Huntsville gazette., 1881-09-10
eraveusd Ike lnssrasce in Pennsyl.
vania.

A case heard before Alderman Graul
of this city to-day resulted in an expos
ure Of the methods of those engaged IN
the business of graveyard life insurance.
An old mS6, sbent with in1rmities and
misspent He, brought suit against an
agent to recover $25. The money, he
said, had been promised him for the
privilege of insuring his life, but the
agent refused to pay the amount. The
pfoseeutOris q professional" in the
business of having risks taken on his
life, he playing the part of dying man,
when in reality his health is as good as
the average man at his time of life.
These professionals charge $5 per 81
300, but it seems that they are duped by
many agents in the following manner:
A professional consents to be insured
for $1,000, and is paid $5 cash.
Generally speaking, he never reads
what he signs, nor does he care much
what it is. He thinks the papers are
for an application for single policy for
$1,000. The agent who has him in
hand gets his signature half dozen
times on as many different papers. He
is told that it is necessary, as the COM
pany is very strict one. The truth Is,
the Old man has signed for three or four
policies, for 81 900, 1000, So 900, and
$1,000. for which, however, he receives
single fee of $5 only. He imagines
that he has been insured for $1,000,
whereas the amount on his life is $11,-
900. This is the way in which such
large sums of insurance are placed on
the lives Of the old people. Old women,
helpless and paralytic, poor and palsied,
are hoodwinked in the same way. The
agents then peddle the policies around
the country to whoever will buy. This
"watered stock, ''as it is called, forms
leading article for barter in many
back country marts. 1t is common
expression that you can't throw stone
in Eastern Pennsylvania without hitting
graveyard life insurance agent with
policies to sell. He has paid S. to the
subject and owns $11, 700 worth of
policies.s They are in AL companies
that pay full face value of the policy.
The agent thus carries on his sale:
Now, sir, privately, you know, be-
tween you and me, this policy for So 900
cost me $40 before got it issued by the
company. Lie No. IL The subject
is good one, first class wont live six
gmonths. tLie No. '2.] Now, the policy
Just asit stands cost me -$25. Lie No.
81 will let you have it for $50, and |
wouldn't be bit surprised but you'd
hear of the old paralyzed skeleton being
dead in less than six inonths.'i Lie
No. 4.
The policy is sold and duly assigned,
for which the company receives 81, the
ol- ho dosn IF h0
policy hunts up his subject to inspect
him and speculate upon the probabilities
of his early demise. 1t is safe to say
that there is more money made in the
sale of policies than in any other branch
of the nefarious traffic.
An aged woman consents to have her
life insured five times by as many differ
ent parties for 81 900 each. She then
supposes there is $4,000 insurance on
her life, whereas she has been tricked
and dnped, and in reality there is $685.
900 on her, which, if she knew all the
facts, would startle her out of her wits.
These aged people never do know how
much insurance is on their lives. An
old woman boasted the other day that
she was insured for $4,000. The fact
is (but she does not know it), she is in
sured for 1920, 900, and the policies are
held by her neighbors, who are anxious
ly watching and praying for her death.
She is lively as cricket, and laughs at
the idea Of her dying for the next ten
years. To her intimate friends she
says: !" Oh, they'll all get tired of this
before I'm half ready to de-
One of the leading young attorneys at
this bar to-day remarked: ''This insu-
rance mania is a terrible thing. A few
years ago client of mine down country
owned fine farm, clear of all debt, and
had money in bank and good credit ev-
erywhere. He was induced to 60 into
this graveyard life insurance specula-
ton, and it has utterly ruined him. Why,
!. his monthly assessments amount to at
least 800. He carries policies on old
men and old women, but they don't die.
When the policies were sold to him the
agents represented the subjects to be
half way in their graves. The assess
lnents rain in on him, and for three
wears he has been bled until now his
farm, his home, his all, has been swept
from him, his credit at bank is gone, and
he is on the verge of despair. In few
icies. They are bad stock, and nobody
will buy them. He can not unload
His ruin is complete. There are many
others just like him. Farms are going
down in neglect, and families heretofore
prosperous are being ruined. No won.
der that men are tempted to murder
those they have insured and who will
not die. About week ago the farmer
allude to had death occur in his ia.
vor for $1,000; but when he came to
realize on his policy he received only
5000, the company saying that there
were only about 400 in that class, in
stead of 1000. was asked to enter
suit against the company, but when !
examined the policy, / saw that the
company promised to pay only so much
according to the number in the class Of
) which the insured was member. told
my. client that he was very lucky in get
ting the $780,"