New-York tribune., 1905-12-28
POLICYHOLDERS WIN.
President Mccall Ordered to Furnish
List and addresses.

L T6STO6UC VI C6 all OTdeTe0 to F1tff11Sh
Last and addresses.
An important victory was yesterday by
policyholders in the life and fire insurance COM
panles, when Justice Greenbaum, of the Supreme
Court. handed down a decision granting in modified
form the application of Clarence H. Venner for a
writ of mandamus directing John A. Mccall, as
president Of the New-York Life Insurance Com
pany, to furnish him with complete list of the
policyholders. The application charged the
pany with the political and improper use of funds.
The decision of Justice Greenbaum practically
established the contention of Mr. Venner that the
holders Of policies in insurance companies had
voice in their management. The New-York Life
was, in fact, victim OF its own prospectus, in
which it asserted that the pollcyholders the
controlling spirit in the company. Under the courts
ruling the addresses of the policyholders and the
amount of their policies must be furnished Mr..
Venner. who is the senior member of the banking
firm Of C. II. Venner & Co.. at No. 80 WalI-st..
and holds $4,000 policy. payable next year.
Justice Greenbaum held that the policyhoIders'
right to vote analogous to that of stock
holder of stock corporation. Nor did he doubt,
said the justice. the law right of policy
holder Of a mutual company to inspect the rolls Of
the policyholders that full opportunity might
be offered for conference with other policyholders
in the matter of the election of officers of the
company.
NIGHT STOP RIGHTS OF DISCUSSION.
a denial of this right, the court said, might
suit in the deprivation of the natural rights of
discussion with other members as to the personnel
of the trustees to elected prevent the ousting
incapable and dishonest trustees by of their
opportunity of utilizing the membership rolls to the
exclusion of members.
1t is not unlikely that similar action will be
taken by holders Of policies in other companies.
The petitioner alleged that the sole purpose Of the
information is TO enable him and other policy
holders to cooperate effectually In the annual
election Of trustees Of the company to be held in
April next.
Mr. venner said last night of Justice Greenbaum's
decision:
ton for a mandaInus My fight is against the Nc Nc
have to eo George W, Perkins has already re-
signed as vice-president of the New-York Life: but
compan % The decision Of the court is the first Of
55 kmP nasmxc6 that gives the
in A life or fire insurance company voice IN ltS
the Appeal Of the company, which it will probably
make, is decided.
RATHER FEEBLE FIGHT.
The New-York Life made rather a feeble fight
against the application of Mr.. Venner. who was
backed by ninety polcyholders. 1t declared
that he sought improperly advertise himself by
obtaining either the election of himself or some
.subservient tools on the board of trustees.
Justice Greenbaum said in his decision:
Assuming that such was the case, it must be
piisRed unless we also assume that sufhcent num-
ber of the seven hundred thousand poIlcyho
merge their sef-interests and are not possessed OF
enough intelligence or Judgmeht IN everytls' mn @ anu
be attempted to be improperly eXerted upon then
by Mr.. Venner-
In his unusually long decision, Justice Greenbaum
saws of the opposition to the application of Mr..
Venner for permission to inspect the records OF
the company:
poicx5oIsr in !; mutual company is not entitled
to an inspection Of its records and that if the court
has mower iSst3e the writ its sound discretion
viii not warrant it, 1t is argued that the relation
fractuPa Pr measured by the terms Of the policy and
that trust relationship exists between them II
status of the poicyhoGer toward the company is
presented. 1t appears TO pc undlsputed thaI me
New-York Life insurance Company has no Gap!iaI
of chatter each holder of life INSURANCE
pocy fio and ~ is entitled to- vote at every reelec-
ton of trustees thereof ,
is denied that in circular recently issued
vote for $ at e1fh eeeon @ b Is yofn
at the annual election for trustees policy
of the relationship between a policyholder and
mutual company In other respects. the right Of
stockho:der Of stock corporation
nre9 f9e Of m embershp that is its poeyRoders
What, them are the rights of these members these
poicyholders in the exercise of their power 10 vote
remains only 10 consider II the petlIonerS are
acting in good faith and with proper motives. In
support of this contention respondents refer to
numerous unsuccessful suits and proceedings
against divers corporations which the principal
petitioner {Vennerl has figured. and in WHICH 1t Is
alleged the judicial utterances c6ncerhng him
justify the conclusion that he is one who stirs up
strife and that he is unworthy of consideration
CHARGED WITH WRONG USE OF FUNDS
on the other hand. the petitioners charge the
present mana cement of the NeW-York LIE In
surance Company with Illegally employing the
company's funds for political and improper uses
and in schemes designed TO benefit certain trus-
in their individual undertakings. II seems 10
me- however. that neither the alleged character
Of Venner nor the alleged maladministration the
part OF trustees is 10 the
Immediate question before the court
Justification for refusing the inspection Is also
based upon the serious business inconvenience that
would result thereupon to the company. by reason
of the fact that the only records Of the company
which have and addresses Of the policy
holders, are cards, which also contain informa-
ton as the amount Of the policies the premi-
urns the bene6caries etc II Is urged that such
inspection might work serious injury to the re-
spondent company. 10 the advantage OF rival con-
panies who might avail themselves Of these lists.
permission TO Inspect the cards would
operate as breach OF tke confidence reposed in
the company by policybciders. who regard such
information confidential.