St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-07-31
HOW 1T WORKED.
WelI-Laid Plans of the Crave
Yard SWindler.

Weu-Laid Plans of the Crave
Yard SwindIer.
BOSTON, Mass, July 3O.-Charles
H. Bakall, OF the Massachusetts, Ben
eft Life Insurance company, said
today the attempt at insurance
frauds in Beaufort, N c., if success
full, would have made victims of
half dozen companies. He said
his suspicious were aroused by the
fact that two claims were made upon
policies issued to parties in Beau
fort soon after the insurance had
been effected. An agent was sent
to make an investigation, which re-
vealed the far-reaching conspiracy
between the agents at Beaufort, a
physician, and the several other par
ties now under arrest The plan was
to secure policies for small sums
only, the schemers thinking that
they would not be of enough &C
count to cause an investigation. The
conspirators have already secured a
handsome su in the aggregate. One
policy for $1,000 was issued in Sep
TENDER last. In November the in
sured died and the proofs said death
was from pneumonia after five
| days illness following great expos
ure. 1t developed that death was
from pulmonary phthisis and the
victim had not been out Of his bed
for three months prior to his death.
The sick man either was imperson-
ated by some one else for the exam
ination or the physician filed out the
medical blank without regard to the
facts.
a similar state of facts seems to
have existed in regard to many 9TH
er applications sent by the local
agent, who appears to have organ
lied q regular band Of conspirators
to defraud insurance companies all
| over the country. The plot involved
men of previous high standing in
the community. Many of the persons
did not know that they had been
insured. Some We're insured who
were living in abjeet poverty and
! could not pay dollar for insurance.
! Not one Of the policies was proper
risk for a reputable insurance COM
| pany to take, yet so complete was
! the organization of the conspirators
that all the papers bore the sigma
lures of the necessary indorsers.
The companies involved are the
! Mutual Benefit, the Northwestern
Life association, of Minneapolis, the
! Michigan Mutual, of Detroit: the Life
! Insurance Clearing company, Of st.
! Paul; the National Life association,
! of Hartford; the Massachusetts Ben
] eft association, of Boston; and the
! Mutual Reserve Fund Life associa-
ton, of New York They have unit
/ ed TO aid the state to bring the con-
! spirators to justice.
In relation to the Beaufort, N. c.,
/ graveyard insurance conspiracy to
! defraud life insurance companies,
which was unearthed recently, and
! the particulars of which were given
in the telegraph columns Of yester-
days G 10 b e, a reporter yesterday
| called upon the Northwestern Life
association, of Minneapolis, which
/ was one of the companies which the
conspirators attempted TO defraud.
Not long ago the Northwestern
Life association received an apphca-
! ton from a man at Beaufort, who
was not a regular agent. for a policy
written on another mans life, and
which application appeared to be all
right The policy was duly for
warded, as requested, but the COM
pany soon became aware that all
was not right. They wrote to the
man upon whose life they had placed
the insurance and received a reply
that he knew absolutely nothing
about it, and had never APPLIED for
any insurance, being unable to get
it on account of his physical condi-
ton. The policy was at once can
celed, and the Minneapolis company
escaped, but it led to the unearthing
of the conspiracy.