New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-06-22
SOME RESISTED CLAIMS.
AFFAIRS OF THE NATIONAL BENEFIT
SOCIETY.
ITe PRESIDENT HAS PERFECT CONFIDENCE IN
IT'S srABILITY-How HE EXPLAINS


THE EXAMINERS REPORT.
"Any one who finds dollar out of the way In
the accounts OF company have the privilege
of kicking me all the way to the Battery and back
again.. was the manner In which President George
Merrill, Of the National Benefit Society, expressed
his confidence In the stability Of that corporation
yesterday When It is added that he probably meant
from the Offices OF the society," No. 1877 Broadway, 1t
will be understood that his confidence is great indeed,
for from that point TO the Battery and back would
be a long distance to be kicked. His remark was
brought out by the inquiries Of Tribune reporter,
based upon q report derogatory to the society made
TO Robert A. Maxwell Superintendent OF the Insurance
Del artment at Albany, by Examiners shannon ana
Moran. The report says that the association was
incorporated IN December 1881, for tho purpose OF
ansactng tho business OF life insurance on inc CO.
operative, or assessment, plan, and ADDS:
In a report on our Grst examination Of this society
mado in December 1884, we obliged 10 find fault
With officers for trading on his knowledge p us
the injury Of beneficiary OF deceased MEMBER
and ws assured that no such occurrence "oula
again aRp place. The facts in connection With the SET
usmsnt Of another claim. however. lead us to benoVe
that the practice has not been abandoned
PresidoDt Merrill explains this paragraph as FOL.
lows: "There nothing out of the way In connection
with this part OF our business. When the company
was young In the business, woman beneficiary OF
member who had died was anxious to secure an
immediate settlement All claims have to go through
form Of adjudication, and as the woman's necesses
urgent Of the officers OF the company DouShr
and paid for her claim In another case, our treasurer
Stephen IL. Mills, than whom no one stands higher
In the business world, advanced $4,000 70 settle a
claim. This has all been repaid to him, excepting
the interest, which will DO paid over
According the report Of The examiners, the facts
in this latter that Berthold ]. Bottle, OK
Charleston, s. Co. held two certificates on his lfe ono
for 1900, for the benefit OF his wife, and one Tor
g. 900, for tho benefit Of his four children On his
death proofs Of loss presented, and claim made
to tho soce ty for the amount due According to its
custom the report says the society objected b paying
the claim tho alleged ground OF misrepresentation
IN tho application. Mrs Bottle threatened 10 prlnS
suit against tho society, whereupon in January 1885,
ono Of the officers gave lawyer $4,000 OF his private
funds, 10 20 10 Charleston and buy the claim on tho
best terms no could get and take an assignment OF
II IN the name OF tho officers son. This lawyer who
had been employed IN other cases for the society,
succeeded after considerable wTanglng IN obtaining
an assignment OF tho claim for 5000, which was
paid 10 Mrs. Bottle, and tho assignments were duly
fled with tho society.
THE EXAMINERS VIEW OF THE CASE
Upon those assignments the society in August last
began to make payments and up to May. 1889, had
paid thereon tho sum Of $4,000. The officers have
said that tho latest payment, made on May 8, 1882
was TO be the last on this account We arc rather
doubtful about this say tho examiners, Y" as the
blank receipts on tho policies signed by MIS- Botho
havo been filled in for the full amounts OF $1,000
and 5000, respectively, and the assipee's
receipt for this latest payment to him reads that
It was received 'On account, whereas
II It wero to be tho last payment the receipt would
no doubt have been male state that It was In full
payment Neither the president nor tho secretary OF
the society could give US any information regarding
the settlement with Mrs Bottle the amount paid to
her. saying the' made inquiries regarding It, but
49, etypaA
was entitled to payment We were obliged to write
TO Mrs. Bottle In order to obtain the desired nforma
ton
In another case the lawyer referred to was paid
81 500 as attorney for the beneficiary. This bene-
clay says thai he received only OIL 3oo and that the
lawyer not bis attorney. Tho question Of the
lawyer being his attorney Is OF verscity between
Them but II tho society had paid tho claim directly to
the beneficiary. whose Office Is In New-fork, there
would have been no ground for criticism.
"wo could not with tho time at disposal inquire
into tho settlement Of each particular claim, and there
may havo been othsrs Of tho character described.
but there seems 10 have been an unusual number Of
claims resisted"
soorcary Delano. in speaking of these resisted
claims said that they all In cases where nsrep'
rescrtanons had been made In making applications.
Por instance man died within year OF taking
out his policy. and an autopsy showed that ono kidney
altogether gone, and only little piece OF tho
other vas loft In another instance, man died from
consumption Who ut tho time Of filing his application
was weak that be had 20 lie down whenever he had
a 1T Of coughing. Instead Of weighing l35 pounds he
only weighed ninety There number Of others OF
like nature, and tho society did not propose 70 pay
such claims.
TIE CLASSIFICATION OF MEMBERS.
Thero three classes Fl the society. the report
says class being Of members between the agcs OF
eighteen and fifty three class between the ages OF
Htty. throc and sixty Ave. and temperance class
formed In lass. Tho condition OF class 1, the
report IS very bad. The unpaid death losses in this
class amount 10 s73 23l "a classified follows Seven
resisted claims S42 800; two claims not adjusted |
eIjOOO; amount due on hyo approved and partly |
pad claims. sl4,73l "a. TIE officers estimate that |
they Will be able TO settle the resisted claims for
about - per cont, $1,000. The two claims not |
adlusted WILL II approved DO entitled to about 81 300
These amounts, added TO the Sl+73l 30 due on ap |
proved claims, mako total Of S3l. 73l "a 10 be paid
for presept death claim Indebtedness as the best |
possible showing IN this mstter peductinS from ms
account leaves al SO to be raised by assessment
on this Glass II Is not likely. IN It's present decay.
Be- cStcctod within a year.
Presidents Merrill explains this condition by saying |
that q large percentage Of members had lapSsd In |
their annual dac Of 81 each and would subsequently
sS Is ssS S,s in an sqHs sm,
seven partly paid approved claims having stll due
tho sum Of $4,000, making q total Indebtedness OF
s6l, 500. H. as the officers say the disputed claims
can be settled for 5000, she indebtedness WIN be
s3l 500, loss S6,530 81 cash on hand, leaving |
S25 2bO 10 10 be raised by assessment.
Tho report speaks highly Of the Temperance sec
ton, In which there Is r balance hand of about |
FlO, 900, with claims against II.
Secretary Delano said yesterday that all tho re-
sisted claims could DO satisfactorily explained. The
soccty developing me temperance" class rapidly.
and It already contained over 1900 clergmcn and
business ami professional He thought tho
future business OF the society would be done IN this
class almost exclusively. As soon possible the
disputed claims would be adjusted and NO bad
risks would DO taken. He had had no notice OF
report having been made To tho Attorney General with
th9 object Of having proceedings taken against the
company and had no fear that there would be any
trouble. "Our books open for any ones inspeC-
ton" be said, and We can readily prove that tho
society Is solvent and trustworthy