Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1904-04-04
Madison, March %.

Judge rs. r. Dumwlddie OF the circuit
court al GAINESVILLE has decided that
the mutual life insurance companies
must distribute their surplus earnings
among Wisconsin policy holders not
less frequently than once in i've years.
This decision is a victory for Com
missioner Host and Attorney General
Sturdevant. who pressed the case
against the companies.
The GAINESVILLE judge decided that
the legislature Of Wisconsin in enact
ing the law i'm question intended TO
provide and did in fact provide
that the companies should distribute
their earnings once in every five years
or oftener. The section In dispute was
section 1852 Of the Wisconsin statutes,
passed some 30 years ago, but always
applied by the insurance companies
and state Insurance companies as
being merely suggestive and optional.
The section says that the mutual COM
ranies may" divide the profits with
the policy holders at least once in five
years. Insurance Commissioner Host
declared that this word may should be
applied as meaning must. that the in
tent Of the legislature was to make the
section mandatory and not a mere sug-
session or option for the companies TO
fellow OF not as they saw 1T
Gees to Supreme Court.
The decision will Doubtless be ap-
pealed 20 the supreme court and then
whichever side wins. il will be carried
90 the court OF last resort II the vic
tory of the state officers be maintained
i'm the higher courts and the direction
OF the present decision be complied
with by al the companies affected.
some S300.O00. 600 viii have 10 be d.
yided
The decision is rendered in the case
If theEQuitable Life Assurance Society
II New York against ZenO m. Host as
the state insurance commissioners, the
application being for an injunction TO
restrain the commissioner from revOk-
su- the license OF the company. be-
cause ot possible failure on the part OF
the company 20 file a statement that 1t
would divide its surplus in accordance
With a decision made by Mr.. Host in
the case brought by l. a. BrunkhOrst
a-a.Est the Equitable society Aug. /,
1895.
Affects ssoO.OOO,OOO.
Judge 'Duruiddie sat as the circuit
court 81 Dane county. having been
called in by Judge stevens to hear the
case. The suit Is one Of the most i'm
rortant ever brought IN Wisconsin. af-
fccung. as 10 does. over $500. 600, 900 OF
surplus that has 5ee1 withheld by in
suraucc companies doing business in
this state. for the past so years or
more. The companies affected NEST
fy the decision. and the amount Of the
SURPRISES withheld. taken from their
annual reports AID designated as 'di-
visible surplus" are as follows.
Equitable Life Assurance Society Of
the UliJed States. New York. S7LO4y.-
$3.50
Mutual Life Insurance Co. New
York. Ss5Ils 12&lI.
.--w York Life Insurance Co. New
Eorb. SI051I.sI5.
Metropolitan Life Insurance Co.
New York. SS.S63.I-Lf6.
Prudential Life Insurance Co. OF
america. Newark. y. J.. S6.63O. 671.49.
Connecticut Mutual Life Insurance
Co. Hartford. Gem. s5,959. 45I-S6.
Northwestern Mutual Life Insurance
-o.. Milwaukee. S5.477. 5SOS1.
This does not by any means repre-
.sut the surplus withheld by insurance
ompaE.es in this state. as it appears
rom annual reports that in all 80 com.
.anie- VIII De affected to a large ex-
sut The reason for this is that 80
.cr cent. of all the business done in .
ne state by the mutual life companies !
S represented BY what is known as the
deferred dividend policies"
Gees May Mean Must"
The whole controversy hinges \
.rClrl the construction upon section
sS- rt the revised statutes. which
lads as follows:
Ever lie insurance corporation do
NJ business III this state upon the
Principle OF mutua! insurance, or the
Members Of which are entitled 10 share
n The surplus funds thereof, MAY
make distribution Of such surplus as