The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-26

An application was made TO Judge Douohue, in Su.
preme Court, Chambers, yesterday, for order d.
rectng and empowering the receiver OF the Security
Life Insurance and Indemnity Company, Mr. William
II. Wickhan, 70 bring an action against the directors
OF the company to recover from them, as personal
liability the amount OF all dividends declared and paid
by them bond policy holders Toast far back
1871. The application was made by Messrs Barnes
Hanover In tho interest OF Charles X.
Footo and several other policy holders In
Mobile, Ala, aud also policy holders
In several other States OF the Union. The
liability sought to be enforced Is TINT existing
the provisions Of the Revised Statutes for declaring
and paying dividends and profits to both stockholders
and policy holders OF tho company, IN violation OF tho
provisions Of the charter Of the company. II is
claimed by Messrs. Barnes Hanover and the policy
holders they represent that the directors having
Illegally distributed to the stockholders and policy
holders million OF dollars oil the assets OF this
company, the Court should unquestionaby
direct and empower the receiver, either alone
Jointly with representative stockholders and policy
holders 10 prosecute an action or actions, or lie
supplemental bill or petition 10 enforce the personal
action thoy say II Is only necessary 10 show
sonaple probability chance Of success 1t is not
essential that the petitioners should demonstrate the
certainty Of their final success in the action. or tho
present pecuniary responsibility OF The directors or
any of them. The Stale and CITY Of New York, II is
claimed, under special obligations to tho other
States and cities OF the Union TO pursue TO
the utmost limit all possible legal remedies
to redress the infamous outrages ana wrongs
inflicted thousands OF families by the
lie insurance companies which have recently failed
In the city OF New York Justice 10 our own citizens
equally demands that the whole enginery OF the law
should DO Lrougnt into action. The petition con-
tinues:'lt the courts in this State TAIL in tins
spect The confidence OF the pubic in financial Instu
tions located IN the city Of New York Will not be re-
stored in hall century, and trust III our business and
mercantile honor Will not and ought not TO be gwen.
Under the sanction OF New York State charters these
corporations have entered into the inner sanctuarcs
oil thousands OF households, not only III our own but
In every other STATE OF the Union and Tor a
series OF years have rcaped therein their golden
harvcsts Shall our receivers ana courts now cap
tho climax OF injustice by refusing to Apply The legal
remedies (alas too iewl that unly exist upon tho
statute booky" The amount which the applicants
say mny be realized IRON the proposed proceedings s
estimated at several hundred thousand dollars enough
they say almost enough, to make up tho deficiency
OF the company. fhc receiver OF tho company was
represented In opposition TO the application, hts rea-
sons therefor being that the possibility OF success was
too remote to warrant the expense OF tie proposed
proceedings. Judge Donohuc took tho papers, rcserv
Ing his decision