The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-19
BENEFIT LIFE RECEIVERS.
MlssAOHUsETTs ASSESSMENT INSUR-
ANCE CONCERN To Wind UP.

A. o. woodworth and Arthur Lord or Boston
Take Charge or FITS ACKNOWLEDGEMENTS
made with the New York Lire Company
70 Rcinsure the rs. o Pelicyhoiders.
The Massachusetts Benefit Life Association,
which has long been In difficulties, has finally
gone into the hands Of receivers. The directors
decided to suspend business at a meeting held
on Tuesday. In an address to the policy holders
they say they were forced TO take this step be-
cause OF the limited response Of the assessment
members to tho regular and extra calls levied
on July l. Tho receivers Of the defunct insur-
ance company are A. s. Woodwork, Preslden t
Of tho Eagle National Bank Of Boston, and
Arthur Lord, a Boston lawyer.
The New York Life Insurance Company will
rcinsuro the 80, 900 policy holders Of the Massa-
chusctts Benefit Life Association, who carry
R65, 00o,O 900 of insurance, on terms which have
been agreed upon with the directors of tho
bankrupt institution, acting through q COM
mittee composed of Carroll D.. Wright, Louis
Windmuller, and John Horny Rolkcr.
Lawyer J. X. Hayward. counsel for the Mnssa-
chusetts Benefit Life Association for sixteen
years, gave tho following history Of tho con-
corn yesterday: THE company was origi-
nally promoted by W. q. Corthell, but George A.
Litchheld soon obtained control of 1t, and is en-
tirely responsible for its career, from tho cradle
to the grave. lie had no knowledge of life in
surancc. ind, in common with II thousand other
mon, who controlled other assessment compa.
MOS, mado fundamental mistakes. II ho had
taken the bull by the horns and raised tho assess
ments gradually the company would be flourish
Ing today. but as such n course must
he had accumulated two or three hundred thou
sand dollars arrearages, and then made a large
raise at one jump. The suspicion that this was
IA frecze.out. together with tho fact that the OK
pense money was all turned over to Mr.. Itch
field to run the company. and for which he was
responsive to no ono, OCCaSlOned great 0XClte-
mont in Massachusetts, last year. This excite.
ment eliminated in throwing out the whole
Litchnold regime and putting in q new
directorate, which felt bound to make up
the deficit by making two extra assess
mcnts. which completed tho catastrophe
ing the number OF the so-called new ones. Tho
company had other incidental misfortunes. Mr..
Litchfeld allowed his subordinates to build q
fno building on State street, which tied up
S250,00O OF assets, which, II the money had
boen In bank, might have tided IT. ovor. Tho
writing policies up to tho day it stopped issuing
Thorn.
There is not a pretence that Mr.. Litchfeld
ovor did anything inconsistent with the strict
est honesty and tho best Judgment he possessed.
Tho same Is equally true as to all Of his trusted
matter Is that he failed to collect money enough
to mako the company a success, and his clientele
lacked confidence in the business to make up
that amount at once. 1t has collected and dis
bursei about Sis. 200. 900 for benefits, with an
arrearage OF less than half a million. Every
moneys worth, but they either will not or can
not make up tho difference to continue the
business. Such Is the fate of assessment insur-
ance, II 1t becomes decadent."