The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1877-07-21
Life Insurance Companies.

The Philadelphia Ledger, of Wednesday,
says We were months ago lost in wonder at
the many failures and rascalities reported in
connection with our life insurance companies
all over the country, and still each new day
brings some further developments OF villain
Gus frauds in thIs. eOnnection. Yesterday $
papers had V'f2 1iEng of them, including
further deyelQ1 N the case of the uni.
versal,n tha .HihD Mutual and the
"Charter on HI Patterson Fire and
two or three savings funds and banks. These
things are on the increase, aud the trouble
under a universal shrinkage seems to be as.
Stunning q chronic aspect. Distrust, which at
first was confined to business present and in
the future, has now extended 10 the distrust
Of men and Of corporations. There is not
only feeling repugnant to entering upon en-
terprises depending upon the future for de-
velopmeut and reward, but confidence is
gradually more and more withdrawn from
what is supposed to be established credit and
integrity. A suit for Si,600,O00 has been
begun against the Universal Life Insurance
Company. This has given rise to the expec
tation that there are TO be additional and
more startling developments relative to its
management, and especially concerning the
manner in which that company absorbed the
Guardian Mutual. This suit is understood to
be for the recovery Of the assets Of the Guar.
dian Mutual and is against either the old
directors of the Guardian Mutual or the
directors of the Universal for the amount.
The Charter Oak Life Insurance Company
another of these crippled concers, is endeav-
oring to delay proceedings for the appoint
ment Of receiver on the ground that an
effort is making to rescue the company by
placing it in the hands of an entirely new
board of directors. The policy holders,
however, insist upon prompt action, and the
history of life insurance for the past year or
two justifes their want of faith in any delay,
as every days additional probing but deyel'
opes more corruption and more Of baseness.
Ii is pretty well understood that life insurance
is now, as a business, largely crushed out.
Many companies have gone out Of existence
by reinsuring and the running OF two or more
companies into one management, and IN this
conglomerate shape passing into bankruptcy,
with such developments of lack OF personal
integrity as make the heart sick and fully
warrant the distrust now so universal. vi all
the yillainies in business, that which aims TO
deiraud and injure dependent women and
children is the worst, and to properly punish
such wrongs as these there should be some
special punishment provided in law, and ii
should include as its objects not only those
officers who are proved delinquent in the man
agement of the affairs Of their respective com
panies, but it should make the enormous
salaries and commissions absIracted from the
assets Of the companies felony.
The taking of thirty TO forty thousand dollars
per annum by any one person for alleged
services TO life insurance company, and
pretend that such sums were earned and
honestly taken, is absurd. There is no hon
est duty in the life insurance business that
requires any such sums of moneyin payment
The taking Of such salaries aud commissions
has been, in every instance, known TO be a
wrong against the policy holders and policy
dependents, and every conscientious man will
condemn it as such. As regards the failure
of the Charter Oak Life Insurance Company,
it seems to take place under the management
Of IA Mr.. Faber and an associate Of his by the
name of Wiggin. Neither of them being
citizens of Hartford, the newspapers there
have fallen upon them with an Intensity Of
indignation and rigor Of denunciation which
90 far TO make up for the leniency they have
exhibited heretofore towards financial irregu.
larities of the same general character. The
Post of that city however does not lay all the
blame upon Faber and Wiggin, but frankly
saws ''the ruin was wrought by Connecticut
men long implicitly trusted, in the belief that
they were at once skilled fnanciers and men
Of integrity The facts brought out in the
Investigation show this to be true. The com
uany had been brought to the straits Of insol-
yehcy By reckless management long before
The contract was entered into with Faber.
This individuals reputation as a wrecker is
now pretty generally known. The truth is,
tho solid men of Hartford and the Newspaper
nress itself are not without some degree Of
responsibility for condition Of public senti.
ment of which financial irregularities are the
logical fruits. There have been embezzle.
ments and breaches Of trust and "robberies
Of orphans" and other crimes Of similar
character before. 1t has been the habit OF the
solid men Of the local press TO consider them
IN the light of misfortunes rather than crimes.
Punishment for such offences has been ex-
eapdinply rare