New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-02-15
4 STGGEsIH-. cONTRAST.
liens.


Iafure Of Connecticut at It's present session
which ia of public interest not only As ralS-
inc SOME new questions concerning the
states pecnniary responsibility for blum
dcrug legislation, but also as oiirr-
ing something OF n contrast between
the financial methods Of Connecticut
and some other States. The ease comes
NJ upon the action Of Mr.. T. II. Russell, of
New-IIavcu. Receiver of the American Life ani
Trust Company IN which the American Mu-
nll Lite Insurance Company WIS merged
these being the companies OF which Benjamin
Moves was president and principal manager
Mr. Russell acts III the matter for the policy
bolders
Under the provision, Of thc S;ate insurance
laws the State Treasurer held, from 1913 TO
1874. IN uust tor the poIicy-holdcrs OF the
American Mutual COMPANY 100000 in good
bonds aud mortgages. This trust was, i'll
pursuance Of the law. made to meet The re-
quircmcuts Of other States in which the
company was doing business. The deposit
was icauircd to BE- kept in bonds and mort
cages on umncumhcrcd TcaI estate with a
margin of - per cent, and tho ccrtiti-
cate Of the Treasurer 10 such deposit had TO
be given before the company cOuld DO bust
ness i'm this ana other States. In 1874 the
Legislature, IA it Is alleged, upon appli-
cation Of the officers of the Trust Company.
which had succeeded to the rights of the
Insurance Company. passed IN act surrender
ing this security IN exchange Tor Il mortgage
on the company's new insurance building ID
Nrw-Iavcn. THIS act was passed without no.
tice to the policy-ho'dcrs or the Insurance
DEPARTMENT. The building was upon leased
ground. was costly in construction, and
it is found that, by reason of the
exchange of the securities for the
mortgage, there is danger Of a loss of a por-
ton of the deposit. The poicy-hoIdcrs, ac-
cordinglv. have brought their petition 10 the
LEGISLATURE alleging that the honor and good
faith of the State are involved IN making
good the loss. They say that other States
in which tins company was permitted to
do business depended upon the good faith
OF Connecticut III the matter, and accepted
the certificate of the Treasurer As To the de-
po,it, and that il would bo u breach Of fai.h
not only with the pDllcy-hOlders but with the
other States, to refuse to make good this loss,
What they ask then, is that the Stste should
close out the trans action and indemnify the
policy holders on the loss sustained by
Che exchange The c Sc has been presented
To the Insurance Committee of the Lcgisia-
tllre and there is strong probability OF "a
unanimous report in favor of bill indemnify
ing the polcy-holders for the laundering leg
isation of 1874, and of ITS passage by the
General Assembly.
At "a time when Tennessee and Virginia,
and pcrbaps one OF two other States, are ex-
bau4ting their resources Of statesmanship t.
scale down their honest debts, or get rid of
them entirely upon some tlimsy prctext, 1t is
refreshing to find one legislative body with
such nice sense OF public honor and 80 high
a regard for public faith as to take the cx-
IRENE Wow of the rights. not merely of cred
itOrs. but of those who have suffered loss by II.
legislative bluuders. Connecticut people have
the name OF being very practical; tld it Is
quite likely that in this matter they are act
ing not so much from sentimental motives a.
with the very practical and business like
view that it is the wiscst policy to
maintain a good credit, aud that in
such cases as this it is the best policy
to be liberal ~ we'll honest. And
vet they scarcely ever blow off the top of
mans head for difference Of opinion in Con-
nectcut. They do that sort Of thing where
the citizens are the soul Of honor and tell you
to take sixty cents on the dollar or they'll
wipe it out with a sponge.
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