The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-03-14
A Crib. Coming.

We copy from q recent number of the Chicago
Spectator the following bold and very suggestive
article:
A man who prophesies evil is never welcome.
He may be inspired and speak the truth but If
il is evil, it is all the more unwelcome because
true.
We venture to prophesy, without any iuspira.
ton, but what comes from observation. We pre-
dict that a crisis il coming which Will shake the
foundations of insurance companies, and winnow
them and sift them as wheat.
The vast number of companies that spring
into being because some worn ont old man wants
q position president Is something marvellous
Every month or two the number is increased.
Somebody has failed in all other departments of
human enterprise, and finally resorts to friends to
get up a company and give him an office. 1t
is done. When we take survey OF the different
compsnies-one hundred of them-snd observe
the character of their presidents we are astounded
to learn that not ten per cent. OF them are under
the control of men who have any knowledge OF
or experience In life insurance. They are mere
adventurers, place hunters. They do not pre-
tend to know anything except how to draw q
salary and do some profound sitting around.
Into hands like these men place their capital
through friendship, and the outside public insure
because they see good names among the direc-
tors. Fayoritism induces the directors to take
stock, and the character OF directors Influences
the public. This is the basis and the only basis
on which rests many, yes, very many, OF our
life companies. Now we say that such thrilling as
this with most serious and important matter
can lead to but one result-a crisis.
II is well known that q large number of our
younger companies are expending one hundred
per cent of their income to procure business. 1t
is well known that the annual statements are
"cookedr and "doctored" TO meet the exigen.
cies of the case Indeed, the officers are fully
aware that the capital stock Is all that stands be.
tween them and ruin. The business has not paid
for itself. Everything has been absorbed. The
Management. has been failure, as every one
ought to have known from the beginning that it
would be. The company is rotten, the policy
holders are swindled and all because somebody
wanted position, and friendly capitalists got up
q company!
Here is phenomenon. We find no parallel to
it. Sagacious moneyed men put their capital IN
charge of q man 10 be managed in an enterprise
of which be is utterly ignorant and for which he
il confessedly incompetent II Is species OF
wisdom like that which would select blacksmith
TO manage difficult case In medicine, and bod
carrier to conduct q case in court. And. besides.
we very much doubt the morals OF procedure
that lends the influence of good name to an en-
terprise commanded by an imbecile.
There is SO much of this favoritism. that the
conduct of q large number OF life companies IS
unquestionably in precarlous condition. they
lack money. They do not get business. The bust
ness they do get is procured at ruinous cost. Only
one alternative Ia left. They must stop business
They had better fail while they can do 1t decenty
| Every year aggravates the trouble.
| Wbatever be the financial CONDITION Of com
papy, It's liabilities are stern realities. The pre-
miums may be missing the liabilities still remain
Money is oily and slips away. Obligations are
| adheyise and abide. This fact will come forth to
meet the weak companies and startle them by
| and by, as though one arose from the dead They
will find that though assets be dead, the liabilities
! are living Companies may coslesce, Dut tna
| will not save them. Two dying men will not make
| one live one. The best thing for dying company
| 10 do is to die and be buried. The issue can MOI
be long postponed. Judgment will surely GENE
| and with II win come condemnation.
The good companies will stand firm no crisis
| can come that will change wheat into chat. W.
need storm. The life insurance atmosphere Y
foul. II should be and will be stirred to its verl
| center There must be revolution IN respect
management, and all the old hacks who now ID
positions must be elected. Live, intelligent an
experienced men must be established 10 tnel
stead. In this way only, can we avert catas
| trophe that will bring sadness to thousands 0
families and materially retard the life INSURANCE
interests of the country.