The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-27
THE LECTURE SEASON.

A. II. II. DAWSON Of LIFE INSURANCE ITS
FRAUDS AND CRIMES"
The 433d lecture OF tue New York Liberal Club
was delivered last night In Repupcsn Hall by Mr. A.
II IL. Dawson Oh the subject OF ellie Insurance."
Tho lecturer has acted counsel In the Lambert trial
ana several other insurance trials during tho past
year, SO that his lecture was very interesting. Part
oil II was taken from his speech Tor defence the
close Of me Lambert trial.
Dir. Dawson began his lecture by stating that the
assets OF the three leading New YORK HE insurance
companies amounted to over $3.50, 600 600 rnis was
acquired "by US bold. impudent aud reckless system
OF deliberate cheating and swindIing as ever was
adopted by confidence crooks sneak thieves or
highway robbers" lie Knew the legal significance OF
the language he uttered nus moral accountability
for IL He proposed TO shake before his hearers dicc
box OF facts The first TACT that on IA whole lie
policy Tor 100 the INSURANCE charged at
the age ofthirty-tve years, $50 3s. This up
SIS 52 death loss premium, SO II 10 pay incidental
expenses. $40 30 winch the law required every com
pau, 10 uep"-u ually 10 secure payment of
ioiIcy, ana 81 IL 10 pay the company Tor taxing
oil u ana masingitpiy au interest, Tue .normou s
proh,s that accrue from iorfctures could be ready
seeb In one state alone 100 OU0 p,ilcl5 terminated
IN "ne year. Tho report showed mat only 1879 900
were rcssued. The poiceutale o. The real rirK m
Cured was supposed To be liked IL the deaih loss
pre- ium, Du there was more o. less oil margin IN
II Tor profit Mr. Dawso continued TO Illustrate m
an imag nary conversation Ustween u poiicy holder
ana IN Insurance. agent. some of the ways thaI are
DARK ana rIcss tnat are not VAN, when he inmates
arc pr.ciiscd Uy Insurance companies. they Lays
MI hons 10 loub needs SO 90 anu applies them
forn rhey agree to make ,ne loan. provided tue
security Is Approved iawii interest pau, and also
that Il. will agree 10 take out ten policies on ten
separate and dis,inct nves b. acceIes, the
loan Is made, Inc policies are issued and
tho premiums arc paid once, but rarely ever
naatn. Inc poiic.cs lapse aud The company
pu' u their poc"et IN and where usury Is consid-
eied moral crime and legal mis1c tn amor, some
twenty-five or thrty per cent. Tho Reserve fund be-
logged 10 the Locy holder Iu he case suppo ,cd by
Mr. Dawson II amount d W $40 81 It's existence una
mol ihcrcssc tho EXPENSES oi the comp al al and
yet II Was loaded Mtn iurtuer pay 81 Is 10
secure the payment OF iour per cent mt rest, In
otncr words, tue companies CURED policy holders 10
loan .hem thc amount required ny law 10 pay
eut Of The policy III the event death, ana cnargcu
tnrm forty por cent ior making the sum yeia ious
per ccn,! Az tue age vi sixty tue death premium
S20 SO at tho sge vi ihir! ive they ouy max ug
hm anticipate or pay IA advance what hc ous u, 10
ply ut Tho age oil sixty.
The principa sources o. power possessed BY officials
was III the proxies they hold their ubso,u con-
trol oi NE books ana agents oil The company. Tue
books thA might FURNISH tne iacls necessary IN
peach thsir election were tue h,nas OF The very
officials holding mo proxies. Lie INSURANCE com
panies certauy were dcspotsms. but II would not DO
TO c'il them petty when one Of them coulL Weld
moral power residing IN $50 900 0O0 OF assets; and
when with such moral power they could control
local elections, aud 'scnd scoundrcl to tho Legis-
Ature ana AN honoraU.e gentleman III, STATE
Prison." The surplus oi thu c0ihpanes belonged 10
the policy holders, yet II the company had "a large
surplus IN It's treasury wnen ones policy
the policy would lapse. although the company
might really be OWING HIM moro than they CLAIMED
he owed them. Only men with impaired lives piid
premiums until death, and lhen their claims were
generally htiSated Inc only way out OF the ainl-
Guilty would be Tor a man to surrender ms policy.
which would entail the forfeiture oi Nil the death
loss premiums paid. Tue reserve fund should be- re-
funded. Some companies did refund II, others did
not.