New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-22
THE MUTUAL RESERVE FUND UPHELD
A TEST CASE DECIDED BY JUDGE BEEkMAN IN
FAVOR OF THE AssocIATIoN-TITE MOTION

TEST CASE DECIDED BY JUDGE BEEKMAN IN
FAVOR OF THE AssocIATIoN-THE NOTION
FOR AN INJUNCTION DENIED
Judge Beekman. OF the Supreme Court. yesterday
filed an elaborate and exhaustive opinion denying
the application of Isaac L. Seymour In the lest
case brought to enjon the Mutual Reserve Fund
Life Association from collecting It's premiums as
recently reapportonel.
The Judge refers at length to the nature OF the
organization of the association being based up
the cooperative assessment plan and duly IN
corporatel ind r the laws OF this State
The plaintiff Seymour claimed TO haze been n
member OF the association since October, lSsL He
objected 10 the recent reapportionment or rates
adopted by the association. and declared, among
other things that he was not bound by the consti-
tuition He also asserted that the directors OF the
association had power to alter the rate OF assess
ment imposed at the time he Joined the association
in 1851.
Beekman said:
The defendant contends that the certificate OF
membership standing by Itself does not completely
measure the rights and duties Of the parties but IL
70 be read in connection with the defendants con-
stitut!on, which framed by its members. ana u.
the adoption OF which the p,antn therefore mad Il
This states with sufficient accuracy the question
upon which the plaintiffs right to the inJnncuVe
relief for which he asks depends. BY the terms OF
the constitution Of the defendant, the 6oiIu ol
Directors IL authorized 10 TX ana deterng ,,a
of assessments. admission fees and annual uues,
and To adopt such other rules ana regulations rs
they may deem best for the interests OF me assO,
citation. The Increase of assessment conlpaiheu OF
IS the result OF change OF poilcy on the piIt VI
the defendant, pursuant TO a request or suggestion
on the part OF the Superintendent Of the insurance
Departrnent, which was put on the Srou,u tnat !.
was that the assessment should De based
lpon the age OF the member 1T the time ne entered
the association and that the safer ana more equi'a
BILE rule would be to predicate me amount OF can In
assessment upon the age OF the member at the
time the call Is made. The change OF pan ) Hlaue
with the warm approval OF the insurance Depart
ment of this State, and of similar departments IN
business so that no question can arise as to nc
reasona hlcress Of the action or the defendaht:
But there Is another ground or aspect ~
the ca Sc on which Il is claimed that no inJunct ION
should Issue Section 81 Of Chapter $50 of the
Laws of 1852 provides as follows: mo order )udg-
rent or decree providing for an accounting or
enioining restraining or interfering WIN Inc prose-
cuflon OF the business of any domestic insurance
corporation or appointing temporary or perma-
nent receiver thereof, shall be made or granted
otherwise than upon the application OF the Attor-
ney-General On his own motion. or after mas APP
pr0va OF request in writing therefor OF the super
intendent OF Insurance, except in an acton by a
Judgment creditor, or IN proceedings supplement
execution.
volve an adjudication which In eject would compel
the defendant TO abandon fundamental principle
uDon which II now conducts It's enormous business
The company could not discriminate IN iaVcr OF the
situated: and further, IL may not be doubted that
II an injunction should BE- Issued In this case. a
large number OF the ether members or the cor
poratiOn would apply for and be entlllei 10 nave
similar restraining orders which would result In a
most serious Interference with It's entire business
The contention. therefore. OF the counsel. w. y.
Guthrie, for the defendant That TINS case oSH -,
has great force and Is OF sufficient weight 1T lt'ei
to justify the Court in refusing to grant prelim-
nary injunction.