Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-09-18
THE RUTLAND HERALD
THURSDAY, SEPTEMBER 10, 1878
WHO PAYSq


There are certain old fashioned notions
of business economy, that VIII, even
amidst the Intoxicating influences OF TINS
fast are. assert themselves, and bring al
noople to a realization of the truths OF
mathematical science, and the immutable
rules of Divine justice. The failure OF
the Eclectic Mutual Life Insurance COM
many of New York, has furnished cap
ital illustration of the fallacy of many
prevailing theories of the life insurance
business of the country, and is another
example of the fact that their must De
final reckoning, and day of disgrace
and humiliation following every attempt
of men or corporation to do business
and therein spend more money than they
earn IT is an admitted fact, in the
every day life of private citizens, that
mans income must at least equal his eX-
penses before he can be said to be sue
cessful in business life,. and it is about
time that the pretenses of unscrupulous
agents, who seek to demonstrate that
the same theory is not true of insurance
companies, was discarded and rebuked.
we look upon life insurance, in its
simplicity, as one of the blessings OF
life and, to our knowledge, many
widow and helpless orphan has been
made comfortable by the proceeds OF
life policy that would otherwise, have
been subjected to beggary and suffering.
The long experience of past generations,
as well as the present, has demonstrated
with mathematical precision the average
duration Of human life, so that OF the
several classes upon which experiments
and computations have been made, 1t IS
possible to calculate the percentage OF
death losses that may occur in any given
time The basis of life insurance rests
upon this sound foundation of expert
ment. and is as firmly founded as any
business rules; but it is a business in
which the highest good faith and the
most thorough financial integrity should
be exercised. The insurance company
is but trustee CT the policy-holder, and
it ought to be held to the highest respon-
sibility of how it discharges the trust.
1t receives the money of the assured, to
paw and settle the death losses of the
policy-holders, and it is wrongful dis
position of the trust funds if they spend
single dollar for other purposes over
and above the necessary expenses of
an economical administration of the
trust
Insurance companies are corporations
generally, if not universally, and must
do every act through officers and agents,
and these officers and agents, having no
interest in the business, pecuniarily, ex-
cept to make their salaries and commits
sions as large as possible, need watch
ing with exceeding vigilance. The bust
ness has become one of great magnitude,
and if the policy holders of each COM
pany realized that they and they only,
must pay the salaries and support the
style of the home office, and in addition
thereto support brigade of agents,
scattered from one end of the country
to the other, they would often pause be-
fore investing in such an expensive en-
terprise. Then, the pause might be an
anxious one if they knew that many of
these officers and agents were men of
very little business experience, and that
their theories of life insurance, as adj
vanced by them, were many times false
in fact and an insult to common sense,
and that any day the foolish, selfish or
deceitful acts of any one of them might
involve the company in vexatious and
expensive litigation.
Every holder Of life policy should
feel his responsibility. Whenever he
sees a detachment Of agents boring the
people, he should say, l support these
men. When he sees costly palaces err
ected, and decorated with all the grand
eur and embellishments of art, he should
exclaim, my money is in that magniic-
ent structure AS he views costly signs
and paintings, cast broadcast over the
country, he should feel that he, individu-
ally, has furnished means for that dis
play; and when he sees a daily expense
of thousands of dollars paid for circulars,
letters and advertisements, to convince
the public which of two officials of his
company is a knave or fool he should
resent any interference of outsiders,
with the pert and conclusive re-
joinder, that II pays my money and
takes my choice" There can be no
doubt, that the policy holders not only
pay all necessary expenses and losses,
but also all the foolish expenditures and
reckless profigacy that the officers and
agents indulge in, and with such failures
as that of the Eclectic, and such expend-
itures as may be witnessed, it becomes
all persons interested to exercise their
supervisory powers over their trustees,
and see that the well established rules of
business life and finance, are observed,
and that officers and agents act in good
faith to them at least, in the expendi-
ture of their funds.
BLOOD CATTLE.
We often hear practical farmers speak
sneeringly of some brother farmer who