The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-10-17
MAKE Them RICH QUICK
Progressive Benefit Agent
Arrested in New
ark.
NINE CHARGES OF FRAUD
1t Was the First Chance offered
the State officials and Was
Promptly Seized.
So ecfal to the Jersep citv Ne,cs.

Special to the Jersey City Netcs.
TRENTON. Oct. II, 1891.-Bank and In
surance Commissioner George S, Duryea
yesterday telegraphed to Deputy Insur-
ance Commissioner Thomas Johnston, of
this city, that he had arrested Charles j..
Brown. the State Agent for the Progress
sive Benefit Order in Newark. This order
has been doing considerable business in
the State. 1t has a number of Trenton
members Charles j. Brown has been
doing business for the Progressive Bene-
fit Order at 729 Broad street, Newark.
An order for his arrest was issued Thurs
day by Judge Depue. who fixed the
bail in his case at $1,000. October
26 was set for Browns appearance
in the Circuit Court, whore hs will have
an opportunity to present his defence.
Brown was arrested at his Off ce by
Deputy Sheriff Collins and taken to the
Sheriff's office. Brown is described in
the affidavit under which he was arrested
as an agent, solicitor and canvasser of
the Progressive Benefit Order. The order
was Incorporated in Massachusetts and
has not been organized under the laws of
New Jersey.
Nine allegations are made against
Brown, and the sum of $500 is claimed on
each, under the provisions OF the State
law for the regulation of insurance COM
panies The charges against him are for
soliciting business for life insurance and
health insurance, for receiving money for
such insurance. and for doing q general
insurance business The total sum thus
c1airoo od ia cuad for II, the name of the
State and also in the name of the Newark
Firemen's Relief Association. All The
allegations are with reference to
Browns transactions with one Peter
Barringer. who became member OF
local lodge of the Progressive Benefit
Order. Barringer is a Newark mechanic.
who invested some money in the Progress
sive Benefit Order, and becoming sus-
picious OF the concern he went to Com
missioner Duryea with his story.
This was just the opportunity Mr.. Dur.
yea had been looking for. He had heard
concern, but had not got hold of any one
who could be used in prosecuting suit
against the order.
PROMPT ACTION.
AS soon as Mr.. Duryee heard Barrin-
gers story he took steps to cause Browns
arrest. He placed the matter In the hands :
his brother. Edward Duryee. The law
yers decided that BarrinGer's knowledge
of Brown and his transactioEs was not
sufficient, so they engaged Edward s..
Leary, u Newark lawyer, to get further
evidence. The manner In which the busi-
ness OF the concern is transacted is show
in Mr.. Leary's affidavit.
He says he went to Browns Office, No.
729 Broad street, In October 8, and asked
to see Brown. He saw a woman who told
him Mr.. Brown was not in, and that she
was his wife and was familiar with the
business of the order.
Il told her. Mr. Leary continued,
that wanted to enquire in regard TO the
working of the order, and asked her II
she would explain the matter to me. She
produced the October copy Of the Pro
gressiUe Times, which was, she informed
me. known rs the official organ of the
me printed circular and told me tnat
while the Progressive Benefit Order was
not an insurance order, still 1t was OF the
same general nature, the difference being
that in order to get benefit in an insur-
ance order one had to die, whereas in this
other the benefit was derived during
ones lifetime.
.sShe then went on to explain the cost
of membership in the order, which she
told me would be IS, to be paid when an
application was filed, and the assessments
would he 50 each in order TO gain a week
ly sick benefit OF $40, and the amount pay
able at the end of the year to be 500. In
order to obtain the sick benefits one must
be member of the organization for six
ty-seven days. The assessment of ST. SO
would enable one to obtain weekly sick
benefit of 81 so, or SIS dollars at the end
of the year. The assessment of 81 would
obtain weekly benefit OF $5. or $50 at the
end of the year, and an assessment OF fifty
cents would obtain a weekly sick benefit
of Sc so. or the sum of $25 at the end of
the year.
'sThere could not be more than five,
however, of these weekly sick benefits
received during any one year. and in case
one took advantage of them aud received
these sick benefits they We're deducted
from the amount that would be obtained
at the end OF the year.
"She said that there were fifteen lodges
now in operation in the city of Newark
and about seventy in the State; that there
were fifty or more IN Canada. and lodges
in nearly every State and Territory in the
Union.
'She said that her husband, G. j..
Brewn, was the largest holder of cer-
tificates in NewarK, holding Afteen. and
that she herself had been paid on two
certificates Sl00 each and that another
payment would soon be due"
Later in the same day. Mr.. Leary
affirmed, he saw Brown III the Office and
received a similar account from him OF
the workings of the order.
From tho affidavits presented itappears
that Brown has been conducting busi-
ness for the Progressive Benefit Or
der ever since its Incorporation,
about seventeen years ago. under the
insurance laws of Massachusetts. For a
time man named Mckenzie was the
manager and Brown the deputy; but Nc
kenzie was ordered South 10 take charge
of an office OF the company aud Brown
was made manager in Newark. The
Office was then at Sal Broad street. and
was not moved to the present location
upward OF $4,000 had been paid out in
Boston by the order.