New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-02-04
NErHODS or THE MriUAL LIE.

TIE LEGALITY or TIE REBATE PLAN TO BE TESTED
~ COURT-0UrIINE OF TIE COMPLAINT OF
PnL'CN-HOLDTEs.
In September last the Mutual Life InSur-
nucr Company II this city, issued 10 rs agents conf
ioral circular in which what has come IN be known a.
the 80 per cent rebate plan outlined This circular
stated that ~ order TO stimulate business, ana rs q
measure OF relief to such might require help In pay
Inent on policies, the company would temporarily
receive as cash. IN payment OF premiums on new policies,
for the first ana second years annual premiums, the
drafts OF rocyholdcrs The company to the order OF
local agents canvasser for 50 cent " the first and
second annual premiums plain life policies. ond for
- per cent al O'hor forms except single and I'VE
annual payment policc7.
Yesterday there was filed in The Office Of the Clerk OF
the United states Circuit Court for This district bill in
merchant OF Chicago, and his wife. Virginia Hale TO
restrain le Mutual Life from ISSUING policies on tho
A. MrCurdy and Robert A. Grannls, Fce-PIesdent% /;
Isaac r. Lloyd, secretary and william H. G. Bartlett
win Thomas W. Hall and Edward {. Pea.e two rest
dents of NewYork who have taken out policies on the
After rectilg the act Of incorporation and subsequent
amendments. the compliments proceed TO formally es
the rights privileges and advantages TO when they are
entitled under their policies. These rights are based
company the effect that the company was cs-
tabished tor mutual benefit the entire profits being
able manner, and tb"t policy holders par
ticpate in the distribution Of surplus. The com
plainants then say that in accordance with the
terms aud intent OF the confidential circular, many per-
sons received from the O,Ccls the company pre-
tended policies Of assurance by the issuing of which
the company has assumed and undertaken 10 grant and
secure 10 the holders the rights mud privileges b-Ongng
10 cOmplanauts, although the holders and owners o.
such policies have never paid than 80 per cent Of
the rates OF Insurance paid by all persons iusuils with
the company PRIOR To the Issue Of the circular referred
to that tire drafts accepted by the trustees IN payment
the per Of the rates from the holders of these
pretended policies false and fictitious; that tho
draW thereof have had no funds with the company
with which 60 meet those drafts That II was not i'll
tended by the company mat those ii ats should be paid
but on the contrary Il the intention OF all the par
ceped by the company without payment or col siicra
ton OF any kind cash II IS further claimed that by
accepting these false and fictitious drafts the company
r"ccil less sum OF mon v IN payment for the
bl.,a;iOms assumed by the pretended policies
than the actual amount necessary to meet
The expenses ana losses OF tho company
and the reserve required by Law 10 meet the future cost
OF cOnuiHteSe policies In force aud thereby the IN
come asSet, ana profits of the company are diminished
and diverted from their lawful 10 the injury Of all
other holders and owueIs Of policies.
Seven questions asked of the officers OF the com
pany, which they requested to answer upon oath
Then il il asked that tnc company be elU0lned from
i~sung policies upon the plan outlined III the circular
letter from paying any losses or dividends To holders
OF such policies
The frst question Will be upon the granting OF the
preliminary injunction, upon which vigorous contest
l. ypected The ease will be- argued before Justice
Hunt Of the United states supreme Court, Judgr
ButchfOrd. OF the Circuit Court and Judge ChoGtc, OF
Tie District Court.