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 Tia. cOnnection. Yesterdays
papers had q 81 tfing of them, including
further develo d the case of the uni.
versal, thd EIhn Mutual and the
"Charter Oh, IL. Patterson Fire. and
two or three saRines funds aud banks. These
things are on the increase, and the trouble
under a universal shrinkage seems to be as.
Stunning a chronic aspect Distrust, which at
first was confined to business present and in
the future has now extended to 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gradually more aud more withdrawn from
what is supposed to be established credit and
integrity. A suit for S4,600,0O0 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 endeay-
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 iustifes their want Of faith in any delay,
as every days additional probing but deyel-
opes more corruption and more Of baseness.
1t 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
defraud 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 1t
should include as its objects not only those
officers who are proved delinquent in the man
agement of the affairs of their respective com
pauies, but it should make the enormous
salaries and commissions distracted 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 and 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,
il seems to take place under the management
Off 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 a rigor Of denunciation which
20 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 integiiy." The facts brought out in the
investigation show this 10 be true. The com.
many 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 wrecker is
now pretty generally known. The truth is,
the solid men of Hartford and the Newspaper
pross itself are not without some degree of
responsibility for condition Of public senti
mont 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
Il he light Of misfortunes rather than crimes
Punishment for such offences has been ex.
,aadipOtv rare