The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-10-21
Big INSURANCE SWINDLE
Agents of the Companies Are Now
FIOcking to New Orleans.
AGENTS AND EXAMINERS IN COLLISION
They Take Out Policies on People Who
Are Likely to Die in Short
Time.


New Orleans, October o0-Iife insurance
frauds of most sensational character are
said to have been discovered In the New
Orleans district The officials ana dctcc
tiyes Of some of the large Eastern com
pauies believe they have ciews to at least
hair dozen q the boldest graveyard
schemes.
Attorney MacBrIde, general solicitor e.,
the American Adjustment company Of New
York reached the city last night the ud
vance guard Of corps of secret workers
Mr.. MacBride is from ST. Louis.
So far six Of the graveyard cases are sail
to have been unearthed.
twenty-five fraudulent olicics have been
traced down.
The companies paying the risks have lost
between $4,000 aid 100000 The full ez
tent Of the business is not yet known.
Cntl the present this territory had never
been worked by the "gtdve-diggerA - 1t
has been done in other sections. In the
Northern States the large companies have
always had to fOrtify themselves against
the policy crooks Frauds had becr d.,
tected down In Tennessee, but the far
South had never before proven a profitable
field
Now the frauds appear to have turned up
In almost gigantic form. The officers on
the trails do not even dare conjecture 10
what extent Il has gone.
In a general way, the scheme that has
been worked In New Orleans and Within
radius Of 100 miles OF this city, la the
adjoining parishes, Is this a man would
apply Tor the agency Of one Of the best
known OF the life insurance companies.
lie produced recommendations of an nm.
parcltly satisfactory nature and ne was
appointed TO do business for the COMPANY
AZ ms suggestion, a physician Is mined
TNt 10
duty It Is TO pass upon all applicants for
policies. The ply stefan and the agent nm
derStand each other aud the deal that is
to be worked,
Z. graveyard case Is run in That Is
poncy holder who VIII soon die Tho p6v
stefan passes him aud he takes ont RE
policy; As n matter OF fact, the agent
aud the doctor pay the premiums ami
the principal is made payable to then, anu w
10 some Interested friends In feSv
months the policy holder dies and tbe
proper death certificate Is sent TO lie com.
pany and the policy paid. SVli
As rule these policies have hoo.
fulNl' SO as not 10 excite Susnicion ~,
the part or the company. Verr fe9. ot ~
'n nv. call i9r mere tnan 5000 or $1,000
me small policy II paid bv laygs ,,o,,,
pAnies upon presentation OF the pr oUli
ueatn ceEtncates, without question M
agent aud the examining nhvsic,sn NV
these eases set the money. III
The fraud has been worked moro
cessluliy IN the parishes ana sn,aIinr
towns than In the large cities sindlier
co,, Inc GSinelsl and legal counselors Of tho
conpAhles nave come to the Stato WY
p i,3i me cases under detection Thsv
nv endeavor % secure Indictments IN w Wy
in ,s'g V nn Srand inrles viii begin meet.
~, rnk ~ hlvSt q the parishes In a short lime
prior t. me November terms Of conrr 'I anS
the ne insurance frauds viii no brs,, aii9
wor in n pgtsp',S ION The cases are being
me men pushing the invest,SstJioorvesr andl
NOV uiseuss their mission to the state wa