The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-11
STRING OF CHARGES
ALLEGATIONS OF A SERIOUS NATURE
MADE BY POLICY HOLDERS.
for an Injunction Against
the Mutual Reserve Fund Life
Association of New York.

CHICAGO, Oct 10-Charges of a serious
nature are made against the officers OF the
Mutual Reserve Fund Life Association, OF
New York, in q bill filed in Circuit Court
late this afternoon. The bill was prepared
by attorney w. L. Mason, who represented
a number of the Chicago policy holders in
the corporation. and is brought for the
purpose of enjoining the company from
declaring their policies lapsed, owing to a
dispute which has arisen and which the
courts are callen ON to settle. The COM
plainants show that they took out policies
on the recommendations of the company.
through rs agents. that the insurance bus
mess carried on by ii was on the mutual
plan and that very small reserve fund
only was to be maintained by the company
for emergencies; also, that the recommcnda-
tions included, the court is informed the
statements that the assessments would not
reach beyond a maximum amount, the
amount being shown In various communica-
tions.
The complainants call the attention of the
court to the different agreements ny which
the defendant company agreed that the
assessments should not be Increased for
the purpose of increasing the reserve fund
and they charge that in violation of these
agreements with its policy holders the COM
be rated at an increase of
80 per cent The policies provide,
according to the complainants' showing.
citation may make. an assessment when
the death fund is insufficient to meet ex-
listing claims, and 1t further provides that
member whose certificate Is in force at the
date OF the last death assessment. In vio-
lation of this the charge is made that the
of policy holders who are younger and
whose policies are of later date than those
OF the complainants. thereby working great
resente2 that the whole plan of the de-
fendanU company, according to its repre-
sentations to the complainants. was to be
upon the mutual plan, and that the men,
bers entering earliest and continuing in
the company were to have the benefits of
the insurance they had at the beginning
OF the maximum rate of insurance at the
rate at the age of entry, but ii is shown
that under the present plan as adopted of
increasing the assessments the evidept
purpose is to accumulate a large sum as an
emergency fund and compel the complain
ants to pay larger sum than maximum
rate on the basis OF age at the time Of
they have contributed from time to time to
the reserve fund, but that under the pres
ent plan they get no benefit whatever from
the reserve fund which they have created
which is in violation Of the spirit OF the
agreement.
The charge is then made that the COM
pany is conducting the business of insur-
ance in the State of Illinois In gross vio-
lation of the State laws, and. by doing So
increasing the expense Of insurance of the
complainants without any corresponding
benefit. The complainants further charge
the fact to be true that millions of dollars
of insurance has been issued by
present management OF the company
without bringing one dollar of
benefit by way OF cash payment,
which, the complainants declare, has great
ly prejudiced them. Under the contract be-
tween themselves and the company. the
complainants say they are members of the
company and were supposed to have voice
in its management, but, instead, they say
charge that the directors are accommodating
four millions of surplus, which was not con-
templated at the time when the complain
ants entered the company. The surplus,
the court Is informed. Is being accumulated
for improper purposes, and the complain
ants desire an accounting from the COM
pany, to the end that IT shall be enjoined
from increasing the rate of assessment be-
yond the maximum limit at the age OF the
complainants when they took policies. FL
nally, it Is shown that the company threat
ems to declare iapsed the policies of the
complainants unless they are paid before
Oct. 81. The latter ask the court to enjoin
the company from doing this until the OBJ
jections Of the complainants against paying
the assessment can be placed before the
assessments may be paid out of the reserve
fund OF the company. or, failing, that the
company be placed In the hands of a re-
ceiver, and the reserve fund equitably d.
vided among the policyholders according
to their contributions to the fund