Arizona weekly journal-miner., 1897-09-08
4 SHADY TRANSACTION
Some Very Suspicious Circumstances Connected With the Failure of a
 Life Insurance Company.
Policy Holders Asked to Insure in s Particular Company, But no Ap- parent Advantages Offered
 Them for Doing So.

The JouREAL-MlNER recently men
 toned briefly he iaIlurs of the Mas,
 sachusetts Benefit Life AsNoclatiou
 oI Boston, together with peculiar
 request made tO policy holders to
 relnslre at once in another company,
 Tho circular issued by the commit.
 tee of the defnnct company is here
 wiab given in full:
 BosroN, Aug. l7, 1S97.-To the
 Policy Holders of the Massachusetts s
 Benefit Life Association. The un-
 derslgned, members of A committee
 on reinsurance appointed August
 10, by the board of directors, after q
 thorough canvass and consideration
 have come to the conclusion that
 the terms offered nv tho New York
 Insurance Company are the best
 obtalnable, taking into cousidera- tion the conditions of the policy and
 the standing of tho company.
 Therefore, they recommend to their co-directors and policy hold
 CTS to effect the reinsurance on their lives on the terms agreed upon between the New York Life Insu- rance Company and the under signed. The company was selected because it offers the most advanta- geous terms aud most liberal policy, granting loan values, paid-up insu- rance and extended insurance op. tions at special rates to the United States memeers; also offering to as- sume the risks in foreign lands. We therefore strongly recommend that all members of this association fill out the enclosed application imme- diately, and mail ;he same to the nearest office of the New York Life Insurance Company, or to the homo office of that company, and make early arrangements to be examined by one of the company's physicians. It was found impossible to in- duce any reliable insurance to as sume the whole membership with out medical examination.
 The rates of premiums quoted in | the enclosed leaAet will apply to the | members at their present age. The | presentation of this circular, to- | gether with the table of rates, at the | different agencies of said company, will serve to identify and entitle the | members to policies at these special rates. CARROLL D. WRIGHT,
 Lotus WNDMULLER,
 JOIN HENRY RoLKER, Committee of the Board on Rein
 surance.
 Accompanying the above circular was a blank application for insur- ance of the New York Life Insur- ance Company, with q red line printed on the margin as follows: Member of the Massachusetts Benefit Life Association"
 The table of rates sent were sim. ply the regular rate card of the New York company. The query naturally arnse in the minds of the policy holders of the defunct company, What advantages dO we get by complying with this request?" Not being able to solve 1t palicy holders in Prescott sent q request to the committee oi the deiunct company and tu the officers of the New York Life for an explanation but up to date nope has been received. Now question very naturally sug- gests itself to these policy holders which is this: "Does this arrange ment with the New York Life aud the committee simply consist of an agreement for the company to pay the committee a commission on all business obtained in that way, and was it on this account that that red line was placed on the margin in order to identify these policy hold ers3'
 Supposiug that 100000 policy holders of the dcfuncL company were to re-insure in the New York Life and that commission of $20 )n each premium was made it would amount to the snug little sum of S2,000,000. That would amount to . nice little sum to divide up be- .ween few persons, enough in fact ( O almost justify wreeking a com Dsny for.
 But now comes the information rom tho defunct company that it is 2 lbout $l,O00,000 short in the pay nent of its death claims and de. . 'ision of the Massachusetts courts s $ quoted to the effect that policy ' holders arc liable for the whole | amount and will probably be called ? 'n for assessments to make goo | his claim. Now it is not known that the com s nittee has arranged to receive | from the New York V 4ife for reinsuIing the members of he NJ. R. l.. A . but from all informa- ion received here by policy holders here is strong presumption of his kind, and this presumption has o ed policy holders to seek other i for policies to take the c 'lace of the one lost through the [ bove failure. Instead of being a 'enefit to the New York Life this !, has been a detriment : 0 them here. '. The transaction looks shady to ay,the least, and needs explanation, ' s it looks very much as though | 'olicy holders were to be worked . or the benefit of few individuals.