New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-12
POLICY-HOLDERS SUFFER.
Dp.sTyc ACTION OF THE AETNA LIVE
STOCK INSURANCE COMPANY.

STOCK INSURANCE COMfAN1.
PAYMENT or Az PER CENT DECLARED TO hE
=; FILL SATISFACTION OF MATURED DEATH
CLAIMS UNDER AN EXTRAORDINARY PRO
VISION OF IT'S CoHsTITUTION-wITH DE
LrC1oIS HIMoR 1T Is CALLED IN
sURANCE THAT INsUREs."
The Aetna Live Stock Insurance Company OF
No ia Nassau-st.. has recently announced 70 iS
policy-holders that payment Of Az cents on the
dollar would be made in full Of all death claims
that matured in 1894. This in most cases fals
considerably below the amount OF premiums ac'u-
ollv paid by such policyholders. This action IS
taken In accordance with an extraordinary proNl-
zion of the company's constitution and bylaws
which gives it the right to prorate claims "heh-
over the directors fnu that the mortuary luha
70 insufficient TO meet the approved ma'uied
claims. In this instance the claims are put at
s172i2 49, and the money on hand for their pay
meni at S1i5 80.
In the letter making the announcement, the ui-
rectors blandly exoress the hope that careful
considerations and strict attention TO all the de-
tails ~ the companys business in the future
will avoid a repetition of the necessity OF pro-
rating claims With a delicate touch of IRONY
the motto at the top Of the letterhead reads: IN
ru~ance that insures." The truckmen farmers
snl others 10 whom this letter has gone must
Grn cold comfort in the contemplation of that
r,otto.
WHAT THE COMPANY Is.
The Aetna Live Stock Insurance Company was
INCORPORATED in 1891. with its home office at Glens
Falls ~ y and lis business was stated to he
that # insur1ng horses mules, jacks and jennies.
Agents were sent throughout the State to open up
:he conlpany's plan Of insurance to horse-owners,
the large bulk of the business being with team
elcrs farmers. etc. whose horses constitute
Vital part of their business. and to whom the
death OF their horses meant heavy loss and per-
taus suffering There were other classes of in
slrsnce also. for blooded and registered stock.
the highest estimated value allowed on single
Animal being $1,000
The officers OF the company. previous TO Janu-
AIRY IS. 1885, were Francis j. Dean. president; Dr.
NJ F. varney. first vica-president; j. W. Moore
second vice-presdent; j. 5. Narney, treasurer; T.
+. Deai secretary and general manager francs
l.. Knowlton. chairman Finance Committee the
manager Of the New-YOrk City branch was
young man named c. +. Winters. The circulars
sent out by the company announce: Past rec
orl-Over 100000 paid in losses; over s3,O0O,OOO in
risks"
Up TO January. 1895, the company run on
assessment
O. certain period of years and all premiums and
assessments were TO be paid during that period
whether the horse insured lived or died BY
clause in the policies the constitution and by
laws were made part Of the contract OF in
surance and it was provided that these might
be revised and amended at any special or annual
meeting Of the Board OF Directors.
The receipts Of the company were divided into
two funds: the general fund. made up of the
membership fees and annual dues. out of which
the expenses Of working and maintaining the
company were TO be paid. and the mortuary
fund made UP OF money received from mortuary
calls to be used in the payment of death claims,
after deducting the expense of collection, taxes
and all legal or other expenses incurred IN de-
Tending the company against the payment OF
unaudted or fraudulent claims
ONLY A PRO RATA RECOVERY.
The most significant and interesting paragraph
OF the constitution is Section of Article TX
which reads:
The losses shall b paid from the mortuary
fund raised by mOrtuary calls or assessments
upon the members and in 'ase OF an epidemic
or contingency Of heavy losses so that mort,
uary call should be insufficient to pay IN full All
losses for which it was made each member nav
ing sustained loss can only recover pro rata
part thereof according as his claim Is 70 me
whole amount of claims. In full Satisfaction Oi
that loss.
# is under this provision that the company has
made a payment of Az per cent OF matureo
claims in full satisfaction thereof. The letter
which conveyed this cheerful news to the claim
ants was follows:
Dear Sir: Owing to the excessive mortahty
and depression in business experienced by the
company during the year 1894. the mortuary
fund became entirely exhausted. and at special
meeting Of the Executive Committee. held no,
vember s. 1894. 1t was decided to issue a specla!
assessment of | per cent Of valuation upon the
policy-holders under class A and Is, C. ID ana T.,
J. 2. 8. and ., and to divide the proceeds vi
same pro rata among the policy-hoders having
sustained or who might sustain, any loss during
the year 1894 as provided for in Article TX, sec
tion 2 of the constitution and bylaws OF the
company marked copy 81 whlch you VIII iliu
enclosed The amount received by the company
on said assessment 10 be applied TO the payment
Of claims on file December 81 was s'io o. anu
the losses 70, which said assessment was mace
amounted to ST. 272 40. The above entitled each
claimant TO Az per cent OF amount OF caiin ior
ioss sustained The net amount of your claim,
as per proof Of loss. is 5, being ~ per cent,
the pro rata share upon loss sustained by you
,,nder nolicv No. -, and we herewith enclose
check in payment OF same
At the annual meeting of the poLcy-holders
held January Is, 1885, at Glens FANS, ~ u. an en-
trely new Board OF Directors ana olhcers were
aiacted. and we hope by careful. conscientious and
strict attention to all the details OF the conpa-
nv's business in the future to not only avoid
renet,tion of the necessity Of proratng any claims
bnt n he able TO meet all legal claims promptly
and In full. We believe this can be done ana no
effort or labor will be spared by the ne" manage
n,ens to that purpose.
the former Board OF Directors to the necessity OF
rroratng claims, pledge ourselves II shaii ho'
occur under our administration Yours yer!
truly, e,o(,,y r~c1-p AvCE, 70
The new officers Of the company referred to In
,he above letter are: George Hannah president;
DR. H. NJ Bradley first vice-president: l. b.
WeIlman. second vice presdent II. L. Bowers