New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-02
CALLS INSURANCE DECISION WRONG
Gage E. TarbelI Says Wisconsin Commission
er's Opinion VIII Be Taken to the Courts.

In discussing the decision OF the Commissioner of
Insurance of Wisconsin in regard 10 the disposition
Of surplus by mutual insurance companies Vice
President Gage L. Tarbeu of the Equitable Life
Assurance Society said that apparently the decision
made dividends pay able annually or gIinquennlaly-
The ruling was he said. generally regarded as erro-
neous. and would be taken to the courts he said;
The terms Of the decision reported in the morning
surance Host Of Wisconsin retatIng 70 the dlstri-
pauies are unknown. except as indicated in the
ragmentary v"sLagtr lelStIs III l5 ma ne
sin, who is not a pOlcy holder in the Equitable
The society De revoked because OF its alleged non
Section 952 OF the Revised Statutes OF that State
This statue relates 70 the distribution ~ mutual
glage OF the section involved in the decision is
Every life insurance corporation doing business
in this State upon the principe OF mutual ln7dr
ahce. or me I f4 l r ~ m en- Re 7is
trIbutiou Of such surplus as they may have accl-
five years, ne directors thereof may from time
10 time determine. In determining he amount q
Of all outstanding policies, said value 10 be com
puted by the American Experience Table Of Nor
tally, with interest not eHcef ding y pr cent
It appears that the Commissioner mas held mat
may means must ana that the statute which
IS permIsslve IN its terms, IS mandatory IN It's et-
judiciaIly passed upon a number of times, recently
statte In the case Of Rothschiid against the Rev
recently. the same contention was made IS TO the
mandatory character of the statute, but the
refused TO entertain it, and held that the statute
was permissiVe, and was in reality. a restriction
upon the too frequent distribution of surplus.
stead Of mandatory requirement that IL should be
distributed a stated intervals
1t is Impossible TO discuss the decision until
copy Of il hand. but il IS hardly necessary TO
add that the decision is viewed as wholly unsound
and variance with all judicial expression and
with expert life insurance opinion. II IS but an
expression Of lay opinion on strictly judicial ques-
ton OF statutory construction The question viii
Of course be taken to the courts. which are after
all the only medium through which a satisfactory
construction as 10 the meaning Of a statute BE-
sought. The Wisconsin statute In question has
been on the books for over thirty and
has been uniformly construed by all life insurance
companies in their practice and by al former in
surauce commissioners as being perrltSSlve, and
a statute intended restrict the too frequent dis
tribUtiCu Of surplus.
The effect OF the decision. if sustained would be
that ali companies would BE- compelled 10 write
their policies so that dividends should be paid
either annually QUnquen-iall H. nOtv tbs tandlnE
the preferences # the policy holders for other
mode OF distr button ard the provisions Of the
panies' policies The decision affects all companies
alike and IL sustained VIII cause them 10 change
the practice In that State that they have followed
since 1870.
The Ccrnrnisst oners ruling so Ear as have heard
EXPRESSIONS concerning it. IS regarded generally as
being not only erroneous but curious II Is Ger
taiulv not a matter 10 be REGARDED seriously