New-York tribune., 1907-12-11
POLICYHOLDERS FIGHT.
OPPOSED TO METHODS.
Mutual Reserue Life Said to Haze
Big Deficit.

- nssr ,,yestiratinr the assets and liabilities OF
the company. This same investigator has oei
Informed 10y policy hcders that they beeNe an ~
,ern-t vyiu be mace 20 all policy hoiu'rS
-, s,.a5csep, To make up this deficiency before
fne ror9r, Of State Superintendent oil Ihsi S
,s issued ID that should report be mace de-
clarinc the company lnSolFeh1 A. cd'i De 9iio
thar A. really .s
some hint OF this was given yesterday at a meet
sug OF the pocyhoider in the Mutual Reserve
Building daring conversation among those present
aud when William Hepburn Russell. who repre-
sentcd several hundred policyholGers. intimateo
that the company insolvenI.
The meeting, supposed TO be one OF 2ocyholders'
resolved itself into By John B. Stanchheld,
his orders being carried oCt by the president ol
the company, Archibald Haynes. who occupied the
chair. "Overruie it, said Mr. Stanchieid. when
q policyho made a motion, and ''oVerruieu.
said Mr.. Haynes. The meeting developed no httle
acrinony, in the course OF which Mr.. Stanchheid
accused Mr.. Russell Of having been endeavorins
for years get the company into the hands OF a
receiver.
That's just what we want shouted several
policyholders.
The officers Of the company refused TO admit
.hose bearing proxies until they had put their 20
X" on the proxies. This. the policyholders con-
tended their right the right Of the officers
but they had TO content themselves with the con-
tention The meeting had been called originally TO
have the policyhoders vote on an amendment to the
bylaws which will allow sweeping assessment, an
assessment large enough to meet whatever de
fcSency there may be. This assessment, under the
amended bylaws could be laid policyholoers Tor
death claims accrued liabilities and lawful reserves
In addition of 12l5 per cent, to allow
for -'shrinkage' the original assessment. could
be levied under the amended bylaws The assess
rnents would become a lien on the policy. In such
case man who had policy for slWD and had PAID
that amount already in premiums and regular as
sessnents would still be Liable to an assessment
which might reduce the value OF his one-quarter or
one-half, according TO the amount OF uie aS7es@
ment-
on Monday Judge Hough. in the United States
Circuit Court granted temporary injunction ap-
pIied for by Mr.. Russell. which restrained the
Mutual Reserve Life Insurance Company. George
" Harper and James VI. BowdeH from adopt
ing the proposed amendments. and restraining
Messrs HAYNES, Harper and Bo~~den from Not-
trz at the meeting. personally or by substitutes
any and all proxies held by them The injunction
also restrained the meeting from taking any action
other than that Of mere organization and adjourn
ment.
sewe1I T Tying counsel for the Mutual Reserve,
acted as skirnisher for Mr.. Stanchheld's man
body After President Haynes had called the meet
ing TO order Mr Russell asked that the pohcyhoIo-
ers be Informed when the mail notices Tor the
meeting had been out policyholders OUTSIDE
of the CITY, 1t developed that the greater part OF
these notices had been sent out until December
3 giving policyholders in other states ana oaiidu
no opportunity decide whether they were against
the assessment plan called for by the amenorneh'
the bylaws
Mr.. Russell then made a motion that a commit
tee of three policyholders be appointed TO CO.
operate with similar committee appointed D! the
officers the Joint committee canvass the proxies
present and decide if they were entitled 10 vote
This with the approval Of the few pohcy-
holders present. Mr. Tying said that under the
ruling OF the federal court could be done
All there left TO be done. the meeting having
organized. to adjourn The meeting had Or
sanzed by President Haynes taking the chair and
saving Gentlemen, come to order Not polog-
holder had said a word about organization. Mr.
Russell called for vote on his motion Mr. Tying
said that in accordance with the decision of the
federal court there could be vote; neither could
proxies held by the officers be voted.
Mr. Russell insisted a vote; did several of
the policyhoiders A ciaque Of clerks in the en-
ploy Of the Mutual Reserve, who presumably held
proxies didn't want a vote. Then Mr.. Stanchfeld
announced that he held two thousand proxies
which would vote against the appointment of a
poIicyhoders' committee of three. Mr. Russell
challenged these proxies. saying that there was
nothing to show that Mr.. Stanchfeld had the right
TO them. That was the very point he wished
decided by the joint committee, what proxies were
entitled to vote and who was entitled to vote
them
Mr. Wilson. who holds policy for $4,000. asked
for harmony. He didn't get it. Mr.. Stanchield
shed his coat and declared that absolutely nothing
could be done except adjourn. He went
tack MIR Russell and accused him OF trying to
wreck the company
Mr. Russell put his motion again. President
HAYNES asked Mr Stanchied what he should do
Refuse put It" said Mr.. Stanchheld.
Mr. Haynes refused 10 put
Mr.. Russell then called for the appointment Of
tellers 20 the vote OF those present policy
holders and proxies.
-overruIe it." said Mr. Stanchfeld to Mr. Haynes
"overruled." said MI Haynes.
Mr.. Russell made motion for adjournment TO-
three weeks, saying that a week would allow
the policyhoders the proper time to find out exactly
what the proposed change in the bylaws meant
i've got thousand proxies vote against
that motion" said MIR. Stanchfield.
Mr.. Russell told Mr. Stanchfeld he didn't believe
Mr.. Sfanchfeld had the right to vote any proxies.
Two three poiicyholders got the floor once and
the Chair. being IN consultation with Mr.. Stanch-
Aeld aired their grievances
Mr.. Haynes explained the meeting that he had
felt his duty the interests of COM
pany obtain the best legal advice at his command
That the he asking and following
Mr.. Stanchfeld's advice No policyholder of the
Mutual Reserve could ask for anything that he
save the property OF the policyholders
M Russell told Mr. HAYNES he did not oues-
tion his conduct UP the time of the sending out
of the call for the meeting. He did question the
method CT sending that call he did oues-
tfion the way in which the meeting was being
conducted.
Mr. Russell appealed from the decision of the
Chair in refusing 10 put to vote his challenge
of Nr. Stanchfeld's proxies.
Mr. Haynes turned 10 NJ Stanchheld and said:
"Overruled.'
Mr. Russell asked tor a vote by proxy on the
adjournment question.
.aoverruled," said Mr.. Haynes
The motion svoted viva voce and the force
of Mutual Reserve clerks carried the day. Ad-
sournment was taken until next Tuesday.
II is expected that before then Superintendent
Kelsey's report the Mutual Reserve Will be in
ans that the federal court injunction Will be dis
solved at the same time a decision being given
as L. the proxies enjoined from voting.