The Bridgeport evening farmer., 1909-12-29
INSURANCE COMPANY
 MUST CHANGE FUND
JUDGE CURTIS DECIDES U. s. BONDS ARE REQUIRED AND MILLION DOLLARS WORTH OF SECURITIES WILL HAVE TO BE SOLD UNLESS LEGISLATURE IN TERVENES.

New Haven. Dec. 29.-A decision has been rendered by Judge Curtis of fthe Superior court in the case of Charles H. Dresser, ct als. against the Hartford Insurance company, order ing the reinvestment of the $1,0O0, 900 safety fund in U. s. government bonds. within IS months from May 1. 1910. unless the parties to the suit come to some other agreement, or unless the state legislature in the meantime provides differently. It is understood that an effort will be made to induce legislation which will allow the fund to be invested in securities TOW legal for Connecticut savings banks.
 The fund according to the original agreement between the company and the trustees in 1879, was to be invest ed in U. s. government bonds, but the general assembly in 1899, passed an act allowing the fund to be in vested in other securities, and this was taken advantage of by the trus- tees, because of the larger income to be derived from the fund in that way. Later. however, the act referred to was declared unconstitutional, but the securities have since remained invest ed in various securities other than U. s. government bonds, avera ging in the neighborhood of 8 per cent. in come.
 The memorandum of the decision reads In part as follows: That the mortuary fund is a reasonable, proper and necessary fund for the insurance company to hold, and that any excess Tn such fund over the amount of the last four quarterly assessments. should be distributed to the certificate hold CTS as a diminution of the assess ments." And further:
 That in the conduct of the safety fund. the Security company (of Hart ford trustee. was not required to es- tablish sinking fund to liquidate the premium paid for the U. s. bonds, in which the fund was by contract to be invested That the absence of a sink ing fund increased the net income payable to beneticiaries-
 That the investment by the Secur- 1ty company of the assets of the safe ty fund, under the act of the general assembly of 1899, which has been de- clared unconstitutional. in miscellan- eous securities of the par value of $1,0O0,000, has resulted in the pay larger amount of money than they would have received if invested in United States bonds. But the secur- ity company must be held to the ob- ligation of investing the S1.000,O00 in said bonds If the miscellaneous se- curities now held as the assets of said fund are sold for greater sum than the $1,0O0.000, then the excess so de- rived shall also become a part of the safety fund and the said security
 
 cellaneous securities and invest the proceeds in United States bonds. the excoss to be credited to the principal of the safety fund. and if there is any balance in the principal of said safety fund over the amount of $1,- 100000, that balance should be re- turned to the insurance company in diminution of the assessments, unless said S1.000.000 par value of United States bonds are purchased for less than s1.000.00o: then the difference shall be held as part of the principal of the safety fund and deposited in a savings bank"
 In another part of the decision. which in all fills IT good pages. it is also ordered that the E per cent which the Security company of Hart ford. which has been acting as trus- tee and manager of the safety fund has been allowed as remuneration, must be reduced. The court also or- ders that the company make a re- port to the court of the transactions ordered in the decision, at future date.