Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-09-07

PAID.
THE CONTRACT.
The reporter referred TO the contract and
found the following clause, which refers 10
the prompt payment of assessments by the
beneficiary, and not to the delinquency OF
! any other member sit is expressly stipu-
lated and agreed by me that this application
shall form the basis of the contract between
me and the said association. II any viola
lions of the covenants conditions of the
| certificate issued by said association upon
this application shall occur, or any omission
| or neglect TO pay any annual dues or assess
ments, on or before the days on which said
| annual dues or assessments shall fall-due,
| then, and in either event, said certificate
| shall be null and void, and all moneys which
| shall have been paid thereon shall be for
| feited. The association reserves the rig ht TO
make any changes in the rules and regula-
tions which may seem, in the judgment Of lis
| officers, necessary for the perpetualion OF the
association. 1 agree 10 abide by all the rules
| and regulations, either in existence now or
! that may be enacted in the future during my
connection with the association" Moreover,
in the circular OF this association it is stated
that when an assessment fails TO produce
| the necessary amount to pay benefit,
| the deficiency will be made good from the Sc
curity fund, which is made up of 81 from
| the annual dues of each member. In con-
| tradiction to this, the circular says that If
| the assessment and security fund are unable
| to pay benefit, the beneficiary must accept
! the amount of one assessment and security
| fund as full payment OF the claim.
VERY FRANK.
"Don't YOU know that somebody is bound
| to lose in this matter" asked the reporter of
| the president.
"Why, of course, somebody will lose in
| The lone RIM lint don't where VIC are
| guilty of any fraud. If any man is fool
| enough not to see that the last members will
get lett 1t is not our fault. 1t is just like the
| knights of Honor 1t is Just as if you
| bought ticket in a lottery. You have no
reason for complaint if you don't draw the
capital prize"
1.-THE lottery company" said the scribe.
"don't promise you that you will draw the
capital prize"
'Neither does the society promise that you
will get your money"
'Then you place your associations on the
| same plane with lottery"
| "Not at all.o
This conversation, which was actually held
| with the president of one of the associations
shows which way the wind blows. The AP
| PEAL does not care to mention his name, be-
cause in this matter it will for the present
remain absolutely impersonal. tits possible
1
| officially TO the concerns here.
HOW TO GET RICH.
| The APPEAL scribe obtained the circular
| of another association, together with it's pri
vate advice to agents. This circular states
| that the association will pay $500 in two
months, and 500 and $500 each month
| thereafter. We will assume that 100 mem
bers Joined the first month, 200 the second
| 800 the third, 400 the fourth, etc. At the
| end of two months there would be 800 mem
bers. Now, suppose ten Of these get married
They are to get $400 apiece, or in all $4,000
| The 500 mem bers pay each ten assessment;
of IS 80 each, or $4,000 in all. OF this
| amount $4,000 pays the benefciaries. Ten pei
cent. of the amount, or $500 goes to the Sc
curity fund. There is thus left $4,000 unpro
l-vided for.
| WHERE DOES IT GO?
Into the pockets of The officers We hav.
now $1,000 say, in round figures, in the secu
| rity fund. At the end of the third month
we have a membership $50. Suppose nov
| that ninety members marry. Each is TO gel
$500, or, in the total, $4,000. An assess
ment of So 80 for each beneficiary, or 1897
is levied upon each of the $50 members
The whole assessment would thus amount tc
SIG, 230. OF this ten per cent, or ST.. 523
| goes into the sinking fund, leaving S157, 707
After the So, 900 for the beneiciaries is paiC
out, sos, 707 is unprovided for. Where does
it go? Into the officers pockets. To pay
| 100 bene6ciaries, then, the officers make
| S10S,707, irrespective of any initiation fee
These figures will very readily account fol-
the liberality displayed by the officers in the
inducements they offer to agents. The fol
lowing are circulars addressed by the above
| association
TO AGENTS ONLY:
We pay agents S12 to $50 on every policy
they secure for the company. Any gooc
agent eau make from S12 to $50 day.
| We allow agents 10 retain for their pay fo
securing applications for the company all o
the membership fee, which is in one clss
| Sl2, or for both classes, A and E, 10 sam'
person, $40
Any good agent ought 10 make from s25 Il
$50 day.
We have sent ont over 10000 circulars
| and expect 10 continue until we have estab
ished an agent in every town and city in thu
South.
We will spare no money or time in max
ing our business the largest in the South.
"Success is our motto" and it will pay any
one to give this business their attention
Any young man can make big money. Fol
| circulars, address -
| HOW THE MEMBER IS LEFT.
The figures above show that the amount o
tered when the concern started was S33 anc
1927. We will follow him up. He has paiC
S32 for membership and 1880 for assessments
Suppose Ihai during the next month Isl
members, a moderate estimate, go out By
getting married. He pays $3.50 in assess
ments, which added TO what he has already
paid, makes 1857. He has been in the ssso.
| citation four months, and his certificate calls
| for only $500. So he is out S57. But let u:
see how the officers stand. They have goo
members who pay 1895 each, or SAG, 800 in
the aggregate. Take out ten per cent. for the
| sinking fund and we have in round numbers
S40O, 900. To pay the $50 members Their
| $500 each, requires $4,000, which taken
from 100000, leaves s2S0,O00, which we now
know is
| AMPLY PROVIDED FOR
by the officers. We have here $50 members
m arried, and the officers have S38S,707 in
their pockets, provided the members all pay
| up. If they do not, the member loses all he
| has paid up to the date of his suspension.
| The APPEAL learns that 400 members have
| been suspended from one of the concerns
| here for filling to pay assessments. The In
/ ference is that they were tired of doing 80.
| Is there anything in such association as
| the one above TO prevent it from being in
dicted as a swindle? Furthermore, if there
| is no certainty of a members ever
| getting his Otucbl, Is nOt tAat
| lottery? The APPEAL suggests hat in
view of the increase in these associations
Judge Horrigan order them 10 be investi-
| gated by the grand jury. These associations
claim to be organized and chartered under
| the laws of Tennessee. 1t is understood that
they are not so organized, and that the law
| gives them no RICH: whatever TO exist. The
| matter is at least worthy of an examination
| by the attsrney-general, more thorough than
the one made by him before. One OF two al
| ternatives Is presented to these associations:
| they are either swindles or lotteries, and
both come within the province OF the State
laws.