D' fendant before it had more of its stock subscribed. Jfe^ohiiion oj N. S. M. ShareJiolda's. '* Moved by Mr PukIi, seconded by Mr- Dniill, That when stock to the is than three hundred thonsund dollars, then t'lC Hoyal and the Nova Scotia .Miitunl shall amult(iimiite iipoi) tho terms previously ajrreed upon This proposition to remain orien to first of January, eighteen hundred and sevciity-ttiur. 'Carried.) Imtnediately after the close of this meet- ing, the Plaintiff decided to return to Mon- treal, and before doing so, fent the follow- ing telegram : — Halifax, August 20, 1873. To lion. John Young, President, JMontrcal, "Successful merely in advancing another stage. .Start for Montreal to-morrow. (t^igued,) S. PEDLAR. ThePlaintitl' Ciilled at the office of the Company, Defendant, when lie rfached Montreal, and verbally reported in substance what the difficulties were at Halifax— and fnrn shed a cojiy of the resolution passed at the meeting referred to. This closed the ne- gociation which was originated and suc- cessfully oomph ted through the exertions and labours of the Plaintiff It is presumed corresiiondonce continued between thf UtficM-s of the two ('ompanie!», but as the l'laiiititf'.« -ervices elo<-ed when he returned from Halifax the third time, he had no part in it. 6 — Plaintiff" arksi for Compensation*. Some nix wpck-* tln'P-nftt'r.wliilc in Ti-roii- to vii-iliii;j; iViciuls iiimI il« \otiiij; |in>oiiiil attcnliuti ii< lii^ iiwii privutf liti-inch.-, tli< I'laiiitilt' tilt tliut till- {. uiii|iui> wliicli in- volvftl tlif I'xp' ii'C III' inicf runnd tnp.>« tt. Ilulitiix, to fay iKitliin^'ul tlic caic, anxu ty, ami tiiiK' f^ivi'ii (Inrin;^ tliif lni;itliy ncjriMi .- tiiiiiH. >«> aulin;! upon tlu> liclict' lliat tinin^li tlie Company did not move in tlic way indi- cated till' I'lainlitr Icit that lit' wai- t'lilitlt-.i to fonu' conipt'ii^ution, licnou the lullowin^ curre»puudence took place: — Quoon'8 Hotel, Toronto, October 5, 1873. John Yountr, E»q., PrcHident, Royal Canadiau Ins. Co. Donr Pir, As a Dimple act of justice to myself. I boR to nsk of the l)ireetor.s of >our L'oaipany ii ju>t mid proper coiii|icii8iitiun for tiine mid cxpciisfs incurred iti [lie ncgociiitions wiili flio .Nova Scotia Mutual liig>ir nance Conipimy. Aly oiish outluy, iis expenses, i« nearly two hundred dolliirs, liaviiiK niiide ihreu trips in ill I tu Hiilifax. tlieretore yon ciiii form sonic idea what would bo a laircuinpensutiuu for the pait 1 have taken in the matter. My iiddri'ss al present is the "iEtna Life "Office, Toronto. Trusting you will give this matter due attention, I remain. Yours truly. S. PEDLAR. Montreal, October 11, 1873. S- Pedlar. Esq., " Queen's Hotel," Toronto. Dear Sir, I am in receipt of your letter of the (^th instant. askiiiK the Company I repre^ent. forcompeiiwitioii for your time and expenses in going to lialilax in its interest. . ..... .... I have had no opportunity of submitting your letter to the Directors, but you must be aware ihiit on the belief th.it you would be successful in the nejcociations you allude to at llalifax. it wiw under- stood and aiirx'l that you on your part were to bear lid thiit you ran the risk ol the „..^^^„„ „. ^_ _ iig proved a failure, it does not seem to me you have any claim on the t'ouipaiiy. , -n u • .i If however you think otherwise, I will bring the matter before the Directors for their decision, an I if I under-Hand your letter, you will under the cir- cumstances be willing to receive ,i>ii , (two hundred dollars) in compensation for your expense and labour. 0/ couihc ii"u mv Hwmv thiuitc credit ible to tliore t.ikioK purt in tliciii in buliiili ol the Ku the iigreeineiit iieiiigo rriedout. You wish to know if two hundred doll'irs. the sum d.sbiiriied by me, wou.d be deemed sutlieieiit eom- ponsatioii In reply would iiiorel.v say. i,on >nt a ri,iiiiiflt-it txtdi/ to ifiriiti nh'lt iriiulil Itr o jiloffr '■iiiiitH-iiHiitioii irithoiit iiniiidivi- to mu riuhtu, aliouhi lite " i\ova Heottii MutuiH " yet carry out iti agi-vt- menl. Very truly, t. PEDLAR. A few dftVfi after mailing the last letter, the Pluintitr returned to Montreal, and call- ed ut the otlice of the Company, Uefendant, so a.<^ to further jjit'HH his claim for«om- pensalion. Mr. lounjj beinjr ottt of town, the Plaintilf conversed with the Mun- uirer, and learned from him that there wus no prospect whatever of Ihe final carry- ing out of an Agieeinent with the Sliure- iiolders of the " Nova Scotia Mutual," and us this was a pretty general belief with everyone at the time, the Plaintitf had no other cour.'-e hut to full in with the name view. The I'laintitt' called at the olhce several times after this, and finally the Directors of the Company, Defendaiit, in view of the time and expense given to the matter by the . intill", instructed the Se- cretary to |my him the sum of two hundred dollars, barely half of what the I'laiiititf had paid out of his own pocket. However the Plaintiff accepted the $200, and gave the following .•S2f0. RECEIPT. Montreal, 2nd December, 1873. Received from the Roval Canadian Insurance Compnny. the sum of two hundred dollars (.•^JiO), being in full compensiition for nil services in con- nection with my mission to Halil'nx. in behnlf of the said Company or elsowhere, and tor all services up to date. (Signed,) S. PEDLAR. When the above receipt was given, the Plaintiff remarked to tlie Secretary who drew it out, "that lie, the Piniitliff, would look to the Company, Jfef'endant, for full conipeimatioH should the I^ova IScotia Mutual nhare/iolders riltiniately carry out an Agree- ment to retire from Ituainesx and trunsfer their c ip-tul and business over to the lioyal Canadian" — 7 — V itee- sfer oyal Tho Plnlntlir'g rrojoot h revived, but 1hi> Company llereiidniit iiio<«t UiN((rnrefiill.v and dlNlioiiorabl}' rcpudlaten iiU rigliU In it. A few iiiotiiliH artcr j^ivitig tlie olxivo re- ceipt, tlu> PlaiiititC iioticcii n parii^riipli in the *• Monlreul Ilerafil," to the i-Hl-ct tliat tlie *'.V«Prt >coti(i Mutiiiil the Innuranrt CoiiipaHy" liati cenvi-il tu do IxiHinesH, ami that it!4 capital ami hii-'*ie8f, ainoiiiitin^' to nearly two niillioiiMOi ..«.i«arn, were trans- t'ercii to the Uuyal Canadian in»i.M-atici Company. Tlie Plaintiff" soon al'ter seeing the ahov( faragraph ealled at tiie olHce of tin !onipan> , Defendant, to cee the Pre.xjdenl, but aM he was not in the oflice, he met the Manager, to whom the Plaintitt offered Iih hearty cungratiihitions ove tlie final amala^'amation of the two Com- panies, and followed that up hy asking for the commiH!»ioii which helelt he was en titled to, and which the Company » Defen- dant, coiili' atlurd to pay. The Manage! answex . that hir Company hud already paid the Plaintiff' i:i full for his ser■•l«:e^, II, connection with those Halifax negocia- tionfland heM a receipt t • that effect, hesidef the final Agreement entered into hetween the two Companion had no connection what- ever with the Plaintiff's negotiations and therefore he was not entitled to further pay ' Notwithht^nding this view of the >iana- ger, the Plaintiff' called again at the olhce of the Company, and naw the i resident. who positively refn-ed to consider the Plaintiff's claim. The Plaintiff' answered the President, hy telling him that he wa- astonished at his course, nnd immediutely left the idKce of the Company. Notwithstanding ttie obstacles thus set in \\i'* way, t le Pluintitrwas determined to defend his riglit«, and as a first step ad- dressed tlie Secretary the following letter: Montreal, September ICth, 1874. A. Oagnon, Esq.. Sec. Uoyal Canadinn Ins. Co. Den r. 'Sir, Now thif tho n ilifax people hive nt Inst onst in their int with tho * Hovnl Cmi dim," I consido if my duty m ruceivo full coiniionsttiioii for my sorvico diiriiiK the RiiiiiinLT of << .'{. If -i y ."lock sec^ired to the Royil Canjidiir- 'an afford I" be If .i cuiDiiiisH on of m e per cent, iti.o (!,■.> Il'li i\\ Mock. f(ir it is the •tily ^ltock .\ei iibi.iiiivd. I boiieve, wh ch ir;iii!'i<'r!' th't c mSL'd mu rn mike tliri't' irips t" llnlifix, noi H ifTimo ' I" re- iiib IIS.- iiif f>r trivelli'i,' cxpfiises nl'iiu', 'I his sum, "111 ill '^^ it w 1.". I , cei-teil, bi'-iiiisi- nt III till i w s '•iii>p<>!'cd lh>' ||:il tk.v pi 0|il' would not jiMM tlic " Hi.yil ('I'lM.li m." Vr. I'liffn.s. ..f lliilif X. wrote me •' fi-w d^ivs pri'vioiis HiippnrtiMc thin .«nppt.»iiioii, i nt i o\v nfter the hi| si- of .-i few moiifh«i lie soin'ine is to .'ill intfuts iii i| piirposiii e iuent neKociiitions tu the settlement made with you for '*/ul( rmniitnfiiiin 'lor nil nriri i* i/i rnnifition irit/i i/our miitninn "to Ilnlifiur in biliiil/ of thin CoiniHt v, or rUr- '' H'/itrrt, and /or all »»•; pir. » to Utile of mltlrmi'ilt." (Signed,) A. GAtJ.VOX, Secretary. tary's replv it will be seen s on record the design of the The St ■ci(l (i to ask lor a hearing before llie ••Hoiiul of Directors,"* accordingly he addressed tLc following letter to the Secre- tary : Montreul, .supt- 30, 1874. A. Gagnon, Esq., Storetary, Dear Sir. " Your favor of the 2?nd inst., came duly to hard. This letter I regret commits the Board of Dirco ors in such a milliner ii> vould nut ha\ e been if tho whole of the facts wer« better known I ftel it lo be addiiiK insult to injury, for my rights to be tlirusr )u subscribed by me in the summer of 1873. The balance I will accept in cush. Very truly, ^Signed,) S. PEDLAR. Not r(C3iving any reph' to this commu- nication, and learning that anytiung bni harmony prevailed at board meetings, ii< at once instructed his legal adviserj^, Messrs. Abbott, Tait, . W'otlierspoon and Abbott, to commence proceedings against the Company T. lAL 2Gth NOVEMBKR, 1875. The case came to trial before Mr. Justice McKay, and a special Jury in tiie Superioi Court," the 2Gtli of November, 187o TIk Jury was exceptionally the most intiuential and intelligent that had tried a case for ii number of years. The following are the names of tlie Jury: — Edward Murphy, (of Frutliiiigham & Workman,) Robert Kerr, (t'ommission Merchant,) Robert Mitchell, (of U Mitchell & Son.) Duncan Hell, (C(jmmission Merchant,) Robert J. lirowii, (of iirown & Claggett,) James Mills, (ot Mills & Hutchison,) John McLea, (of J. & R. McLea,) David Grant, (Ghissware and Crockery,) William Muir, (of Muir & Ewan,) Herbert F. t'ounes, ((irain Merchant,) Edmund H. liottereii, (of John Henderson & Co.,) Edward Cope and,) (of Cuijelaiul k McLaren.) The Trial occupied the whole of two days, and resulted in tne follow n<: VERniCT roK Plaintiff. Ist. Did the Company, defendant, employ the pl'iiiiliff. in July, ciirhfeen liundred mid seventy- throe, to ubtuiu sub;icrii)tiou3 to its uapiial stucl; 7 A. Yen. 2nd. Did not the snid Compnny ncting in the pre- mi>es by the lioiiornblc .John Vountr, ;>gree to piiv (lie pliiintitf one percent. u|inii all of itn Htock which lie sliould get lukea up or liubscribed for ? A Vos. ;ird. Did the plaintiff enter into negociafions with the Nova .""Cotia iVlutual Insurance Company, in irderto effect iin amnlgiiiniition of the Company de- I'endant, with that Comp.iny, m d whs a plan of ■ tnalgaiiiatioii between these Companies nrrmired md almost completed, pr.ncipuily through pluiu- titf 's exertions V A. Yes. ■Ith. Did the said plaintiff receive any and what isi'istaiice from the Honorable .John Young. Alfred I'err.v. and Mr. Duffus mentioned in the pleadings III tnis cause ? A. Yes ; .such assistance »s principals are suppo- sed to render an agent in carrying out such a truns- iction. 5tli. Were snid negociations drojiped and nt an end in December, one thousand eight hundred and -eveiity-tlirce ? A. Were dropped for the time being, but the Honorable .John Youi g continued urging the matter upon Mr. Dutfus' attention. lith. I>id the said Uoinp my, deCsndant, pay to the lilaintitfon the seco d of December, eighteen hun- Ired and seventy- three, the snai of two hundred dollar.'' mentioned in the receipt fyled in this c:iuse oy defendant, as Exhibit niiinber One, for the causes and reasons in said receipt stated, and is said receipt sigiifd by plaintifl'? A. Yes, and signed the receipt under the reser- vation i»roduced in evidence. 'ith Was the receipt produced by the Company, defendant, given on the talse representations of the s.'iid Company, defendant, that no amalgama- tion would be etfected between that Company and the said Nova .Scotia Mutu il Iiisur.ince Company ? A. The receipt was given under the impression at the time held b.\ both parties that no amalgamation would take place. Htli. Was any ai'd what kind of nmalgamition formed between the said Cuinp'iny, delenda t, and the Nova Scotia Mutual Fire IiiSurance ( ompuny, and when was .-iich am ilgimatioii etlfcteil. and on what precise b;isis and terms ; and by whom was such amaiffamation etfected, and did tli<- said jilnin- titl' take any and what part in effecting the snmc ? A. There was iimalKamation on the basis and terms contained in the indenture dated Juno ;'2nd, 1ST4. marked "h" in tlie exhibit thereof, the plain- tiff t iking no pirt in it, except us it was the result of previous negociations. iith. iJy what e.*tent w^is the capital stock of the C< mpany, defendant, increased by reason of the said amalgainitioii ? A. Inere.ised by >W>',4n\ V th. Was the s lid am ilgnmntion in any way due to the coi eeptioii, labor, cvertions or negociations of the idaiiiiiff, and if so, what would be a fair re- muneration tor such labor, exertion and uegocia- tion ') A. 'i'es. entitled to one per cent, upon the $38i\- 4011. as per afrrcenu'iit, less ,>i!' i' paid by tliein. All the above answers unanimous, except the last ; one dissenting. The bu.*ii:ess community prett}' gene- rally approved of the verdict, while the facts iironght out in the trial placed the » om- pany m an unfavourable light. Many ex- pressed surprise at the t ompa y going into court with a case so inanife tly in lavor ot the Plaiiititf. Notwith-'tanding this verdict, the Com- pany curried the < ase to the " Cav t of Re- view" which result'd in another trial bein^ orlered,oii the ground of some technical delect of tlie jury trial. \