New-York tribune., 1909-02-18
WASHINGTON LIFE SUIT
TTCTORT FOR RUSSELL.
Justice ErIanger UW Appoint Tenn
pormy ReceiUers for ASSETS.

Temporary receivers for The property in this
,.e-e OF the Washington Life Insurance Company
vii be appointed tomorrow by Justice Erlangsr.
Who granted yesterday William Hepburn Russelrs
,--73cs1ion as a poicyholder. for a temporary in
.grc.ion restraining the Pittsburg Life and Trust
company, which has acquired a majority interest
IN 4he stock OF the Washington company. from
--ox1nE or IN any way disposng OF the assets Of
.rs washington company Mr. Russell has made
m application 10 have the Washington company
declared insolvent and the receivers be appoint
e VII be charged simply with the conservation Of
is property and interests pending the trial OF Mr.
RusseIrs action for permanent injunction
The PittsbuFg Life and Trust Company removed
al the assets Of the Washington Life to Pttsburg
after assignment had been made Of the latteT's
,--rerrv and claims, but forced to return
tr-rn action being taken by the state Insurance
Department. Mr.. Russell desires to prevent the
reinsurance by the Pttsburg company Of all the
polcies Of the Washington Life and the abso-p-
-io- by the Pittsburg concern Of the reserve and
other assets Of the New York company.
TIE Pittsburg company contended, first. that Jus
-ice Erlanger had jurisdiction owing to failure
70 serve papers II, and. second, that Mr. Rus
sol had TO right TO sue as a policyholder being
ti-arly creditor whose claim not in judg
r,eut Mr.. Russell is sustained in both questions
by Justice Changers opinion
Tie gist Of Justice Erlanger's opinion is fol-
lows
4 contract Of insurance implies that the insur-
srle company viii retain its assets in its own
r5ssession and continue business and If il dis
' '1epfoe llI % is exeused fro % further performance
on ais part and is obliged pay premiums 10
a company which has parted with its reserve
therefore every POlicyhOder could refuse TO con-
tirue paying premiums. and the assignment TO the
oir-ehurg company was wholesale breach OF the
contracts Of insurance This condition is en-
rrssized when il IS considered that the company
= which the pclicyhoiders Of the Washington
-o-lrsuv are turned over IS one not authorized 10
=, -zi-ess in this state that II has engaged in the
Insurance business only since 1903. that It's assets,
Sc stated .n the last annual report OF December
: -sfT amounted TO 4S4 4oS. while the Washington
c-71s-v al that time had assets of Sls653,S42 81,
s-5 that al that time the PittsbuTg company had
insurance in force Of SZ7,l2IS1, while the business
- rre Washington company exceeded that amount
~ over S5o,eao"
Tbs opinion goes on 10 say that all the assets OF
TIE Washington company are made subject 70
claims against the Pittsburg company in connec-
rio- with its varied activities under its charter.
which include health and accident insurance.
TIE receivers 10 be appointed tomorrow will
have mower TO resume and carry the business or
the washington company until the trial Of the &C
tion
F2x-Iudee Hatch and Henry A Rubino, counsel
To- the Pirtsburg Life and the Washington Life.
ser- out statement last night, in which they said
thsr the appointment of receivers for the Wash
fngtcr LIE was not expected The statement says:
II * not difficult 10 see for what interest such re-
oevers ara TO be appointed It is an extreme IL
I7sfra-ior Of infrequenL cases where the per
sons sought 10 benefited are the receivers, ana
rot the corporation or its policyholders