The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1877-08-11
Life Insurance.

1t is right, it is duty TO provide for ones family;
but is there not a better way than by life insur-
ANGER People are becoming more and more dis
trustful Of life insurance companies. Many who
have invested 10 them money gained by hard work
and self-denial have come to grief. Through fraud
or bad management many companies have failed.
Four have failed within six months. In 1868
eight companies were started In the State OF New
York, and Of these Eve have failed. In 1869 seven
were started, and all Of them have failed. The
revelations made In connection with these failures
form a story Of deceit, fraud and perjury, painful
to contemplate. The case OF The Continental as
revealed since its collapse, IL In summary this
" Insolvency, induced probably by bad although
we'll intended management, had existed for two
years, and been concealed by a course OF falsIiyinR
accounts, dummy checks and other fictitious iiema
being retured under oath as cash several Of the
agents were employed 10 depreciate the conpany'a
credit throughout the South and West, and buy On
the policies on the sharpest terms. This work was
performed in the most cold bloOded manner, some
of the victims being In their last sickness at the
time the assets were divided up, and 10 avoid
state interference, an apparently coilusive receiver
was put in charge, who allowed the deposed on
GERS free access 10 the vault, one OF them visiting
it on a Sunday, and removing what papers he
wanted"
Now it does not follow that because the Cont.
mental is a bnmbug and a fraud, that all life insur-
ances are equally corrupt, yet there is evidence
that some OF them are reckless in their specula-
tons, and that most are prodigal In the salaries OF
their officers. The Equitable has q building Ia
New York that cost $4.l56.b29. and another Ia
Boston that cost 8 l,l70.2 02. The salary OF tho
President Of the Equitable IN S37 500, and In addi-
ton to this be has received on an average during
eight years $37 500 a year. The yearly disburse-
ments Of the Equitable for taxes, commissions,
agencies. physicians fees. salaries, law expenses.
postage, exchange, advertising. printing. building
and other expenses amount TO 81, 228. O24. Sec
where your money goes, ye policy holders.
Says Julius Wilcox In bis article In Scribner for
TuIy. 80 II a clark fakaa a dollar from sha I..wo.
we call 1t by one name only II a president takes
a thousand as a bonus upon an ample salary, the
act is none the less morally q theft, because I'M
laws exist 10 punish It."
That there Is a growing distrust In life insurance
companies 10 evident from the decrease OF their
business. This decrease IL put down for the PbU-
nix, 81. 903, 204; for the Charter Oak. &C. sO2 27O,
for the Union Mutual, S5.76l.l7li for the Ktna'
81. 066.4 5g; and for the Mutual Life. 93, ITO 1874.
Officers and agents Of these companies make
great profession Of henevolence. and compassion
for widows and orphans but the great motive Is
very different from pure benevolence. IL u in
human nature TO be pleased with the reputation Of
being generous and unselGeh and many take
great pains TO gain and 10 keep this reputation
from purely selfish motives. So there 10 no more
benevolence in life insurance companies than ia
any other money making corporation.
A young man Of Fl. In good health, wishes 10
buy a policy Of $4,000. There Is strong proba-
bility that be will live, at least thirty years. He
decides TO take a policy from the Manhattan. and
for this. he must pay 1924 a year. Now money al
9 per cent, will double In about nine years. Thus
when he reaches the age OF 40. bis 1rst instalment
will have amounted to S2272. and n be 1--we 10 the
age OF City, the amount Of bis first three install
ments will be over $1,000. and there are seven
more instruments which at the age OF so will In
crease the amount to 9le.O00 But this IL not all.
He must pay an annual interest OF 0 per cent on
a succession OF notes Of 9284 each. issued yearly
for tee years minus a dividend. which In the
course Of time may bring this payment 10 an end.
In this way, during the thirty years, be pays 10
the company as good as $4,000. How much
better II would have been 10 have managed his
600 for doing It for hint ALoUa.