Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-07-27
POLICY HOLDERS DISCUSSED.
Will Transfer Policies and Leave the Mass.
achusetts Benefit Life Assurance Co.

New York, July 26.-Over 800 policy
holders in the Massachusetts Benefit
Life Assurance Co. held an exciting
meeting. this afternoon, in the main
hall of the Equitable building on lower
Broadway. President John Henry
Rolker, who was in attendance, pre-
scented calm demeanor notWith-
standing the fact that Fraud" and
Swindle" were pretty freely used 10y
the policy holders. These severe terms
We're applied more to the company It.
self than to any one connected with
it,
The policy holders finally decided 10
refuse to pay any more assessments
INTO the company and empowered the
committee chosen at last weeks meet
ing to make arrangements to transfer
as many of the 10000 policy holders as
are willing into some old established
New York company. Further it was
agreed to assess each policy holder one
tenth Of one per cent. of the face value
Of each policy for the expense of en-
rollment and transfer.
In round numbers President Rolker.
said. the liabilities of the company were
about 50 oo00 OF this he thought $780,
coo We're Illegal and -collectable,
leaving the actual liabilities at about
100000 He would place the assets of
the company ut 5000 OF this sum
$4,000 was borrowed from the emer-
gency fund. The company had an
equity in the Massachusetts building,
large office building in Boston of $685.
900; Canadian bonds to the amount of
$l02. 900; investments in South Ameri-
can countries to the amount of s25. 600:
about $4,000 in mortgages; and about
800, 900 in real estate in and about Bos-
ton.
If the policy holders or a majority of
them would pay the regular and extra
assessments levied the income would
be therefrom. President Rolker said,
about $4,000
AS most of the liabilities We're in the
form of death claims and as he
had stated many had not complied
with the rules and requisition of the
company, these claims would have to
be deferred.
In case the $4,000 was forthcom-
ing would it put a stop to the increase
in the amount of assessments? asked
a policy holder.
Il cannot answer that question. That
depends on the mortality. The heavier
the death rate the heavier the assess
ment would be-" answered President
Rolker.
Does the company intend giving UP
the assessment plan?" asked anothe.
policy holder.
1T certainly does. A plan will be
presented of transforming the holders
Of =,
Premium Policies was the response
President Roker next described the
Lien PLAN by which policy holder
say with $4,000 policy. would agree
that if he died within the time that the
men of his age, according to the NOR
tuary table, prescribed, then he would
forfeit a certain proportion of the face
of the policy. For example. if a man
with $4,000 policy died within the five
more years accorded to him by the ia
bles, he would lose $4,000 or S30G0 as
may be agreed on. If he lived longer
than the time allotted by the tables
then he would get the full face value
of the policy. He further explained
that many of the men whom the life
insurance companies had rejected
lived longer than the men whom they
had accepted
What has been the death rate since
January |, 1892" asked a member.
That | cannot swear replied Mr. Roll
ker. Il only know that according to the
tables the people die faster in cold
weather than in summer. The mortality
is always greater in the first half of the
year than in the last half, and acting OF
that principle ii seems reasonable that
the company would not have so many
risks in the next few months"
President Rolker surprised the meeting
by stating that he would hold all checks
and moneys sent to him in trust and if il
was decided to close up the affairs of the
company. Aug. 5. he would return the
money paid in to the policy holders who
sent them. He also said that ii was not
the fault of the present officers of the
company that the finances were so bad
and declared that the district attorney of
Boston had assured him that he would
soon look into the affairs of the past
management of the corporation
Placed as he is. he said he could saw
nothing further, but that he had bis
name and reputation to preserve and
would do the best he could to place the
company in good standing again if the
policy holders would stand by him. Tn
less 90 per cent. of the policy holders had
been heard from by check or otherwise
by Aug. >. President Rolker added the
board of directors would probably vote to
close up business. He also said that he
had consulted his attorneys and actu-
aries and what he had told his hearers
was on good authority