Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1891-03-27
MAfnELEcisLATuRE.
ssxty-fifssf f.ession.
SENATE


Resolve in fsver Of John W. Dudley o.
Cxssie Hill Plantation Ia Arnossook county
An act 10 Incorporate the Van BufeI
Water Company.
Ras,ivs in favor Of Erskine school.
An scs to incorporate the Belfast Iliumi
mating Company.
Resolve in fAvsr Of Emile s. Winberg,
An act to su.horize the admission of New
England Live Stock Insurance Company tG
do business IN Maine.
II On motion by Mr.. Sssnton of SAgadahos
laid on the table to be printed.
An act to incorporate the West Waldo
Agricultural Society Oa motion by Mr
Nu;ting Of Aroostook took its second read
iog under suspension of the rules and passed
70 be ensrossed.
Resolve authorizing the state librarian to
enter into contracts fof Furnishing the new
library rooms. On motion by Mr.. Roger.
Of Warrington referred to the committee
on iaance.
An sct to establish bouutv on seals.
An act 70 amend chapter 279 Of the Pub
lie Laws Of 1889 relating to the Bureau OF
Industrial and Labor Statistics. House
sme ndment adopted.
Ga motion BY Mr.. Walton of Somer.et
assigned tomorrow at IL O'Clock.
Majority azd minority reports Of commit
tee on banks and banking relating to act to
incorporate the Cumberland Investmen,
Company, came fr1m the House. minority
report accepted, thz. the bill ought not to
pass.
Mr.. Wilbur of Franklin moved the Sen
ate concur.
Mr.. Stewart OF Yofk-This bill comes
from the committee signed by six members,
fou- OF whom signed the majority report,
and two OF whom signed the minority re-
port. Four nsmes Of the committee do not
appear ss signing either report. l wish to
take few moments time Of the Senate to
discuss the nsture of the bill which is
| before US.
In the rst place call the attention Of
the members Of the Senate % the incorpo-
rators in order that you may see who the
men Sre that ask to be incorporated a. this
Investment company. Some of these men
I know personally. Some Of them you
know. All except three are residents of
Maine. The first one is prominent boot
AID ehoe dealer in the city Of Portland,
the second WAS for years actusry
in q life insurance company. The fourth
man is 8 wel!-known insurance sgen. Ia the
city Of Portland, another is a we!l-known
hotel msn, the lass one is keeper of the
records and seals of the Knights of Py thias
all, Gs you will see, thoroughly business
mfn They ask to be incorporated as q
body polite by the name of the Cumberland
Investment Company. for the purposes
set forth in Sec |. of the Act.
| rhsre are only two questions for this
| Senate to consider in testing this proposi
ton, the first is: whether this corporation
can 30 The basiaess which it asks charter
| 10 do ; xnd ,ha second whether that busi-
macs is legitimate? If these two facts can
| be proven | say there is nothing for
| This Sonata to DO except TO adopt the
majority report Of the committee. Let US
examine the propOsiti)n we have before us
iU sectio of this act. II is nothing mors
nor less than the Conneodcas Mutual, the
New Y ark Mutual and the other old iina
life insurance companies ara doing as an
endowment bDsiaess. This proposes TO
Assess iis members So so each month,
which gives $50 in o1e year. They pre-
pose, il a member lapses or fails to pay
until he has psid for tbrea fall years. by
| thai isp'e, the company or the other 80 Of
tbe ceriiaca'e holdars in this series Of Que
hundred shall profit They offsr.
after Eisn has made three years
payments, and pail $40 mo rha
c5mpsuy TO give I'm a raid up policy
or cash sure lder Certificate as he may pre-
| fer. In case they pay the cash surrender
value of his cerlifi ate so per cent. Of tha
money be hiss paid in, or Sl5 for every
ninety. in case he sees fl 10 take up p.i !
u1 certificate. payable only at the time the
9th ninety niae are, they ff3r him paid
up certificate OF $50. Dpon which III y
agree to ply him fout pr cent interest,
cefrsiniy legitimate tfaps pslc.ion. Now
let US see wh;th,r they can d, it, let us see
y hat olher companies are dniag to-day, take
the N. Y. mutusl; place these tigares OF
syersge age Of endoSment policies nf
! these companies az 80 years. The N. Y.
Mltual collec.s $50 10 for each thousand
dollars upon the endowment policy. II
figures that S30.l9 in this way. 80 6S coss
to pay ;hs mortal ty risk or death losses,
Ard .goes into the mortuary fund
This company does rot propose to
paw any body st dea'h any thing. So We
strike ont 50 6S; $8 GO goes to pay the
runniug expenses, and into the expense
fund, which gives you $3.50 thst the ccm-
psuy assumes to p,y out. because it
assumes tbat it eoe.s ,hsm 50 62 for run.
ning expenses, ard they aStuSily d, pay
out 50 68 for death .osses. 2iviog SIS 80
that the compaov paws ont OF this $50 10
which leaves sll 50 as reserve fund
The N. Y. Mutusi agrees TO pay its
poiicy holders a cash surrender vslue
st the erd of three yesr,, jist the amount
of this reserve fund in cash. That is 35 6T
Thst is Just What msa who takes an
enac sment policy in the ". Y, Mutual
Life los. Co. gets st the end of three yesr.,
if he sells his policy to the company, s35 G7.
He can, il he sees g. take q paid up p0licy
| in that company for jass az many dollars
as 35 81 will buy ia legitimate insurance
They do not propose To give him onetren-
ti.ta of the polioy, hut jas, what s35.67
will buy. Now, IN order TO do this. as near
- it eau re figured, il agu-as {, the com
pauy, something like Al IS 100 per cert
premium on i,s ispses, or income,
should cay. Nov this company. in
stead of collecting $50 10 propose TO fix
their expenses at $50 instgal Of IS 62.
rha. leaves 1922 so which thi, company
proposes TO put ioto reserve fund instead
of 1ls9. Il proposes. after a member has
paid in three fall years; $50, thry viii!
give him in cssb, il he suIrenders bis GER.
tifcate.
Tbey propose, If be prefers to take a
paid up certificate Of $3.50, TO give him
that, snd pay ihereon per cent. insere.t
How dee. that d'fer frcm the business u e
Union Mutual doing tu'ioess in Maine. is
ao= doiag. Tha. company gires raid Vi
policy, sf:er three years, on the 20 yesr
pan Of Just three-.wentisibJ Of the face oi
the policy. precisely what The Cumberland
Iavestnens Company proposes to do. The
Union Mutusiis. in the meantime, carrying
risk upon the 'ife OF these men, which
this company does not propose 70 do: q
margin in fsvsr Of tie Cumberland In
vesiment Company. There are alwsys
shese three ei- -men,s which come into life
insurance, psmely, expense, IN StgsrY and
reserve fand. The Cumberland Invest
men. Company, ss have shown. has ne
mortuafy fund. Is is collfc'i1g from it.
certificate hnlders eschysu within ninse
cents As much ss the Nsv York Maiua
is collecting from trenty yesr eud ,rmea
policy holders at the age OF 80 yesrs
The N. Y. Mutual is paying Gu
its mortnsry fun1. Instead of IL 50 whict
the N Y. Mutual has the Cum5erIsnt
Investment Compsny has rsssrve fund oi
$3.50, rearig double the amount will
which It proposes t, do lesa Risky eu.in- 8.
because il does no: propose 60 tase riss
risk upon . man's lie. Tie Us:c,
Nutusl and the n Y. Mutual is. Sc csior
2 Of this bill provides hox it may acqair,
and hold property snd 70 what amount, sac
what business it msy do. Section simpl,
provides fer the ofaznizaiion. And roy
IS to section 4. We have ehsrtsrs,