Perth Amboy evening news., 1905-04-26
AWAITING
THE FACTS.
Attorney General Discusses Sen
atOr BraCkett Petition
Suit in Order.
ACTION MAY Be STARTED

ALBANY. y. Y. April 2G Attorney
General Julius y. Mayer sent II letter
to senator Edgar T. Bracket referring
10 the petition filed recently hy the lat
tc; in behalf Of Mary :. Young of $ar-
atoga asking the attorney generals
consent under section 5G of In" inSur
nee law TO the bringing of M action
against certain directors of the EQui-
table Life Assurance Society Of Amer
len ITO recover funds wasted by them,
to remove such directors. 10 ahiudg"
lhcm disqualified to hold office in any
insurance company and for general re-
,ipf.'
The attorney general points ont to
Ienator Brackett that his client rs :;
stakeholder in the Equitable society
can without the consent or participa-
ton Of the attorney general bring an
action in equity us Il stakeholder TO
compel the officials Of the company to
verified 10y them IT,, rs The senator
claims. the corporation is powerless TO
bring such an action Ivy reason of the
control of the directors whom he ac-
uses. Tho attorney general points Nut
further the powers of the superintend-
INT Of insurance ana that the law pro-
viGcs 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 70 prove the
kind of action which Senator Bracket
asks him to bring. lie docs not decline
to bring the action nor TO act on Scna.
,or Rrackett's petition, but states that
10 will finally determine the urs 10
he pursued when all the facts are prop
crly before him.
in an action brought by your client
the Judgment of q court that any iii
rector was guilty of misconduct. whpth-
er in violation of section 80 of the in
surance law or of any duty. would nee
,ssarily he followed by an action
~ ~ ~ Y W y
move the delinquent officials from of
fee and to declare them forever dis
qualified from thereafter holding any
such Office in any insurance corpora
ton.
AS you know. it 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 l,eo-
pie of the state in such Il case he must
bring the action accordingly or apply
to a competent court for leave to bring
mn action. as the case requires.
IAN the facts are now being asccr-
Fained by the superintendent of inSur-
lncc, the officer charged by law with
hat duty. The power of the superin-
tendent of insurance in such respect is
full and comprehensive. He can q
anime or cause to he examined under
path every officer and agent of an in
sUrancc corporation as well as the
books or papers relating to its bust
ness affairs. The examiners appointed
Ivy tho superintendent of insurance are
required by law TO make a full and
rue report of their examination. veri-
fcd by their oath. Such report is of
unusual Importance because the law
makes it presnmptivc evidence in any
Hction or proceeding in the name Of the
people against the corporation. its Of
fcerS or agents of the facts stated
therein.
Il think | have called your attention
sufficiently to the situation so that you
will realize that | cannot dispose Of
Your petition ut 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 tn wait until I finally deter
mine the course to he pursued. when all
The facts are before me. then | know of
no reason to prevent Won, in the name
If your client. from bringing proceed
lngS for almost every purpose which
Won seek to accomplish by your peti-
lion