New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-08-22
POLICY HOLDERS ANGRY.
PROTESTING AGAINST INcREAsED
ASSESSMENTS
s,,r WROUGHT AGAINST THE MUTUAL RESERVE
FUND LIFE ASSOCIATION by FIVE
DIFFERENT PERSONS.

FUND LIFE ASSOCIATIONS by FIVE
DIFFERENT PERSONS
Suit has been begun In the Supreme Court against
the Mutual Reserve Fund Life Association IN Deha'i
of five Of It's pocy-holders who aIege that they
have recently been unduly assessed on their poiices
and demand an explanation OF what they character
lie as IAN exorb!tant Increase In the assessments
The action has been brought through Schntzer *
Meyer OF No 100 Broadway. The five policy-hod-
ers are Isaac b. Guest. weil-known coal dealer;
John Brahm. John : Conabeer, Bernard A. Dun
hues and Walter T. Poll all Of this city They are
all what are known in the Mutual Association as
.pcrsstent members" that H. those who took out
their policies from ten to twelve years ago. In the
ear.y days of the company. They complain that
while they made agreement that they were not to
my more than certain sum assessments to
cover death claims. these an cunts have recently
been increased from 30 to 100 per cent one policy
holder alleges that his agreement called for
lmum assessment of S25 10 payable b-monthly, and
that recently he has received notice that the sum
had been Increased to Ei 10, his policy being for
$1,000
The other complaints in similar vein all
being based the claim that the increase Is ex-
orbitant and unjust Similar action has been taken
by policy holders in st. Louis.
Schnitzer & Meyer also aege that the 800 900
invested In the company's building at Duane
st. and Broadway came from the reserve fund,
which the constitution OF the company provided
should be invested In United States bonds and IN
frst-class mortgages. the interest from which was
intended 20 prevent any increase OF asse ,smenis
for death claims
WHAT THE PRESIDENT SAYS.
Frederick \. Burnham. the president Of the Mu-
tual Reserve Fund Life Associations said vi the mat
ter yesterday: This action all comes from two
lawyers who advertised for dissatisfied policyhod-
OF the company Out of 10000 policy holders
they got nine, and Of the nine there were four who
our action in increasing the assessnicnts was due
to Superintendent Pierce Of the state insurance
Department. who told ~ that this should be done
since the olde: members were nor paying enough
AS fer the investment in this building the
received an offer of 100000 for It. Furthermore.
one in bonds and absolutely safe As matter Of fact
We submitted that question to the policy holders,
Xfter the plans were all compIeed ' the poey
holders asain voted TO approve the project and thus
made the necessary ratification As for any suit.
none has been begun far | know. for no papers
have been served upon me or any Of the officers
OF tho company.
Mr.; schnitzer. who is prominent In Hungarian cir
cles in this city. made The following statement: at
= true that we advertised ,or dissatisfied policy
holders But We had complaints enough already.
stead OF nine responses, ! can show you at least
one hundred letters from dissatisfied policy holders
who have written to Us. Here are samples Of
Mr. schnizcr showed pile OF letters. one Of
hoer. Stating that he had for years ' been o paw
ing a bi-monhly assessment OF sl3 30 on $3.50
policy ard now that amount had been increased by
80 per cent The communication was exceedingly
drastic.
That letter" resumed Mr. schnzcr. rs sam
pie ~ all MS to tenor The assessment OF
policy holder Ia. been increased from S2S TO $50
and OF another from $50 TO SIP These increased
assessments all levied tn" old policy holders
the persistent members they called by the
association. Now. what IL the effect OF this?
When man gets 10 he scventy-five years old as
In Instance he finds his assessment suddenly
doubled. lie has calculated on his ability TO meet
the old percentage. But what can he do under
the new distressing conditions? He must 30 to the
wall. he Is frozen out