The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-07-10
Releases Six Months to June 80
An Insolvent Treasury

An Insolvent Treasury
The printing press is now the sole reli-
ance of the Spanish treasury. The Bank
of Spain has practically suspended specie
payments even in silver since the export
of silver coin has been prohibited by law,
and the rush to draw silver from the bank
in exchange for notes has been checked
according to the Madrid correspondent of
the London Times by broad intimation
that persons changing their paper notes
for pure speculation or to create diHiculties
for the bank will be treated as criminal
disturberS of the peace. In view Oh the
facts it Is impossible to resist the concius-
ion that the Bank of Spain, and conse-
quently the Spanish treasury, is insolvent.
Assessment Associations
It has always been difficult for members
of assessment insurance associations, ag-
grieved at alleged unjust practices, TO op-
tain relief from the courts, says the New
Post owing to the requirements OF laws
governing such actions. The courts nave
refused to issue injunctons or order ac-
countings at the request of policy holders
on the ground that the attorney general
alone was competent to MAINTAIN such ac-
lions, and that corporations must pc pro-
tected against possible attacks OIL mehi-
bers having unworthy or dishonest mo-
tives. The court of appeals expressed such
a view in the Swan case last January
against the Mutual Reserve Fund Lie
association, holding that such an action
must be brought, if at all, by the attorney
general, pursuant to the requirements OF
chapter $50 of the laws of 1872 Inc attor-
new general was pettioned several months
ago. in behalf of Lafayette M. Deming and
other members of the "fifteen-year' class
to enjoin the Mutual Reserve Fund Life
association from collecting alleged improp-
er and unfair assessments, but, owing to
the fact that the insurance department mad
Just begun an examination of the associa-
tion's affairs, that official concluded to
await the disclosures of Mr.. Payne,s re-
port That has now been made, and the
briefs in the case finally considered.
In denying Mr.. Demings application, At
torney General Hancock, in his opinion,
Just filed at Albany, says: II am not I'M
mindful of the fact that the increase of
rates imposes a heavy burden upon large
number of persons, who. by reason of ad-
vanced age and limited means, find it diff
ficult to pay their present assessments
This is unfortunate. and results from the
attempt of the earlier management OF the
association to sell insurance at very much
less than actual cost, as per the American
experience table of mortality, upon which
they claimed to base their rates. The Sc
uuel was inevitable. The assessments must
have been increased or the members have
lost their insurance. l would strongly ad-
wise that the policies of older members
at their option be reduced in amount, there
by reducing in proportion the premiums
they will be called upon to pay. Referring
to the present application, l am requested
to commence an action against the associa-
ton for the specific performance of the
contract entered into with the applicant;
to restrain the association from the collec-
tion of future mortuary calls, except as
made at the rates specified in the original
of N IN he anp1ioa
to apply for the appointment of a receiver;
to ask for an accounting, and to sue for
various other forms of relief.
at cannot be very seriously urged that
the attorney r,neral has any power to
commence or prosecute an action for the
specific performance of a private contract
Upon the other hand, there can be no doubt
that the petitioner himself may tender
what he considers the proper amount of
assessments, and in case the association
refuses to accept the amount commence
an action in his own behalf. If any suit
for specific performance is maintainable,
it must be commenced in the name of one
of the contracting parties"
Now the question arises, continues the
Post, How shall policy holder proceed in
such cases?l Some lawyers familiar with
insurance litigation believe that man
damus should be applied for to compel ac-
ton by the attorney general. An attorney
familiar with such proceedings said: 1.-THE
with the court of appeals concerning pro-
cedure in such cases 1t is difficult to see
see now what can be done, the whole matter
being attended with much difficulty. While
1t is quite proper that corporations should
be protected from unjust attacks, that their
business should not be needlessly interfered
with, policy holders should be able to OBJ
tain relief If 1t appears that their rights
have not been properly respected"
interpretations
Pasadena Deciduous Fruit exchange, Pas
adena; $4,000; subscribed, $219.5O.
California Saw Works, San Francisco;
$4,000; subscribed, $500.
Bay State and Alaska Mining company
San Francisco; $4,000; subscribed. $4,000
Transfers, $1,000 and Over
DAILY statement.)
Susan B. Warren to S. b. Kingsley
Part lot IS, Loop & Meserve trt -. 81. 500
Admrx Of est. of c. A. Ayd. decd, to
g; c: b swisher-Part lots to 49,
Ellen 4. and c. w. Burdick to Mary
C.Y. Cooley-Beg. where certain line
OF Holt ave. crosses W. line of blk
215, Pomona trt, tn. NJ, etc....... 2400
Mary H. Richards to G. Cavalera-
Lot 2, blk g. Also trt. .m,,.......... 1000
to H. P. Thompson-Alli int. as heirs
at law of Sarah M. Thompson, decd
and P. w. Thompson. decd. or 9TH
erwiSe, now or hereafter acquired in
lots 80, 80 and a. E. M. Funk's SUBJ
Of Valenzuea trt; also part blk B,
Twenty-four transfers under $1,000, of
which six were nominal ............,, 6.0SS
Total OBSERVATION-DISCLOSURES. SIS $50
Mortgages, $1,000 and Over