The morning call., 1892-12-30
FIGHTING ENDOWMENTS.
The Legislature Will Be Petitioned
to Declare Them Illegal.

The life insurance companies and the en-
dowment orders will probably have a big
fight at the coming session Of the Legisla-
tnTe. AT any rate, a bill will be introduced
which. If il becomes law, will give the
endowment orders lively struggle ior ex-
istence.
For a long tine past In various States this
feud has been going on in the legislative
halls. Massachusetts is the original home
Of the endowment order, and every time the
legislators OF the Bay State have met during
the last six years they have been called on
to decide upon the merits of the end 1wment
orders. The life insurance companies waged
an unCeasiIg war. but were unable to secure
the passage of any bill antagOnistic TO the
endowment people.
The fight was carried into other States.
until now it Is to be introduced into CalIfOr-
MIA. Already in Pennsylvania. New York
and Illinois the life insurance companies
have been victorious
When the Eureka order of this city went
into the hands of receiver few weeks
since the local life insurance managers
thought their time had come to make a
bold strike. Consequently initiatOry steps
were taken to have a bill passed instruct
ing the Insurance Commissioner of the
State to refuse to license any more endow-
ment orders and to revoke the certificates
of those at present doing business.
This is an old fight in Eastern States"
said a California-street insurance man yes
terday, "and one in which the public should
nave deep interest. According TO the
complaint OF Marie c. Arnont, who petit
toned the Superior Court for q dissolution
OF the Eureka order, that institution owed
the colossal sum of S5.C00.000, while its
assets were trifie over $1,000. Now, the
promoters OF concern that can do busi-
ness In this manner and then so scot free
can make money in manner that would
make the late Jay Gould sick with envy.
'The endowment people have all along
commended that their schemes were as legit-
innate as life Insurance, bat the record of
the last few years is against them. A few
months ago came the announcement! that
the Iron Hall OF indianapolis had failed
with liabilities of over S10,00O.00O. and the
only assets that the Insurance. Commission
ers could discover aggregated In the neigh
borb0Od OF 100000. The order of Tonti has
just failed in Philadelphia for like amount
and the order of 1Egis has gone TO the wall
In Massachusetts with liabilities of SS,000,-
600 and assets Of S1S1.O00. OF the original
ffIy-One endowment orders licensed by the
| Insurance Commissioner OF the State OF
| Massachusetts thirty-f0ur have already col
lapsed.
The magnitude OF the operations of these
| concerns In the United States and Canada
| runs away into the millions. They have
nearly 225,OO0 members. A good many OF
the Eastern States are already making it q
felony to operate the scheme, and it is very
| probable that California will follow suit
! The public should be protected from The
| operations of such men,"
| At the present time there are about hall
a dozen prominent endowment orders do
ing business in California. The leading one
| OF them has headquarters in Oakland They
are all six" or seven year" concerns; thai
| Is, their certificates mature in that time from
the date of their purchase They are al
any hostile legislation which the Sacra
| mento solons might see tit to approve of.