The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-02-10
4 SNUG PENSION.

The war Of the p0.icy-Eo,ders against the
New York Life Insurance Company has
ended. a. every one saw it must, in The
resignation Of President Beers. But be re-
treats 10 good shape. lie retires on an an
nual pension of So. 600 a year. to WLich is
added a salary of $3.50 year as consult
ing adv ser to his successor. a man wh0 is
given $500 q year for life cannot COM
plain that fortune has used him badly. l.
is said to have been the practice Of the
stockholders in the New Z OTk Lie to hand
their proxies to Mr. Beers. lie therefore
held the fate Of the Board Of Trustees in
the hollow Of his hand. There are n0tmany
stockholders On the concern, and these are
largely old persons. widows or executors.
who began giving their proxies 30 Beers
years ago, and could not now be induced to
revoke them. He was thus enabled TO make
his own terms with the board and to offer
them the option Of granting him the cnOr-
nous retiring pension he demanded OF Of
continuing to administer the affairs of the
company. As the report Of the Insurance
Department shows that his mismanagement
bad cost the company something like one
third Of lis surplus, it IS no wonder that
they elected the former alternative.
1t appears that the war is not quite over
The pOcy-holders now demand that the
Trustees who acted in Beers board, and
who are really, if not legally. responsible
for his actions, should resign in q body, and
suffer the company 70 he re1rEanized. It
must be remembered that this concern is
not Ike an ordinary financial corporation.
Its assets amount 20 the enormous sum Of
Sl20, 600, 900, every dollar Of which may
some day be required TO satisfy the de-
mands Of holders Of policies Of Insurance.
The failure Of such an Institution as that
would spread disaster especially in the
classes which are least able 10 endure losses.
There is at the present time no danger that
the New \ Ork Is going 10 fail 1t is, 50 far
as appears, perfectly solvent, and its poll
cies are perfectly safe. But there is no saw
ing what could happen il mismanagement
continues TO mark its administration. A
few more millions wasted might impair the
cOmpany's capacity TO meet losses as they
accrue, aud might swell the list Of cases in
which. for reasons of its own, the COM
pany's lawyers would contest the payment
Of policies. a sound judgment would seem
to REQUIRE the retirement of all who were
prlvy 20 Beers management
Life insurance is an institution which
ought to be f0stered. A policy Of life in-
surance is often the only protection which a
young widow and young children have
against want. But this highly beneficent
Institution cannot accomplish its ends I'm
less the funds out of which the widows
pittance must come should be prudently
managed. If there is any danger Of
maladministraton the policy is a de-
fusion. Aud experience proves that
whenever a life insurance company's trea-
sury becomes depleted by a simultaneous
occurrence OF many deaths, it is apt TO fall
back on legal technicalities to defeat the
payment OF policies. On the back of every
policy are stated the conditions on which it
is granted. These are very yoluminous
and are printed in small type. Few policy
holders ever read them. They contain an
infinite number Of loophOles by the aid of
which a lawyer may resist payment of a
policy If it is not convenient for the COM
pany to pay out money. An applicant for 4
policy is asked a number Of questions about
his previous health. He is often unable TO
answer them, or to appreciate the gravity
of the ailments he may have had. He makes
such answers as he can Presently he dies,
and the doctors and lawyers in the COM
pauA's service 90 into court 10 show that he
died Of a disease of which the seeds were in
his system when he made his application,
and that the policy was obtained on false
pretenses.
1t is Of course necessary that life in
surauce company should protect itself
against being swndled, if for DO other
reason. for the interests of policy-hoders.
But it occurs sometimes when a company's
revenues fall off, The number Of suits to COM
pei payment Of losses increase and it is OBJ
vious that revenues must fall of when the
credit Of the concern is besmirched.