The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-02-06
INSURANCE HUMBUGS.
Secretary of State Kelsey
On the Tontine Frauds
That Rob Poor People.
ALL FORBIDDEN BY LAW.
They Offer Something for Nothing,
Yet Make Money-An
Active Crusade.
ALL FORBIDDEN BY LAW.
sntcfal % tae Jer,eu citr Ne,r,.


matter OF the catch penny insurance"
organizations which are collecting small
amounts and promising to pay 800 per
cent in ninety days or less. Letters are
pouring in on him from every part of the
State and from nearly every other State
In the Union asking about the legal
standing of certain concerns which are
doing business under the State laws and
whose extravagant offers are creating
much alarm.
The companies that are under fire are
the Earnest Workers." "The Order of
the World" 1.-THE Universal Order of Co
operation" "The Advance Beneficial. y
and others too numerous to designate by
title. In the opinion of the Secretary Of
State these associations are liable for the
violation of the insurance law, because
they are doing an endowment insurance
business without having the requisite
apital or fling the proper statements.
There are upward of twenty thousand
people in New Jersey who are investing
In these nasty endowment schemes, and
the number has doubled within the last
four months because of the multiplied
tion of the societies. Upwards of S100. 900
is being carried out of the State weekly
by them.
The Order of the World is Boston
concern that has recently gained foot
hold principally in Jersey City and New
ark. Charles f. Thompson, OF Boston, is
supreme Secretary. II is circulating
much literature. and all its circulars an d
documents have been secured by the
secretary and are on file. 1t has several
insurance" schemes, and graduated
endowment Its term is seven years. The
sum of $3.50. gains $1,000, and lesser
amounts in proportion. This company is
doing a big business all over the country,
but being clearly endowment insurance,
it cannot be allowed in this State.
A JERSEY CORPORATION.
Letters OF enquiry are flowing in from
the West, asking for the.standing OF the
Universal Order of Corporation, which
is Incorporated under the laws of New
Jersey with principal business Office In
Camden and sub-offices in Philadelphia.
There is an operating agent in every
county in this state. A weekly assessment
OF 81 for Ia weeks, and some other assess
inents amounting in all TO so ensures
four months from the date of taking out
OF certificate, the payment of 500 by the
order To secure the benefits. the appii-
cInt must become q persistent"
member, that is he must pay
dues regularly and not grow
weary in paying. Each membe is pledged
10 bring into the society two new mem-
Ders or else he forfeits certain rights. This
order has created much excitement In all
parts of the State, and its membership is
probably 5000 by this time. Assembly,
man Cole, of Cape May, finds that every
hamlet in South Jersey is afflicted, and
thousands OF dollars are going out of the
State every day. In the interest of sew
eral frightened investors he has written
to the Secretary Of State, asking whether
these companies have right TO do bus
mess, ana he has been informed that they
have not.
The Beneficial Order of Earnes Workers
is another Philadelphia concern. whose
chief held of operation is New Jersey,
and it has membership in every city and
borough in the State. The concern pre-
tends to pay 500 for $50 In thirteen
weeks. 1t holds out even better induce
ments, because for every new member
brought into the fold. it allows 50 or the
deduction OF one weeks assessment of 81.
The supreme officers are five Philsd
phians. Two brothers hold five offices.
One A. II. Harris is president and mana
ger, as well as director. A. Judson Har-
ris is auditor and director. This order
has membership of 200 in Trenton, 100
in Burlington. $50 in Salem and flourish
ing branches in Princeton, Newark,
Elizabeth and New Brunswick.
The Advance Beneficial Order is also
working New Jersey, though check has
been put on its business by several expos
ures.
Within the past month a new scheme
has been invented in which the endow-
ment is made payable in thirty days. For
Sl7 paid In assessments and tax the sum
of $50 is paid at the end of each month.
ALL LIABLE TO THE LAW.
The Secretary OF State was asked this
morning what action the State proposes
TO take to put stop to these fraudulent
concerns.
.s.rnesa neonia are vioIatfno tha Iaxr -
was his emphatic answer, "and |, as the
the Bank and Insurance Commissioner of
the State stand ready to prosecute their
officers ana agents 1t is not nv duty TO
become detective and secure evidence.
Let any one make a formal complaint
and see how quickly / will issue capias
and make arrests.
''Ihaye soinformed all parties that write
here for information. Ihaye decided long
ago that neither the Iron Hall, nor the
Sexennial League nor any of the latter
day schemes have right TO do business
here am not without ample law. but
must have some one 10 complain that the
law is being violated. The claim is set up
that they are secret and beneficial orders;
but they are really doing an endowment
insurance business, without capital aud
are securing money by false pretences.
They make people believe that they
thrive on the lapses. and that may be pos
sible in the long term concerns; but not
so IN three month orders. People 90 into
them well prepared to pay the small
amount demanded and no doubt the first
series OF payments will be made. They
make assessments on the future investors,
sufficient to make up the lacking three
hundred per cent Later on it will be
found that assessments will come fire.
guently, and collections will reach almost
10 the amount of the endowment
promised Then there will be lapses. and
the officers will be able to secure enough
TO retire rich.
Il expect sooner or later to secure com
plaint That will warrant my proceeding
against such agents as | shall find in New
Jersey. They will get a fair sample of
Jersey justice for the law is not without
ample punishment. will quote the law
because SO many think we have none. "
Mr.. Kelsey showed me this clause
II shall be unlawful Tor any company CO rpor-
alton, OF association OF any kind whatsoever in
state. or OF any otner state or nation itself or
by its agents, solicitors, surveyors. c2nvassers
or other representative Of whatever designa-
tion. or for any such agent. solicitor, surveyor,
canvasser other representative or any fndi-
vidual or firm. whether on behalf Of any such
company, corporation or association or not, to
solicit or negotiate any contract OF insurance of
by mail or otherwise, any policy. certifi-
cate OF membership certificate OF renewal
thsreof. or receIve any premium, commission
Tee or other payment thereon on any property
or thing or the life health safety or any
person. or IN any manner directly or Indirectly
to transact The business VI Insurance. OF any kind
whatsoever. within this state unless such COM
tasf4Ir T1H