Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-02-26
CLOSING THE GATES.
Legislation Now Pending to Check
Fake Financial Orders.
SUCH SOCIETIES MUST GIVE BONDS
A Bill offered to Place Them All Under
State Supervision
NOT CONSIDERED STRINGENT ENOUGH

As result of the war inaugurated by
THE DISPATCH against the so-callcd bcne-
fetal societies based on "get-rich-in-a-
hurry" schemes, bill is now before the
Legislature, which is intended to pre-
vent any further extension of such
methods of robbery. The bill is
entitled "An act for the better
protection of members of companies, associa-
tions and mutual assessment and benefit
companies, finance and bond investment
companies other than beneficial and fraternal
orders W no pay sick and funeral benefits to
their members"
The exposure of these frauds throughout
the State by newspapers and police have
been the direct cause of this piece of legisla-
ton. The idea of this bill Is to require all
the organizations of the above class which
promise their members stipulated sums Of
money at the end Of stipulated time
to file a bond with the Auditor General
OF the State for one-half the maximum
amount promised the aggregate membership
at the end of the term agreed upon, when the
payments are to be made.
No Way to Avoid Payment.
In most cases the bond is to be renewed
made at the END of six months or less, then
the amount of the bond is to be computed
by the actual membership at the time OF or
ganization and renewed at the end of every
succeeding six months. The presiding officer
or Treasurer who neglects OF refuses TO comply
with these regulations will be deemed guilty of
a misdemeanor and be subject to a fine of not
less than $500 or more than $1,000, or imprison-
ment for not less than one year or more than
three.
The bill was presented by W. F. Stewart. Of
Philadelphia, and has also the support OF W.
r. Leeds, of that city, 1t is the intention to
also include in the bill a section placing all
these organizations under the direct super
vision of the State Insurance Commissioner.
AS it is at present, they are responsible TO no
one, have no capital, and don't make pretense
of having any. They simply issue their paper.
and trust to lapses TO make up the deficiencies.
Although the idea of the bill is regarded as a
good one, since the victims of these organiza-
tions are people who can ill afford to lose
money. it is not believed to be stringent
enough. while Others go on the idea
that it does not make any difference
The class of people who bite on these schemes
would be sure to bite on something else of the
same nature.
One holding this opinion was Chief Brown.
who said: IA fool and his money are soon
pure and simple, and intended to en-
rich the few who are able to pay against the
many who are not. The world, though, is full
of people who like to he swinGled, and if this
method of taking their money is removed they
will just as willingly take the next bait that is
offered.
Will Evolve Other Schemes.
1.-THE men who make living by these plans
will not stop because this method is stopped.
They will start out with new scheme and find
as many victims with the new as they have with
the old"
Mayor Gourley read the bill and said he did
not believe it was stringent enough. Said he:
THE existence of such organizations should
be prohibited. They are leeches on the poor
and wear cloak of. fraternity only to catch
victims. The law making them file bond is
step in the right direction, but they would very
likely find some way to evade it. They at best
should not be allowed to continue as at present.
for these organizations are responsible to no
one but themselves"
Roger O'Mara was interviewed and said he
believed the bill would be check to these
fake societies, but 1t WAS very little difference
whether the people were swindled by that or
some other method. why, they like to be
swindled. Even the shell game can still find
victims and the bunko steerer does not have to
starve. The people who keep such organiza-
tionS going now would put their money in some
other one Just as bad if this is taken away, so 1
can't see that it makes very much difference"