The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-08-01
|I6T 10 INCREASE
ASSESSMENTS INNATE
REVIEW OF LITIGATION.
nv w. NJ. RacxERs.


A recent decision of the supreme
Court Of the United States Is ~ IN
.crest TO members OF all fraternal
Beneficial orders.
70 summarize the record. declara-
ffon and decision, one Samuel Green,
4 member OF De witt Clinton Council
No. 4Is. OF the Royal Arcanum, In
the state OF New York, brought suit
IN a court of his State against the
Supreme Council of the Royal Ar
canum, aSsailing the validity OF an
adjustment OF the insurance rates OF
his order whereby sle was required TO
nav an increased assessment amount
and that the plaintiff he decreed to
have a contract right" TO pay only
preyious assessed sum and that the
corporation and It's officers be enjoined
during his life from exncting any
greater sum or in any way suspend
ing him from refusing to pay the
amount filed by the latter assessment
TIE court held that under the law
IF New York. as certificate holder
the complainant had a contract which
entitled him 10 prevent any increase
or rate over that established in 1898.
50 far as the laws of the State OF Mas
"a chusetts tupder which the Area
mum WAS cSArtered) Il was declared
that although. u governed by that
law. the assessment would be valid.
s.as the complainant was member or
d subordinate council existing in the
state of New York. and doing bust
meas there The rights of the mem
bers were controlled by the New York
law wholly irrespective OF the Law OF
Massac husetts."
Goes TO Court OF Appeals.
The case went 10 the appellate
Hfvision OF the second department. the
court holding that the amendment
~ TO rates was not ultra wires OF the
corporation, hut on the contrary was
within Its powers and violated no con"
rAct right of the complainant"
8s The case then went to the Court OF
appeals OF New York, where the tudg-
meYt of the appellate division was re-
versed, and that of the trial court af-
fsrmed on the ground that "ths law
% New York governed and established
under the circumsta noes disclosed the
right Of the complainant to the relief
which had been awarded him"
The case then went up to the United
States Supreme Court, and on June
III Chief Justice White delivered the
unanimous opinion of the court re.
verrirg the decision of pae New York
Supreme Court and thus sustaining
the right of the Arcanum to make the
adjustment of its rates in 1905. The
opinion is lengthy and exhaustive
one. from which we quote the follow
ing paragraph:
.Coming then TO give full faith and
credit 10 the Massachusetts Charter
Of the corporation and of the laws of
that State 70 determine the powers
OF the corporation and the right and
- - Ca
room 70 doubt that the amendment
10 the bylaws was valid, II we ac-
cept, as we do. the significance OF the
charter and the Massachusetts, law
Applicable 10 1t as announced by the
Supreme judicial Court of Massa-
.ausetts In the Reynolds case"
Aroanum Faced the Issue
The original rates of the fraternal
fnsurance order were generally made
quate. and wise Judgment decreed
that II was 10 the interest of al con-
cerned 10 adjust the rates 10 an ade-
quate standard The Arcanum was a
conspicuous example of bravely fac
ing the issue, and the result has win.
sicated the wisdom of its course.
This order alone has paid 10 the
Widows and orphans of deceased mem.
beers over one hundred and eighty
millions of dollars, and the total
amount thus paid out by all such
fraternities In many times this sum.
The rate question has long ago
ceased to be a disturbing factor among
the membership OF these orders, and
the unanimous decision OF the Su-
preme Court. on a case which has
lust reached e. Is of interest as prov
Ing that whSn man subscribes TO
the constitution and bylaws of an
Assessment order which provides for
amendments thereto. necessary ad-
Justment of the assessment rate duly
made within the legal scope of such
orders powers is not open TO jusr
complaint, although such adjustment
may Increase his rate. He is In eff
feet. and. in fact, a party 70 the ad-
justment.
1t la of interest TO note t1at the
court severely rehuked some asper-
saons by the defeated counsel in their
briefs. and ordered the briefs con-
tanning them TO be stricken from the