The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-09-19

TERM POLICIES
AND HIGH FINANCE
North CaroIinians to Sue
for Rights.
"EASY MONEY PLEA

fTOmtSS ''dUu NUW tiC EUUCY
Holder Lends 70 Himself at
Big Interest.
There will be instituted at an early
date in North Carolina several suits
against the large Northern Insurance
Companies which are expected to go
no little way towards bringing to a
clear focus the charges and develop
ments brought about by the investiga-
tons of their affairs which have been
following the Equitable scandal.
One of these suits is that of Chief
Justice Walter Clark against the Mu-
tual Life Insurance Company, of New
York, for the difference between ST.
500, which he claims is due to him
under the terms of matured policy
which he holds and $1,000, which is
the sum offered to. him in settlement.
Several other suits which have not
yet been brought only await the early
maturing of term policies with which
the holders are not satisfied In the
evidence which will be produced to
maintain the allegations brought for
ward in these cases will be testimony
of practices of fraud on the part OF
the companies tending to show that a
large proportion of the dividends to
which policyholders should have been
entitled have been diverted to illegiti-
mate uses. Whatever the issue of the
suits they are expected 30 furnish to
the people the State an astounding
object lesson of the methods through
which they have been practically rob-
bed for years, the while they meekly
put their trust in the companies In
which they were seeking protection
for their families. The revelations of
insurance devices against the policy
holders interest is expected to fur
nish a strong brief for the smaller
home companies.
Gulf Between Estimates and RETURNS.
A certain North Carolina gentle
man who has a nearly matured policy
in one of the great mutual COM
panies said yesterday that he would
bring suit Immediately on the date on
which the policy became paid up,
AS an illustration of the manner in
which he andA ether holders had been
treated she said among other things
that in his case of q five thousand
dollar policy taken out fifteen years
ago, it had been estimated by the
agent who sold to him and by the
blanks advertised by the company that
at the expiration of the term - would
receive in cash $3.50 and paid UP
policy of insurance for $4,000. Or
that, in case he let the value of the
policy go at the end of the term into
paid insurance the amount SO paid
up would be $4,000.
AS the premiums paid in the fit
ON t<16 fn z
the holder of the policy figured i'm this
instance that the return in cash and
insurance, taking into consideration
the protection afforded in the mean
time, constituted g fair return.
But, when the term of the policy
approached its end the tender of the
company was startlingly al variance
with the estimate of what would be
. coming in at the time.
Instead of a cash payment of 81
$50, the company offered $792.5O, OF
course with the paid up insurance fol
the face of the policy.
Instead of the $4,000 paid up insur-
ance, the offer was only $1,000
The agent of the company called
on this gentleman to get the usua
letter of commentator which the
companies are accustomed to ask fol
when they settle claims and received
a dictated letter for which he has
found no use.
In the meantime, this policyholdel
is waiting for the claim to mature
when he will commence proceedings
at once. He will not be content, sale
he. with the mere balance between the
estimated cash amount and the 1892
offer but he would seek to go to the
bottom and recover what he would
have been entitled to in case his in
-terests had been honestly admins
tered.
Slrinlage Dates From High Finance
1t is interesting to note that th'
great complaint against the amount
''panned out by insurance policies
when taken in connection with the es
Inmates furnished as to what the re
suits would be at the maturity of thu
policy have arisen only within the las
decade. when the principle of higf
finance" first began to be Whispered
as the magic reason of the fortune
that put the common, ordinary mil
lionaire'' in the class of the 'als'
rams" AS high finance developed tn
returns of policyholders from their in
vestments diminished There seemed
to be an inverse ratio between popula
dividends and corporate strength
There were millions for division among
almost every kind of enterprise excep
the scattered individuals who contrib
uted the money. Still there was
teeiing that the insurance companie
were not to blame. High finance wa
responsible- and 1.-The higher the Jew
err Agents, confronted with the dis
crepancies between what was actual.