Evening star., 1924-08-17
SHREWD VETERANS
REALIZE ON BONUS|
"GentIeman's Agreement"
Results in Both Getting I'M
mediate Cash Benefit.

lied immediate benefits from the
World War bonus.
Although the first adjusted service
certificate. carrying a form of 2o-year
endowment insurance, will not be is
sued until after January ! OF next
year. and no small cash payne n Is
will be due until three months later,
reports were made public last night
from at least two ambitious and en-
terprising boys who already had
benefited.
There Is a we'll founded story of
one World War veteran who set him
self up in business, and another bor-
rowed funds sufficient to reinstate his
$4,000 government insurance.
How did they do it?
Briefly speaking. through a gentle
mans agreement" using the bonus as
kind of security.
Gets business Interest.
One lad applied for adjusted COM
pensation and named a friend as his
beneficiary. to receive the proceeds
of his bonus-policy, should the vet
eran die. For this consideration. the
veteran was given a half interest in
gasoline station, with the under
standing that he was to operate it and
pay from it's profits $50 per month
to his friend.
At this rate it will take about a
year and a half to pay for the half
interest. and during that time the
friend Is protected in case Of the vet
eran's death. If the veteran should
die. his widow would receive the one
half interest in the business, and the
tf.f hnI n mn fNf h. %
deducting the purchase money due
the friend. AS matter of fact, the
soldiers wife is now doing a good
deal of the sales work around the
station while the veteran attends to
other work, such as repairing tires
and oiling. This little enterprise is
earning money and the transaction
will prove satisfactory to both par
ties.
The strength Of the whole affair
rests upon the gentleman's agree
ment. There are no papers yet from
the Government to change hands as
security. AS a matter of fact, there
is a weak link in the affair. If the
veteran. for instance, should tire of
his bargain, or IL for any reason he
should become dissatisfied. he could
change the beneficiary of his policy
without consulting his partner in the
business, but with the consent of the
director Of the Veterans Bureau.
The veteran could not assign any
interest or right he may have TO ad
5usted compensation, but there is
nothing in the act, according to inter
pretations so far, to prevent him from
entering into a gentIemans agree
ment with a friend.
Another veteran named wealthy
aunt as beneficiary OF his adjusted
compensation certificate, which will
be issued to him some time after
January I. 1925. but which is payable
to his beneficiary in cash upon hi:
death. and then borrowed from tn.
aunt $1,000. With this money he rein.
stated $4,000 insurance policy a
the Veterans Bureau which hat
lapsed on account of failure to pa,
premiums. And he paid the premium,
for four years in advance
No Onicial Sanction.
Agreements such as these will no
be sanctioned officially by the Gov
ernment. They will be considered a.
the personal affair of each individua
veteran. Legally. veteran canno'
assign his interest, rights or bene
fits in his adjusted compensation Ger
tificate. but there is nothing in tn,
law to prevent him from using hi!
credit and honesty and ability. backed
up by his insurance should he fai
to make good on account of death.
Generally speaking. the use OF ad
justed service certificates AS quici
asset or security is limited only b!
the state of each particular veterans
credit standing In his own community
Opportunity afforded by such agree
ments as these do not seem so far t
made II nnCSih1o for rYnokS 4
swindle veterans out Of their bonus.
Such danger was much feared. ac
cording to general discussion shortl.
after the act was passed. But so fa
a nation wide search has revealed n,
attempt of any Importance by an.
company or persons to take the bonu
away from veterans. The law Il
very definite. The restrictions ar
such that it would not pay corpora
tion to go into the business of lend
ing on bonuses. So undoubtedly tn
service men who wish to do so will
find a way to help themselves indi
vldually through friends and rela
tives.
Benefits such as have already bee
found by the two veterans mentione'
can be reaped Immediately. Entranc
into contracts such as these will no
impair the loan values of the Ger
ttf1cdteS, accOfQinS 10 expert lHteT
pretation of the law. but it woul
be advisable. according to this sam
| source, not to secure a loan on poll
cies which are made to beneficiafie
| under a contingent personal under
standing until all obligations frs
have been cared for.
Should the example Of the veteran
| who reinstated his $4,000 Govern
| ment ife insurance by borrowing
from his amount on security OF hi
bonus. be followed by a large mum
Der. there would be a rich field o
opportunity among veterans to picl
nm their insurance For out of tn
5000, 900 persons in the service. VIII
during the war carried Government
| insurance, there are today not owe
400, 600 veterans continuing to carr.
the same insurance. How much o
this insurance could be renewed
however, is an indeterminate factor.
oaAaF IN "ClM MCMI NAD