Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1891-01-17
a.irv Insurance..
Cincinnati Commercial Gazette.


Girs Insurance.
Cincinnati Commercial Gazette.
The magnitude of this business in the
United States is enormous. We are in
formed that the aggregate liabilities
are greater than those Of the national
banks. In the absence OF reliable in
formation 1t is hard to be positive about
this, but that they are very heavy no
one will question. We have In mind o
single company that has stock capital
of one hundred thousand dollars, the
majority of which is owned by single
person. This company has assets, as
reported, OF over eighty million dollars.
The president draws salary of sixty
Thousand year, and the vice president
forty thousand. Who are the creditors
of this vast concern? The policy-hold-
,ers. These pay in their money annual
ly, and these deposits are mainly in
view of o return in case Of death. 1t
is, so to speak, a sacred investment.
But who knows anything about it out
side of the officers, who draw salaries
exceeding those OF the president Of the
United States? But emitting the sal
aries, the companies are virtually seal
ed books. Some OF the officers are
chosen by pOlicy-holders, but these
vote, as rule, by proxy. They know
nothing, Of course. They are mere
dummies.
Some of these companies have grown
TOO big for che United States, and they
are spreading in Europe. Some OF the
finest buildings in the world have been
erected by them in Paris, Berlin and
Melbourne. Whose money is invested
in those fine improvements? 1t is the
money of the people who insure and
pay for the privilege in hard cash.
These are not consulted about invest
ments or management. They are also
as ignorant as one who never knew
there was such thing as life insur-
ance or other speculative ventures OF
the kind. And yet these investments
equal at least the liabilities OF the
national banks, which are closly watch
ed by the government of the United
States. And what would these be
worth without such supervision? No
more than the old system OF state
banks.
It is true there is such q thing as
state supervision of life insurance CON-
panies. But what is this worth? 1t
can not cross the borders of a state.
Therefore it finds out little and knows
less. In point of fact it amounts to
little or nothing.
But what is the remedy for this
looseness and virtual insecurity? 1t is
not worth while to complain OF any,
thing unless there is remedy. What
is this? 1t is not that the national
government should assume cIatrol Of
life insurance as it did that Il the banks
of issue, although that would probably
be justifiable under the circumstances;
but it is that q general national law
should be passed on the subject and
that national examiners should be ap-
pointed and the business conducted as
In the case of national banks. This
would check the extravaganza and
1surpation OF many life insurance COM
panies, as it does that Of the banks;
serve to make all safe, by compelling
the loose concerns to conform to the
conservative institutions; while, at the
same time, it would give confidence to
the creditors, as the same system does
to the depositors and nOte-holders u
national banks.
There have been bad failures in the
country of life insurance cor i
tnat robbed the insured of almo
dollar they had paid in; but all * as
but ne q Hy on q wagon wheel compared
with what is liable to occur unless the
brakes are put upon those managers
who assume to own all they have in
control, and find the United States toe
small for their investments and specu-
,lations.
There is volcano gathering that, #
not checked, will soon explode with ter
rife force. It Is liable to bury the good
with the bad and the sound witQ the
rotten in q common ruin. Imagine
what the result would be II one or two
OF these heavily laden institutions
should 60 overheard!
The member Of congress who will In
troduce and secure tho passage Of q law
that win place all life Insurance COM
panies subject to the inspection Of ma
tional examiners viii prove q public
benefactor. Cincinnati commercial Ca
2ette.
SOME crank with genius for math-
emntics has figured out what q copper
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