The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-02-24
An Important Decision.

The following decision recently rendered by the
Judge OF the Jefferson Circuit Court, Common
Pleas Division OF kentucky. in the case of Jacob
Black Ell al against the Supreme Council of the
Chosen Friends is OF the greatest interest to all
fraternal organizations:
In the original petition the court is asked to an
point receiver to take charge of the property and
enects OF the defendant, because, as It is alleged
1t has been discovered that insurance has been fur
nlshed by the defendant for smaller premium or
assessment than was practicable. and that IL has
changed its meth ID or plan of insurance in this
respect by a regularly adopted bylaw which will
make it practicable for il TO continue TO furnish in
surauce TO its members, but not 10 the amount
plaintiffs expected when they became members
OF the order. 1t will be observed from the policies
or certificates filed by plaintiffs that defendant
never under ook to pay any specific amount, but
only an amount not exceeding $4,000.
plaintiffs doubtless knew when they became
members of the order that the specific amount 10
be paid upon their certificates was whatever sum,
not exceeding $4,000, an assessment duly made
upon the membership would produce, and plain
TINS we're informed by the articles of association,
which constituted defendants charter, that it had
the right to change its plan OF insurance any of
its methods of doing business whenever in the
opinion OF the proper governing body it became
necessary TO do so. The petition in this case
demonstrates the wisdom and necessity for the
change that was made. In the amended petition,
filed Decem Der 81 IL is alleged hat the defendant
is insolvent, but it is nowhere alleged that its
proper officers have failed to assessments TO
be made as required by its laws and by the con-
tract contained in the certificate nor is it init
mated that proper assessments duly made upon
the membership would not yield means sufficient
NO beneficiary of matured certificate is COM
planning in this action. OF course change
could legally be made in the defendants plan of
insurance by which certificate that matured be-
fore the change could be paid in smaller sum than
the beneficiary was entitled to at the time it ma
tured But no question of that kind is involved
here. The plaintiffs represent only current certi-
hcates. a mutual order OF the character repre-
sented is not insovent merely because it has not
money property in the hands of its officers suf
fcient to discharge its matured liabilities. 1t is
not contemplated, nor is IL generally desirable by
the membership that IL shall have such sums IN
the treasury. 1t Is only when the proper assess
ments made in accordance with its laws fail to pro-
duce sum sufficient TO discharge its matured con-
tract liabilities to benefcaries OF its certificates
that such an order be SAID be insovent as to
It's certificate or policy holders
There is no allegation or complaint that any Off
Ger OF the order has been guilty of dereliction,
nor that its funds have not been honestly applied
to the purpose of It's organization.
These mutual benefit societies and orders fur
nish insurance to thousands OF people who without
them would be compelled to go without insurance.
and many homes are saved and families kept to-
gether by the money distributed each year to the
beneficaries of their certificates, and as long as
such an order is honestly conducted and faithfully
redeems its certificates with money raised by as
sessmentsfor that purpose courts should refuse TO
destroy It's usefulness by usurping the functions OF
Its ofhcerS as is asked In this case with receiver.
The demurrer to the petition amended will
have TO be sustained