New-York tribune., 1872-03-11
INSURANCE LEGLSLATION,

Tie Investigation Of the management Of the
insurance department of this State is evidently
nearing its termination. 1t has arrived at that
period at which the public. like the Tichbone
Jury, has heard enough. ANY further facts that
hard pumping may elicit cannot materially
change the character of what il already drawn
OUT and having got at the truth which was
at the bottom of the well, we need not scrape
np the slime at the sides. The legality OF
Superintendent Mlcr's acts may be justified.
But it is evident that our insurance laws open
the path to grave abuses, and that continued
repetition OF such practices as those OF Mr..
Miller would work serious injury 10 the interests
Of his department What we most need is sound
insurance legislation. There is, however, a labil-
ity to mistake on the part of ou lawgivers as TO
what c0nstitut good legislation. Too fire.
ouently the assumption has been made that
the positions of the insurance companies and
the insuring pubic are inherently antagonistic.
This mistake has been the basis of much
special legislation proposed with reference to
life insurance companies. Bills have been in
troduced to compel such companies to renew
lapsed risks; to require the payment OF losses
without reference to fraud OH the part OF the
insurer: to make policies binding despite any
restrict ions named in them or agreed upon by
the insured; To give the claimants against
such companies advantages over plaintiffs III
ordinary civil suits; and to carry out other
provisions similarly adverse to the COM
panies A moments reflection, it would
seem, might throw Il doubt over the desirable
ness of such legislation. The companies being
in great part mutual, their interests of
Al ~, a, Inl hon
by a dishonest scheme, by fraudulent mis-
representation or by any other means, a com
pany pays something which it does not right
fully owe, the loss falls upon its honest
policy holders, diminishing its prosperity and
their dividends; in short. deprving them OF
their money. And all legislation which en-
barrasses the honest work of the companies
tends TO the same result
OF a piece with such legislation is the ex-
animation of companies, of which so much
has been said in the present investigation.
! The expense of the eXamination-the 1880 or
| $500 paid TO Mr.. Miller or his subordi-
| natcs-is the least part OF the loss en-
| tailed. 1t was recently shown in the
| Custom house investigation that sooner than
| have his commercial establishment invaded by
| the Special Service Bureau with power to look
| into his books and affairs, an honest merchant
would willingly pay few thousand dollars
and thereby save his credit and his business
| from interruption. But the case OF the insur-
ance company under examination is infinitely
worse than that of the merchant, because the
| very existence of the company is based on
| public confidence. No sooner does the fact
that an insurance company is undergoing eX-
animation become bruited abroad, than the
| circumstance is used to discredit il by every
| agent of every rival company. While the ex-
animation is in progress, the company can do
no business its agents are simply paralyzed.
But when it has passed through the ordeal,
and it's books and accounts proclaimed cor
rect, are its troubles Overt They arc but be-
gun. wiso-headed public has had its
suspicious aroused. Not one man in twenty
who has heard that "there WAS something