The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-02
POOR FOLKS.
The State of Massachusetts Driving
Out the So-Called Endow-
ment Concerns.
It Is Claimed That the Schemes
Are a Ruination Of Bust
ness.
But the Get-Rich-Ouick Agents Fight
to Hold on to Their Big
Spoils.

A Boston dispatch to the Philadelphia
Record says: The war upon what are known
as short-term endowment orders, of which
Massachusetts and New Hampshire contain
perhaps more than any other states, began
in New Hampshire, where most of these or
CARNATIONS we're chartered early last win
ter. The natural opposition of other in
yestment companies was supplemented by
the violent attacks of merchants in large
manufacturing centers like Manchester, N.
H., and Lawrence, Lowell, inc Fall River,
in this state. The attractiveness of the
offers to return ten dollars for one,
in one, two or three years
was too strong for the Judgment Of
the factory operatives. Many of them went
into these societies headlong, investing not
only their small savings, but their weekly
pay as we'll. The merchants, as a result,
suffered. Not only did the operatives alb
stain from purchasing new articles that
they could do without, but they neglected
to pay old bills, and disaster and bank
ruptcy was threatened on every hand as a
result of the overdeveloped mania of the
people for saving. No one not familiar
with the facts could believe the extent to
which the people were deluded.
The state of Massachusetts has upon its
lists of corporations POI endowment socie-
ties doing business. The majority of these
were chartered in New Hampshire. The
New Hampshire supreme court two months
ago decided that such corporations were
unlawful, and the insurance commissioner
of that state has refused to license a single
one. The last legislature placed them I'M
der his control, and he issued circulars to
20O requesting as to their tinan-
cial ccnditlon. only twenty-nlne replies
were received, INK they were unsatisfac-
tory.
The legislature in Massachusetts, in 1888,
passed a law authorizing the chartering
of corporations of the character under CON
sideration. A year ago it was found that
there had been tifty-six chartered. Fifty
four are still doing business. The legisla-
ture n year ago decided that no more such
charters should be- granted. Some of the
societies had taken advantage of a quasi
official statement by the Massachusetts in
surance commissioner that their business
was legal and stated that the schemes
had the offioial endorsement of his office,
A short time ago he issued n circular cor
recting this impression. and stating that
we believed their promises to be morally
and mathematically impossible of per-
formance.
Lnis year 'ne massachusetts legislature
has taken another step toward their sup
preston by passing a law prohibiting tho
transaction of such business by foreign
corporations or those chartered in other
states, and exacting from the home com
panies that IS instead of 30 per cent, OF
assessments for tho disability fund
be set aside as n reserve fund for tho
exclusive payment of matured endov-
ment certificates. n providing also that
the residue OF assessments shall DO placed
IN n benefit fund to be applied exclusively
70 tho payment of disability benefits, The
bill also places the whole business under