INSURANCE SYSTEM

Hokitika Guardian, 17 September 1937, Page 3

INSURANCE SYSTEM

REVELATION IN COURT (Per Press Association —Copyright), WELLINGTON, September 16. A system of what counsel termed “American boosting,” under which the I collectors of insurance premiums work, was blamed in the Supreme Court for the defalcations of me clerk, Thomas Joseph Kane, 28, who j pleaded guilty in the Magistrate’s Court, to twelve charges of obtaining execution of valuable security, anu one of theft Mr Justice Smith said he was not disposed to blame the system, but rather tji.e prisoner’s mode of living, and.; isenb&nced him to two years’ rc- ; formative detention. The amount involved was £399. Ckrunsel said the prisoner had been in^jit; very difficult situation in view oi thl'isvstem under which he and others were compelled to work. When a man became an insurance canvasser, he/was placed under a superintendent, who had .charge of eight or ten men, and the superintendent was under a brigade manager. The canvasser sold industrial insurance, but did not receive any wages. He was allowed to keep the first twelve premiums received. After they had been in force six months, the superintendent received his commission, and after nine months, the brigade manager got ms commission., VrfAll sorts|of boosts, or “rallies,” were tried, |.said Counsel. At present, canvassers 'fere divided into teams of '“Springboks!’ and ‘‘All Blacks,” working on a competitive basis. A man s commission Swas not paid to him, but it was retailed by him out ot the money tliaphe collected. After these high pressure schemes had been in force somet weeks, persons might become befiin'd in their premiums, and the agents ; might pay several week’s premiums to keep the policies alive. That money went out of their own pockets. Driven along hy that system tho;;prisonei; became about £lB short, and lie made his first false step to keep even. Then he entered the hands-of the moneylenders, and finally started gambling with the bookmfikbrfe.