Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1889-04-18
PERILS OF LIFE INSURANCE.

! Some recent attempted transactions in
life insurance stocks are calculated to
open peoples eyes, especially the eyes of
those who are insured. Until within a
few months, no man has dreamed of buy
ing the controlling interest in a life in
surance company for the purpose of spec
ulating in it or wrecking it. The late
Samuel J. Tilden originated that plan of
milking the stockholders of railroads.
Colossal fortunes have been piled up in
that way at the expense of holders of
railroad shares. The wonder is that the
cOvetous eyes of spectators and gam
blers have so long overlooked the enor-
nous assets of life insurance companies
and the great field they offer for robbery;
but at last they have tumbled on to -
the possibilities in that field. The care
full reader will recall the startling story of
Henry 5. Ives financial ventures, copied
from the NelC York Sun into these col
umns several weeks ago. One scheme
he had in view was to obtain a controll-
ing interest in the Equitable Life Insur-
ance Company, of New York Its cap
ital stock is only 100000, while its as
sets are $97,OOO,OOO. The possession of
S51, 900 of its stock insures the control
of its vast assets, and to that end Ives
commenced laying his plans. While the
daring speculator was arranging that
great steal, however, he was tripped up
in his Cincinnati, Hamilton and Dayton
railroad deal, and became criminal in
stead of a millionaire. Within few
days it was announced that Philadelphia
parties had secured control of the Phoenix
Life Insurance Company, of Hartford,
Conn.
These are finger r-boards pointing to a
great danger. The possibilities open in
this new field to spectators and wreck
ers will greatly weaken the confidence of
men in life insurance. The bonds and
stocks held by these companies are large
ly held in trust for the benefit of the in
sured. If they are liable to fall into the
hands of spectators and gamblers, the
value of policies they are intended to Sc
cure must be greatly lessened.
The relations existing between life !
insurance company and its policy-hold-
ers are peculiar, and to an unusual de-
gree ought to be sacred. The premiums
paid it are large, and frequently are the
occasion of much self-denial The pre-
sumption in most cases is that the in
sured will live long term of years. On
the expectation that his family will be
provided with few thousand dollars at
his death, man may for thirty years or
more pay large premiums semi annually.
1t is presumed that the company which
to do this carefully invests
the moneys received from the insured in
bearing bonds and stocks, and
hat his family will get the benefit of his
and their self-denial at his death. When
he natural protector is gone, helpless
women and children suffer if laundering
,r rascality has interfered with the abil-
ty of the company to meet its obliga-
ions.
Tho life incuranoa huSipocc ic an aDor
nous one. Hundreds of millions are at
'take in policies, and hundreds of thou
ounds of people are directly interested in
he stability and the conservative man.
cement of the companies. The danger ,
by the Ives scheme is start |
ing one, and is calculated to arrest the at {
ention of thoughtful men. Some meas
ire of protection against such schemes !
must be devised, and the insurance com {
'anies themselves should see that such
Measure is perfected and enacted into I
aw, else the business must suffer seri- :
usly. If men annually pay large sums t
nto the treasures of these companies, v
hey must feel reasonably sure that when +
he time comes they will be in condition I
0 meet their obligations. The fact that
hey are stable and sound and conserva-
lively managed now is not enough. VIII c
hey be ten, twenty, thirty years hence?
hat is the important question. b