Los Angeles daily herald., 1874-03-27
The Mutual Provident Association.

ITO MuS0ot rtOvtoV"s
In April, 1871, the Attorney General
of the State commenced an action
against the Mutual Provident Associ-
alton Of San Francisco to compel it to
wind up its affairs or comply with the
law regulating Life Insurance Com
} panies. The association was incor-
porated September 8, 1868, under the
law of 1850, regulating religious and
benevolent societies. The object OF
the association was similar to that OF
Mutual Aid Association of Los Ange-
les and dozen others-to furnish
pecuniary aid to the families or friends
of deceased members. The case being
brought into court the association de-
MED that it was doing a life insurance
business in any respect, and hence
was not liable underline law regulating
Life Insurance Companies. Judge
Dwinelle on Monday last granted the
prayer Of the complainant, that the
rights of the association, as body
corporate, be declared forfeited and
the corporation dissolved. The Board
of Directors of the association has
taken an appeal to the Supreme Court
and has sent q committee to Sacra-
mento to secure additional legislation.
In rendering his decision Judge
Dwinelle remarked that the vice,
if any, is in the law; that it is a hard
ship that individuals cannot form
such an association without being
liable to penalties, but that it is a
matter beyond the control of courts,
whose duty it 10 to enforce the laws as
they are and not to base decisions on
law as it should be.
The decision will attract more than
ordinary attention, from the fact that
associations affected by it are scatter
ed throughout the State and include
in their membership some Of the best
and most prominent citizens Of the
State. including State officers and
members Of the State Legislature.
Among the associations included in
the class referred to we now call to
mind: the Mutual Provident Associa-
ton Of San Francisco, the Sonoma
and Marin of Petaluma, the Mutual
Relief Of Petaluma, the San Jose
Association, the Odd Fellows Mutual
Aid of San Francisco, the Mutual Re-
lief Of San Diego, the Mutual Aid of
Los Angeles, the Mutual Relief of
Amador county, the Masonic Associ-
alton of San Francisco, the Red
Mems Association of San Francisco,
the Ministers Association of the
Methodist Episcopal Conference
Of California, and the Champions
of the Red Cross. There are others, but
their names do not now occur to us.
These twelve associations number
membership of from twelve to fifteen
thousand, and the reserve funds kept
on hand as a guarantee Of good faith
on the part Of the members amounts
to over one hundred thousand dollars.
There is no reason why a Judge OF q
District Court should, by single
sweep of the pen, wipe out Of existence
such vast interests that effect so many
Of our citizens. Judge Dwinelle's de-
cision may be in accordance with law,
but if SO the law should be changed.
A bill regulating mutual relief asso-
Citations has already passed the Senate
and is before the Assembly. 1t will
doubtless pass that body, as probably
over three-fourths of the Assemblymen
have held life insurance policies that
have lapsed and they will doubtless
fail to see that life insurance compa-
mics should be protected when the
people are to be the losers instead of
gamers thereby.
The officers of the Mutual Aid Asso-
citation of this city propose to continue
their work as if nothing had happened,
nd await the action of the Legislature
and the Supreme.Co Court.
The following just criticism from the
San Francisco Daily Bulletin of the
Oath inst. reviews the case from such
q candid and business-like standpoint
that we are constrained to give it in
full:
1.-THE decision of Judge Dwinelle in
this case, yesterday, will attract more
than usual attention, from the large
outside interests involved. The Mutual
Provident Society is a benevolent as
ISOLATION and nothing more. 1t has
no original capital, like life insur-
ance company, no dividends, and no
stock. A number Of persons associate
for benevolent purposes, and not for
profit. They pay small fee for mem
bership, and are subject to small as
sessments when o member dies. Nc
specific sum goes to the families Of
deceased members, only small
amount equal to one dollar in gold coin
for each member in good standing.
No policy Of insurance issues, and
there is nothing but this small benefit
which goes to the family to give even
remote likeness to that of an insur.
ance company. az HiEc eEE
"If the Mutual Benevolent Associa.
ton is an insurance company within
the meaning Of the statute, then il
follows that the Odd Fellows societies