Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-10-08

interested in legitimate insurance, the
strong points of the successful COM
panies; the financial history of those
companies which have met with sue
cess is presented as an argument
supporting their claim that great
profits from an investment in the
stock of the proposed promotion are
assured In a. convincing way they
show that failure is impossible. Ex
ploifations of this character have
taken millions from unsuspecting in
vestors. These professional schem-
ers have been allowed to defraud the
people of Maine without interference
on the part of any one for years. We
believe the time has come when the
people of Maine through their repre-
sentatives should act. AS Supt
Emmett of New York suggests, a fake
promotion can be best caught when
caught young.
IAN insurance promotions are not nee
essarily fakes, and we not want to be
understood as placing the stamp of
fraud" on them all But we take the
ground that the only way to determine
the sincerity or fraudulency of promo
ton scheme is by clothing some state
official with sufficient power to delve into
the intricacies of promotions and ascer-
tain their whole plan of operation. Such
a law can impose no hardship on the
fake" in position where its hand must
be shown before it commences its ex-
ploitatieHs on an unsuspeeting public.
"JTnder the present laws of Maine the
insurance department has supervision
over corporations writing insurance. 1t
has absolutely no control over insurance
promotions. We are in no better position
to get hold of information relative to
these promotions than the average indi-
vidual. On the other hand it Is often
more difficult for the department to get
definite and reliable knowledge than for
private individual We have handled
these schemes as best we could, giving
our inquirers such information as we
could get 1t is needless for us to add
that in no case have we advised the pur-
chase of stock in these insurance
schemes. The methods employed in SELL
ing the stock almost invariably abound
in deception, for the salesman tells his
prospect of the alleged profits made by
other companies, and by distorting and
twisting figures and facts, shows wherein
the stock he is selling will yield enor-
nous profits.
1--WE believe the time has come when
the people of Maine should be protected
by law against the iniauties of promo
question whether, II we have such a law
of protection, its hould be made appli-
cable to all kinds of promotions or to
insurance promotions alone. We are of
the opinion that it should be sweeping
and broad enough to cover all promo
lions, but inasmuch as our duties are
confined entirely to matters of insurance
we fear that some may look upon our
action as presumptous should we re-
commend legislation converting matters
other than insurance and, therefore. we
shall eonfne our recommendations to in
surance.
at is our intention to present during
the next three months for the consid-
Grafton of the people of Maine some
rln n111rf a a n u will hn
enacted into law by the next legislature
Our object in presenting them before tue
Legislature conYenes is to give every one
interested ample opportunity to deter
mine in his own mind whether they pos
sess merit and should be enacted into
law or thrown aside. We invite criti-
cism of the bills we recommend.
.'In succeeding bulletins, therefore, we
shall recommend legislation affecting the
inspection and general supervision over
insurance promotions An anti-rebate
law applying to all kinds of insurance:
more stringent and effectual regulations
over the organization and promotion of
domestic mutual fire, and assessment
casualty companies: a standard policy
for accident and health insurance; the
appropriation of more funds for the in
spection of buildings and investigation
of fires. "a
1--WE are also considering law relat-
ling to the admissionaof mutual fire COM
panies of other states: an amendment TO
the fraternal laws permitting the adj
mission OF ASSOCIATIONS uolng casualty
business only: classification of business
which may be transacted by miscella-
neous insurance companies: a law re-
lating to the winding up of domestic
companies under the direction and SUI
pervision of the insurance department:
la law prohibiting the use of parlor
matches; a law of Qualification relat-
ing to the licensing of agents and brok-
|ers; law covering responsibility of
property owners for damage caused by
fire originating on their premises; a law
relating to fragrant cases of over insur-
ance We invite suggestions from all in
terested parties relating to any of the
above subjects