The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-07-22
Revival of the Troubles
Between the Citizens In
surance Company and
It's Manager.
WHERE THE MONEY WENT TO
Beneficiaries Anxious to Secure
Money Due to Them-State-
ment by the Counsel.

tual Insurance Company and William
Wilson. manager of the Hudson county
district, which resulted in the resignation
of Mr.. Wilson. have been revived. The
history Of the alleged negligence on the
part Of the home officials of the company
in Atlantic City was detailed in The
News" of July IS.
1t was then alleged that many policies
were unpaid and that agents salaries
were withheld and that these things led
to the resignation of Mr.. Wilson. Secre-
tary Silvers, of the Home Office, made
a statement in partial refutation of Mr..
Wilson'S statements, in which he adj
mitted, however. that over $500 of policies
in the Jersey City district are unpaid.
Lawyer Mervyn Armstrong, who is
counsel for a number of beneficiaries who
have not received the money due them,
was seen last night by a reporter for
The News
He said:-"It is understood that the
Citizens Mutual Life Insurance Com
pany will take advantage under provis-
ions in its policy of the fact that the
beneficiary of any person dying of a pub
monary disease, who is insured in the
company, is entitled to only one-half the
face value of the policy. ] am about to
bring suit in the Supreme Court OF this
State against the company for the re-
coyery of the amount which Is due, ac-
cording to the policy, in the case OF Jonn
Carr. who was insured for 1920. At the
time the policy was issued ne was in ex-
cellent health and was physically strong
in every way. He passed an examination
by the company's physician n after the
policy had run for nine months he died.
Claim was made by Noah Hefferman, OF
No. So Myrtle street, the beneficiary
named in the application, and the proofs
of death were sent to the Home Once at
Atlantic City, but Notwithstanding the
acceptance of all premiums as they came
due. the refused TO pay more
than $3.50 on the policy. The policy con-
tanned a clause that if the insured dies
after six months from date Of policy and
within one year the beneficiary named in
the application shall be entitled to re-
ceive only one-half of the amount named
in the policy. In this case, however, the
company saw fit to fix the compensation
to the beneficiary at $3.50 when it should
have been S110.'
Former Manager Wilson was also seen.
He said
Z ~ CSD OC III
pany for alleged -misrnanagement of its
affairs this letter written by me. to
the home Office. in Atlantic City, on Janu-
will put a somewhat different complexion
on the natter
Branch Office. 626 Summit ave.,
Jersey CRY, January 10, IS.
John P. Giberson Esq, General Manager,
Atlantic city, N. j..
Dear Slr-TweIve days ago / forwarded
lain under. policy No. q. 4vS, on life of J.
J Mahr. You haye seen tit to completely
ignore tne matter, leaving me, as the
impair representative in this city, to
| invent whatever explanation ] could to
the widow of the deceased. DO you call
Another claim was presented a week
ago. I at once telegraphed you that | had
forms at once. I got the forms six days
| after. Do you call that business?
Your clerks at the Home ONCE four
weeks age, on s a ans ms rihd lapseo w Sic FOL OF
warded. The policies We're then and are
now being paid on each week. But SS.lo
was deducted from my salary for this
error, and it is owed to me yet. Do you
call that business?
! have written nine times about the re-
serve due on my gency without receiy-
ing even the bare business courtesy of a
| reply. Do you call that business?
No lapses Were received IN this dis
trict for week of December 80. every
| agent in the district was on claiming on
the face of the accounts. One agent
voucher was forwarded in full. One
| should nave been S26. I got $40. All the
| other agents got nothing. Do you call
that businesSi
If an agent asked you to pay him his
special salary on the application before
policies were issued, you o consider
him pretty nervy, but you hold a re-
serve of one-third, have two weeks APP
plications in hand and then charge agents
with lapses not yet through. This OF
course tends to make the agents honest,
/ don't think, particularly as ] have to
do the explaining.
7 am tired of doing business on the
guess and come again" plan. You may
have superintendent in our service III
will take anything. But ] am not in that
class. / have a clean record covering
sixteen years, and can secure an APP
pointment with any of the companies at
twenty-four hours notice.
If YOU want me to remain in charge of
this district, its affairs will have to be
conducted on a business basis: / have
lived up to my contract both in letter and
spirit. and have faithfully studied the
c~ornpany's interests since my appoint
ment, / cannot continue under present
conditions, nor can ] afford to visit the
home Office whenever something goes
wrong.
Awaiting your reply, ] remain,
Yours very truly,
W. E. WILSON.
Superintendent at Jersey City.
Continuing, Mr.. Wilson said:-'As to
Secretary Silver's aspSrsions on the gem
uincness of the meeting held in my Office
on behalf of the interests of the policy
holders, / have the signatures of 2S4 poll
icy holders of the company, represent
ing $50, of insurance, which will be
forwarded to the Superintendent Of
Banking and INSURANCE., asking for a
rigid Investigation of the companys at
fairs.
aThe statement of the secretary that
there is not one interested policy holder
| a member of the committee appointed on
bebal Of the policy holders does not
hold water. / can state that l, as chair
man of that committee, hold ordinary
policy No. /. This branch of the COM
pan business I organized and perfect
ed. James H. Crawford; the second mem.
policy No. 2 for 81, 600. and the 24 policy
holders represented by proxy at the
meeting hold Is per cent. of the COM
panv's policies in Hudson county, and a
close scrutiny of the company's affairs
by the State Department of Banking
and Insurance win result, in my opinion,
In a better representation at the Home
cnnduct OF the industrial insurance BUSH.
ness.
is false that there was about 81, 200 In I'M
raid death claims due benehciaries, +
| viii say that their admission Of $S14.S so of
| unpaid claims is correct, so far as it
goes, but the company's representative