The sun., 1879-06-05
THE GLOBE MUTUAL LIFE.
PLACED IN THE HINDS OF A RECEIVER
by JUSTICE UESTBROOK.

Mr.. James -. TIsh Appointcd-Thc Order
Atnds Yesterday In Albany why some Ke-
quest, were Dcnicd-The justices Reasons.
ALBANY. June 4--Judgc Westbrook filed
Tho following opinion to-day In the matter OF
the appointment OF n receiver for the Globe Mu-
tuh Iifo Insurance Company;
On Monday last the decision Of the Court
upon the application for n receiver was an
nnuncd. Tho conclusion that ono must be
rppont,d was bascd not only upon tho al
legation OF the verified complaint, but also
upon the report Of u committee of the Board
Of Directors of the defendant. stating in de-
tail its assets and liabilities and demonstrate
ing its insolvency. together with resolution Of
the Board Of Directors Of the association invok-
ing the present action. and also the. report Of
the Sunerintendent OF Insurance concurring in
this proceeding. 1t Is now asked in behalf Of
sundry policy holders. who are not parties to the
consequent enrichment OF stockholders. To such
result the Court cannot be II party 1t is said.
that tho present proceeding is irregular. be-
cause II 10 not based upon a report OF the Su-
ncrintendent OF Insurance. Whatever force
this point ma possess II must he made
in the action and by party to ii. IL is not for
creditors OF defendant against whom an ac-
ton has been instituted and sought. to appear
therein 10y courtesy only and ntcrpose objec-
ttons to the form OF proceedings IL has not
bcen held that an original action cannot be
brought TO wind up an insolvent corporation,
when such corporation does not object, and
when the Superintendent OF Insurance has. In
fnct concurred In the proprety OF the action Of
the Attorney General, and the Court has thus
befors II n substantial complinnce with the
statute, the action OF tho insurance department
coinciding in the need Of receiver. The
Court. for the reasons thus hastily stated must
act. and can only protect creditors by tho selec-
ton OF proper person to discharge the trust
To the action and therefore heard by courtesy
only. that action should be delayed and time
given To them TO show the solvency OF the de-
fendant; The appointment OF a receiver is an
act To do which the Court may well hesituto :
but. however unpleasant the duty. II ought to
be at once performel, when the Court can see rs
II clearly does in this case that the same result
must be reached in that end. BY chapter 800
oithc law OF 1863. under which the defendant is
Organized the corporation must pass into the
hands OF n receiver whenever. in the judgment
OF the Court, II cannot longer do business with
safety; and that 1t cannot do so Is abundantly
of its directors II its active life be attempted
to be continued by the Court. in the face Of the
careful and deliberate report submitted as evi-
dence upon this motion and the action OF the
Board Of Directors. such continuance can have
only one issue-the forfeiture of policies by
the refusal Of the holders to pay premiums: and
in two published opinions (McArdle vs. Burney,
90 Howard. 81, People vs.. Third Avenue Saw
ings Bank. so Howard. 22), and also in the mat
ter Of the Atlantic Life Insurance Company,
the Judge holding this term has decided that
no officer or director OF an insolvent corpora
ton should act rs its receiver. No good reason
iyine the appointmento Of Mr.. Barrow. the Pres
defendant. 1t is true that there is no evidence
before me showing that either Of these gentle
men has done any act wasting the assets Of the
company endangering its resources But IL Is
rue tnat the appointment would develop great
ceiling on the part OF the policy holders. who
cegard the action OF both as contrary to their
interests. and i is also true that a re-
ceivcr must of necessity. pass upon the
management OF the company under It's present
direction, duty which one OF its members
maniiestly ought not to perform. In the selec-
ton OF the receiver named in the order. Mr..
.Jumpg ID Eiah n pppfleman bae haap aho
who in the execution OF his duties such
entangling alliances surrounding him. II he
Tails to act wisely. promptly. and economically.
tnen the most eminent financial men OF New
York city. who recommend his appointment.
nre mistaken in their Judgment. and the Court
result will follow. as we believe. and the con-
duct OF the gentleman named in the execution
OF somewhat similar trust is also high evi-
depce oi inc illness OF his present appointment
The appointment OF Mr., Fish was recon-
m1ended by the following New. York bank Pres
idens George ), Coe, ]. NJ. Morrison. b. i.
sherman. !; y; Vermilye, ]. W. Seligman Il
Co., Rufus Hatch. and Judge Van Brunt. John
surnnce Smyth concurs.
Mr.. james ID. Fish is the President OF the
Marine National Bank. He is a man OF wealth
advocated the appointment OF Mr.. Barrow. the
continent was also urged by William Allen