Litchfield enquirer., 1878-01-24
Insurance Companies.

It has been serious year for the Hartford insurance interest The Charter Oak disclos- ure is a. very disgraceful one; and, if the most disreputable part of it's history has been that since it came into the hands of the New York wreckers, there can be no doubt that its ruin had been accomplished by Connecticut men be- forehand Now follow disclosures regarding the Continental Mir. John c. Tracy, the late president of the Farmers & Mechanics bank, now in State Prison, was chairman of the Con- tinental finance committee, and SO managed the accounts of the two institutions as to place to the credit of the Insurance Company cer- tain fcticious items amounting to over $300,- = 900. Moreover there are considerable over- valuations of property; 30 that on fair esti- mate the Investigating Commission reduce the Companys surplus to $63, 900. Even in this estimate they allow certain assets at their ap- parent value, though much doubting their soundness. In this instance, as in the Charter Oak matter, the special Commission seem to have made thorough work, and the public can begin to feel that they at last know the truth about great interests whose condition have been hitherto mere matter of conjecture.
 Among other things the Commission have reported bill forbidding the use of proxies more than year old at the election of the of ficers of insurance companies. This is time lyproposition. Anyone at all familiar with the practical management of our great corpora tions knows to what use their proxies are put. The officers of the existing homogeneous send out to every stockholder requests for proxies, to be used at coming elections. Most of these are no doubt sent as requested, and the system has the effect of giving the power of self-per- petuation to existing boards of officers. Occa- sionally sly Secretary or Treasurer gets to- gether enough proxies to turn out his fellow officers and supply their places with creatures of his own. Such treachery, however, is not common. Boards unusually pull together and the rule ''Once in, always in" fully applies to corporate management. This style of govern ment leads to enormous official salaries; to si- necures for relatives and favorites; to exorbi- tant lawyers fees and all the other running sores that deplete the strength of the body pol itic and corporate, even if they do not sap it's life Occasionally stockholder tries to in- form himself about the affairs of his company. If he is not treated with all the insolence with which the demands of Stockholder Goodwin are met by President Bishop, at the meetings of the New York, New Haven and Hartford Railroad Company, his efforts are equally un- availing. The mild check on the proxy abuse proposed by the Commission is certainly a very moderate measure of reform.
 What action the legislature will take, with the facts now fully before them, remains to be seen. What was chiefly needed-that the truth should be madeknown-is already accomplish cd. Further present investigation would be useless, for legislative committee has neither the time nor the skill to successfully explore so difficult subject of. inquiry~ If they can do anything to check the evils of insur- ance management now fully shown to exist, they will deserve well of their constituents. We should be especially pleased to see them give stockholders some real power their own property.
 To the Insurance Commission the public are greatly indebted for the thorough manner which they havedone the work set them to do. The important results they have attained only show in stronger light the shortcomings ot our regular Insurance Commission. Is not that an office that might as well be legislated out | of existence?