The daily morning journal and courier., 1896-05-21

on the mutual premiums collected dur ing 1865, 1866 and 1867, said sum being in excess of and in addition to said $9,- 900 per annum and the reasonable sum for expenses"
 Second-By transferring from the as- sets of the mutual to the stock depart ment during the year 1S70 and every year since, a portion of the reinsurance reserve on certain policies issued in said mutual department, on which pre- mium payments had ceased, but whose owners were entitled to paid up insur- ance therein. These transfers were made without the knowledge or con sent of either the policy-holders, whose reserves were thus transferred, or of the other members of the mutual de- partment. The mutual department was thus deprived of large profits growing out of not being allowed to carry said paid up insurance for the sums thus transferred to the stock department, arising out of differences of interest, mortality and subsequent cash surren- ders; and the transferred policy-hold- CTS were deprived of the guarantee of the surplus in the mutual department to which they belonged.
 B. Having obtained an amedment to it's charter, passed in 1878 by the legis- lature of Connecticut, which was ac- accepted by the company, authorizing it to increase it's capital from $15o,0O0 to $750, 900 from such surplus funds as may be derived from, or are the pro- ceeds of business done upon the non- participating stock plan of insurance, the said company and it's directors and officers illegally and improperly capi- talized in 1878 six hundred thousand dollars of so-called surplus, derived from the diversions aforesaid from said mutual department, and not from the business of stock plan" insurance, and in violation of the law.
 c. Having obtaineda further amend ment to its charter passed in 1883 by the legislature of Connecticut, which was accepted by the company, author izing it to increase it's capital from time to time to S2,000,0 900 "by the application of such surplus funds or profits as are or may be derived, or are the proceeds of the business of accident or the stock non-p participating plan of insurance the said company and it's directors and OlllCtTS lliGSdlly t1llu lliplOPCiiS SeAPi- talized from time to time one million of dollars of so-calIed surplus derived from the diversions aforesaid from said mutual department, and not from the business of accident or stock plan irl- surance, and in violation of the law.
 D. Having made the aforesaid capi- talization under the said amendments of 1878 and 1883, the company and its directors and officers illegally and inn properly paid an annual dividend on the same of 10 per cent. in violation of the law, and in violation of section 2S55 of the statutes, so far as it's stock de- partment was concerned.
 Now, therefore, I, Frederick A. Betts, the duly appointed insurance commits sioner for the state of Connecticut, in pursuance of the statutes therefor made and provided (sections 2S22 and 2S69), do hereby order the said Aetna Life Insurance company, it's officers and directors
 First, To discontinue transferring re- serves or assets from the mutual to the stock department other than the sum of $9,O00 per annum.
 Second, To transfer to the mutual de- partment from the stock department the said sum of $141 ,441.36, together with the interest theron, according to the average rate of interest annually earned by investments in said stock de- partment since the dates said sum was illegally and improperly diverted from said mutual department, as above stated
 Third, To transfer to the mutual de- partment from the stock department the present reserves on outstanding policies derived from policies issued originally in the mutual department, whose reserves, or a part thereof, were transferred to the stock department, together with all profits which have ac- crued to said stock department by req son of said transfer to it, with interest thereon according to the average rate of interest annually earned by invest ments in said stock department since the dates said respective reserves were illegally and improperly diverted from said mutual department
 Fourth, To apportion among its par ticipating policy-holders the sums to be transferred to the mutual department under above orders Nos. 3 and g.
 Fifth, To discontinue the further pay ment of dividends to stockholders until the whole of this order be carried into effect
 Issued under my hand and the seal of the insurance department of Connecti- cut, this day and year above written.
 FREDERICK A. BETTS,
 Insurance Commissioner.
 More than ten days have elapsed since the service of said order, and the Aetna Life Insurance company has de- clined to comply herewith or any part thereof; and said company has declar- ed and paid dividend on it's stock of 21a per cent in April, 1896.
 The plaintiff claims:
 1. A judgment, order and decree that the defendant pay over and transfer to the mutual department from the stock department therein the sum of one hun dred and forty-one thousand four hun dred and forty-one and 36-100 dollars (S141, 441.36), with interest thereon, ac- cording to the average rate of interest annually earned by investments in said stock department since the dates when said sum was illegally and improperly diverted from said mutual department to said stock department, as hereinbe- fore stated
 ?. A judgment, order and decree that the defendant company shall render a full and complete account of all re-