National Republican., 1877-08-07
LEE INSURANCE.

TIE Chicago 7ribdac OF yesterday cou-
,ain~ - long account oi the management Of
the Protection Life Insurance Company OF
Chrragn. from which il appears that that
Institnti"n has been nothing moe than n
cunning srhemr for iohhing the pEhiic.
he Ir,bRhf states that I,rei.cr will be
appointed 10 take chaipc oi the assets, pro-
yil,d any ,an he found. IL is not probable
that anything Of value will lie toun'l for IL
Appears that the securities Deposited with
the insurance department vt Springfield,
m consisted ot mortgages nn swamp lands,
which now turn out to he utterly woith-
lsSS
The failure Of this company affords
another Argument II. favor OF the plan pro-
posed by TnE RKrUBI IChS few weeks
ago for securing the IHli'y holders in life
insurance Conr!IHI"S. That proposition
was, ~ our rt.,l,ts viii remember, 10 re-
Juic the aSsrts Of su,h companies to be
converted into Government bonds and de-
posted with the State treasurcrs oil the
States In which the several companies are
situated, 10 be held in trust for the benefit
ot the pohcy-hold.rS. and not subject to
the control oi the officers except ior the
payment of actual losses.
There rs no security in any plan which
leaves the assets under the control of the
officers, ioi they are then subject TO embez-
element, OF they may he invested in worth
less securities, M happened i'll the case Of
the CHARTER Oak Insurance Company. Nor
dOcS the examination Of the officers of the
State insurance departments afford any Sc
curity. This Is illustrated by the case Of
| the Protection Insurance Company oil Chi
| cago. Although the assets Of this company
never had any real value, yet the authori-
ties Of Illinois made repeated examinations
into the atialIs OF the company ami always
reported II sound. So likewise half the
States Of the Union, after sending exIeIts
| to examine into It's Gna!rs, pi1,.ouLCcd 1t
| solvent.
The whole system of exasiinations by
experts IL unsatisfactory and IilusIve, for
tile reason that the vnlac of It's, consist
iug of mortgages, bonds and similar securi.
ties is at least q matter OF opinion. Ex'
amineIs may also be imposed upon rs to the
ownership Of securities; and even though
the assets should lie perfectly good when
tn. examination is made they can he con
verted the very next day 10 the use of tn,
officers, or Teinvested in some WORTHLESS,
m .nnrI. IT is tine tina, the insurance eS
peria generally discover these frauds soOne
oI later, but there Is very litilr satisfaction
to policy -holdri In being told that hi
company Is insolveht, aid that he shdul'
not pay II any more money, ah-r he hm
been denying himself loI years to maxi
some provision Tor his wife and children.
The officers OF insurance companies nigh
~ well understand tiiSi aS last that the pres
ont system is not satisfactory to the people
and that they will Withdraw their patron
aye from the companies winch will not CIV
their policy bol,leIS reasonable security ia
an honest aud faithful management Of sue
ImpoI tant trusts. They ask nothing NOR
than the protection whIcl. the Government
gives the holders OF the bills of nationa
banks. Those bills it is well known, ar
secured by the deposit of United State
bonds with the Treasurer The widows an
o'pLGLs OF deceased policy-holders are ell
u,led TO the teueht Of the SAINT saieguaI,