The New York herald., 1868-11-01
A NEW SCHEME.
Bogus Life Insurance Companies.


Within the past few months some eight or ten new
schemes for nsuring lives and aTording 'pecuniary
relief during sickness have been started In different
parts OF the country. Bona tide institutions OF this
sort are exceedingly beneficial in their operation,
and, as competition would be likely to effect
a reduction or rates, any increase in their
number should be gladly hailed. It is feared,
however, that the mushroom growth which
has recently cropped up in New York. Chicago.
Cincinnati, Philadelphia and other large cities
was sown In anything but good faith; ana
should this prove to he the case 1t will be neces-
sary to trample 1t down again as soon as possible.
One suspicious fact concerning the Adventures
who have started these new schemes Is that
their mode Of doing business Ia exactly
similar to that OF the cunning Jeremy Did
dlers who so successfully manage the numer-
GUS "gin enterprises' now hourishing in
midst. The first step is to engage "temporary
place OF business" and box at the Post Oflce the
prospectus prepared and posted, he scheme is 1t
once in full operation. The following extract from
the application for membership issued By OF
these new institutions is sufficient to show the main
object OF the projectors
representing that good health With disease hsey
prove fatal and a applicant forssid mem
Fy-To pay dollars at the time OF making this appi-
SeondTo dollar and ten cents upon the death OF
each and every member Of my section within thirty days
Thiaro keep the association informed OF my place OF
residence and IN OF absence from change Of
dencc appoint some one to act agent 10 OF
Failing to observe any above rules hereby forfeit
all claims sgans, and all money previously paid to the
citation.
The prospectus states that the association il dlyi
ded into iive sections for men and vo sections for
women" and that when these sections are filed five
new ones will be adopted. Each section Ia To con-
tain 5000 members and "men and women are not
allowed IN the same Section" Section includes all
persons between the ages of fifteen and twenty-five
so on down to r. which contains those between hfty-
five and sixty-lve.
manner and In view OF the peculiar weakness OF the
gentle sex In that particular the directors have made
the cruel provso hat any one that IL found to have
misstated their age will ne expelled and all pay
ments forfeited To the association Each person
pays nve do.lars mpon oecoming member
longing to the same section OF which he
or she may sbe member, Each section is Inde-
pendent, having no connection with Others. MEN,
ber Of one section cannot be assessed II a member
OF another section dies. The prospectus gives the
following brief but fOrcibe illustration OF the ope
s.section 4 has 5000 members. A man dies. The
association pays over within forty days, $4,000 10
the heirs OF the deceased
The circular states that "no one, however poor,
can afford TO be without the certainty that this
citation presents. The payment Is small but five dol
lars upon joining, and one dollar and ten cents
slonally thus securing $4,000 TO his heirs The
average number OF dollars each person will have to
pay 10 receive $1,000 will he $50 per year little
nifty cenIs per week, sum easily saved from need
less expenses where the loss would never be felt.
This makes this method 0f insurance cost about one
sixth what would have TO be paid any regular in
surance company for $4,000 policy"
II Is To be remarked that, however careful the
framers OF the prospectus, &C. may have been over
their calculations, they were not very particular In
the matter OF grammar. First on the long list Of
advantages offered by an association formed Ito
oqnaze the burdens Of life and TO diminish It's rsks
by combining TO aid each other'' ind the follow
ing:-sNo panic can effect its standing. The funds
In the hands OF the members and are, therefore,
SAFE (1
The prospectus concludes with the following touch
ing appeas:-
You owe ~ your family, 10 you are a married man,
IN csso OF your You society for you have no
right 70 leave wife or children dependant upon the chance o
70 make in case q DEATH the payment Of your deb
You TO yourself TO secure the freedom Of peace Of
Of The Life Insurance Association Of New York
Therals wide difference between the ''illustra-
tion contained in the prospectus OF the association
and the following but then II Is TO he admitted that
they are drawn from opposite points OF view.
The association takes" Mr.. Smiths life and FIVE
dollars and informs INN that he has been placed
in section c. Mr. smith is called upon regu-
larry TO forward his dues, and Is occasional 81 n-
formed that member Of mis- section has dcpared this
life and that 81 10 ~ due 10 the heirs OF the defunct
IL remarkably unhealthy one, and calls At the Office
Of the association TO get copy of the list of mem
| bers 30 that he may check them or himself After
considerable trouble he finds the Temporary place
| Of business,r but ~ surprised To learn from the
| iantor that the manager, directors ana clerks
Halways Out.N Just as smith bepins
think things look rather queer he receives letter
| informing him that three members of his section
have died OF yellow fever ia New Orleans two been
carried on by sunstrOkc IN New yprk two others
Killed In the recent raroad disa der and that tte
sum of 81 10 is required Tor each caseiota Az 40.
This last straw breaks the cancfs back and Nv not
forwarding the required surl within tii. specified
/ time Mr. smith 'Torleis 81 claims against ana aIl
moneys previously paid to', tho - Cooperative IN
4 suraQee vgmpsuy,