New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-15
A BUSINESS EXAMPLE.

There is a little correspondence printed III
other columns this morning, which we COM
mend to the most serious attention OF all lie
insurance companies and OF all their patrons.
1t is call by the officers OF the Equitable
Company upon number of their p0cy-h0d-
ers including some of the most trusted ana
prominent business men of this city, to exam
inc their books and make report to the pub
lie without fear or favor as TO their exact
condition.
We desire to hold this up to all insurance
companies as an example of doing the right
thing in the right way and at the right time.
The depression in life insurance amounts to
more than stagnatiOn. IL approaches rotten
ness and death. The whole business depends
upon public confidence, and with conf
dcnce as at present almost absolutely
withheld, profitable business is impossible.
Life insurance deals with and concerns people
who cannot afford anything less than absolute
certainty. 1t receives the savings OF lite-
time. 1t guards them for the relief of widows
and orphans in their hour of sorest distress. Ii
it is not absolutely secure it is worse than
worthless-t is robbery with every conceivable
aggravatOn from the circumstances OF thoSe
who are robbed. Not only is absolute cOnil-
dence essential, but this confidence must be
permanent. The business relation IL contln-
uous one, covering in the case OF most pat
rons a lifetime and often involving, on a
single transaction, continued belief i'll the alb
sOut6 security Of the company (and Will
lingness, on that belief, to pay it money!,
year by year. for period of half century.
With the public mind in its present condition
of uncertainty and anxiety. the one thing then
for life insurance companies to do is to make
the clearest possible exhibit of their business
and prospects.
Ihirty-fve years ago life insurance started
in this country. The system was then on trial.
After ten years it was accepted as proved.
There is no question now as to the system,
but solely as to which are the true and which
are the counterfeit representatives OF the sys-
TEN what companies are sound, and what are
unsOund which is the true coin, and which
the base. Until this il determined there can
be no revival. No company can expect
continued trust unless it recognizes the
general distTust, and proves its own title to
confidence.
The examinations of the State Superintend-
ent are already in progress, and we hope they
may DO prosecuted vigorously and relent-
lessly. The great companies-the Mutual,
the Equitable, and the NowYOIk-arc
among the first to be subjected to this
inspection TIE public should demand an
equally severe ordeal for any company before
insuring in it. The strong companies naturally
wish to demonstrate their strength, and put
the business on basis Of absolute confidence
with their patrons The nursing" of weak
companies has been tried for the past five
years, and has brought American Life
Insurance to its present pass. lnsOlyent
companies should not 90 on doing business any
more than insOlvcnt savings banks or insolvent
merchants. 1t Is not only fraud upon their
immediate patrons and damage to the entire
business, but 1T is against the common good,
and a crime against the whole community.
Since the depressions n life insurance set in.
the harvest of the blackmailers has begun.
Inscriptions attorneys, bankrupts themselves
in fortune, or in character, OF in both, have
resorted to all the tricks of the law to perse-
cute insurance officers into compliance with their
demands. The company that listens to such de-
mands is lost. The press will sustain them in
resisting all matchmaking suits to the bitter
end but they can only gain this support OF
the press, and the confidence Of the public, by
making an absolutely clear showing of their
business. To this the policy holders have the
first right, and beyond these the whole COM
munity il Interested in the safety of business
which involves 30 many hundreds of millions
of captal, which controls half our real estate,
and includes the life-savings of tens of thou
sands of families. The community, therefore,
owes debt of gratitude to the Equitable for
the frankness with which it has recognized