, 1877-08-06
TILE YKUl'EGIlON.
Early History of This Re-
narkabIe Company
Change of Hands.
The Wagering or Hess Polioies---
Why Did Not the Depart
ment Notice Them7
Allegations of Frand Made in
Various Documents Now
OIL Record.
Assessing for Bogus Death
Lossos---Advancing Dates
Of Deaths.
Extraordinary Report Re-
Gently Made by the
Insurance De-
rartnellt.
The Company Shown to Be Be.
hindhand Over Half a Mill
ion Dollars.
One Of the Beauties Of State In-
Bpcctton Illustrated In
Illinois.
4 Bill to Be Filed Against the Com.
pany BY Order Of tic
Auditor.
The Company Shown to Be Be-
nindhand Over Half a Mill
ion Dollars.
One Of the Beauties OF State In.
spcctton Illustrated In
Illinois.
4 Bill to Be Filed Against the Com.
pany BY Order Of tie
Auditor.

On several occasions during the pnst two Or
three years tho readers Uf Tile TRtnt;SE have
bert aprrIsc, OF tic fact that tesr was In cxiAt-
cncc In this city a machine for the ustens!hlc
pur{wse oi usuriuc lives, nni psUylling for t!,r
future welfare of tic families ut thosc wl,o had
tecn induced tU purchase It's policies. This n1a-
chine IL antl was known tue Protection Ltft-
Insurance Company. In insurance eirclca it,
scheme Ut operations Is knbwn Us the ''co-opcr-
atiye pla.,." Its sLibbolcta was ''insu.aucc less
tl,an uuc.t1Ifrd the usual expense" and nl Io.s
e. were to be provided for on the "Inutual eu.l-
tril,u,ion'' system. THIS sthcmc Of fusurinI
lives is MT new one. II lfas had frequent
trials Il, this country and In Europe. and the
statement may be vcntuse1 that uut Of the vast
number of companies that llavu lectt started
during the past quarter OF century not onc
cat, b. pointed 10 which has proved stsccess III
any shape wl,atcver. They llaye In every In
stancc ,ruyca to be tlclnstge fnares, lan,entahle
failures, Or unmitfgateA frauds. The Protection
Life IL no exception.
THE PROTECTION L1rE
rms Incorporated by special rhartcr by the Leg
islaturc OF 1861. Two years later tho charter
was amended, glytng extraordinary privileges
formally organized, Tn Dec. II Of that ycar 1t
deposited with f. y. Bates, the then Auditor.
securities purporting to represent 500 .000, and
obtained license to open shop and tosntncnru
Its syttcnatic schene of tc!png tho public. II
claimed to possess pat1.up cnpitaf of S900,-
UaD, but this only existed III Imagination.
Checks wcrc gIyen for the stock tubtcrlr-
lions; thcse werc subsequently Withdrawn,
arl replaced with mortgages Oh swuup lots,
Wild lands, deprecated stocks, and other 40"
called securities. worth very ltttle moro than
tho paper vi which they were written. Among
the first batci, Of securities deposited with the
Department at Springfield was mortgage OIL a
lot OF swamp land, ilty lots III the N. E. n Of
scc. ~ 81, II, better described us bordering OH
Calumet Lake, anA well calculated fur tho prop
agatlon OF bulfroes. t'u1.tnrtlcs. and swatnt'-
III the country, bundles III policies In blank
were furnished to the ugents viii. Instructions
To wrtte everything that offered, anl vigorous
cinrta wcrc .na{lo to secure = i'tG buslncas.
Tho pulIc, -l,olless wcre divided Into separate
classes, according to the accs ot the insured:
Eycry member on securing policy was ubtiEcd
to pay II fep ot t1U or, 80. Thu
s99,hoo, and ts,o0. Each policy stipulased that
The holder thereof should pay, annually y sum
uf from % to f5 rs mcnlbcrah1p dues, and, IN
addition, agtcetl u pay On the death d nny pol.
try.hulder his pFu rata Of u sun sulllcicnt to
liIultlatc tho amount for which the deceased
wis insured, provided the polcy.Auldcrs iab1etu
such contribution exceeded tho number nf dol
lars for winch tlx deceased waa Insured. Shoni't
the number uf T,0llcy.holcfs have been less thar.
10 pay a pro rata, 81 that ths heirs of t!'e de-
Ceusctt should rrctiyo ~ many dollars a. thcst
were members In thc CuH,uanY Tho Company
was to add iD ccuts to thu amOunt Of each as
seasment to my tho EXPENSES of te'ilecting the
same: mud It further stipulated that all moue{s
ruilgutgal by m.seAsnlent should he applied 0hlY
tu the payment Ut deatt,-lhases.
Unaer tko provisions of thia scheme, The Com
pany launched furth. In It's statement tor DIX,
3o, t610, II reported thu raIAta1 stosk ut &A1 01
with {l!0, ,0lO pAti up. 1t claimed 10 hayr loaned
OF its capital 3lo3, ,0O Oh flonds and ulurtEugce,
when In tut this sloa,0oo represented tt'c o1l!-
they had subscribed. Tho statement for the
year ending Dcc. 81, ISL, represented TINT tho
paid.up capital was tlls,sO and t.e !oans ou
bonds anl mortgages $lrion This latter
gatior,s Just alluded to. Tfle next years. state:
,ent, Dee. H. ls7, reported tile pali-up capital
At tl4D,5 500, atl Ut which was natd tu!, u rather
not puitl tor, ~ before described. Among tue
othcf assela in this stutcn.ent was the tlcR "ln-
trrcst aerruct! Oh LOANS and honls," Slj, sttGl
This WA duo by the stockholders ou the oblt1.a-
ti0il4 given by them for their stock, md WIS a.
lowesl to rcmatn uupaid a. favor to these gen-
Tus orrlcKRs or TUE COMPANY
at it, Organization wcrr: +. y. Skinner. Pscsl-
Aent; l.. L. lIlliiard, tice. President; John T.,
FrY. Secretary JArUb +. shlplleFIs treasurer.
| Tts last~natnttl tndividuat WAS engngcd iu run
| ninK y private Dauk. an4 ono duo morning =
ptacsrl un the door Of the Institution announced
Its failure. The Directors cutslsted OF several
| wsll-kl,own ciilxetIs, who were evidently In
| laueesl tu take sfarc or two VI stock iu Ok1rs
~ gtvu q respectable standing to the cnnceFI.
rte uetiye ,,ixnager WIS u. K uarue1, wllo sub
sequently bccauiu firr-pscsldcut, aud Mr.. Halt
tusi was promoted to tlLe Presidency. : In the
| summer ot LIT, tho atlatrs Ut the Company
| wcre in desperate condition. II was at ltd
Wits end to ralsu the means Of paying ita
death losses, aml bankruptcy stared II
liz 4he face. Auditor LipDIpeott VII.
4pprlsed of its situation. aud Threatened to
vlo4s 1t out. AZ this Iuuctuse A. y. Edward.
aud Juhu Held apuezr 0n the scene. They bud
emerged trou ddlug tue Htatc scrvcc a. thu Jul'
It Feuitcntiary. The former had occuptet1 thr
position Ut Warden, and the lattvr ha4 otiiciatel
- uue Ut the Commissioners of Tue Institutions
uclug without employment, aud having some
| HleAus tu invest III aat speculation that seemed
| to prove psoAsalle, they were snx!ont to tnaks
trade pEoyiling they could !,ake Satablt
terms. Tue Protection Lttu Was lu tl!e market
though exceedingly cu,barraSsed. Mith ha1t
bccu plsred onlta feet, provided tbs creditor,
would refrain from crowulus. After soHlc extend
ed negotiations Edwards auu Reid secured . con
trolling tntefcst. The conccrn was rco1gAulzed
] HlIjtnrx{ retained tbs Presidency, Reid bseault