New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-05-08
NO RECEIVER NEEDED
Washington Life, appellate Dir's'on
Decides. Is 1mply Protected.

The Appellate Division Of the supreme Court
yesterday by = unanimous decision reversed the
order of Justice Erlanger. of the Supreme Court
granting an injunction and giving leave for an
amendment providing for receiver % the Wash
inEton Life Insurance Company The Appellate
Division opinion finds that William Hepburn
Russell, polcyholder in the company. has no cause
of action Justice Clarke, Who wrote the opinion
Of the court, said:
If We should change what l conceive to be the
10 inco7siderat, or wicked attack by every policy
holder a result not to bc contemplated without
the gravest apprehension of the ultimate cQnse-
Quences to the policyholders and those for whose
benefit their earnings have been invested in insur-
ance.
MIR. Russell who holds = $4,000 policy in the
Washington Life appearing his counsel.
brought the action FOR the receivership ~ the in
suranc0 company the time Of its absorption by
thu Pittsburs Life and Trust Company Property
of the New York company removed 90 PITTS
burg. and Mr. Russell alleged that receivership
necessary for tn protection Of the interests of
the policyho}dors in this state. Superintendent
Hotclkiss Of the State Insurance Department sub
sequently took charge Of the Washington Lies
assets
Mr.. Russell had also asked for an injunction re
straining the County Clerk Of New York from re-
cording the deeds and assignments OF mortgages
made by the Washington Life He charged that
the merger Of the two companies was in violation
OF The rights of the pOlicyhoders He asked also
mat temporary receivers De appointed Cnat
Of the St James Building, owned by the Pittsburg
Life and Trust Company.
Justices Ingraham. Mclaughlin. Scott and Clarke
in their unanimous opinion decide all the points
against Mr. Russell The opinion says:
For such alleged wrongs as the plaintiff here
complains Of there is ample power and authority
in the state officers having supervision Of the cor
pOratOn and its acts illustrated in this very
because when such state officers learned Of the
transaction and took action the SS00G0o0 Of assets
We're promptly brought back within the state.
We do pass upon the validity OF the contract
or the acts done Hereunder whether or II
beyond the chartered power of either corpora
ery before We hold squarelv that the plaintiff
has standing in court on any cause of action set
up in his complaint for any relief therein prayed
Henry A. Rubirc attorney for the Plttshurg Life
and Trust Company. said last night:
We never had any doubt what the ultimate
suit would be. We have always maintained that
the acts Of the corporation subject only 10
the control Of the state authorities. namely. the
Attorney General and the Superint endent Of Insur
ance There can be no question that what the
companies asked was well within their legal rights
and what was done solely In the interests Of
the policy holders and for their benefit ana pTotec-
ton"
William c. Baldwin. president OF the Washington
Life Insurance Company. said:
The savings in the item of officers salaries
alone as q result OF the merger Will be approx
1nately So 90 year; the saving Of rent approx
Inately $1,000 general operating expenses at
least rs 600. and assuming that a reasonable saw
ing is made in the, securing OF new business it IS
apparent that the pocyholders will be benefited in
the way Of lower expenses to amount equal to
at least the entire dividends they received in 1898