The Weekly Kansas chief. [volume] (Troy, Kan.) 1872-1918, 1877-06-07
Life Insurance.

Speculation aud fraud have entered into al
most evey species of business and trade, until a
man can scarcely invest his money in anything
with any reasonable assurance that he will not
finally be swindled out of it, through extrava-
gance, speculation, or theft. Even that invest
meut which had been considered the safest-Life
Insurance-in which, as it were, a man invests
himself to secure his family against want in case
of his death, has tarned ont to be as big scheme
of speculation as any of them
Investigations prosecuted in the Feast, during
the past few months, have resulted IN winding
MP a number of these concerns, and in revealing
q startling array of facts concerning the leading
companies. These institutions. be it known, are
conducted on the mutual plan. The funds are
invested in good securities, and each year, after
paying losses and expenses out of the interest,
the residue is divided among the policy y-holders,
or those who are insured, in proportion to the
amounts they have invested. 1t follows, that
the more money that is lavished and sqnandered,
the less will be the annual dividend to the poll
cy-holders. II the business were economically
managed, some of the leading companies would
nav dividends almost sufficient to reimburse the
policy-holiers the amounts they are required an
nually to pay on their insurance-in other words,
their share of the dividend would keep up their
insurance. In this list, may be classed the Con-
necticut Mutual, the Equitable, and the New
York Life. These companies all figured in the
investigations spoken of.
And what are the revelationsf They were, in
fact, that the whole business of the companies
was controlled by few men, the policy y-holders
being scattered over such q vast extent of coun-
try that they could not participate in the annual
elections, as they have right to do These few
managers assemble, elect themselves to office,
and vote themselves immense salaries. The
leading officers of one of the companies received
$4,000 year sach-doublo the salary of the
President of the United States, until several
years sgo-and other inferior officers less sums,
but still enormous. The New York Life, which
has an extensive business in Kansas; and has its
agents everywhere, preaching of the beauties of
life insurance, pays its Vice-President and Actu-
ary $4,000 q year; its President, an equal
amount; its clerks, as high as $1,000 year; and
its other officers in proportion. Here are men
intrusted with the investment of other peoples
money, who are using that money in paying
themselves salaries that would be munifcent at
one-third the amount and taking it off of the
dividend that belongs to the persons who furnish
the money. The persons who are insured in this
company, pay from SIS up to thousands Of dol
lars EACH every year. to keep their policies good,
and the officers having charge of it are squan-
dering it in princely salaries upon themselves.
This single company could pay all its employees
liberal salaries, and then save from 100000 to
$780, 1000 year from this lavish pampering of
those who run the insttution-and all this saw
ing wonld come back to the policy-holders.
The only remedy is for people to cease patron
izing these institutions until they are conducted
upon safer and more honest system; or for
Government to regulate the insurance business
by stringent laws prohibiting exorbitant sala-
ries, and prescribing pena lties for pecula-
tion and embezzlement.