The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-04-03
THE ANVIL IN COURT.
continue from loan Page.

court, Mr.. Morris will at once assume
charge OF the business of the company,
ana II there are any available assets,
which the officers of The Anvil deny
in which statement they seem to be
entirely right, he will make an effort
to collect them.
A Morning News reporter called at
the office of The Anvil in an attempt
to secure. statement as to the situa-
ton from Mr.. D. B. Lester, supreme
president of the company. Mr.. Les
ter was not IN the office, but his son,
Mr.. X. NJ. Lester, the supreme general
counsel, stated the position of the OFF,
GERS.
Its Rates Were Too Low.
"The failure of The Anvil to meet
its obligations" said Mr.. Lester was
due solely and entirely to the fact
that its rate of insurance was too low,
vide a sufficient fund to defrav the
necessary current expenses and meet
death losses as they accrued.
There was no other reason. The
only salaries ever paid by the COM
pany was one of 800 a month to the
supreme secretary and, during part of
The AnviPs existence, one of $40 per
month to a stenographer. Expenses
were kept down to a minimum. AS
AAAotNIA VI ldCl lliOIS IlOley ndS DCClt
paid out in death losses alone than
has ever come into the office.
The amalgamation with the Amer
lean Guild was the very best thing
that could be done for the interest
Of the policy holders of The Anvil, fac
ing the situation that it did"
Mr.. Lester said there will be no op-
position from the company to the re-
ownership proceedings, and The Anvil
is C1Iffa Will to box n
ministered by him.
The only trouble is" said Mr.. Les
ter, that there are no assets"
Position of the Guild.
Mr.. H. D. Cameron, supreme COVER
nor for Georgia and Florida of the
American Guild, and now representing
1t here in the transfer of policies from
The Anvil to his company, was with
Mr.. Lester in the latter's office. Mr.
Cameron was indignant over some
structures that have recently been
passed upon his organization.
These have been to the general eff
feet that a policyholder in The Anvil.
who desired to transfer his membership
to the Guild, found that upon the pay
ment of the same premium he was
paying the former organization the
face value of his policy was reduced
by from a third to half of its original
amount. t-.s
This is the fact said Mr. Cameron.
THE rates of insurance in the Guild
range from to 80 per cent. higher
than those of The Anvil and we give
to The Anvil policy holders the amount
of protection called for, in accordance
with our rules for the amount of
premium they pay. We have not re-
quired any of them to submit to a re-
examination, as has been charged, but
have admitted them all upon a simple
health certificate, signed by them
selves"
How about the charge that some of
the policy holders in The Anvil We're 49,
sued policies in the Guild that termin-
ated absolutely ten years after their
date and upon Which only one-fourth
of their face value was to be paid for
each year less than four from their
date, in the event of death before the
expiration of that period?"
Why. some such policies were is
sued" said Mr.. Cameron, but they
have all been recalled and new life pol
icies issued in their stead. 1 insisted
myself that this should be done, as 1
regard such a policy as offering prac-
tically no insurance at ALL"
1t would seem that in this last state
ment. so far as it relates to the value
of the ten-year policy issued Mr..
Cameron is entirely correct. BY it's
express terms, if the holder died in
less than two years after its date he
would receive only one-fourth of the
face of the policy one-half If he died
in less than three years, and three
fourths if he died in less than four
years. If he struggled on for more
than four years and then died he
would receive, according to the prom
Uses. of his policy, fits full face value.
Views of the PLAINTIFFS.
Mr.. A. L. Alexander of counsel for
the plaintiffs, was told OF the state
ment that had been made by Mr. r.
M. Lester, relative to the manage
ment of The Anvil and to the effect
that more money had been paid out in
death claims than had ever reached
the home Office from the payment of
premiums.
"Of course, don't know whether
this is true" said Mr.. Alexander. but
l think the officers of The Anvil will
find it difficult to substantiate the
statement. 1t is the officers whom, if
we can, we propose to hold personally
liable, not only to those whose claims
have accrued by the death of the poll
icy-holders, but also to the living pol
icy-holders who by the demise of the
company, are left without protection
Until we have had an opportunity
to inspect the books of the company
and to make other Investigations we
cannot, of course, be sure, but we are
informed and believe that the affairs
of The Anvil have been conducted al
most entirely without regard to it's
constitution and bylaws, in a hap
hazard, careless and negligent fashion.
Instead of providing it's policy holders
with protection it has done about
everything else.
THE constitution of The Anvil pro-
vides that it's funds shall be kept in
three separate accounts, ore of which
shall be devoted to the payment of
current expenses, another to the pay
ment of death losses and the third
be kept as the reserve. The current
expense account. it is provided, shall
consist of % per cent. of the income
of the company, While rs per cent. shall
go into the death loss and reserve ac-
counts. The constitution allows the
reserve account to be drawn upon to
pay death losses. but absolutely pro-
hibits the use for current expenses of
more than % per cent. of the income.
The Constitution Evaded.
1--WE are informed and believe that