, 1877-05-05
A Decision OF Great Importance
to Mutual Lifc-Insurnnco !.
Policy-uoldcrs.
National Banks Not Allowed to Pur-
chase Stocks as an Invest.
ment.
J}npk Officers Must Do Directly Clothed
with Power to Perform Extra
ordinary Duties.
tTew Suits, Judgments, Confessions, Bank
ruptoioa Divorces, Etc.
TlTT-1NSURANCE.
AN IMPORTANT DECISION,

Judcc Iltolgett delivered seven tcctsfons yestcr.
day morning. the moas Of them containing mnttcft
of Interest, The nrst case was that Of E3izA Jane
Ariek ys. Tho 81. Louia Mutual tlfe'1nsutance
fonpany on the question 0f insurance policies.
II seems that Ia jung, 1s>o, Alfred A. Arick took
ont an endowment policy for $40, GOO on hin own
1,fe payab,c Jnne, 1890, or at dchlh. II he died
before that time. tho annual premium being
ftrS3 20 for nIno years. When lie took
ont the policy, Arlck paid f3oJ 90
In cseh, and gayo noto for like amount payable
in ono year. at thu snme time paying tho interest
thereon In advance at tho ratio Of per cent When
tho tcconti premium fell due onc.half uas paid In
cash. aud tho remainder by a second note, tho In
tcrcst on both being also paid In advance for the
ensuing year. In 1s0s, At the tin,c tho Third pre-
tnum cano due, one-hat was paid In cash. the
old notes wcro taken up, and noto given for
Ss17.T0. that being tho amount due on three
notes, lces dividend Of $l11. o.. which had been
declared the preceding year. In 1860 hnotler
dividend Of 8lo W WIS declared. which, deducted
from the noto left $772. o. No premium was
pald after 1900, nor any INTEREST tho nota, and
In October, 1879. Arick died.
The policy was ifsuca on tho half cash. halt uotes
,uon.forfcitable plan. and tho notes wcrc To bear
,tntcsest At per cent, payable In Advance. The
policy provided that II default was 1nade In tho
raynlent the policy should be commuted on ccr-
tain basfs. and according 10 this ratio Was So 600
when Arlck died. II was also provided that - II
the Insured failed to pay annually IN adrance tho
interest on any unpaid noaea or loans which may
h owing by said insured 70 said Company, on ac-
,count Of any Of the above mentioned annual pre-
.Inums or any part thereof. then and In such case
the said Company alnil not bc Liable for tho pay
u, " md this policy shai! eea,o and nd detsF:
.naiue."' Tho Company WAS nutual'' Que, an d
sasss ss II, 5 ,es - s and eos,, H.
Hieks Al death. demand wss nsda on thc comoa1y S
5 e psy sahas 1a.' .fhs Il s esat ye
failuro to pay tho annual iutcrrst III aasnDca On
Arteks noto worked d forfeiture OF Ill claims
undar tho policy, md that 1t Was nos therefore
Thc Judge in deciding the ease remarked that
there was great conflict of authorities on tho law
feet liberty 10 follow. That which ecomea to hin,
most contonant With Justice and the wel1.rctslcd
=. s poy th, H Z ss S
that d! riaats under # .hosid b. iorieitcd
i.llufe tc .5 iae .as ANNA, Interest on tas pts
Cd. Tho phraecoipsy was 70 explicit a. to iravy
10 room for construction or danbt. In sucl, a care
The court had only 70 ascertain what the eontract
was and enforce lt,-not 10 make contracts for
partics.
i sa ssen tcsd h} the souplainsnt that .ho
7snse md aiyiAcnas nj tn ivy wese ',: sssne, M
Moreover the conduct of tic parties in eonrtruing
INC contract showed thry supposed ttc dividends
of the note, Nnd nat the interest. II would mako
q great difference to the Con'pAnY w,ltther
sonll l'e compounded by tclnycstmcnt, or NOT.
SnIple Interest on tho note fur thc supposed
twenty. four ycafu would only amDunt to little
produce s., zoo IN tho suue t,n,s. Tho crldcucc
fard to show that any dividends had l,ern tte !.
siarca .insq 1soo. but esGn 4 they had they would
note. and not the interest on Il. With those
IoFa tia dndinV would llnvc to ho for the de-
ftAdant.