New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-16
THE COURTS.
WINDING UP INSURANCE COMPANIES.

- ,7roRVFY-GENERAEs EXCLUSIVE POWER TO
BRING SUIT FOR THAT PURPOSE.
Tn suit brought by John o. Hoyt stock
~,aer Of the Continental Life Insurance Company
st that company to have it wound up, Judge Pratt
tainted John J. Anderson receiver Pending proceed
~ 20 remove him, Mr.. Anderson withdrew and william
- croce was appointed in his place by Judge Pratt.
,snvrlle the Attorney General made an independent
~, ION "a wind up the affairs of the corporation, his
rcotion involving necessarily the validity of the
Hious proceedings. After taking proof before
-, roe under an order from Judge Osborn the matter
- before Judge WestbrOok on the question whether
-, stakeholder could bring an action to wind up
ga, insurance company. Judge Westbrook in an elaborate
srion decides that he cannot. The power is claimed
- the Revised Statutes of 1880. JUICE WestbrOOk
r,s ont that then there such companies in the
s,a,e The first act authorizing their formation was In
,so Their increasing business soon called for further
,sgislston and in 1883 new act was passed. Judge
westbTOok says:
pyts 18TH section the superintendent of the Insurance
pnaytmen directed 10 examine INTO the AFFAIRS oi any
nnanv whenever he shall susDect 1t of unsOundness,
be section clothing him with full authority 80 10 d" ana
.from such examination ii shall appear that its assets
a. insufficient reinsure It's outstanding risks lie sil
Communicate that tact to the Acknowledgement whose
a. II shall be TO for order TO the company to
show cause why il should not be dissolved and N case
snnears la the satisfaction of the court that the
sets ALLEGED are true shag g GecIte on %,So
frum the language 81 inns Sec9h ln!t pan oi ''c au
tection Of all parties interested in ne insurance c"mpd
pfss
o. affairs has been devised, a standard 10y when lS
ycht 10 exist and continue mas otth Getlarta am lI
mOyis.On for its extinction and the distribution OF W
aasSsts made Are these provisions exclusive!
By it, eleventh section portions o. the ola statutes are
ami other parts expressly said TO Ue napphcaolc
That section provides That they shaH Dc su9eSl 10 ~
are applicable except i'll regard TO annual stat meme
md other matters herein otherwise specially pr9N1rn
Tor Tbe change made ~ the phiaseOoGy OF TINS
8 ction from that section Il III the ACT OF
; SO, which the first act in Ie-ard TO me
,auias
.orthy of notice. That section made them shge't
60 all The TToysGnS 90 far PG as F' same are a
Mic hlc But tie statute OF 1898 goes furth'r ana eX-
esSy es'G ST rG are 6f TeS d to annual state
rents" ana also the other matters which are therein
otherwise specially provided for why was as i auu
on made the act OF 1888 Up 10 that Tine al ie5',
lch an action rs That brought by Mr. Hoyt Sod nave
.een main aimed. for Tie Revised Statues dd lONue
Il only proceedings by the Atornel Genera III be
Ian OF iT 81 Sas socE S s' in case OF IFS
Insolvency inability TO pay its debts. =
dissolution unknown 70 the plor staIut, = IL Gan on
he by the application of the Au0rncy-GeneIal, based
DEPARTMENT Instead of the door being lett open TO every
creditor or stakeholder to bring sut The state has de-
escd 10 act for ths best interests of all Interested
Snail guard tie rights of The corporations the creditor
iust made To say that because the act Of 1888
makes no provision for actions by creditors or
e. roTe the right to bring such Suits is
taken away md thai inc remedies therein gDS are I,
sion from such premise IS its precise reverse because
II vCs proper 20 the fact that the dissolution III
fhr corporation I'd the distribution Of its assets are spe-
eli MS ana completely provided for by the act OF 1898,
sd maj those provisions are "otherwise" than thos of
L. Rc.ircd statutes. This construction OF the meaning
81 the statue docs injustice TO creditor on stock
loo,r AL rights and remedies necessary to pro
tct himself Giuue Dy action left open. His power
L. wind il up, winch many others BESIDE him
s.f arc Interested, Is only taken away. Nhen, how
ever pubic policy and the interests OF all, as wei
a. Ills, demand is death the officers OF the Statc
O me can Il &c rs life ana administer its effects. That
t> policy better wis,r ana safer for all rs most mani
fs. Rights stockholders and creditors @hO have no
kaOWicIg thereof should not lie leOpardzcd by co.,
lsiyr SUI between any sOckDOder or creator WEO may
$ III To "gu action under the Revised Statutes ana
IN u,ic rs The corporation, which can surely be I'M
p,nleG remedies gwen 10y Tie Revised Statulessi
exist THc compilation 10 do too great 10 make
eN - SOcsuod.T and every creditor the depository Of
ieat power OF mischief, and hcHcc the act 81 lo3J
N-eiy prov dei method Oi extinction and admins
Jticn uy which the power which gave the lie Is alone
empowered to take It.
Judge Wcstirook after discussing incidental mat
ters grluts the motion OF the Attorney General, and
dI,cts tic order to be s,ttled on notice.