Family History Writing Challenge Day 15

The fire that destroyed John Murdoch's barn on October 4, 1877 gave rise to a lawsuit that was filed on April 30, 1878. Franklin A. Dick filed suit against the Franklin Fire Insurance Company, which on April 24, 1874 issued a policy on the barn (and probably the other structures on Murdoch Farm as well). The policy, by its terms, insured F.A. Dick and Ben Farrar, trustees of Isaiah V. Williamson, against loss or damage by fire, to the amount of $3,500 on their interest under a deed of trust in a certain building in St. Louis County. The insurance company was contesting that Dick and Farrar had an insurable interest in the covered property.

The interest of Dick and Farrar in the insured premises was that of trustee under a deed of trust executed on May 1, 1871 by John J. Murdoch and wife to them, to secure a loan of $30,000 made by Isaiah V. Williamson to Murdoch for a period of five years. The interest rate was eight per cent per annum, payable semi-annually; the principal of debt being evidenced by a note of $30,000 due in five years, and the interest by ten notes for $1,200 each, maturing successively at every six months after the date of the loan.

May 1 1871 Deed of Trust

Among the other covenants of the grantors of the deed of trust was the following: “And also to keep the buildings on said premises insured for a sum of not less than $16,000, until said noted be paid, in a company or companies satisfactory to the party of the third part [Williamson], the policy or policies of insurance to be assigned or made payable to the party of the second part [Dick & Farrar], and the money collected thereon in case of fire, to be held until said building be rebuilt by said first parties [Murdochs], as collateral security for said note, and when rebuilt shall be applied in payment of such rebuilding. If such insurance be not kept up, the party of the third part may pay the necessary premium therefore, and all sums so paid shall be held secured by the deed of trust, for the repayment of which and ten per cent per annum interest thereon said premises may be sold as below provided. Any failure by said first party to comply with any of the provisions of this deed of trust shall, at the option of the third party, make said principal notes immediately due.”

The court ruled in favor of Franklin Dick, and Franklin Insurance Company appealed. The Missouri Court of Appeals on May 31, 1881 ruled that a trustee in a deed of trust in the nature of a mortgage has an insurable interest in the property covered thereby distinct from that of the mortgagor. The Missouri Appellate Court has held that the mere fact that, under the terms of a fire insurance policy, the loss is made payable to a third person, gives such person a prima facie interest in the insurance contract, although he may have no insurable interest in the property insured. "And where a debtor’s interest in property insured, the loss being made payable to the creditor, the latter has a valid interest in the insurance contract, the debtor being a mere trustee for him. The fact that an insurer had opportunity to inquire, if it wished, as to the interest of the assured, and that it issues him a policy, is prima facie evidence of his insurable interest, placing the burden on the insurer to disprove it."

Within the ruling of the appellate court was a new piece of information about Murdoch's financial situation.

Before the policy was written, namely the fifth day of May 1873, Murdock [sic] and his wife executed a second deed of trust, by which they conveyed the premises in question to Robert M. Renick, as trustee for David H. Armstrong, to secure the latter against a liability which he had incurred to the extent of over $30,000, as indorser for Murdock [sic]. Moreover, the answer alleges, and the reply does not deny - and it must, therefore, be taken as true - that on December 20, 1873, Murdock [sic] sold and conveyed all his right, title, and interest in and to the premises, to John G. Priest, and that Murdock [sic] has had no interest in the premises, or in any part of them, since that time. There is evidence that all the premiums necessary to keep the policy in force were paid by Dick and Farrar, but were repaid to them by Armstrong, the second mortgagee. 

When the deed of trust matured, namely, on May 1, 1876, Armstrong, to protect his own interest, entered into a written contract with Williamson, in which he assumed and agreed to pay the debt secured by the deed of trust, and by which Williamson extended the time of payment for two years longer, namely until May 1, 1878, at the same rate of interest, for which Armstrong gave to Williamson four notes for $1,200 each, maturing successively every six months thereafter.

It now appears that in addition to owing Isaiah Williamson $30,000 plus interest, Murdoch also was in debt to David H. Armstrong in an amount exceeding $30,000.

Family History Writing Challenge Day 14

According to notices in the St. Louis Republican, John Murdoch's farm and property were being auctioned off on the City of St. Louis courthouse steps on November 3, 1874. What happened on that day remains a mystery. Did no one come out to bid? Was there a minimum bid that did not get met? Or perhaps Murdoch came up with some money to keep the creditors at bay? What is known is that John Murdoch continued to work as an auctioneer for O.J. Lewis & Co., the firm that took over the business of Murdoch & Dickson, and his residence was still listed as Laclede Station in the 1875-1879 Gould's St. Louis Directories.

1876 map of St. Louis

St. Louis was undergoing some trying times of its own. Prior to 1877, St. Louis County included the City of St. Louis plus all the other areas within the county boundaries. The county seat was located in the City of St. Louis. But St. Louis City taxpayers decided in 1876 that they did not want to continue to support the cost of ongoing expansion in the county, and they voted to separate from St. Louis County. Often dubbed "The Great Divorce", the separation froze the boundaries of the City and at the time made it the only city in the United States not associated with a county. The population of St. Louis City in 1876 was 310,000 while the county had only 27,000 residents. John Murdoch now was working for a business in the city, while his residence came under the jurisdiction of the new county government center.

In 1877, John Murdoch once again appeared in the local newspaper. The St. Louis Globe-Democrat reported on October 4, 1877 that there had been a fire at Murdoch's farm - the third such fire in as many years. The article states that the fires had each been of "mysterious origin." It further indicated that the barn was "partially insured."

Murdoch Farm fire

The fire in 1877 gave rise to a lawsuit in which more of the precarious financial situation of the Murdochs became revealed.

Family History Writing Challenge Day 3

St. Louis Levy 1848

Disaster struck St. Louis in two different ways in 1849. With a population that had grown to about 73,000 people, immigrants were steadily pouring into the area. On January 2, 1849 the steamboats Aleck Scott and St. Paul arrived from New Orleans carrying many seriously ill passengers. They were just the first of many boats bringing victims of cholera to the city. Though it wasn't known at the time, cholera is a bacterial abdominal infection that spreads mainly through water contaminated by human waste. It can kill within hours. At the time, the city had no sewer system. By mid-May an average of twenty-five people per day died, many of them young children. The highest death rates were in the slums where the living quarters were over-crowded. The death toll was at least 4,317, or nearly six percent of the population, by the end of the year.

St. Louis Fire of 1849

While it does not appear that Murdoch or Dickson were personally impacted by cholera, what happened in the midst of the epidemic most certainly affected them. On May 17, 1849 a steamboat named White Cloud caught fire while it was moored at the foot of Cherry Street. The flames spread to neighboring boat Edward Bates, which either broke free or was cut loose. The current carried it into other docked boats, catching them on fire as well. Strong winds carried the flames to piles of freight stacked on the levy, then on to the wooden warehouses on Front Street. Despite the heroic efforts of over 1,000 volunteer firefighters, the blaze carried to other buildings downtown. The fire continued throughout the night. Eventually, the fire destroyed four hundred buildings in fifteen city blocks, leaving hundreds homeless and thousands without work. Additionally, twenty-three steamers and nine flatboats and barges were lost. The total damages were estimated at nearly $6,000,000.

There is no question that Murdoch & Dickson lost their business location that night, as it was only one block away from the levy. Murdoch also lost his home, since he lived above the business. (Dickson had married and moved into a home with his wife in 1847. It was not impacted by the fire.) One can only imagine what it must have been like to rebuild the business once the building and all the merchandise inside of it were destroyed. Their records were lost, so it must have been trying to reconstruct the payables and receivables for the company. This experience may have been the impetus for Murdoch & Dickson later taking a prominent role in the establishment of several insurance companies.

One positive result of the fire was a change in the building code in St. Louis. The city was rebuilt with an emphasis on fire-proofing. The streets were wider and the new buildings were generally four to five stories in height, with heavy brick walls facing the street front. Murdoch & Dickson rebuilt downtown, with the new office building located at 63 N. Main (formerly N. First Street).