New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-13
General albany NEWS.
THE LIABILITY OF RECEIVERS.

ALBANY, April 12.-In response to resolu-
ton OF the Assembly calling upon the
TO inform that body whether In his opinion SUITS Or
other legal proceedings may be maintained against 'a
Gus receivers OF nsoven corporations Tor recovery vi
portion OF the retained by such receivers Attor
General Russell to-day sent communication 70 tne
Assembly which he says:
BY section 10 OF chapter 902 OF the laws of 1869 It Ia
declared that the superintendent of Insurance sal
CONFORMATION of receivers under that act The act
In question provides for the registering ef the policy In
the Office OF the superintendent and the payment TO reg
stered policy holders In full out OF the securities In the
superintendent Office before payment TO the general
polcyhoders It is claimed in behalf OF tho receivers
that where Superintendent OF Insurance has at any
stage Of the receyershp fixed the amount definitely 10
be allowed 10 the receiver or has directed mat nc re-
ceve per cent upon the 9ssets SUCH allowance ol COIL
pensatiOn is final The case of the North
American Life Insurance Company, in when TINS
question involved. was argued before the Court
OF Appeals to-day. IL was claimed before
resenting policy holders that the Court had right to
supervise the allowance of the superintendent ana IN
allowance Itself decision will likely be had in the
Court the OF few days thnk the Dc clsion
will be that the fixing Of the compensation by the super
nendent years ago In this case may now DO re-
viewed by the court IT,, ,,o.,
corporations have BEEN believe without exception, al
lowed by orders OF the Court. am informed that these
General, to special counsel representing the
Attorney-General, aud upon Ike notice 70
counsel have been allowed to intervene.
Ii these notices regular ana formal ana the or
the allowances and no appeal was taken WITHIN proper
time ordinarily it would be impossible 10 maintain any
legal proceedings 10 recover BACK any portion uP9l to
ground that IL il too late according u tue rules ana pc
tees of the courts But In extreme cases the courts WIN
allow the reheaIng OF motions upon leave granted LOT
that purpose, and VIII reconsider tle allowances, anu
proper reduce them The causes for such fehearg are
either the development OF state OF facts Whlch was
not presented Court at the original hearing or con-
siGertions which tend to show that it would be grossly
improper TO suffer the allowance TO remain as hxed
Tue Court of Appeals has to-day decided that tue At
torneyGeneral mad no power broadly to authorize the
AL cD Hpi In
tgatiOns, and therefore 1t implicitly follows tnat
the papers upon such special counsel ana MS
various for Attorney General were UNI
authorized by law. AIN OF the opinion lhaI unuef thl5
Attorney General may ask the Courts witn
review the various orders granted upon the
ground the state has not been legally represented
upon the hearing in those cases. when the aclon was
brought by the Encouragement IN case rs uoseo
present Attorney General shall take any llra-
tive action In the respects indicated, he trusts
that no may be specifically directed by your nom
orabe body upon the report or the special committee
Assembly 10 tue cases In winch such action Is
desired. lie asks this for TWO reasons ~ III would Do
embarrassing and nyidiOus task Or MN 10 seem 10
any particular that the former admins
traOn ol the Attorney -Generas oihoe mas neglected
any steps which ought to have been taken III any OF
these itigatons. 2) The business OF TINS Uce has IN
creased per that which had at the
period Of the administration OF the ONCE ana
wth far, additional nep lt 49, therefore, almost
impossible for the AttorneyGeneral TO attend TO any
except those to which his attention and action
directly invited.
Thbdy-I answer your communication that in no case
suits be Instituted in Dehan Of the people OI Tue
fees improperly allowed receivers, Ior
the reasons that the courts provide more summary
The reconsideration OF 5uch allowances anu
position punishment Tor contempt III case an order
Tor repayment should dsObeyed except that should
a RECEIVER directed To repay any portion allowance
formerly granted refuse to comply Ill ADDITION 10 Tue
authority which the Court has 10 PUNISH, an acton
might be maintained upon bond gwen by him upon tne
commencement Of his receivershp 10 Recover against
him and his sureties any such deficiency