St. Paul daily globe., 1888-06-25
See! It's as cheap as dirt"
1t is a wonder that
FARMERS

FARMERS
or any one else will snap up such a
proposition without properly investigat-
ing it. But the granger in. Minnesota,
who has the best reputation for being
sharp on horse trade, will lie right
agent and swallow everything that is
given him. The trouble with the farmer
is that he thinks he is getting
something for nothing. He has
heard that the big life in
Surance companies charge enormously
and make it difficult for him to get in
them. But here is chance-an Oppor-
tunity. He is to get $4,000 insurance
for paying only SIS down, and after
that 50 every time death occurs. The
agent assures him that Minnesota is
very healthy state, that deaths are few
and the assessments infrequent. Some
slight reference is made to the fact that if
he dOeSn'tpa his assessments promptly
good, but that is forgotten by him.
HE AGREES
to take out policy, without any definite
knowledge as to the kind of concern
he is getting into. He has on indefinite
sort of an idea that it is an association
of brotherly love. in which all stand by
one another, and the devil don't even
get the hindermoSt. What he
DOESN'T KNOW
is that there is no law in Minnesota to
punish fraudulent assessment insurance
associations. They can be closed up,
but no0ne loses by that but the policy
holders.
That the insurance commissioner of
the state is constantly warning the peo-
pie against such companies.
That fifteen assessment insurance as
sociations have failed in Minnesota
within the last ten years. Z.
That the East has already OWNED
and exposed assessment insurance that
does not seek to live by honorable
means, as per the following extracts
from the annual report of Hon. John
A. Mccall, superintendent of the New
York insurance department, dated
March 20, 1884, in regard to cooperative
or assessment life insurance companies:
LAS it stands to-day these OrganiZa-
Judging from the past the result will be-
the discontinue of many of their mem
bers."
The superintendent suggests that ali
plans that pretend to guarantee any
amounts. except the contributions of
the members, are fraudulent. There is
no insurance of any positive sum, nof
can there be in the very nature of the
business. Accumulations. of reserve
| funds are proper and wise, when in
tended to aid the beneficiaries. Where
they are composed of deductions from
assessments that were not sufficient to
pay the face of the certificates, it is a
steal, and should be punished the same
as any larceny. That reserve fund
will ever be sufficient, as some people
state they believe, and as some organi-
cations pretend to shOw-to perma-
nently relieve every one from assess
ments-is as fallaciouS as it is absurd.
s'It has been asserted that the Ameri-
can people like to be cheated, and it
would appear to be true from the num-
ber that quickly offer themselves for the
sacrifice of their wisdom in these mat
ters. The greater the delusion the more
victims.
"All organizations that promise to pay
any definite amount to the member
during his lifetime = are frauds.
There is no other purpose behind such
promises except to cheat the applicant
and Zurich the applicant and enrich the
officials. No qualifications of these
statements can be made"
The liability attached to membership