Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-06-26
COURT REFUSES TO DISSOLVE IN
JUNCTION AGAINST MODERN
BROTHERHOOD OF AMERICA.
RULING TO PREVENT IN
CREASED RATE STANDS
Temporary injunction 10 Modified to
Allow Members Who Want ia Aeespt
New Policies % % So-company Al.
lowed 70 Withhold Amount Of A..
ssssmsnt in Death Claims.

Old holders Of policies Of the Modern
Brotherhood OF America won prelimi-
nary victory over the company. which
they had enjoined from increasing the
rate for certain class Of policies.
when Judge B. F. Cummings Tuesday
denied the motion Of the company:s at
torneys to dissolve the temporary in
junction. The courts ruling was made
at the end Of two days exhaustive ar
guments for and against the motion to
dissolve.
The temporary injunction was, how
ever. modified to a certain extent. but
Judge Cummings refused to disturb his
earlier order which prevents the COM
pany from establishing liens against
the policies of old members, the amount
of each lien representing the difference
between what the company had
charged for the Insurance and what 1t
now finds 1t should have charged.
IA Order Remains Unchanged.
In all its substantial features. for
which the policy holders were contend
ing. the order remains unchanged. 1t
was modified to give any member who
desired to do SO the right to change his
policy and accept the new rates and 1t
removed the restriction from the COM
pany that prevented 1t from changing
such policies. The order was also mod
flied to allow the company to withhold,
in settlement, assessments under the
new rate against the policy holders
who die pending the final adjudication
of the case.
The order Of the court is:
1.-The motion to dissolve the tempo
rary injunction is denied. The injunc-
ton heretofore ordered is now modified
to this extent: Any member OF the de-
PENDANT association who desires to
change his policy and accept new rates
of a new policy with the consent or
solicitation Of the association shall
have that privilege and the order here
tofore made shall not restrict the asso-
citation in that regard. Further, the
association may withhold such amounts
as 1t has assessed against various poll
cies until the determination Of this ac-
ton in such death losses or other
claims on policies as may occur pend
ing the fnal judgment in this case.
Plaintiffs and defendants all except"
The plaintiffs are given the right to
file any reply desired up to twenty days
before the opening Of the September
term and the defendant company may
file further pleadings up to five days
before the opening Of the September
term. =1e
| Affects Many Policy Holders.
It is quite probable that the courts
ruling on the~motion to dissolve may
be appealed. or II not, II IL certain that
the ruling on the application to make
the injunction permanent. which will
probably come up at the September
term. win be appealed.
The case grew out Of the attempt
Of the company to change the Sorm OF
certain Of the old policies carried, II
has been declared. by 10000 members
The members were given the option OF
paying a So called reserve deficiency
assessment" in cash, or allowing the
| assessment to be established as lien
against their policies. the lien with in
terest at per cent per annum. to be
deducted when settlement was made al
the time Of death. The reserve de-
fciency assessment" amounted to sew
eral hundred dollars on each policy.
The policy holders who brought suit
were John Heisinger, q. D. Sweeney
Charles Sandvig and William E,
DERRICK. all of this city.