New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-19

Our courts can be trusted to deal with
the transgressions of the law. But there Is q
large portion of this shocking history that
covers acts which were perhaps not illegal
though they were unquestlona0iy lmnioiai
and similar performances make the piach
record of most of the other life insurance
companies that are now in disgrace.
We have more than once in these columns
referred to and described the process OF lhsur
ance wrecking. The evidence in the cases Oh
the Security and Continental companies mas
very recently been supplemented by that pre-
scented in the suits against the Guardian ana
the North America. In few words TINS pro-
cess may be stated as consisting IN obtaining q
release of the obligations of the company to us
poIicy-holders by frightening those who cannot
he cajoled, and cajoling those who cannot DC
frightened. The result is that the holders OF
polcies are induced either to let the Obllga-
tons lapse or to replace them by new ones
which are of less value. In either case inc
comnapy is released from the necessity OF
holding funds in reserve to meet death claims.
These funds have been paid in by policy
holders: paid in with difficulty out OF
hord-earned savings in great numbers OF IN
n
uyE alludes to the hardship that people OF
slender means, as for instance ministers Oh the
Gospel, have suffered; stntinG themselves ana
Their families in the endeavOr to keep up their
life insurance. When, Overpersuaded by the
glh-tongued agent, they have let their poll
cics lapse or exchanged the obligations Tor
new ones. the money they have paid i'll to the
company is practically forfeited. VINO gets itg
II is in evidence that this money is in many
cases divided among the men VINO nave per-
petlated the wrong. On Saturday we pun
lished testimony which seemed to show that
one man received Mt least $l3O,OOO for thus
wrecking and running company. we publish
TODAY n letter from that gentleman stating
that the money which he thus received was PAID
hack IN thc company. Even if this should turn
cut TO he the whole truth, and the gentleman IN
question obtained no benefit by the operation,
if is still evident that the unfortunate people
who were whecdlcd out of their policies lost
this Iar,c sum of money which they had paid
to secure insurance. 1t has been proved
that the officers of other collapsed concerns
shared in this kind of piunder. Furthermore
the canvassing agents, who did the dirty WORK
OF pcg.uading policy-holderS to relinquiSh their
qglts and property, were literally paid.
Ii is sadly improbable that the law can reach
these transactions or reciiry the wrong. Some
thine may be done to prevent such outrageS III
future and the new legislation at Albany may
in Il measure meet this purpose. What needs
tO be done now, is to ascertain whether
any portion of the plumber from the
collapsed concerns has gone directly into
,Ae pGcketS Of their officers trustees, or stock
lodprs. In looking back through the history
If these companies there appear instances
where dividends have been paid To stock
holders. and large percentages or peralil'lt"s,
besides salaries to Offices and trustees. Ii 1t
should aoDcar that these dividends were based
upon fictitious statements OF the condition OF
a company, the money should he recoverable II
The men who received it have now any prop
cgty. The chief difficulty in all these cases
will be to prove that there was Intentional
fraud. and perhaps there were some instances
where the stockholders were themselves de-
criycd a, 20 the condition of the company.
one ease that will certainly bear overhaul
ing Is that OF company which, after
paving several dividends to its stockholders,
fell Into bad rcputc and made IN arrangement
that WAS equivalent to going into l:quidation
and ;hpn plid back the capital t. the stock
holders. There seems to have been IL lul in
he examination of life insurance companies
that WAS going on so fast few weeks aga.
The present crcumSt inccs offer cause for re-
ucwcd and grcater ac ivity.