Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1886-09-27
COMMUNICATIONS.


The Bartk oIOmeXv Rafr.
70 the Editor of the JOURNAL AND COURIER:
No occurrence within the limit of my in
divdual knowledge has ever occasioned me
greater surprise or more profound regret
than the announcement of the stupendous
defalcation of George M. Bartholomew, hith-
erto one of Hartford's most respected and
trusted citizens. For period of ten years
or more I was intimately associated with
him both in business and social relations, he
being president of bank in which I was a
director and director in two corporations
of which was president.
His name was q synonym for sound judg-
ment, business capacity and unquestioned
integrity, and the sad ending of his business
career is a severe shock to ones confidence
in mankind, even those of the most unblem-
ished reputation and who to all human ken
have led lives of unsullied probity and pur-
ity.
In view of the almost daily record of dis
honesty in high places and violate trusts by
those acting in fiduciary capacity, 1t Is evl-
dent that there exists some deep-seated and
widespread causes from which such deplor-
able consequences flow. and it is we'll to con-
slider if it may not be possible to discover
and expose them, in order that speedy re-
form may remove them and arrest the fur
ther progress and augmentation of this evil.
Years ago the writer had occasion to pro-
test against the vicious and demoIaliziug
practice of condoning and coneealing crimes
of this sort, whether from false sympathy
with those who have sinned with full light
and knowledge of the enormity and disas-
trous effects of their wron doing, or for the
even less honorable purpose of possible
financial gain by their concealment, and he
has lived to see that such misjudged acts of
leniency tend to corrupt the public morals,
destroy commercial integrity and sooner or
later return to torment and impoverish their
perpetrators.
Unmitigated fraud and rsscality delibe-
rately planned and cunningly pei Ipetrated
through a series of years have been too often
excused and permitted to so unpunished,
either from mercenary or benevolent motives
and mildly characterized irregularities"
instead of "crimes," as should have been
done to be followed by merited punishment.
When public sentiment is properly aroused
and such acts are made criminal and their
perpetrators Infamous. when the enforce
ment of sound and correct practices in all
business transactions are insisted upon in
spite of the high standing and supposed un-
impeachable character of any individual,
may we not reasonably expect at least a great
decrease in the number and magnitude of the
startling developments. that now so ffequent-
ly shock the community and do much to un-
deTm1ne publlc cOnndence!
Let us then go more slowly, return to some
of the wise and prudent business methods of
the past, and both by example and precept
educate our youth to practical as well as the
oretical honesty in all the relations of life.
And now a few words in reference to the
Charter Oak Life Insurance company, whose
fate is involved in the common ruin disclosed
by the above mentioned disaster.
It is well known that the Writer, while a
member of the State Senate, resisted with
all his ability the scheme to give this compa-
nv prolonged existence and foist it upon
the community as solvent and worthy of con-
tinued confidence and support, when, as he
then believed and as the sequel has proven,
its impairment was such that it wss too far
gone for resuscitation.
1t was mistaken idea of the managers of
other similar institutions, which were SOL
vent, to think that purging from their midst
ssrotten concern would be more damaging
than the concealment of its true condition
and retaining it to tester and finally die a
lingering death.
In this connection few extracts from a
speech in the Senate Febi Iary 7, 1873, show
ing the writer's estimate of the inadequacy
of the State supervision as now organ zed to
protect the public and control insurance COM
panies, seem to be pertinent aud are now re-
vived with the hope that future. lawmakers
may give this subject their early and serious
consideration:
s'The supervision by the State of the pri-
vate business of its citizens may easily be-
come q powerful engine of tyranny; or it
may be perverted into a mere instrument for
the sconcealment of corruption and fraud,
thereby becoming delusion and snare to
lull the innocent victims thereof into fan
cied and false security.
"Such supervision, if once inaugurated,
can be safe and justi6able only when admin
istered by men of the highest intes fity-of
unimpeachable honesty and of more than or
dinary intellectual attainments. Especially
should they possess the qualifications essen.
tial to fit them for the peculiar duties of
their position, and which can come only
from extensive and accurate knowledge of
the business to be supervised.
During the session of 1877, as those of
you who were then my associates may recall,
when directing attention to the urgent neces-
sity for removing the disquietude
of policy holders in life insurance
companies, l ventured to suggest the
possible existence of corrupt practices in
some of them which demanded prompt ex
posure and positive condemnation, remarking
shat sto withhold the required action would
be as unwise and criminal as would the sur
geon's refusal to use the knife where the
elimination of a gangrenous member was the
manifest duty before him. Convinced be-
yond doubt controversy that one or more
of these institutions is now and for years has
been in state OF gangrenous modification
| and decay, and fully concurring in the senti-
ment expressed by the comprehensive and
| terse aphorism to be found in the univer-
sally admired message of his Ns3eel-
| 1ency Governor Hubbard, viz: There is no
| use of scratching the skin where incision and
| surgery are needed 1 offer as a suggested
| method of reform bill for public act, hav-
| ing for its object radical change in our
method of supervision and management of
insurance companies, and have to regret that
| the period fixed for the reception of new
bills for consideration by the legislature is
| too short to enable me to further perfect