Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1891-01-22

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 tbs hard TO be positive about
this, int that they are vcry heavy no
one will question. We have in mind n
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 draw a 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
", and these deposits are mainly In
view OF return in case of death. 1t
Is, so to speak. a sacred investment.
But who knows anything about IL 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 a rule, by proxy. They know
nothing, of conrse. 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 boen
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 kird. 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 bo
worth without such supcryisiony No
more than the old system Of state
banks
1t is true there is such thing as
state supervision Of life insurance COM
panies. But what is this worth? II
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 IL l.
not worth while 90 complain OF any
thing unless there il a remedy. What
is thisy IT, is not that Tho national
government should assume ntrOl OF
life insurance as IL did that, the banks
OF issue. although that wou probably
be justiiiable under the circumstances;
but IL is that a general national law
should be passed on the subject and
that national examiners should be APP
pointed and the business conducted a.
In the case Of national banks. This
would check the extravagance and
usurpation Of many life insurance com
panies. as il does that OF the banks:
serve to make all safe. by compelling
the loose concerns to conform 10 the
conservative institutions; while, at the
same time, it would give confidence 10
the creditors, as the same system does
TO the depositors and nOte-holders Oi
national banks.
There have been bad failures In the
country Of life insurance companies.
tnat robbed the insured OF almost every
dollar they had paid in; but all this was
but as fly on a 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 too
small for their investments and specu-
lations.
There is a volcano gathering that, #
not checked. viii soon explode with ter
rife force. Il is liable to bury the good
with the bad and the sound witq the
rotten in a common ruin. Imagine
what the result would be If one on two
OF these heavily laden institutions
should go overheard
The member OF congress who viii in
tr0duce and secure the passage Of law
that viii place all life Insurance com
panies subject TO the inspection Of ma
tional examiners viii prove a public
benefactor Cincinnati commercial Ca.
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