The Minneapolis journal., 1902-08-13
SPEAKS HIS MIND
Judge Amidon Scores Plaintiffs in
Suit Against Insurance Co.
CHARGES OF FRAUD aRoUNDLEss
Complete Victory and ExoneratiOn
for the Minnesota Mutual Life
Insurance Company.
To the Editor of The journal,

c1S1On handed down, Dy Judge AmtdOn IN
the United States circuit court in the
case of J. G. Iverson, Samuel Wright and
Esdras B. Trubey VS.. the Minnesota Mu-
tual Life Insurance company This suit
was brought in October Of last year for
the appointment of, a receiver and the
winding up of the company. '
This is decision which, in my opinion,
should receive the widest publicity pos
sible in order that the instigators and
their hackers in this conspiracy be pre-
vented from attempting another such
''hold-up" on other companies.
A life insurance company is a most
sensitive corporate creature. Upwar-
ranted attacks of this nature when there
is absolutely no ground for litigation tend
to inture company.
The Minnesota Mutual Life Insurance
company has been in existence in Mime
sofa for twenty-five years. It has never
disputed an honest claim and has always
promptly paid every such claim against
it. This company possesses $1.5O of as
sets for every 81 for liability Judge
Amidon in his decision holds that the
charges of fraud and insolvency are en-
tirely unfounded."
''-Timothy R.. Palmer, President
The Decision in Full.
In the United States circuit court dis
trict of Minnesota, third division.
J. C. Iversen and Samuel Wright and
Esdras B. Trubey, substituted for J.
c.. Iyersen, complainants; VS.. The Min
nesota Mutual Life Insurance company,
ct al, defendants. .~,~.
If it were not for the fact that I am
closely pressed with work should be glad
to formulate my views in this case in a
written opinion, That, however, is i'm
possible. I am confident that further
st N6v WH1111 in nd
ment as to the correct disposition Of the
case. The only advantage 1t could have
would be to furnish more orderly state
ment of the grounds Of the decision than
is possible in an oral opinion.
At the outset the charges of fraud and
Insolvency which are made in the bill
must be put aside; they are wholly un-
trary this record furnishes entirely sat-
isfactory proof that the officers of the
corporation have throughout acted with
perfect good-faith and in the exercise of
an enlightened judgment. They have
been actuated at all times by an honest
desire to promote the interests of all
the members Of the association and to Sc
cure their common welfare. What they
have done has been justified not only by
the condition of this particular company
but the general experience Of large
number Of other like enterprises. Nor Is
there theslight est foundation for the charge
that the defendant 1s inso1yent. On the
contrary the record shows that It's con-
dition under the changes which have been
made has steadily improved. This is not
only established by the statements Of
the company but the testimony of emin-
ent actuaries, who are entitled to speak
with authority on such a. subject. Fur.
thermore 1t appears from the record thai
this company is licensed to do business II
nearly all the leading states Of the union
after a careful investigation of it's at
| fairs by the insurance department of the
several states These consider ations leave
not the slightest ground Tor the charges
of insolvency. ..,:.. a. sr,
'". No Standing In Court. sgs
Before proceeding further with tth
merits Of this case it may be proper, +
| consider who the complainant in the sui
Is. The complainant Wright is withou
any standing in court. When the change
in the. company's method of doing bust
dess were adopted, he elected, with fu]
knowledge of those changes, to canoe
his certificate and demand return of tn
in writing; so that there is no chance t
question the character of his action. Hav
Ting elected to cancel his policy and de
mand back his money, that is the remed
which he was bound to pursue. IT he !
entitled to any relief it is to be found i
an action at law for the recovery {
the money which he demanded at th
time OF the recession: His claim u
| therefore, simply a money demand whic
has not been reduced to judgment. Fo
this reason he has no standing in coul
to maintain suit like the present. N
other policy holders have, in fact, joine
with the complainant in asking the relic
demanded in the bill. Mr.. Trubey is tn
only complainant of record, and he
entitled only to such redress as his ow
rights would justify. My decision of tt
case, however, would be In no wa
changed If every person whom the con
plainant claims to represent were In fa'
a party upon the record.
Powers of Omcers.
There remain for consideration tV
questions: First, has the company d.
parted. from the fundamental law Of /
being in a manner forbidden either e:
pressly or by implication by its articl,
Of association? Second, has the con
pany done anything to impair the vestt
rights of the holders of its certificates
Insurance.? It is not claimed by coul
sci for the complainant that the ass
citation, has violated any express provisit
, of its charter. He claims that tt
, changes which were made In It's method
doing business are so radical as to |
forbidden by implication. In determinil
: the force of that contention one must lot
carefully to the charter itself. Many
the authorities which are cited by couns
for complainant in support of his contel
tion are based upon charters which
themselves contain no express reserv
tion of the right of amendment. I'll
charter Of the defendant company sp
cifically reserves to the officers the pow
of amendment in every particular exec
one, and it is not claimed that they ha
made any amendment in that particuls
The fact that the power to amend W
restricted in one particular throws ado
tional weight upon the scope of the pow
to amend in other respects. OF cour
the power to amend did not invest t.
officers with authority to launch this a
sociation into an entirely new busine.
For example, it could give them no a
thority to engage in the business Of fl
insurance. It did, think, however, +
4 serve to them the power to make a.
amendment which was reasonably calc
lated to accomplish the purpose wht
the association had in view at the til
of its formation. Nothing has been do
4 by the officers which violates this prime