The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-01-27

sentative of the French governmental recog-
milton which would imply that Of the republic
l.se- a. hinges unc me-. the point as to whether
Germany will allow France to resume her
former place In tho councils of Europe If she
makes that concession it can only be regarded
as the symbol Of her desire for peace, and tho
London Conference may become the stepping
stone across the present disturbed stream Of
European politics.
But II Bismarck should otherwise ordain
this Conference must end In fzzle. Without
the concurrence Of Franco the negotiations on
the modification Of a treaty, made fifteen years
ago In her own capital, and under the special
inspiration OF her ruler. would be hardly valid,
and to proceed without the cooperation of that
nation would virtually expunge her from the
roll OF nations and realize the German idea of
the utter humiliation Of France
The Necessity OF Special Legislation for
| Life Insurance Companies.
| Recklessness and extravaganza, "the over
payment Of the function of management and the
turning loose upon society of that unscru-
Il puiOuo PoldSltiV AuOuStiJ WuiOA 40 VI
even ambitious to live upon others without
returning any equivalent benefit" have rem
dered legislative supervision over life
insurance companies patent necessity.
This supervision has been well defined as
but the legitimate exercise of State
right Of self-d defence. The stringent laws
| of Massachusetts and the Insurance Depart
ment at Albany have already done much and
will yet do more toward reforming great
abuses in the insurance system, which has
SO rapidly attained in this country an enor-
nous growth. Superintendent Miller is now
examining the real condition Of several conf
panies in this State, according to his inen-
ton announced in his last report to
| the Legislature. Two companies have
lately been compelled by him to sur
| render the management of their affairs.
| 1t is foreseen that several Of the younger
companies will not pass the rigid examination
to which they are being subjected by the
Superintendent, who seems intent upon pro-
tecting the interest Of all who hold life policies
as well as of those whose property is insured
| against fire. The inordnate expenses which
some of these younger companies have been
| obliged to incur, in order to create business
| In tho midst Of the rushing tide of CON-
| petition with rivals of their own date
and with the older companies, will probably
| lead to the wiping out Of existence of many
| companies organized within the past few
| years. Companies of ten or twelve years
standing are for the most part in good
condition, and policy holders In those which
have watchfully looked after their reserve
funds need have no fears. Officers who have
successfully managed companies for ten, seven
teen or twenty-eight years, like the Mutual
Life, the Equitable, the Kuckerbocker and
| certain other old companies, have sufficient
experience and well established regulations to
insure their companies against being wound
up by the Superintendent.
| A conspicuous communication in the Egea-
| ing Post of the 25th instant treats the subject
of life Insurance with great ability, and care
| fully points out in what consists the actual
sovency Of companies. But it is, perhaps,
unfortunate that the figures adjoined to that
communication are, as we are informed, by no
j III
from the Massachusetts, Report, and they thus
| tend to mislead rather than guide the public
| mind. One error of grave nature has been
made in the figures given to the Equitable
Life On referring to the Massachusetts Re-
| port we see that the Investments" of that
company were So, $3.50, 764 SO, to which should
have been added the deferred or half yearly
and quarterly payments, amounting to $780,
925, on policies which are running and which
are, of course, equal to a cash asset, as the
policy, when 1t becomes claim, is not paid
without first deducting these payments. Ii is
a curious fact that the table accompanying the
letter in the Post places the Farmers ard
Mechanics Insurance Company, recently bank
| rupt and in the hands of receiver, in the
very same category with the Mutual Life On
closer inspection we also find that the Mutual
Benefit, another leading company, is repre-
scented as needing Sl,777,347 46 further cash
assets to meet its required reserve. If this
were true it would argue q great oversight in
| what has always been considered the careful
investigation given by Superintendent Miller
to the affairs Of insurance companies. II is
incompatible with statement made in the
same communication shat there are no finan-
| cial institutions in the world more safe against
failure than well-conducted life insurance CON-
panies; and such, beyond all dispute, are
majority Of the companies which now do the
largest business in the country"
Among the remedies for the abuses that
have grown out of our popular and, in the
main, excellent insurance system, the pro-
digious benefits of which have been fully
recognized by the public, 1t might be well to
consider the propriety of extending the voting
! nriyileges Of policy holders. Both Stockholders