The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-06
D~EATH-RATTLE INSURANCE.
An Indiana COmpany in Trouble In Ohio
ImperfectiOns of the Laws of This State.

The Cincinnati Enquirer yesterday contained
a very lengthy account OF the arrest at Washing
ton c. FL, O.. on Tuesday, OF two mems.
j. Hooker and Bowman Hess-charged with
unlawfnlly procuring insurance on aged and in
firm persons In the Eureka Life Association, OF
this city. Hess is an undertaken, and had in
sured a woman named Eliza Boomer, seventy
hVe years old, for $4,000, making himself the
beneficiary. had procured insurance for
the same amount upon the mother of the auditor
OF Fayette county Both men had falsely repre-
sented themselves as being related to the per-
sons whom they had obtained Insurance
upon. In the investigation leading
to the arrests the Insurance
Superintendent of Ohio has discovered that the
ghoulish speculative mania has spread through
that section of the State to an alarming extent,
and among those who are concerned In the bust
ness at Washington c. Fl. are county officers,
prosperous farmers, store-keepers and pnysi-
clans. In the account of the system
of operations pursued by the grave
yard companies 10 is stated that "the
Eureka Life Association. OF indianapolis, acts
jointly with ten other similar organizations in
the wildcat speculation. An agent bearing OF
what is called a good subject-that is, one that
years old and apt TO hand in his checks at any
moment-gets a policy on him with his consent,
IL OUbhluhDl6, Anu lDFRb uI6 udlD6 10 Iu0 dDpilCd-
tion if he refuses. And they make it payable to
themselves. The Eureka, having confidence in
1t agents, notifies Its fellow-colnpanies, and he
is written up in all OF them. Soon thereafter
notice of death arrives, and every company as
sesses it's members to pay the loss, and such as
fail To come TO time have their own policies can
celed, and lose all they have paid on it. Ont of
the aggregate sum the company secures by this
means a very small portion is sent To the agent
who has made himself beneficiary, and he dare
not complain, because he knows his ohense was
criminal"
When A. D.. Miller, the secretary of the Eu-
reka, was asked yesterday about the arrest at
Washington G. H., he stated that they had been
brought about, in a measure, upon
which he had furnished. He had suspected that
the company was being swfndled, and one of the
agents had been sent to Ohio TO make investi2a-
ton into the matter. Although insurance upon
policies are never issued without the consent of
the insured has been given. 1t is also under
stood, he says, in such cases. the insurance is
prOrated and assessments are not allowed to ex-
coed an aggregate of $l1,00 a month.
In alluding to Indiana as the center Of the
operations of the graveyard insurance compa-
MES, the Enquirer says: 'The fraud would seem
to be encouraged by the Indiana State Auditor,
who, under the imperfect laws of that State.
has no other choice than TO give seeming coun-
tenance to the murderp1s swindle."
A short time ago the Journal exposed, in ar
ticles of come length, the graveyard business
which is being conducted in Indiana; and a
statement, compiled from the reports of the diff
terent mutual assessment companies to the Au-
dltOr OF State making a frightful showing of
one character of the risks, was published. At
tentinn has been directed time after time to the
growth and spread of the business, and to the
fact that the law passed by the last General AS
seEieiy, instead OF giving any protection to the
people, affords the company absolute security in
conducting the worst graveyard husi-
nese. The attention of Auditor of
State Rice was called to the statement regarding
the Indiana laws and in reply he remarked that
there was nothing in the matter that was in the
nature OF a discovery. ~ am compelled to
Issue a certificate to any company that files a
sworn statement with me showing a member
ship of one hundred persons, with an insurance
aggregatlng 5000, 900. If l refuse to issue the
certificate the com any can compel me to do so
by mandate NV authority for investigation
goes no further. A bond is given by the treas
urer 81 .he company, but 1t is to secure tile
directory against any loss and not the MEM
bers."
"But when it is known that q company ia do
ing a fraudulent business have you no power to
suppress it?" was ask.
81 am governed in my authority for making in
vesttgations according to the reports which are
made by the companies. If 1t Can be shown that
their reports are not correct. 1 can then cause an
Investigation, but not otherwise"
docs not the law provide some punishment
for insurIng aged or infirm persOns2"
Yes; but the company is not affected by 1t. 1t
is only the agent or physician that prOcures the
insurance that can be punished"
In subsequent conversation, Mr.. Rice said that
the present law is simply a protection to the
graveyard insurance business. Before it was
passed the Auditor could refnse to issue q GER
tihcate for conducting business, because he was
not required to do SO by law.