The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-05-01
SPIRIT OF THE PRESS.
EprroRrAr, OPINIONS OF THE LEADING JOURNALS
UPON CURRENT ToPIos-ooMPILED EVERY
DAY FOR THE EVENING TELEGRAPH.
LIFE INsURANOE-THE KNICKER-
BOOKER COMPANY.

No stronger proof of the necessity for the
series of articles upon life insurance which
we are publishing could have been furnished
than the manner in which the affairs of the
Knickerbocker Company have been discussed
by the newspapers. Stripped of all exaggera-
tions, the facts seem to us to be about as
follows
This company had the misfortune to have
in its employ local agents who involved their
principals in large number of bad risks
persons of feeble constitution, bad character,
or incorporate habits. An investigation into
the oompany's affairs, which was begun some
months ago by the Superintendent of the In-
surance Department, has been rigidly prose-
cuted, and, we understand, resulted in
report highly favorable to the company.
Meanwhile, however, q large number Of policy
holders, perhaps influenced by an instinct of
caution, perhaps by the misrepresentation of
the agents of rival companies, perhaps by
misunderstanding, withheld their usual pay
ments of premiums when they fell due, and
thereby allowed their policies to lapse. The
company was thus given its option to re-
assume the risks or decline such as were un-
sound; and, according to our notion, acted
wisely in making a discrimination. We do
not see how in justice to the great body of
policy-holders, to whom they stood in the
relation of trustees, the directors could have
done otherwise. The funds of life insurance
company are the accumulations of pre-
miums paid into the common treasury by the
whole body of the insured, together with
the compound interest earned by their invest
ment. The directors of the company are
trustees of this fund, and it is their bounden
duty not merely to pay losses as they occur,
but, also, to see that no unhealthy insurers
are admitted to participate in the benefits of
the common fund, and thus injure the inte-
rests of the others In pursuance of this
duty, they, in the first place, subject each
applicant to careful medical scrutiny and
then frame their contract with him in such a
way that it shall be fair for both parties
the company and the insured. He
gets O fair equivalent for his money,
and binds the company to the
rigid fulflment of the obligations it assumes,
while the company expects him to faithfully
execute his part of the contract. The truth
is that people act in this matter as they do in
most other business transactions-theyk keep
a sharp look out for what is to come to them
in bargain, and get as lightly as possible
over the part they have to perfom. In other
words, people make their bargains to favor
themselves when they can. When the Kuicker-
booker Company found itself and its patrons
led, through Misrepresentation on the part of
applicants, into taking number of bad
risks, the only thing it could do was to face
the music and pay such losses as might
occur, but II, through violation of contract,
any of these unhealthy policy-holders should
offer it an advantage, to avail itself of it,.
This they have done, and every honest policy
holder ought to support them in their action.
Some persons seem to regard life-insurance
company as an eleemosynary institution,
whose duty it is to pay out something for
their personal benefit without requiring any
thing in return, and the ignorance displayed
by good many journalists in discussing
these matters goes far towards strengthen
ing such a preposterous idea. The sooner
the public understands that life insurance is
simply plan by which certain men, acting
as trustees of sum of money, and in
vesting and reinvesting it, finally realize
enough by the time the payer of this
money dies to be enabled to hand over to his
heirs the amount which has accumulated, the
better. The plan is benefcent in the highest
degree, of incalculable benefit to widows and
orphans, perfectly legitimate, and in the
hands of honest trustees, who are at the same
time economical, wise business men, per
fectly safe. 1t has been in operation more
than century, and despite all past imperfec
tions, mistakes, and failures, is more flourish
ing to-day, and in the enjoyment of greater
public confidence, than ever before. Any
company in the world which would have done
otherwise than the Knickerbocker has, ought
to have its doors closed instantly, and its
assets taken under the protection of the
State.
DRINKING AMONG BUSINESS MEN.