Waterbury evening Democrat., 1905-04-26
AWAITING THE FACTS.
Attorney General Discusses Senator
 Brackett's Petition.

Attorney General Discusses Senator
 Brackstt's Petition.
 ALBANY, N. Y., April 26.-Attorney General Julius N. Mayer sent letter to Senator Edgar T. Bracket referring to the petition filed recently by the lat ter in behalf of Mary s. Young of Sar- atoga asking the attorney generals consent under section 56 of the insur- ance law to the bringing of an action against certain directors of the Equi- table Life Assurance Society of Amer lea ito recover funds wasted by them, to remove such directors, to adjudge them disqualified to hold office in any Insurance company and for general re- jef."
 The attorney general points out to Senator Bracket that his client as a stockholder in the Equitable society can without the consent or participa- tion of the attorney general bring an action in equity as a stockholder to compel the officials of the company to account for any funds unlawfully di- verted by them if, as the senator claims, the corporation Is powerless to bring such an action by reason of the control of the directors whom he ac- cl,ses. The attorney general points out further the powers of the superintend- ent of insurance and that the law pro- vides that the sworn report of exami- nation by the superintendent is pre- sumptive evidence in court of the facts found by him. -.,.. -...
 The attorney general declares that he himself must be prepared to prove the facts in court before he can sustain the kind of action which Senator Bracket asks him to bring. He does not decline to bring the action nor to act on Sena. tor Brackets petition, but states that be will finally determine the course to be pursued when all the facts are prop erly before him.
 "In an action brought by your client the judgment of court that any di- rector was guilty of misconduct, wheth- or in violation of section 56 of the in- Surance law or of any duty, would nec- essarily be followed by an action brought by the attorney general to re- move the delinquent officials from of- flee and to declare them forever dis qualified from thereafter holding any such office in any insurance corpora ton.
 "As you know, 1t is provided in sec ton 1908 of the code of civil procedure that where the attorney general has good reason to believe that an action can be maintained in behalf of the peo- pie of the state in such case he must bring the action accordingly or apply to competent court for leave to bring m action. as the case requires
 "All the facts are now being ascer- tained by the superintendent of insur- ance, the officer charged by law with that duty. The power of the superin- tendent of insurance in such respect is full and comprehensive. He can ex- anime or cause to be examined under sath every officer and agent of an in- wuAaASC us WcH us tlc books or papers relating to it's busi- ness affairs. The examiners appointed by the superintendent of insurance are required by law to make a full and true report of their examination. veri- 6ed by their oath. Such report is of unusual importance because the law makes it presumptive evidence in any action or proceeding in the name of the people against the corporation. it's of- fcers or agents of the facts stated therein.
 'T think I have called your attention sufficiently to the situation so that you will realize that I cannot dispose of your petition at this time
 ''The responsibility for beginning an action in the name of the people of the state is upon me. and if you are unwilling to wait until I finally deter mine the course to be pursued. when all the facts are before me. then I know of 10 reason to prevent you. in the name of your client, from bringing proceed lngs for almost every purpose which you seek to accomplish by your peti-