The herald., 1898-03-13

WiouOHIs
Since the receiver of the defunct Bank
ers' Alliance has offered the policy holders
q reinsurance contract in the Mutual Re
serve Fund Life Association of New York.
n number Of inquiries have been addressed
td the financial department of The Herald,
asking for information as to the respon-
sibilty of the company In which the new
indemnity IL offered.
Tho recollection of the generous offer
made by the Chicago Guaranty Fund Life
Society Is fresh in the recollection of
policy holders. They were to be taken in
without medical re-examination and were
to pay the rates which prevailed at the
date when they first took out their in
surance. Such generosity was inexplica-
BILE, except on the assumption that it was
q spider and fly game that was being at
tempted and later developments give color
to this idea. Ex-President ]. o. Curry ap-
pears to have secured a position in the
Chicago concern ON the strength of his sup
posed ability to swing the policy holders
of the Alliance into the Chicago Guaranty.
That he failed to do so Is now ascertained.
Receiver Washburn has been in Chicago
and is expected back in a few days. In the
meantime story that has woolly ap-
pearance is in circulaton to the effect that
he haa levied and collected fine" OF
$4,000 from the Chicago concern and Is re-
turning with the money for the beneht
of the Alliance policy holders. This Is
important, II true; but why the Chicago
company should pungle. $4,000, and what
right the receiver of the Bankers Alliance
has to fine them, are questions that do not
appear to be soluble at the present writ
Ing The transaction, as narrated, would
deserve to be called backmail, and 1t is
ridiculous to connect Mr.. Washburn's
name with anything Of that kind, even If
the fine" was levied for the benefit of
others.
With regard to the offer made by the
Mutual Reserve, there Is nothing specially
attractive about 1t. even granting that the
company Is strong as well as big. There,
Is no doubt al to its size, and that it is
the biggest of the so-called natural pre-
MUM" companies. 1t Is carrying liabili-
ties in the shape of insurance in force
amounting to $500, 900. 900. 1t claims men,
bership of 112000. besides cash and invested
assets OF s.. 400, 900. Mr. Washburn says
that the Mutual Reserve has for seventeen
years had career of uninterrupted sue
cess. That success has not, however. been
without its Interruptions and even now
there are dissensions which threaten to
carry the concern into the courts. At best
the Mutual Reserve is an assessment COM
pany and that fact will weigh strongly in
the minds Of many people; those who like
cheap insurance may prefer 1t to the old
line rates. The people who are getting this
object lesson as policy holders in the
Bankers Alliance of fragrant memory
may. however. decide to try another form
OF insurance than that offered by the "hat-
passers."
For the information Of those who are in
terested, the following quotation from the
New York Journal Of the 9Th instant is
submitted.
The Policy Holders association of the
Mutual Reserve Fund Life association met
at No. 143 Chambers street yesterday. F.
B. Thurber presided and policy holders in
seven states were represented. 1t was re-
solved that while there are wrongs to be
righted and economies to be effected, "the
efforts Of speculative attorneys and COM
peting companies to break down the Mu
tual Reserve Fund Life association are to
be deprecated"
state policy holders to telegraph or write
TO their members of assembly protesting
against the passage of senate bills Nos
AIS and 4G3. which have passed the senate
and are now pending in the assembly
These bills affect assessment insurance
companies, and the policy holders ask that
they be heard on these questions
Bill No. AIS provides that any domestic
mutual assessment company which has a
deposit of 500, 900 with the insurance depart
ment may reincorporate and do business.
This bill, 1t Is alleged, also permits an cx-
listing corporation, by a simple vote Of a
majority Of its board of directors or trus-
tees, to amend Its charter with the consent
of the superintendent of insurance and
without the consent of the policy holders.
A board of directors under this law might
obtain entire control of the company and
Of all its funds. The members would have
no rights whatever in the management of
funds entirely contributed by themselves.
It is alleged that this bill was prepared
by the department of insurance, and has
the unqualified endorsement of it's super
lntendent 1t is asked what right the su-
perintendent Of insurance has to originate
and promote such a law when his office
was created for the purpose of protecting
policy holders from mismanagement, pecu-
lation and misappropriaton of funds by
the officers and managers Of these institu-
tions.