The Sun. [volume] (Price, Utah) 1915-1932, 1915-06-25

Justice A. E. Sutherland Of Roches-
ter. n. T.. has handed down a deci-
sion affirming the report OF Referee
Peck In the action brought by the
Skaneateies Paper company against
the American Underwriters Fire In
surance company. The decision IN OF
the utmost importance. and In Onon-
daga county alone Indirectly affects
ten thousand policyholders OF mutual
fire Insurance companies The SHANE
ateies Paper company held policy Of
Insurance In the American Under
writer's company. There was n fire
az the plant Of the paper company. but
before u was paid the Insurance COM
pany went into the hands OF re-
cciver.
The Skaneateics company then
brought action Co recover the amount
of the Insurance from the policyhol-
ders and the decision OF Justice suth-
erland IL on the report OF the referee
IN this action. referee Peck found
for the plaintiff but attorneys for the
policyholdern objected 60 the report
being confirmed. The matter OF con-
flrning the report was argued before
Justice sutherland.
twelve hundred policyholdcra OF the
company. many OF whom reside In on
ondaga county. John n. Hicks IL re-
ceiver for the Insurance company. and
he II directed by the court Co levy an
Assessment on the polioyholdora Co
make up deficiency OF twenty-five
thousand dollars The assessment n
on the premiums OF the poilcyholdcra
and amounts Co f2.30 on each one dol
lar premium. There were two thous-
and actions against poiicyholdcru held
up pending the decision IN this case.
The case has been hard fought. aud
there have been many Intricate ques-
tons % law involved. II n probably
he most important ease affecting mu-
tual Insurance companies that has
ever been brought Among the flnd-
lngn In Justice suthcriand's decision
are the followingi
All persons holding policies at the
time OF the making OF an assessment
or the appointment or receiver and
all policyholders whose policies have
not been actually cancelled are liable.
poiicyholder @becomeH "a member
OF n cooperative or mutual company
by accepting a policy In such company
without Higniny a written application
OF undertaking
The liability OF the poncyhoidor ac-
crncs when the demand or assessment
n made.
An assessment can be made upon
members OF the company for debts
due and unpaid hy way OF notes or
Judgments FOR two years prior Co the
making OF tho assessment
The flat rate premium. n charged
By the mutual companies. does not re-
lieyo the member from liability Tor
his pro rata share OF the debts
No legal or effective cancellation OF
"A policy ran be- made while unpaid
debts exist. without payment by the
poiicyholder of his pro rata share of
the debts
where policy expires By ia term
before any assessment II made or de-
mand for payment OF any pro rata
share OF the debts the pollcyholdcr il
not liable.
The sun gives publicity 10 the above
that buyers af insurance In this sec
ton OF Utah. or anywhere else for that
matter. may not be "stung' by sumo
agent that In offering mutual protec-
ten" at any old price.
The Northwestern Mutual Fire Of
Seattle. Wash. ID attempting TO place
business In this field through a Price
agency. II would be well for those 10
whom the same II offered 10 decline
the same.
There are any number of reliable
fire insurance companies doing bust
ness IN this field that promptly and
equitably adjust their losses when the
fire comes As much cannot be said
for the mutualh