Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1904-03-31
Madison, March 26.


Judge b. f. Dunwiddie of the circuit
court at GAINESVILLE has decided that
the mutual life insurance companies
must distribute their surplus earnings
among Wisconsin policy holders not
less frequently than once in five 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 in 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 so 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
panies 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-
gestion or option for the companies to
follow or not as they saw fit.
Goes to Supreme Court.
The decision Will doubtless be APP
pealed to the supreme court and then
whichever side wins. it will be carried
to the court OF last resort. Ii the vic
rory OF the state officers be maintained
III the higher courts and the direction
OF the present decision be complied
with by all the companies affected,
some $30O,UOu,UOO VIII have to be di-
yded
The decision is rendered in the case
OF theEquitable Life Assurance Society
Of New York against Zeno NJ. Host as
the state insurance commissioner, the
application beng Tor an injunction TO
RESTRAIN the commissioner from reVok
Ils the license oI the company, be-
cause o. possible failure on the part of
the company to file statement that it
would divide Its surplus in accordance
with decision made by Mr.. Host in
the case brought by L. A. Brunkhorst
against the Equitable society Aug. /,
1903
Affects S3oo,ooo,ooo.
Judge Duuwiddie sat as the circuit
court OF Dane county, having been
called in by Judge Stevens to hear the
case. The suit is one CT the most i'm
portant ever brought in Wisconsin, af
tecttng, as Il does, over $300O00,00 of
surplus that has been withheld by in
SuraucG companies doing business in
tins state, for the past so years or
more. The companies affected most
by the decision, and the amount OF the
SURPRISES withheld, taken from their
annual reports anu designated as "di-
rIssbic sur plus, are as follows.
Equitable Life Assurance Society oil
the GATED States. New York, $74,O49,-
-45.aO.
Mutual Inc Insurance Co., New
YORK, $t5,1Is,-23.ll.
Nea lufh Life Insurance Co, New
York $l0,5ll,1l5.
Metropolitan Lie Insurance Co,
New York, S., 500, l2446.
Prudential Life Insurance Co. Of
America, Newark. \. j. $6,630,o71.4s.
Connecticut Mutual Life Insurance
Co., Hartford Gem, S5,959, 45LS6
Northwestern Mutual Life Insurance
Co, Milwaukee, $5.477, 530S1
This does not by any means repre-
sent the surplus withheld by insurance
companies ia this state, as it appears
from annual reports that in all sc com.
panies will be affected TO a large ex-
tent. The reason fer this is that 80
per cent OF all the business done in
the state by the mutual life companies
is represented BY what is known as the
deferred dividend policies"
Does May" Mean Must
The whole controversy hinges
around the construction upon section
1862 Of the revised statutes, which
reads as follows:
Every life insurance corporation do
ing business In this state upon the
principle OF mutual insurance, or the
members Of which are entitled to share
in the surplus funds thereof, MAY
make distribution Of such surplus az