Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1909-01-07
THURSDAY. JANUARY Z. 1909.
SOME POINTS IN THE CASE OF
Hon. VIM. ii. Lakin vs.. Changers
Insurance Co of MiddletOWn.

Upon petition of Mr.. VIM. H. Lakin,
of jefferson, this county, the Circuit
Court issued an order, signed by Judges
Worthington and Motter, restraining the
CHANGERS Mutual Insurance Co. of Fred
erick County, from prosecuting suits
brought by it before Justice c. H. Eek
stein against Mr.. Lakin for the payment
of assessments for the year 1907 upon
premium notes given to the company by
Mr.. Lakin to secure insurance upon prop
erty belonging to him.
''In the bill asking for the injunction,
the court was asked to restrain the COM
pany from proceeding with the prosecu-
ton of the suits pending the determine
ton of suit brought by Mr.. Lakin. at
the same time with the filing of the pc
tition for an injunction, to compel the IN
surance company to distribute among its
policy holders surplus fund of approx
mately $40, 900 which it is alleged to have
accumulated.
"In the bill of equity filed by Mr.. La,
kin's attorneys, Coblentz 4 Waters and
Urner 4 Urner, it is alleged that this
trary to law. 1t is claimed that, under
its charter, the company is empowered
to collect assessments only to such amount
dS may NC hSCuSu w pay ito SHPShSSs 90,
losses actually incurred. Mr.. Lakin, it
is stated in the bill, refused to pay the
assessments for 1907, when presented
with bill for the same on January !,
1908, because he had during the proceed
ing year learned for the first time that
the company was levying assessments in
excess of its actual needs for the pay
ment of expenses and losses and was ac-
cumulating surplus.
ut is also alleged in the bill that in the
past the company has allowed policyhold-
ers to drop out, without enforcing the
payment of sums due by them, and that
therefore the assessments of the remain
ing policy holders have been heavier than
they would of necessity have been II all
policy holders had been required to pay
their proportionate shares Of expenses
and losses.
"Mr. Lakin asks for an order requiring
the company to distribute among its pol
icy holders the surplus fund which 1t is
alleged to have accumulated.
ut is stated in the bill that the COM
pany, according to its last statement,
holds premium notes amounting to $685.
ll0.47. Mr.. Lakin has given it four notes
amounting to $727.5O.
"The Changers Mutual Insurance Co.
was Incorporated in 1876 - Vdtley Reg
1ster.
According to the Register an official of
the company has the following to say re-
garding the suit:
"Asked by the Register for state
ment regarding the suit, representative
of the company said that they are doing
business within the provisions of the char
ter, and in conformity with the laws of
the state, the same as all other compan-
les. The Company, he said, has pub
lished statement every year, showing
its condition as we'll as cash on hand, in
two newspapers published in Frederick
county, and for Mr.. Lakin to say that he
was ignorant of its condition. would indi-
cate he does not read the papers. Suit
was brought against Mr.. Lakin because
he refused to pay for 1907 and in the
event of loss during that year, the com
pany was bound to pay it and was unfair
for some to pay and not others. To make
collections to pay each loss as it occurred
would be absurd, as during 1907 the com
pany paid SIS losses, some as low as 81. so
and to make collection from nearly
$1,000, 900 of insurance to pay 81. so is
another absurdity. To wait until the end
of the year and then collect could not be
done, as its policies provide for payment
to Oe made so days after loss. That
plan would require some losses to wait
near y year for payment. The direc-
tors believe they have done their duty in
bringing the suit.
1t will be remembered that Senator
Matthias introduced a bill in the Senate
at the last session of the Legislature,
which sought to amend the charter of the
company, the principal change being to
enable the company to have surplus
fund not exceeding $4,000 The section
regarding this feature is as follows:
article 6. The Board of Directors
Shall have power to regulate the duration
and time of all of it's policies, the rates
of insurance, and the amount of premium
notes to be taken to fix the amount of
annual interest on the said premium note
mot exceeding six per cent out of which
to pay the losses, expenses and assess
ments incurl ed and assessed by the COM
pany during the proceeding years, and to
create and maintain surplus fund of
such amount as the said board of direc-
tors may deem expedient, not exceeding
poo,UoO, anu W chtCuJt IHc NdIlOuS ptO-
visions of this chapter, and to do all nee
essary for the well being and good man.
agement of the affairs of said company
consistent with the law of this State
This bill passed the Senate but failed
of passage in the House. 1t promises to
be very interesting piece of litigation,
as it will require the auditing of the
company's accounts covering pc riod of
years, in order that it may be determin-
ed as to what extent, if any, the compa-
ny has charged its policy holders more
than enough to pay losses and expenses.
A Religions Authors Statement.
For several years | was afflicted with
kidney trouble and last winter was sud
denly stricken with a severe pain in my
kidneys and was confined to bed eight
days unable to get up without assistance
My urine contained thick white sedi-
ment and passed same frequently night
and day. | commenced taking Foley's
Kidney Remedy, and the pain gradually
abated and finally ceased and my urine
became normal. cheerfully recommend
Foley's Kidney Remedy. DR.. Jas. X.
Waters.
Boy Gets Teddy Bear.
The large Teddy Bear given away by
NNicof1kav Rroc Naw Year's Dav was