Phoenix Payment to J.N.F. Was Agent’s Commission

Inclusion of the Jewish National Fund in a list of allegedly “irregular” recipients of sums from the Phoenix Life Insurance Company stirred resentment in Jewish circles today.

It was authoritatively pointed out that the 500,000 schillings mentioned as having gone to the Jewish National Fund was a legitimate disbursement, representing an agent’s commission on policies written through that organization’s cooperation.

Since 1923, the Jewish National Fund, agency which purchases land in Palestine as the inalienable property of Jews to be used for settlement, has acted in the role of agent for Phoenix in Austria, Czechoslovakia and Palestine. This connection in later years was expanded to include Germany, Rumania, France (and its North African colonies), Hungary, East and West Galicia in Poland, Latvia, Belgium, Egypt, Holland, Estonia, Greece, Bulgaria, and Italy.

To carry on its insurance activities, the J.N.F. established an office in Jerusalem, under the supervision of Dr. Egon M. Zweig.

According to a recent statement by the J.N.F., its total income from Phoenix commissions, to the end of 1935, was approximately £68,000 (about $330,000). Total number of policies written by Phoenix through cooperation of the J.N.F., to the end of June, 1935, was 101,521, with a face value of £20,238,249 (about $100,000,000). In Austria, the J.N.F. was responsible for the writing of 11,458 Phoenix policies, with a face value of £1,662,080 (about $8,000,000).

Just how the Phoenix activities in Palestine will be affected by the collapse of the Austrian company has not yet been made clear. Meanwhile, the financial and legal aspects of the situation are being studied.

In Czechoslovakia, the Phoenix company was announced as having a 350,000,000 crown deficit. The Government is taking measures to protect the interests of policy holders.

The position of the Phoenix interests in other European countries is being studied by the various Governments.