Daily capital journal. (Salem, Oregon) 1903-1919, 1915-10-06
POLICY HOLDERS ARE
DIRECTING TO BEING
SUED BY RECEIVER
Admit That He Has Legal
Right to Collect But Deny
@MOraI' Right

While admitting that a suit brought
against the policy holders Of the Hor-
ticultural Fire Relief to collect unpaid
assessments will doubtless succeed the
attorneys for the policy holders com
mittee protest that it is entirely wrong
morally" and protest to this effect
was filed in the circuit court this morn
ing by Attorneys Oswald West and
Claude McColloch. The protest was
brought about by the filing of a petit
tion for authority to bring suits by
Harvey Wells, receiver for the de-
funct Horticultural Fire Relief of Ore
gOn.
This petition was filed last week in
the circuit court of this county but
has not yet been acted upon by Judge
Galloway before whom the matter will
be heard. If permission is granted by
His Honor TO bring suits against the
policy holders to collect the unpaid as
sessments such actions will be filed by
the receiver as. are necessary to collect
the sums due the creditors of the COM
pany.
The protest filed today says that
sucn action should not be instituted
against the policy holders unless action
is filed against the directors of the
company. Receiver Harvey Wells does
not feel justified in bringing any action
against the directors of the company
as their actions have all been in the
open and there is nothing concealed
which might be brought ont by such
action.
Ex-Director Miles, of the Horticul-
tural Fire Relier, said today: FTne
board of directors stands ready and
willing to stand by all of their actions
in the past and they have all been cor
rect and legitimate. We have nothing
to conceal and are willing to show
everything in any. court without a suit
being brought. To bring a suit would
only require money to be spent which
should 90 to the creditors of the com.
pany to pay claims. We deplore the
fact that efforts nave been made to
extract money from the receiver that
should be applied to the losses of the
company.
. For eight years we wrote insurance
at from 10 to 40 per cent lower than
the old line companies but it was writ.
ten in the policy and understood by all
that the company had a perfect right
TO collect up to 100 per cent of the
premium when necessary. Such con
tingency mas come up by the receiver.
ship and the people shohld pay accord.
ing to their contract and they would
see it in this light, too, if they STONED
to consider that the Horticultural Fire
Relief s lower rate saved the people
or the state $250,0O0 in eight years. -
The protest is purported to be made
in behalf of the policy holders against
the receiver S request for authority TO
Drlng suit against the policy holders
Tor unpaid assessments without at the
same time taking similar steps against
the officers and trustees of the com.
pany by whose fault the present finan.
cial condition has come about.V
The protest continues:
No question is or has been made
put what the policy holders are liable
Tor losses and debts of the company nm
to 100 per cent of the board rate. and
II suits are brought, collections can.
without doubt, be enforced But. NOR
ally, it is entirely wrong to take sucb
steps without at the same time callino
TO account those officials of the com.
pany, under whose direction and con.
troll the funds of the company dwindled
from sufficient assets to meet All oh.
hgatiions, to a fund far below the loss.
! es alone - '''9