, 1874-01-25

snd GO. Each pe<son also becomes
tho owner OF ono or more
Memberships in such division, paying on
each membership according to tho terms Of the
policy as the consideration OF said Insurance.
Gould thus owned four memberships. Each
oerson Was obliged to pay 80 deposit on each
membership towards fund for the payment OF
3eath losse. that might occur, and became liable
20 further assessments according to the terms
If said policy. The sums eo raised were epe-
aaliv kept for the payment OF losses on policies,
and whenever person died, an assessment waB
mad5 By the Company. and collected, to be ap-
Piled on the loss under such policy
The policies issued to Gould were each certi6-
Gates Of two memberships. They recited that,
in consideration of S27, aud OF the additional
sum Of 81 deposit to pay for losses on his MEM
berships, and Of the fut tner Sum of $40 to be
paid annually, and the additional payment Of all
assessments Of $3.50 each (being S2.20 on each
membership, the Company made Gould men-
hor with two memberships in the reciprocal
department" so-called, of the Company, and
further agreed that in case OF his death it would
pay LIS representatives 80 for each membership
In lhe division and ee1ies in which eald
policies wero respectively issued, who had
made q deposit for the payment OF such
Three years from Dec. 81, 1871, that ut least
$200O should be paid on csoh Of these policies,
hnd that, after that time the 5000 for each men,
berehp received On oeposit for death losses Of
two memberships should be paid. It was also
agreed lnat, i any member died, and tue pay
ment o1 his policy would reduce the amount
deposited to the credit Ct each certificate TO s.
m assessment should be mado OF ~ 40 Oil every
membership in the class as u standing deposit
to pay the next death losses.
Mr. Gould died on the Sd Of September, 1873,
having complied with all the Coulpaay's rules,
ard paid all assessments. Comp'alnants charge
that q considerable sum OF money had been col
Iec:ed ct the time Of thar fathers death appIc-
~, kef1 ftr
death assessments wore made for that purpose,
so that the Company has actually had at 1oasr
$500 in it's hands ior this purpose. Payment
bas been continually cskcd, and continually de-
tsEzsa the c9,o'ay y 1afy sgT ou1 at tie
has rlisapplied tie funds received, and
fraudulentiy neglected to pay them over. Com
pluinauts also charge that the Company or its
oficers haze used the funds partly in erecting an
ex1avagant building in q poor location, from
which little OF no revenue is derived, partly by
loaulnE it to various parties, including the OFF,
GERS, on insufficient security, and partly by pay
ing tie salaries of officers and The interest On
permitted to fraaduleutly withdraw their stock.
or portion thereof, when the Company was
greatly indebted, and have f1auduleutly with
held payment OF their Subscriptions. There are
t1e officers refuse 10 tell anything Of the condi-
tion of the Conn any It is claimed that the
State Treasurer has 100000 specially payable
for death iosses- Complalnants allego that it
the assets had been collected, or the assess-
r.en:s, Ibis policy coulu DC paid III full, aud, if
euca is not the Gaze, it is the fauls Of the ofh-
CO.'S: teiuaudo souss, PRESIDENT; Joseph 4.
Lraawela, O. L. Main, Henry W. Fuller, Her
bert Z. iced, Secretary; William G. Lomba1d,
john Miller, aud Eeajam1n Lombard OF these.
E...:j jal4lin Lo1nb1rd il > bankrupt, but COM
pl2auauts do not know whether any others are or
1ot.
Complainan1s therefore pray that the Re-
ceiyer nsy hold the assets in trust for COM
planatl1e tllr lie may make the necessary
assessments; that an account may be taken Of
.7tst s due comp1ainaots that the Directors
aad officers may be held personally liable for
nu; deficit in the aseets wasted, or any INSULT
cheney to pas the claims that the money in the ]
has's Of the State Treasurer he declared trust |
fund for the poGcy-holders.
: Tna f1h., OF the Company in brief was this. |
Su.itt. sakes out membership in the National |
$40 i1itiatlon fee. 81 deposit, and 55 annually |
Besides this he must pay S2-10 every time a |
member in his division dies-S2 On tie loss and |
10 cents fur expenses OF collecting The mem- |
be1ship il limited to $500, in some companies
to 5,oUo. Smith may be obliged to pay only $40 !
or SIS, or il caolela or any otaer epidemic come,
it might be S75 or SlU0, defending Of
course on the mortality. When a person dies,
the "a assessment is levied on all the remain
ing members OF the Division. Some will not
the heirs of the deceased The Company is
not rcsponslble further than if they nave guar
a1ltecd certain amount The insured never
snows when he will be called upon to pay,
aor how much, nor does he know at his death
1hst his family will receive. Tho Company
6 not liable, because tae money comes from the
enainiug members, and the notice which Is 8. n;
u mail, OF course, is binding II it has b: en- put |
the mail, whether it teaches its destination or
,ot-
The following is copy Of the policy in ques-
ION:
National Life Insurance Company Of Chicago. Each
cries. two memberships. Limited to $500 member
hips Purely recdp1oca- In full sesies nt 81 each,
This term policy md certificate Of two memberships
;tneaseth that The National Life Insurance Company
Chicago accept the trust herein set FORTH and In
2usderatioH Of the representations made to them in
ae application for this certificate and Of the sum Of
iaitional sun Of s. as deposit to pay for death
sses Of two memberships when they ehal occur, and
the on or 1eore 'G f. iss 'a Of
laua1y in each and every year, and Of # the further
.nce for death losses Of four memberships in this
vision and series during the continuance Of this
atl @ ne received hy sid company, The payment Of
ich would reduce the anoun: deposited to the credit
this certificate 10 = (1cspt IN the case Of the first
other assessment is made), does hereby constitute
arry Gouia, CT chic3go, County Ct Cook, State
ultnoiE, men1er With two nemoer-
irs in = the Reciprocal Department Of the
biect 70 the conditions and agreement. {
reinafter mentioned. Tie National Life Insurance
upany hereby promises and agrees At tr due no ] =
and satisfactory proof OF the death Of the sail
rry Gould hns been received q: the home office Of
Company ct Chicago. and w.t4in ninety days from i
aate of the receipt of said prouf Of de.th to pay to
ederict b. and Fannie L. Gould, lis children, share
shire n6ke their Legal REPRESENTATIVES, at the
20 Of sha Ooml any in Chicago, Illinois s. for each
in this division end Bcr5es who aas made t
eposit for the payment Of said death loss and for
term Of three years from the 31st day Of December
l. for during and until tho 1st day Of January, ! q
said Company hereby guarantees TINT at least tt
100 shall be paid this certificate II in fo1ce-
,ud desth during that time and ut the end Of !,
term this <4guar.otee Ct ths payment Of at least -
100 eau cease and Gster.ne, and after that time,
81 esoh membership received On deposit for 81