The cause of life assurance has occasionally received severe blows; and though, perhaps, less fraud has been attempted in these than in other companies, yet there is one instance of deception, so boldly planned and so successfully executed, as to stand out in strong relief in the history of life assurance.
About the year 1837, the provincial papers were filled with advertisements, drawing attention to the peculiar claims of the Independent West Middlesex Life and Fire Assurance Company. Its capital was stated to be one million; it was declared to be a legal corporation; and Acts of Parliament, dated from 1696, were boldly quoted. Cautiously did the promoters proceed in the metropolis, where they did not at first advertise, contenting themselves with establishing agencies in various parts of the country, and publishing advertisements in country papers. An imposing array of names as directors, declared to be of the first character and respectability, was promulgated; and when such names as Drummond and Perkins appeared in the list, the uninitiated believed the one to be the great banker, and the other the rich brewer, bearing the same names. To add to the delusion, the Bank of England was advertised as their bankers; and when they opened handsome premises in London, Dublin, Edinburgh, and Glasgow, the minds of the many were thoroughly deluded. Some notion may be formed of their intention from the fact, that they not only insured lives on smaller premiums than other offices, but gave larger annuities for smaller sums. According to their tables, a man of thirty, by paying £100, could obtain £8 yearly, and could insure his life at £1 15s. per cent.; thus making a clear interest of £6 5s. per annum.
The deed of the company—for, strange to say, it had a deed—was signed by any one who chose; and the law-stationer applied indiscriminately to all who came near him. Any one who asked for a situation was made a governor. A schoolmaster, who requested a clerkship, was made a director. An errand-man was employed as manager. A boy of sixteen was appointed to a seat at the board. One director had been tapman to a London tavern; another had been dismissed from his employ as a journeyman bell-hanger; a third had been a gentleman’s servant; all had orders to dress well, to place rings on their fingers, and adorn their persons with jewelry; fines being instituted if they omitted to wear the ornaments provided.
The advertisements which blazoned the pretensions of the company, the puffing to which they resorted, the declaration that they had taken £40,000 in one year, together with the terms they offered, attracted that numerous class determined to get every thing cheap. Premiums to a large amount were procured by them, and they prospered.
The attention of the established assurance offices had long been drawn to these transactions; and it was known that a great crash must one day come; but they had not sufficient courage to declare the iniquity. It was left, therefore, to individual energy to expose their doings, and to individual resources to support the consequences. In March, 1839, Mr. Peter Mackenzie, editor and proprietor of the Scotch Reformers’ Gazette, having investigated the question, and made careful inquiries which satisfied him of the nature of the company, commenced a series of articles in that paper, warning the public against transacting business with them. The task was difficult and dangerous; but it was boldly met, and skilfully supported. The following extracts from the journal of Mr. Mackenzie will show the earnest spirit in which he grappled with his task:—
“In a word, we raise our voice and warn the public to beware of this so-called Independent West Middlesex Insurance Company.” “It is a false and fictitious company.” “No better than a parcel of tricksters in London, disowned, repudiated, or condemned by every respectable person.” “Will the mere statement of a parcel of swindlers in their own favor entitle them to public favor, or secure public confidence?” “Nor shall we rest contented till we chase them out of every town and city in her Majesty’s dominions, or till they are fairly seized by the strong arm of justice.” “We defy the confederated band of swindlers, from the highest to the lowest.”
The wild fury of Mr. Mackenzie’s opponents may be conceived. They declared him to be a false and malicious calumniator. They published counter-statements, assumed the aspect of injured and of innocent men, and instituted separate actions against him for £12,000 damages. One of the agents had been in London, and had the audacity to state, on his return, that the deputy-governor of the Bank of England had personally assured him of the respectability of the association. Mr. Mackenzie, however, procured and published a denial from that gentleman; and this increased the hatred of the accomplices. Two thousand pounds were placed at the disposal of their law agents, to destroy Mr. Mackenzie, who appears to have been one of those not easily moved from a righteous purpose. He continued his articles, he continued to warn the public; and though, when the actions brought against him in 1839 were dismissed in 1840, they raised new suits, he persisted in his bold defiance, and did not hesitate one moment in the task he had undertaken. They could not, however, long conceal their practices; and one fine morning, the entire gang absconded, taking with them from the premises every article of furniture, after having realized, in four years, a booty of £250,000.
The distress which pervaded the middle and the lower classes was great. Applications to magistrates were frequent. Aged men, who had invested their all, went to the workhouse; servants, who had bought annuities with the savings of a life, were obliged to commence anew. Parents, who imagined they had provided for their children, were half broken-hearted. Day by day brought some new case, and day by day evinced the importance of being contented with a fair and legitimate percentage.
There is no knowing to what extent the evil might have reached had not the boldness of Mr. Mackenzie induced him to attack the Independent West Middlesex Company. The longer such an association lasts, the more numerous are its constituents; and to the above gentleman the thanks of the entire country are due, for performing, at a personal risk, and at a personal sacrifice of £700, a great public service.
The following extract from a letter, evincing the amenity of disposition and choice of language of the person who conducted the delusion, may prove an interesting close to the above narrative:—