New-York tribune., 1909-04-02
INSURANCE LAW VALID
SUPREME COURT DECIDES.
No Unconstitutional Determination,
Savs Justice O'GOrman.

Justice O'Gorrnsn. IN TIE Supreme Court yes'eF-
DAY upheld the consttutionality Of Section . oi
the insurance law Il the state of N=w YORK "hlch
provides VARIOUS limitations Of the amount OF busl-
ness which domestic life inx france company may
d.. ott ez eyts from the operation Of the act a
corporation than one-haif Of the Outstanding
Insurance cf which Ola December l. l@' cohslstel
Of Industrial Insurance
The suit Was brought by Charles II. Bush 10 re-
cover 2ceut's commissions from The New loFR
Life Insurance Company Bus had been an agent
of the co-alarH since 1880 and was known as d
-Nylic" ON December y. 1915. he put IN an ap-
plcsrion FOR policy of $4,000 on the life of one
Aaron Burnett. which the company rejected. noi
because Burnett not good risH, Tor ne mao
passed Saiisfactorily the medical examination nut
because il had already issued A57,"p"o "oI'h VI
policies in the of the year and had rece'
applications Cor over S5a.eAeo more. The Ia" ue
bars company from doi.,s business IN any one
year in New YORK OF over $lJoo'e"'a
The suit y as brought test case Attorney
General O-Maley interviewed claiming The consi'u
iionaIty OF the statute. Justice German say
thar H. question involved is whether The disoTnl-
nation IL arbitrary and vio!ative Of me touiteen
Amendment oI the Constitution Of the Cnll-u
States guaranteeing equal protection OF ls'' ne
says in his opinion,
While disc Elimination 30 arbitrary as 10 aN no
reason - Justify il would oneng me =, make
the Legislature has undoubted power 20 :, .a
such classification az II sees nj plo''e5SSSu 5SS eo1aI
fects equally all persons in the class i ne eILal a
protection Of the laws only requires ti!e Saiiie W
.g,1
ali the constituents Of each class, 50 that me me
law shall operate equally and unIforriI upon SI a.
persons in similar circumstances Nhlie the Legs
iature has vide latitude in classification now
ever power IN that regard is not without nm nm
itation. for the cIassihtation must have some
basis reasona bic or unreasonable other tiia IneIe
accident vhim cr caprice. There mus! oe SoiLi a
support Of taste policy. difference Of situation or
the like. some reason for It, even If II IS poor
one. ,., +h.
classification attempted by the statute has per
lnissif,le basis There IS = substantial and Wen
defined difference between corPoratlon ;s
engaged in the industrial insurance bnslh
businesses are quite distinct The classinca ION
in that respect therefore IS not open TO crlCisnl
under the adjudGed cases. While all the me m
dusrrial policies wei as the ordinary ne poi
Cies. the larger companies nave reIfaiIlen ~
nary life insurance business OF the so-Ca4L
dusJriai companies Is known 70 be inconsloeTa Se-
The conditions affecting t2e eoIpshles b1i aressior
the public policy Of the state, w1lch vas oe-
signed to place Limitation on the business OF
II is said that the reason FOR the apparent dis
elimination Is found in the clrcunsta tlat m
6ustrial insurance mas not LED 10 sucn NasS so
mutations Of capital. and does not require sach
large expenditure 10 secure business, when con
dluons have made urgent Jne IltosLlIo oi -o
lative restraints and limitations upon tAe opera
tions Of the large companies [he reasons Ioi
Of the legislative committee. whose reCommenda-
tions led 10 the enactment Of section 50 o. ne
insurance Law. The claSsihcatipn appears 70 re
Cue 10 conditions carefully examined and thor
ouEhly considered and amply supported hy the
public policies cf tse state II cannot oe sAiu-
therefore that the discrimination is based on
arbitrary selection and very presumption mus
be INDUCED in favor Of the constitutionalItT OF
the legislation.
Abraham : Gilbert Of the Law firm Of Gilbert
& Maver. No ~ Exchange Place. ATTORNEYS for
Charles II Busch. said yesterday that appeal
would he made from Justice O'Gorman's decision.
Nj Gilbert said the appeal would probably he
heard in the MAY term Of the Appellate Division