The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-03
VIEW AT AUSTIN.

9 have obtained charters under article 81
K chapter 2, title 81, Revised Statutes. Will
IL their main object is TO do an insuranc
!, business without being subject to the re
r quirements, taxes and fees OF companis
II earl wing on the business Of life insurance
with the assistance Of few "fraternal
features they seek, under cover OF secuo
$ 23 Of chapter 10 Of the acts OF the Twenty
S fourth legislature (Bowsers home insur
ance law) TO escape regulation. Said sec
ton gives everything In the shape OF
mutual benefit, benevolent or fraternal or
ganization license to write insurance with
out restraint. provided It does bushes.
through lodges The associations complained
OF to the attorney general have obtained
charters to practice benevolence, yet. tax
ing advantage OF the provisions of the
Bowser law, they have invaded the insur-
ance field, presumns. no doubt. that by
taking on few fraternal appendages they
can go contrary 70 the verbilgc Of their
articles OF incorporation with inlpunity.
But as the benefits received ircm belong
| ing to said associations are not r;atuitous
| (as these benefits are due TO members on
account of money they pay In there is
little doubt but what they can be ousted
| from the corporate franchises they are
claiming TO exercise by virtue Of incorpora-
tion under title 81. Revised Statutes In
the language OF the supreme court, ut mat
| tiers not what name the association may
assume. The law looks TO the real objects
| OF the body aud not % the name indicative
OF hencYolence which 1t may have assum-
ed"
There has been quite an influx Of CO.
operative and fraterual assessment lie In
surlnce associations into Texas during the
for in two ways. First the law applicable
to such concerns is so lax that It invites
them | ere. Second. the prevailing hard
times have greatly increased The demand
for cheap Insurance. as we'll as the supply
OF individuals who. for lack Of better
occupation, have taken mp that of selling
low priced indemnity, OF course there are
some fraternal assessment companies that
are doing, or at least trying to do. a lesiti-
mate business, hut there are many whosc
managers are totally irresponsible, while
iully alive to any AMI all weak points in
the law that allows them 10 prey on the
public. And It seems as though the pub
lie, in its anxiety TO be swindled. is eager
to embrace the most Transparent frauds
ana to believe in the promises Of so-caled
benevolent lie insurance schemes irnpos-
Hbl' Of fuliillment Until the law is amend
ed to protect fraternal policy holders Texas
Will be continually flooded with CHEAP in,
surance, giving no security for indemnity
ana beyond the control OF insurance super
vision
Several years ago q certain hat passing
benevolent insurance concern vas orsan-
lied In State north OF the Ohio river. and |
gathered In membership Of 10000 As |
long as new blood" flowed in and death |
stayed its whitening hand. all went well. |
The promoters had money TO burn and |
lived In clover. But there came turn in |
the tide and with it change over the |
spirit OF their dreams Afnuence was euc
coelcd by $4,000 deficit. and something
mad to be done to break even. All policies
were scaled half. fun assessments TO he
pa'd Just the same, anybody Who kicked
was expelled; all members were forced 10
carry policies; and If anybody died within
A certain period after the new scheme was
adopted, his beneficiaries did not get even
the scaled face bnt only the amount of tho
premiums paid In without interest This
association has many victims in this State.
YET under the law as made by the Twenty
ourth legislature, 1t has specific authorize
to operate here without being subject ~
nent
II
The following extract from recent issue
II certain fraternity paper throws light
'pon the principles on which some L, neyo-
ent insurance concerns do business; "a
Jew Kind of entertainment was reccntIy
'Nen down the peninsula it was hug
ing bee, and the prices were as follows.
'i'lS 10 years Of age, 10 cents "A hug of ten
"'nn'es duration or N cents for sbor,
aue"@e' irlm l6 TO 20 years. 80 cents: from
10 - 40 cents school marms 40 cents.
no,her mans wife. 81: widows. ACCORDING
i''Ns. from 10 cents to 81; old maids
rec We recommend such an entertain
s"' TO those lodges whose members do
ar, "..,uu IL should prove drawing !
,n %here everything else has failed
-. 49, oh'ih's III with remark, made
.,,u III my hearing, by a digaltary of , /
"N'-'t''''u insurance 9sSOpiD- | 1
v Whioh has large Texas memborshin. |
we re IN good fix" said he Tho l,di.,
our loago Keep the treasury repIerishod
y sI'lns little entertainments. so mat ,,a n
'luoih nave TO 20 down in our nocte,s ~,
rect our assessments" Great sche-,a,
loSe' nat could be nicer than "bucyin,, +
nee! me lhsur-
- r
BESIDES the "hugsins bee and the ,,,,uo c
n'artainment" there Is the bonus" ,s
leans Of nrolonglng the life of froterro,
'seasment life insurance societies Tho
N'lai head Of one of the best frotorn,I
'hoerns IN the United States in recon,
1nual report remarked that "the pocossi..' c
II the accession of new blood arn,o,,.. 3
'eds no argument. That II can 4
tmeu 10y the judicious employment ~ !,
oneE mas been demonstrated Nv ~ VI -
~ OF the past two years" r., !;
"iVn ne concludes that liberal ror,nau.n q
, BONUSES to individual members ,"S :
uses Tor new members is n rood ,h1 anu y
" .es mem To exert themselves 10 h,tn 80, II
new blood and keep down tle o o, n
MlhH ratio of assessments. m ,h -
;, t'ai observer, however. II must ami, W., T,
at q society that l,,, appear | ~