The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1870-12-24

Insurance Humbugs.

4uBuI0uC0 dumDu
We desise to warn our readers against the
thousand and one bogus insurance companies
which, in spite of injunctions, DEGREES of
courts, their bankruptcy, and failure to comply
with the law requiring security to be depos-
tied at Springfield, are doing business in this
state, and We especially warn them against the
co operative and similar humbugs. Attorney
General Bushnell has cloeed up scores of them,
and is after the others with rs much vigience
as possible, and though he gets them legally
debarred from our state, yet their agents steal
in and go about among the farmers, and by their
plausibility and pretensions Of cheap rates,
great headings of figures representing millions
of dollars as capital stock, manage to swindle
the unusspecting farmer and second rate bus,-
ness men into taking policies and paying
money for worthless piece of paper!
Agents are about the country representing
the cooperative plan and securing policies
These companies have not complied with our
state laws besides the plan, As they have got
ten it up, is failure in itself. The plan is
this: A number Of people form themselves
into society, and pay an entrance fee of $40
and an annual fee of 50, and agree to be as
sessed to the amount of 81 on the death of
each of the members. The first year the deaths
will be but few, perhaps five or six in the
thousand, comprising that particular class or
thousand. The insured pays his $40 inta-
ton fee, 81 assessment for each of the five,
making s. more, and 81 as his individual
assessment, making in all ST. But the next
year it INCREASES, and so on, in a sort OF
geometrical progression. Young men will not
wish to Join with middle or old aged men.
and the thousand will become much reduced ;
the income from assessments rapidly diminish.
ing every year, and each year the amount of
premiums on deaths swelling enormously,
until the whole thing explodes, before third
of the original members will have died and
their families obtained their premiums
while the remaining twe-thirds will be the
holders of policies which have cost them
thousands of dollars in defunct company
This is cooperative insurance in 'nut shell"
This methsd Of insurance has been con
demued by the Insurance Commissioners
-(officers appointed by law to guard the
people against Insurance swindles) Of Mass
achusctts, Ohio, Kentucky, Missouri, New
Hampshire, Californian, Rhode Island and
Illinois.
Here are extracts from their reports, on the
cooperative system. Commissioner Clark of
Massachusetts, says: It would seem that the
disastrous experiences of England and Ger
many, in the swindling results OF such rotten
and ephemeral schemes cooperative ms
ought to suffice for the protection of our own
people" Commissioner Miller of N. Y. at
the cooperative planD is well calculated to
deceive"
Commissioner James II. Goldman, Auditor
of the state of Ohio, says: "All past cxper-
fence has demonstrated the fallacy of co eper.
alive insurance.
Commissioner Smith of Ky, calls it "a snare
and dcluson,"
superintendent King of Mo. bears testimony
to the same fact. We could quote several
others, but forbear, as we have given enough
to put the people on their guard.
We again warn the people against itn-
Grant agents, for either life or fire Insurance