New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-30
1000 Urged
To Hold On to
Thrift Bonds

year period we're subject to life insur-
ance policies. it was said bv Samuel
Rauch, special deputy superintendent
of banks. He said that these policies
were written by the Metropolitan Life
Insurance Company, the Aetna Life In
Life Assurance Company, with the
metropolitan policies greatly predomi-
mating
The accident insurance, Mr.. Rauch
said, covered practically all of the in
vesters in the companys one year in
stallment-paying plan on thrift bonds,
the policies having been written by the
Hartford Accident and Indemnity Com
pany. The investors under life poll
ces numbered between 500 and 500. it
was said, the remainder Of the approx
mate 1000 concerned being under ac-
cident insurance.
Inquiry was made of W E. Boughton.
formerly assistant secretary of the op-
Grating department of the corporation,
now with the State Banking Depart
ment, as to whether the corporations
solicitors dealing in insurance had
been licensed to sell insurance for a
particular company or companies in
Yes" he replied, "al those agents
had insurance licenses"
Companies Usually Apply
1t is customary on the part of
solicitors seeking such licenses to nave
application for them made by the COM
panies whose policies they intend to
sell. From another former official Of
the company statement obtained was
hot =
made by the insurance companies CON
cerned"
He added that there we're no facts in
the case which could give the slightest
intimation that insurance of the in
vestors or use of the names of the in
sulance companies was held forth to
Their as an inducement to invest; that
1t was & method decided upon to urge
them tc continue to save for thrift
bonds once they entered the plan. The
first payments of the investors, he ex-
planned, were non-redeemable and were
diverted by the company to pay for
premiums on the insurance policies.
When asked for statement as to
the insurance feature Of the corpora
tioQ's transactions and the relation to
policies written by the Metropolitan
Life Insurance Company. T. H. Eckers,
VICE ijIcS lltllI Oh Inc ldlleT, S1lU.
Tho Metropolitan Life Insurance
Company is not in any way involved
with the business operations Of the
National Thrift Bond Corporation. This
company merely wrote policies for in
veJtors in the corporation, with the
premiums paid by the latter, in the
same way that a man could come to US
and insure the life Of his mother or
father.
Also, this company did not vouch
for any of the solicitors of the bond
corporation. One thing is sure, the
Metropolitan Life Insurance Company
acted legally in every respect"
The life policies written, it WAS said
by Mr.. BOughtOn, were of the five
year, non-renewable, non-convertible
term variety. Asked what disposition
would be made of them MI Rauch SAIL
that he hoped that the State Banking
Department could get out from under
and let the insurance companies and
the investors adjus. the insurance
phase of the matter between them
selves"
we don't want to pay premiums,
for that would be continuing in bust
ness" he said.
1t was pointed out by one insurance
expert that q most complicated situa-
ZION might arise as the result OF the
death of any Of the insured investors,
inasmuch as the corporation appears
as the beneficiary
Mr. Kimball IN a statement, said in
part:
The situation of the National Thrift
Bond Corporation is exactly that Of
any savings institution going out Of
business by force of circumstances.
There are very few financial institu
tons that have been so strongly set up
that they could go out of business with