St. Paul daily globe., 1891-06-17


friend, and paid the gathering a compli-
ment by saying: They are like lot Of
circus agents in the dull season." The
two most conspicuous features in
the convention room were ex-Gov.
McGill's briliantine moustache and
yaRol MeTritPs Mosaic beard. Henry
j. einmund, the president, short.
solid-looking man, called the conven-
vention to order. Mayor p. B. Winston
welcomed the delegates TO the city. C..
ID, Smith, state insurance commissioner,
was absent. SO the deputy commissioner,
Z. ii. Dearth, welcomed the under
writers on behalf of the state. During
brief speech he contrived TO score re-
cent legislatures, thus:
THE laws governing cooperative or as
sessment insurance which now disgrace the
statutes of Minnesota afford no protection
to the people against the evils of those un-
mltted under the. provisions of the
law to work their bold-faced nefarious
schemes with almost absolute impunity,
practically stealing from the pockets
OF working people thousands of
dollars annually, and the insurance
department is virtually poweriess to remedy
the terrible evil or afford any relief to those
who suffer- While the insurance commits
sloner may be fully convinced that the per-
sons who organize under the law are really
dlsreputable, lie is compelled to give them
certtcate OF authority to transact business
which is really more than highway robbery
This condition Of affairs works irreparable
injury to honest associations entitled to the
confidence and patronage of the public. 1t
would doubtless surprise many of you to.
know what large volume OF correspondence
the insurance department receives from the
victims of these heartless institutions ap-
pealing for relief. and demanding to know
why such disreputable organizations are
allowed to exist and Of what benefit the in
I'M m cir ar THnF rrINrnC h nc
sanction to such bold-faced robbery just
think what serious barrier the honorable
and reputable institutions of the state con-
tend with i'll the prosecution OF their business
while this terrible condition of affairs exists.
Therefore, If the work of this convention
results i'll stimulating a public sentiment
that will tend 10 remedy this great evil
by securing the enactment of new laws for
the government of this class of insur-
ance, it will be a noble achievement.
During the late session of our legislature all
honorable efforts were made by the insur-
ance department, in conjunction with many
OF the leading assessment companies to pass
bill which was in substance copy of that
prepared by the committee on legislation
appointed at your lrst convention held in
New York, but it proved to be fruitless un-
dertaklng, although no stone was left un-
turned"
David Murray. associate counsel of
the Mutual Accident association of
New York. responded on behalf of the
delegates to the welcome. President
Reinmund then read his annual ad-
dress.
He referred proudly to the gains
recently made by assessment life in
Surance companies, or natural inSur-
ance' as they prefer to call it. Over
10000 new members have been added
to the rolls, making total of over q,
100000 persons carrying insurance
QnOranafinN alnanCt 81 000 0l1 000
There are 469 assessment companies
with cost or invested assets amounting
to S32, ,0O0, 900. Since their organization
the companies have paid to widows and
orphans S343, 800, 600, and during the
past year $46.500,000. He referred par
ticularly to the fact that the New York
Lite, one of the oldest and strongest in
Surance companies in existence has re-
Gently adopted the assessment system.
He denounced endowment insurance
as a swindle and explained thus:
'Endowments may be divided into two
classes. One in which the stipulated pay
ments by individuals are insufficient OF them
selves to provide funds wherewith TO meet
the company's obligation to each individual.
and assistance is therefore sought from
lapses and large and ever increasing mem
bership. All such schemes are nee
essarily speculative and insolvent. The
new membership cannot be guar
anteed ana finally becomes impossi-
bic to obtain in quantity adequate to the |
ever increasing demand. While those who |
secure the earlier certificates usually the |
management and its friends), may receive |
the promised payments, there must ever be |
large and growing number the longer the |
scheme holds out, who cannot fail Of being !
and who will Inevitably lose |
all they have paid in. The second class rep |
resents a more legitimate business: l |
refer to the endowment policy issued |
h0 flh lina mic
Here an adequate premium is charged to |
meet each individual case, and the deposits |
over and above current mortality and ex- |
pense elements are accumulated at interest |
for this purpose. We do not, however. be- |
lieve that this is the proper province OF life |
insurance. II is part of the functions of |
savings bank. Any one who will purchase |
his term insurance from a natural premium |
or assessment society, and deposit the |
difference of premium to his account in |
a savings bank, will fare better i'll the end, |
than by taking an old line endowment pol |
icy. This can be easily demonstrated by any |
person able to compute ordinary interest |
The saving bank pays no |
commission TO agents for, the deposits. and |
IL conducts its business more economically |
than the old line insurance panies: more |
over one may always Withdraw his savings |
in full. while on the other hand. he must |
submit to whatever the company sees fit TO |
pay him in return for the surrender of his |
policy"
The reports of the committees on Gre
dentials and on legislation and of |
the executive committee followed. All |
the delegates were seated. The eXecu- |
tive committee reported the figures pub |
lished by the GLOBE yesterday morning. |
The committee on legislation reported |
on the failure to pass the bill i'll Mime |
sofa, as related by Deputy Commissioner |
Dearth.
The Minnesota bill passed in North
Dakota. Results could not be re-
ported from South Dakota, Montana, |
Oregon or Washington. The subjects |
HAS the experience of the several !
companies i'll their efforts for business
during the past year as regards the at
titude toward them of competing COM |
panies been satisfactory" and What
is the proper method of ,apportioning
the expense element, and will sound |
permit Its collection with
out clearly stating in the assessment
notice that it is for expenses" we're dis
cusSed. The committee then divided |
into sections.
The accident section listened to the
annual address of Chairman Ii. W. K.
Cutter, of Chicago. Then began dis
cussion that lasted all the afternoon. 1t |
referred to the amount of money which |
each company should be compelled to /
deposit as an emergency IunQ. or trust |
fund, to guarantee its business in each |
state. Some of the delegates fought for |
making that sum equal to one regular /
assessment not less than $1,000 nor |
more than $4,000; others thought the
maximum should be $4,000. The latter |
party seemed to be in the majority. |
The accident insurance men will seek |
to have bills passed in all states on that |
basis.
The m edcal section met with the
regular delegates. Three papers were |
read: 1.-The Medical Director; His Du- |
ties and Difficulties" by DR.. G.. o. |
Taylor, medical director of the North
western Masonic Aid association, of |
Chicago, H.; 1.-The Requirements of |
Physicians as Examiners for Life In |
surance Companies" by DR.. George L..
Brown, medical director of the Masonic |
Life Association of Western New York;
AN IN