The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-27
TO THE ORR pOLICY HOLDERS



For the information Of those who do not
know what tho new practice Of the company is.
and against which tho old policy holders are
protesting, VIC make the following brief state
ment:
l. The company now admits new members.
on whole life plan at rebate OF 80 per cent.
upon their premiums for the first two years
thus giving them. for seventy cents. as full in
surancc and the same dividends as old mem
bers who have paid. and must hereafter pay.
one dollar.
2. Upon this new business the company pays
It's agents n commission of not less than 80 per
cent. upon the full tabular ratio Of the first years
premiums. and OF not less than per cent on
the second years premiums thus paying com
missions upon ono dollar for every seventy
cents II receives.
g. After deducting from tho seventy per cent
actually received tho above-named commits
sions. the other expenses OF the company, and
the mortality losses, the remainder ia less than
the sum which the law requires shall be re-
served to meet the future cost OF insurance;
and tho deficiency must be made good from
sources other than tho contributions OF these
new members. Therefore. the company in
contemp ation OF this now departure. has of
late years largely increased the amount which
II withholds from retiring mombers. and accu-
IN ulated what It's officers claim to be a special
fund" out Of which 1t Is now making the new
insurers tho gift OF thirty per cent. OF premiums
which they should pay out Of their own pockets.
4. For this 80 per cent gift the recipient is to
draw his draft upon the company: but knowing
that he has no title to such trust funds. he may
have scruples or doubts about signing such a
draft. In this event the agent is instructed to
write without recourse" above the signature
but he is directed not to do so unless abso-
lutoly necessary" The agent also joins in the
attempt to avoid liability by endorsing tho draft
without recourse"
g. The drait-so drawn and so endorsed-the
officers say is cash to the company" and is
| received as such In payment OF the premium.
1t must therefore be credited rs cash. to the
premium account" OF the company. thereby
increasing the apparent receipts, and conse-
quenty diminishing the apparent ratio OF ex-
penses. And we understand that it is charged
| to surrender values which increases the
apparent amount claimed 10 be paid by the
company to retiring members. II will there
fore operate In treble capacity TO give hcti-
tious credit to the management OF the company
@. II the above described special fund" has
been justly withheld from retiring members &c
indemnify abiding members for injury done &c
them. wo claim that the officers have no power
to give any part Of II away but must divide il
all among tho Injured members. But III II hAi
been uniustly withheld from unfortunate re
firing members-as there is much reason to be
lievo is true-we claim that II should be givcI
up 10 those 10 whom II rightfully belongs. an,
that su oh dealing should stop.
We therefore protest against this whole prac
tce. believing it TO be fundamentally wrong
that no good can result from it. and tnat /
should bo Immediately abandoned.
Copies OF the rcmonsrance can be found n
the under mentioned places. and can be oh
tanned by sending name and address to Boz
1897. city Post ONCE.
Policy holders Of other States will also be sup
piled with copies on application MS above an
are requested to unite with tho policy holders q
this city
HERON A. JOHNSON.
Holder OF Policy No. 3. 9s Broadway.
CONRAD n. JORDAN. Third National Bank.
! JAMES W. McCuLLoH. % Liberty st.
NFw YORK. Dec. 20, 1873
With Rowe Brother, 53s Broadway.
, With Brown a SECOND, CO Broad st.
With J. p. 4 G. c. Robinson. II Coentics sill
With Room H. Delaware and Hudson Cam
I Companys buildings. CortlanIt st.
, With w. blanchard. IL William At
, With Clerks Desk Produce Exchange.
| With NJ. b. Fielding. 40 Pearl st.
1 With VI. b. Fielding Cotton Exchange.
With j. w. McCuloh. 90 Liberty st.
I With First National Bank, Exchange plac
Jersey City.
r With s. Ashmoro 4 Son. Is William st.
With NJ Springer, Al Pine st-Adc.