New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-30
NEW INSURANCE MOVE.
Supreme Court Decides POLcyhOld-
ers May Sue for Accounting.

IfNthe decision which Justice Kellogg. OF the su-
preme Court handed down yesterday, upholdihs
the right OF A policyholder to life Insurance.
company without the cooperation Of the Att'i'io'
General is sustained in the higher courts, the 10
cal insurance situation is likely 20 be speedily con-
plicated by suits from number OF DIX p'i'Ny
holders against companies with whicn theS "I
els satisfied. The case before Justice hehoeb "'
that Of Mary NJ Young. a stockholder ana poi'-E
holder. against the Equitable Life Assura .,
cictv. She alleged that the officers ana oi's''''7
had Improperly performed their dunes' anu
nanded Judgment for the waste comini''eu nc
Equitable denurred on the ground tha' SUCH -
could not be begun without the assistance OF the
Attorney General This demurrer was overruieo
and the opinion given that the polcyholoer mas
the right TO demand proper accounting Oh inc
company's funds.
ATTORNEY General Mayer has already begun
s,,ir AGAINST the FouitabIa but not Mrs. Young
behaf or AZ her instieation. He has given notice
70 the Nev--York Life and the Mutual Life COM
7anies that II their respective housecleahhg com
mftees do not take definite and satisfactory acuoh
within a very short period he will bring suits
against them. They are to have chance 10 clea'
up their affairs from within. A number Of object
ing policyholders not satisfied with this pan
at the time the Attorney General announced IT.
Il Is possible that in view OF Justice kellogg de-
cision they will take matters into their own hands.
Justice Kellogg points out that this action was
not one OF a policyholder 10 recover on her policy
as were the Swan and Greeff actions, when are
frequently cited. He declares that the Ill-woTded
statute on this insurance point does not bar the
institution OF the suit Of any pocyhoider. what
is barred is an order judgment decree Of a par
ticulsr kind. The only relief demanded by Mrs
Young was an accounting by the corporation
The justice declares that the interest Of policy
holder a mutual company is very similar TO that
Of a stakeholder and he has the rights 10 an
interest ln the corporate funds. to compel proper
management and TO the collection OF assets di-
ycrtcd, precisely as an ordinary stockholder has
such rights.
II was said at the Office of the District Attorney
yesterday afternoon that Charles O. Mott, IT. act
iug District Attorney. and T. J. kresel. Assistant
Deputy District Attorney. had completed arrange
ueats for an investigation OF the books and other
documents Of the Mutual Reserve Life Insurance
Company. and that d demand would be made upon
the officers Of that company for such hooks and
other documents without delay.
Tomorrow promises to he the busiest day the di-
TeCfOTS Of New York insurance companies have had
for some time. There Will be regular meetings Of
she boards Of the Equitable and the Mutual Lie,
and UrOba bly, a special meeting Of the NeW-AO rk
Life. 10 consider A preliminary report from the
housekeeping committee. headed by Thomas =.
Fowler. The TrIesdale committee Will likely have
interesting matter for the consideration Of the
Mutual Board. and. II certain things come TO the
surface. the meeting will be stormy. Some official
changes VIII undoubtedly be reported, after the
Equitable directors finish their session. The resg
nation Of Senator Depew from the board, which
has been IN President Morton's hands for some
time VIII be taken
Wednesday VIII also see meeting Of the Arm
strong committee I'm Albany when the chief feature
Of the report viii be gone over. The report may be
presented % the legislature a week from to-day.