The herald., 1898-02-01

Detray IT,.
O O o
The application for the appointment of
receiver to take charge of the Bankers
Alliance comes up for hearing tomorrow
(Tuesday) morning. The complaint in the
case is made by w. p Jeffres. a policy
holder in the defunct concern, who joins
w. A. Nimocks, ]. o. Curry, L. II. Lyons
and Thos. w. Aisbitt as defendants, they
being trustees or directors.
The petitioner alleges that under the
laws of the state of California he is per-
sonally and individually liable for his pro-
portion of the debts and liabilities of the
corporation and fearing that the assets
are being dissipated in the heavy expenses
now being incurred, and finding that the
company has practically ceased doing busi-
hess. he prays for the appointment OF a
receiver to take charge of everything in
sight.
The assets are estimated in the petition
at $96, 6,05O.99 gross which is made up as
follows: Cash in bank, SIS 900; cash de-
posit with state treasurer, $4,000; office
furniture, about $1,000; notes, of which about
three-fourths are worthless, $4,000. Judg-
ing from these figures and other informa-
tion obtained, sanguine estimate OF the
assets would not exceed $4,000.
The liabilities are asserted to be in the
neighborhood of $120,OO0, of which $6,69O
is in approved death claims $5S, ,375 in other
death claims filed, but not yet approved,
and the remainder is for accident claims
concerning the details of which the petit
toner is not fully informed
The expenses that are eating up the con-
cern are: Compensation of five trustees
at 800 per month each; $3.50 per month for
office rent and salaries of secretary. as
sistant secretary and other employees of
the concern.
A large number of suits have been
brought. so it Is alleged. against the COM
pany for unpaid claims and the petitioner
states that after all the assets of the cor
poration shall have been consumed in pay
ing the judgments first recovered, there
will remain a large amount due on other
policies for which each member is indi-
vidually and personally liable for his pro-
portion.
1t is this latter feature of the situation
that may well cause uneasiness and alarm
to the five or six thousand policy holders
in the Bankers Alliance who hold policies
aggregating some fifteen millions of dol
lars, which not only appear to be worth
less, but the possession of which subjects
the owners to the payment of a contribu-
tion on account of losses incurred to
date.
With this obligation staring them in the
face. the deluded policy holders are now
asked to accept reinsurance in another
company called the 1.-THE Chicago Guar
antee Fund Life Society of Chicago, and
the secretary of the Bankers Alliance
comes out with specious and misleading
statement intended to secure the accept
ance of this offer. The secretary claims
40 tnt, ss, ,.,sh
ing to assume this fifteen million dollars
worth Of obligations has been progressing
steadily from the date of Incorporation up
to the present time" Judging by it's death
rate per thousand, the concern has pro
gressed" in a down hill direction. In 1892
It's death rate was 1874: in 1893 1t was 1874:
in 1894 it was al; in 1895 it
was Ill; in 1896 1t was 1872 AS
death rate of per thousand is ordinarily
regarded high one. 1t will readily be seen
that the progress has not been toward
prosperity. 1t is in fact far worse Show
ing than that made by the Bankers Alli-
ance, which, for the sake of comparison
is here given. In 1892 1t was 81: in 1893 it
was sc; in 1894 it was 6.S; in 1895 it was
Sc; and in 1896 it was So If the Chicago
company should maintain it's past record
for mortality 1t can hardly last another
five years.
The Chicago concern offers to take these
at which the parties obtained policies from
the Bankers Alliance, and promptly
has this matter been attended to that the
new policies intended for members here
have just arrived, with explanatory let
ters, asking for remittances, of course.
One of these policies shown to the writer
yesterday charges $4453 per annum for a
$2500 certificate, and a notice goes with it
demanding $3.50 per annum in addition
which last amount appears to be an as
sessment in addition to the natural prem
ium' of $H53, the latter being the only
amount appearing in the body of the GER
tincate or policy. So the Chicago concern
= also has the little joker in printed clause
in small type on the back of it's policy
which authorizes the collection of an as
sessment in case the receipts from the
natural premium plan should not prove
sufficient for the companys salvation.
In order to get the policy fly into his
parlor. the assessment spider offers the
further bait of assuming these risks with
out submitting the applicants to any med
ical examination. 1t would seem that gem
erosity could hardly go any further.
Secretary Bostwick of the Bankers
Alliance is quoted as saying by way of
encouragement: "The premium rates are
little lower than the natural premium rates
of the Bankers Alliance" In the same
column it is stated that 1.-The rates in the
Chicago society will be somewhat higher
than the rates at present charged by the
Bankers Alliance"
OF these conflicting statements the lat
ter Is the correct one But the climax Is
reached when Mr. Bostwick says: 1T is a
matter of congratulation to all members
of the Bankers Alliance that their policies
should be taken by company having the
ability to carry through the contracts as
well as the Chicago Guaranty Fund Life
Society,""
The evidence in support of this astound-
ing claim is of course to be cleaned from
the figures of the company's business. 1t
has already been shown that it's death rate
Is excessive, and If continued must result
IN failure. On December 81, 1896, this Chi
cago' company had 25S7 members. with
policies In force carrying an aggregate
of insurance amounting to $7,193, 900. At
the same date the Bankers Alliance had
insurance in force" aggregating the large
sum of $15,1 $4,000, which is the load that
the little Chicago concern wants to carry
on an alleged surplus of $2O3, ,466.
The financial statement for 1896. the onlv
one accessible at this writing. shows in
come of the Chicago company for the wear
$175,S1SH and disbursements s1s3 S41 66
which does not include any amount car.
ried over for the protection of its reserve.
The principal items of the above dis
bursements for year show something of
the character of the Chicago comnanv
The losses paid were $1OO,164. so that The
expenses of collecting an incopa of e17r