The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1877-03-31
LIFE INSURANCE.


Along with the overwhelming tide OF de
moralization and corruption in all depart
ments of the government and faithlessness to
public trusts that set In at the close of the
civil war. like decentralization and faith
lessness to fduciary trusts manitests itself IN
all institutional and business relations. AS
IN the collection and disbursement Of public
money il got to be the rule that nearly every
man who took office from the govement was
son the make" or steal, SO banks and other
corporations had to devise new plans to watch
their collectors, bookkeepcrs and cashiers
and even private business men and firms were
put to their wits end to devise guards against
being robbed by their employees.
But in no quarter did this widespread de
moralization and all-pervading leaven OF dis
honesty rage with more reckless impunity
than in the department of lite insurance. The
field is one particularly adapted 10 the wileS
and practices OF the professional swndler
Appealing to one of the noblest instincts OF
human na,urc--,he love Of man for those de
pendent upon him and anxiety for their well
! fare after his death-the life insurance agcn
assails him at his weakest point Having, in
his glib sanc,imonious way duly impressed
the man with his duty towards those he holds
most near and dear, the agent proceeds to ex
hibit his curious calculations and mysterious
tables, by which he demonstrates that by the
paymen, of say $50 year for the frs, few
years, and then gradually diminishing until
in about 20 years the payments entirely cease
the man at his death will have laid up tor his
wife and children the snug little sum Of three
or four thousand dollars in ready cash.
It really looks to the man as though he
ought to 90 into this thing. Fifty dollars a
year, gradually diminishing to nothing with
ia twenty years, and $4,000 at the outcome for
his family; or "you may die any day, you
know" and still the $4,000 are secure-noth.
ing can be more fair or liberal, certainly. SO
he takes out policy, beginning by paying
down $50, with the usual fee to the agent.
Next year he is called upon tor S55-the extra
So being tor "intercst on your premium notes,
vou know Next year It is SOS; and so it
may run up in few years to $50 Then,
however, the joyous announcement is made
that the premium notes are paid, and hence,
forth the payments will rapidly diminish.
Well they do diminish-5) cts. TO 81 a year
until at the END of the promised twenty years
they are down TO $50 where they started.
This is substantially the history of case
under our own close observation, where the
company was the Connecticut Mutual Life.
Probably the way that institution was manag.
ed 20 years ago the agent and his curious Ia
bles reentrely honest in the assurance that
though the payments for the first few years
might be $50 or more, in half u dozen of years
they would begin to dimlsh and before TWEEN.
ty years would entirely cease.
But since then the era of universal demon.
alizGt.on has come, and the business Of life
insurance has become aDundantly impregnat
ed with Its poisoning influence. Instead OF
doing business in modest two story building
ia Hartford a gorgeous granite palace had
to be erected and not only in Hartford, hut
also for IT'S branch offices IN New York, Gin
clnrat, Chicago and elsewhere, splendid
palaces became necessary. Enormous salaries
came in as another species of thievery. The
recent investigation ints the Equitable Life
at Albany gives the exact history of all. The
President OF that gorgeous coucern, Mr.. II,
b. Hyde, began his work IN 1859 on u salary
OF $1,000. In 1863 he got $1,000; in 1864
with his perqulsites, hc skinned the public
out OF SCI 1899; and thereafter it annually in
creased until in 1874 il reached the glorious
aggregate of 1860, which was maintained
until 1915, when the coEipany, owing him al
that time nearly $G4, 0o3, changed his income
to the small aud begga9,y pi,ance of $37 1905
per annum
The same company pays at lis principal Of
fee III New York the following additional
salaries:
~