XXXII.
INSURANCE AND ITS MYSTERIES.
HISTORY OF FIRE AND MARINE INSURANCE.—LIFE INSURANCE.—OBJECTIONS OF A CALIFORNIAN.—HOW HE ANSWERED AN AGENT.—FRAUDS UPON COMPANIES.—A DEEP-LAID SCHEME.—JOHNSON AND HIS THIRTY THOUSAND DOLLARS.—OPENING A GRAVE.—A FICTITIOUS CORPSE.—PURSUIT BY DETECTIVES AND CAPTURE OF THE SWINDLER.—LITIGATIONS ABOUT INSURANCE.—CHINESE TRICKS ON AGENTS.—SUBSTITUTES FOR EXECUTION.
The system of fire and marine insurance has been in use for centuries. The Chinese claim to have invented it, as they have claimed nearly everything else; but the probabilities are, that it was of western origin. It is alluded to in the English laws about the middle of the thirteenth century. Its earliest form was in that of marine insurance; afterwards the system of fire insurance was invented. Still later came insurance against death, which has grown in recent years to very great proportions.
Many people are unable to understand how insurances can be effected against an event which is sure to happen. There is a story of a man in California who was approached by an insurance agent with a request to take out a policy on his life. The agent painted in glowing colors the advantages of insurance, and the man listened to him very patiently. When the agent had finished his story, the victim said with great deliberation, “Stranger, I have lived in this yere country twenty-five years. I have bucked agin nearly every game that they have ever brought out, but I’ll be hanged if I want to play at anything where I have got to die before I can win.”
OBJECTIONS TO INSURANCE.
The objection which this individual made against insuringhis life, was a very natural one, and is an objection made by many people, though in a different form. The insurance companies, some of them at least, meet this objection with a plan by which a man arriving at a certain age without dying, can draw the money that would come to his heirs in case he died before the specified age was attained. They have devised other plans to meet the objections of all classes of people, and it is safe to say, that the system of life insurance is about as near perfection as it is possible to bring it. It is a question whether, in many cases, the companies do not reap a much larger advantage than is their just due. It is noticeable that the companies, as a general thing, pay enormous salaries to their officers, erect costly buildings, pay heavy dividends, and have a good time generally. The conclusion is natural that the rates of insurance are altogether too high, and the advantages are much greater for the companies than for their patrons.
It is possible, sometimes, for dishonest men to defraud the insurance companies, though it is not always easy. The companies are generally on the safe side; they require the most positive proof of the death of a person whose life has been insured, and they throw a great many obstacles in the way of the collection of the amount of the insurance. I have known them to demand one certificate after another, and compel the person who was endeavoring to collect the insurance money to make ten or twelve visits to the office before meeting his just demands. Very often, after the death of an insured person, questions are raised which were never before mentioned. The premiums may have been paid for years, and the officers of the company claim to make a discovery that relieves them from all responsibility. In some cases their action in this respect is just, but in many others it is about as unjust as anything that can well be conceived. It would seem proper that where a person has been accepted for insurance, and the premiums on the amount of money called for have been regularly paid and received without objection, no objection should be raised after the person’s death.
NEAT FRAUD ON A COMPANY.
Some interesting stories are told of the way in which insurance companies are sometimes defrauded. One was told to me by the secretary of a prominent company in New York, which indicates great ingenuity on the part of the swindler.
“One day,” said the secretary, “a man called at our office, and said he wished to effect an insurance of ten thousand dollars on his life, and was ready to submit himself for immediate examination.
“The physician of the company was called in, and made a careful examination of this man, whom I will call Johnson. Johnson was pronounced a good subject. All sorts of questions were asked, and he answered all of them satisfactorily. He was closely inspected. His limbs were pinched, and his chest was thumped in the orthodox way, but no defect could be discovered. To all appearances he was good for three-score and ten, and possibly more. He gave us references, stated that he was a clerk in an up-town house, and his statement was fully verified. I called upon his employer, inquired about his clerk, and was told that his character was of the best, and that he was a very industrious and strictly temperate young man. We were satisfied, and insured his life for the full amount.
“In a little while he made a request to be permitted to travel west, and of course we granted it. His parents lived in a small town in Connecticut. He had married in New York, and had been married for three or four years. Occasionally he took his wife on a brief visit to his old home. He went west soon after his application, and we lost sight of him. His wife accompanied him, and he announced his intention of finding employment and settling in one of the western cities.
“Six or eight months after his departure, his wife telegraphed to her friends in the east that her husband was very ill with pneumonia. Two days later she telegraphed that he was dead, and that she would bring the body to Connecticut for burial.
“In due course of time she arrived, dressed in deep mourning,and evidently suffering from deep grief. The funeral was held, his parents attended, the coffin was opened, and the features were visible through the glass plate, though they were much dimmed by the moisture which collected on the inside.
“A few days after the funeral, the widow, whose name had been inserted in the policy at the request of her loving husband, called at our office, presented the proper papers, and made the necessary application. We made an investigation, were satisfied that everything was correct, and paid over the money.
“We lost sight of the widow after that, but learned casually that after a short residence in New York she had gone to California.
AN EXTENSIVE SWINDLE.
“We happened to learn also, soon after, that the same man had insured his life for ten thousand dollars in another company, a Massachusetts one, having an agency in New York; and also in a Hartford company for the same amount. Of course this naturally raised our suspicions. The premium on thirty thousand dollars is a very heavy one for a man on a clerks salary, and we became convinced that all was not right; so we began an investigation.
“We saw the merchant that had employed Johnson while in this city, and learned that the young man went west at the time indicated. The merchant had heard of his death, but had no positive proof or knowledge of it. Then we went to the village in Connecticut whence Johnson had hailed, and though we made the most searching inquiries, we could learn nothing to confirm our suspicions. His parents were positive of his death. Had they not seen his widow? and had they not seen his features through the glass plate of the coffin? and had they not seen that coffin buried in the public cemetery? To their minds everything was perfectly straight, and they were indignant at our supposing that there might be something wrong.
“I had a suspicion that the body in the coffin might be a ‘dummy’ with a wax face, in imitation of the features ofJohnson. So I hired the sexton in charge of the cemetery to open the grave and allow me to examine the interior of the coffin. We did the work at night, and unknown to Johnson’s parents, as we knew they would be greatly offended if they learned what was going on. But I was doomed to disappointment, as the corpse proved to be genuine, and as good a one as ever was buried. Plainly I was on the wrong scent when searching for a body of straw and a face of wax.
“The three companies agreed to work in concert, and share the expenses of an investigation into the whole affair. We sent a detective to the city where Johnson had died, and after a little inquiry he ascertained that a man answering to the name of Johnson, and the proper description, had actually died in that city. His body had been sent to the east, and that was all that was known; but it was ascertained that instead of dying of pneumonia after a few days’ illness, the man had lingered some time with a disease strongly resembling consumption. Here was a clew which we determined to follow up.
PURSUING A WIDOW.
“As the widow had gone to California, we told the detective to follow, and trace her out. She had written no letters to the parents of her dead husband, except a single one announcing her arrival at San Francisco, and giving a brief description of her overland journey. She said she had friends living near San Francisco, and she expected to reside a short time with them; perhaps she might remain in that place through the winter, and perhaps not; could not tell; would write again.
“The detective had a long search for the widow, and visited every place around San Francisco, and even advertised for the missing Mrs. Johnson. His advertisement stated, after describing her in sufficiently explicit terms, that by sending a note to a certain address she would learn something to her advantage. This was not exactly true, as she would have learned something greatly to her disadvantage, had the detective been able to find her; but in the pursuit of criminals, it is generally considered proper to tell a few falsehoods in order to serve the ends of justice.
A SHARP EYE FOR MONEY.
“One day the detective visited a ship which had just come in from the Sandwich Islands. He went there with an acquaintance who knew the captain, and was invited on board. While they were in the cabin enjoying the captain’s welcome, the detective heard the ship’s steward telling a friend, who had called to see him, something about their last voyage out. He said there were a lady and gentleman, very nice people, who occupied a state-room, which he indicated, and who seemed to be very fond of each other. ‘They had a good deal of money with them,’ said the steward, ‘and they were pretty liberal with it, though they would never allow me or anybody else to go into their state-room, unless one of them was there. They had their money in a small trunk, which they kept under the lower berth; and whenever they were both out of the room at the same time, they always carried the key with them.
“‘When their room was fixed up in the morning, one of them always stood near the door; and if we wanted to steal ever so much, we would not have had a chance. To make everything sure, they had a spring-lock on the door—a lock they brought with them, and fixed there with the captain’s permission. They were not going to have anybody get into their room with a pass-key.’
“The steward went on to describe the couple, and the detective found himself interested. So he questioned him very closely, and became pretty well satisfied that the gentleman was the veritable Johnson who was supposed to be dead and buried some months before in Connecticut, and that the lady was the disconsolate widow who had drawn the money from the insurance company.
“Here was a dilemma; the captain and steward only knew that their passengers had gone to Honolulu. They sailed not under the name of Johnson, but under the very rare name of Smith. John Smith, I believe, was the gentleman’s name, while the lady was Mrs. John Smith. It is not easy, as everybody knows, to trace out a man bearing this name; and even if he could be traced, very little good could come out of it, ifthe man were in one of the South Pacific Islands, or, in fact, in any place where our extradition laws could not reach him.
“While we were about it, we thought it would be well to know the whole truth of the matter; and so we sent the detective down to the islands, and told him to follow them up, but not to make it expensive. He went to the islands, and there found that the parties had gone to Australia. Then he went to Australia, and traced them to New Zealand, and in New Zealand he found that they had gone, according to the best of his information, in about three different ways; so he went back to Australia. After a long and vigilant search he found them in Melbourne.
“He had no authority for the arrest and detention of Johnson, though he made him believe that he had, and frightened him into giving up half of the money he had fraudulently obtained, on condition that he should not be further troubled, and on the condition also that he should tell the whole story of the accomplishment of his fraud. As long as we could not get the fellow, we thought his story would be an interesting one, and would serve to put us on our guard in future. The detective obtained what he believed the whole story, and with the money Johnson had returned he made his way as speedily as possible to New York.
HOW THE FRAUD WAS ARRANGED.
“The deception began at the very outset of the scheme. Bear in mind that the man’s name was Johnson, that he was from a town in Connecticut, had married his wife in New York, and was in the store of a merchant of the great metropolis. There was a clerk in that store by the name of Johnson, and he was from Connecticut; we will say Smithville. He had married in New York about four years before this occurrence. He was a steady, well-behaved man, and contemplated going west. His wife had a small amount of property in her own name, but she was not personally known to the merchant, and the merchant did not know that Johnson hailed from Smithville. There was another clerk in the adjoining store whose name was likewise Johnson. For convenience in designating the two men, I will call the second one Roberts.He came from Brownsville, in Connecticut. He had been married about four years. He was a fast fellow, and rather unscrupulous, though his employer did not know that he was in any way dishonest. The two clerks had become acquainted by accident.
“When Roberts ascertained that Johnson conceived the idea of going west, he (Roberts) laid a plan for swindling somebody. His wife was as unscrupulous as himself, and so she entered into the scheme. Roberts was of vigorous health, and could pass an examination with a life insurance company without trouble. He was of the height, complexion, and general appearance of Johnson; and this fact, added to the other coincidences greatly favored his scheme. So he came to us, and obtained the insurance, as before stated. When we made the inquiry of the merchant, his answers were satisfactory, and all the references were exactly as he stated them.
“His plan worked completely. He waited patiently until Johnson went west, and then he went likewise. He did not, however, go to the same city.
“He explained that it was his intention, a month or two after his arrival out west, to obtain from a body-snatcher a corpse which would answer his description, and then his wife would send the proper telegram to her friends in the east, and proceed there with the remains, which would appear to be those of her husband.
FORTUNE FAVORS THE WICKED.
“Fortune favored his scheme more than he had anticipated. At a boarding-house where he was temporarily lodged, he found that a boarder named Johnson was in very bad health, and not expected to live. Affecting an interest in him, and claiming to discover a relationship, he tended him carefully until the time of his death. The detective had a suspicion that the sick man was helped along, but of that there was no proof. Immediately after the death of the invalid, the telegram was sent, and the wife proceeded east, as before related. She had been at one time an actress, and was very good at simulating grief. She deceived all the relatives of her husband in the most complete manner. They thought her bowed down and broken-hearted with grief, when all the time shewas doubtless laughing in her sleeve. The honest Johnson, whose name had been used without his knowledge or consent, was found, after the detective’s return, to have lived at St. Louis, the place to which he had first emigrated, and had gone thence to New Orleans. He was much surprised when he learned what had occurred, and positively denied ever having an insurance on his life, or on that of anybody else. I suppose the swindler Johnson is still in Australia, and trust that he will end his days there in peace and quiet—though I fear his success in this instance will embolden him to some other fraud. His operation was fairly, though not exceedingly profitable, as, after deducting the premiums for the first year of insurance, the expenses of his expedition, and the money he returned, he did not net more than ten thousand dollars by the operation.”
HOW POLICIES ARE VITIATED.
Some of the insurance companies insert in their policies an announcement that the policy becomes void if death results from execution on the gallows, or in any other legal way, or from suicide. On one occasion a man whose life was insured was killed in a duel, and the company refused to pay the policy, on the ground that the man died virtually by his own act. His adversary was known to be a dead shot. The lawyer of the company, after stating all the arguments to show that a man who goes a duelling is, for all practical purposes, a suicide, clinched his argument by declaring that a man who would go out with such an adversary might know beforehand that he would be killed, and therefore his death was voluntary. I believe the court did not sustain the claim of the company, but required the amount named in the policy to be paid to the heirs of the unfortunate duellist.
I have heard it argued by insurance men that, where a person insured takes to hard drinking, and dies from the effects of rum, he dies by his own hand, and the suicide clause exempts the insurance company. In some cases, I believe, this claim has been sustained; but it is now generally discarded. A few cases have occurred in the United States where men have insured their lives for the benefit of theirfamilies, and have then deliberately killed themselves. The insurance companies, in those cases, have resisted the payment of the claims; but, I believe, they have been generally, though, not always, allowed.
POPULARITY OF SUICIDE IN CHINA.
There are some countries in the world where an insurance company would be ruined in a very short time, if it paid the insurance claims of men who kill themselves. In China, for instance, let a company start upon this basis, and it would do a flourishing business for a short time. Men in China are much more ready than others to die for the benefit of their families or themselves; and a Chinese who could make a good thing by killing himself would be sure to do it. A company doing business in the way I have just stated would find, some pleasant morning, that about half of its policy-holders were dead, and the other half were making their preparations for blotting themselves out of existence. The Chinese loves his family, and would think he was doing a nice stroke of business by insuring his life for their benefit, and then, quietly bidding them good by, “handing in his checks.” If he could effect an insurance for a thousand dollars, he would spend a hundred in having a glorious spree, and leave nine hundred dollars to his afflicted widow.
EXECUTION OF A CHINESE CRIMINAL.
EXECUTION OF A CHINESE CRIMINAL.
CHINESE SUBSTITUTES.
The indifference of the Chinese to death may be well illustrated by an allusion to the substitute system, as practised in the Celestial Empire. Persons condemned to death for certain offences are allowed to die by a substitute. This would be utterly impossible in America, as one could nowhere buy a substitute who would be willing to die for a stipulated sum; but in the Celestial Empire it is easy enough to find a man who is ready to take the place of one accused of a crime and ordered to be executed. The real culprit sends a friend to make the negotiations. The broker can find a man for about six hundred dollars, half down, and the balance on the fulfilment of the contract. The cash is paid, and the time fixed for the execution, both of the contract and substitute. With the money in hand, the substitute assembles his friends, and they have a right royal spree. Everybody gets blind drunkon samshoo or opium, and when the money is all expended, the substitute bids farewell to his friends, and delivers himself up for sacrifice. He is led to the place of execution, where he drops on his knees. His head is bent forward, the executioner’s sword whizzes through the air, and the substitute is a head shorter by the operation. The culprit, who has thus satisfied the law by proxy, pays over the balance of the money to the widow of the departed; everything is lovely, and everybody is happy.