Page:Federal Reporter, 1st Series, Volume 5.djvu/444

 432 FEDERAL REPORTBK. �"10,148 ;" and below it, in print, "Doll.," and in writing, "Dec. 30, 1872, loans outstanding on Cint. Mut. policy 1789, sur- rendered, $403," �There is no proof in the case which shows what payments had been made by the assured under the policy surrendered, but by the terms of the policy it was provided that a paid-up policy should be issued upon its surrender for an equitable sum, which should be, for three years' premiums, at least $1,500. �The date of that policy was October 28, 1869, and the date of the present was the twentieth dayof December, 1S72; but payments of interest are provided for from the twenty-eighth of October, so that it is fair to say three years' premiums had been paid when this policy was issued. And, besides, the annual premiums upon the first policy were $532.90, and the amount aeknowledged as received in this policy is $1,598.70, which is the amount of three years' annual premiums. �There is no testimony in the case, outside the policy of insurance, which shows how the sum of $24.18 interest pro- vided to be paid was arrived at, or in what condition the prin- cipal upon which this interest was to be paid was held by the Cincinnati Mutual. There is upon the policy of that Company a pencil memorandum of "Loans out, $403," and the indorsement upon the policy in suit hereinbefore re- ferred to. �By the agreed statement of fact it is shown that the Union Central Life, by an agreement with the Cincinnati Mutual, assumed the liabilities of said company upon all its outstand- ing policies, and that in pursuance of said agreement the policy in suit was issued. The issuing of the new policy must, therefore, be treated as if the Cincinnati Mutual had issued to the parties a paid-up policy for the amount specifled, for this policy is in fulfilment of their contract. If, at that time, the Cincinnati Mutual held the notes of the assured for a part of the annual premiums of the three years, and instead of requiring their payment transferred them to the Union Central Life, who, in issuing the new policy, instead of re- quiring their payment, agreed to treat them as a loan upon ����