The Washington times., 1894-08-14
Policy Holders of the Endowment As
sociation Badly Wrought 10.
LARGELY INCREASED PREMIUMS
President Gardner Severely Censured-Mass-
meeting to Be Held-Matter May Be Car
ried Into Court and Receiver Asked For
Gardner Says It Was the Best to Be Done.

what noisy respectable people assembled
yesterday in and around the offices formerly
belonging to the Washington Beneficial En-
dowment Association at No. 419 Tenth street,
but now the property of the Commercial Al
lance Life Insurance Company OF New York.
The recent change Of ownership Of the
Offices, property, and business Of the Bene-
ficial Endowment Association, as recorded in
THE TIMES Of Saturday last, was the occasion
of all the excitement and manifestation Of
feeling on the part Of those who claimed to
have had an interest in the property and as
sets of the old Washington concern. They
are highly indignant, and they claim justly,
because their property was transferred with
out their knowledge or consent or without
even a consultation with them.
The bitterness of feeling is chiefly directed
against Mr.. Lawrence Gardner, the former
president OF the home association, who, the
certificate holders claim, has acted in an ar
bitrary manner without their consent, and
against the best interests OF those most inter-
ested in the welfare OF the association.
Runors of all sorts of litigation are rife.
The air is full of them. Some Of the certifi-
cate-holders talk Of commencing criminal
proceedings against the president and other
officers of the company. Others more mod
crate threaten injunction proceedings. and
others still are going to petition the courts to
appoint receiver and have the recent trans
fer set aside and the affairs Of the association
wound up.
mass-meeting of the certificate-holders is
to be held on Wednesday or Thursday, when
some concerted action of the disaffected and
aggrieyed policy-ho!ders will be decided
upon.
MUCH HIGHER ASSESSMENTS.
The commotion was occasioned yesterday
by the receipt of a lengthy letter from Presi-
dent Gardner by each OF the certihcate-hold-
ers, in which they were informed of the trans
fer of their insurance to the New York
Company. The letter also informed them
that they would be required in future to pay
assessments at a greatly advanced rate; that
is to say. on their respective ages at the pres
ent time, instead OF at the time they took out
the insurance. This is one of the chief points
of complaint by the certiticate-holders.
One old lady (now over seventy years, she
says who held a "a, 900 policy, on which she
has been paying about 500 annually for
nearly seventeen years has been notified that
her annual assessments will in future be over
$500. This, she SAYS. she cannot and will
not pay, and she reasonably enough wants to
know If she is TO lose all the money she has
already paid in.
Another certificate-holder, who was paying
little over $500 year ON certificate, but
who has not been connected with the mori-
bund institution as long as the lady referred
to. has been notified that in future he will
lie required TO pay something over $500 an
nually in order to keep his insurance in
force.
President Gardner's letter contained two
Enclosures. One of these was policy issued
htrt he k.Itr OrLy tph iah ia r.afA
to as the new company. The other inclos-
ure was an agreement, authorizing the trans
fer OF the risk or insurance from the old as
sociation to the new company, which Presi-
dent Gardner asked, with all the confidence
of a person who expected TO have his request
granted" said one of the recipients yester-
day, that each certificate-holder should sign
and return TO him.
BELIEVES THE TRANSFER ILLEGAL.
prominent lawyer, who is also a certif-
cate-holder in the Endowment Association,
said to TINES reporter last night:
Il believe the transfer made by Mr.. Gard
ner is illegal and will be set aside II the as
sociation was no. in condition to meet its
general meeting of all those In
terested should have been called and its af-
fairs laid before them. A receiver could have
been appointed. and the concern could have
been voluntarily wound up. The certificate
holders would in that case have got back
most if not all of the money paid in. 1t is
absurd TO ask people to more than double
their annual premiums for the same amount
OF insurance which they have been carrying
for ten or fifteen years"
In speaking of the probable outcome of the
mass-meeting ofthe certifcate-hold-
ers. the lawyer. who requested that his name
should not be mentioned at this iuncture
mid ssflba maftpr will in all prOhabiiifr ba
carried into the courts, the sale set aside, and
4 compulsory winding up of the affairs Of the
ordered. In that case a receiver
will be appointed. l don't think that any
criminal proceedings can be maintained"
PRESIDENT GARDENERS EXPLANATION.
President Gardner said last night: 'My
letter TO the certificate-holders explain the
situation. For the past two years we have
had very heavy death rate and the new
business has not been in proportion. This
necessitates advancing the amount of the as
sessments, and if this state of things were
allowed to run on the assessments would
soon be as high as those demanded now.
after full examination of the conditions |
that confronted us, and having talked with |
many of the certificate-holders, we deemed it |
most advisable. and the best arrangement |
that could be made to enter into that which |
ldS Just peen perlecleu Will inc Coinnercidl |
Alliance Life Assurance Company, of New |
York. We formed IL union with that COM |
pany to take our certifcate-holders at rate |
which we considered very favorable to them"
Mr.. Gardner said that he could have washed |
his hands Of all responsibility by resigning |
rom the presidency year ago or more. but |
ne did not wish to do so. as the affairs OF the |
association were not then in fourishing |
condition.