The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-06
Life Insurance Financiering.

| 2s @5}i- a5 -. -.
Life Insurance Financiering.
! Pursuing the discussion Of the financial
methods OF life insurance companies, Mr..
Henry Shed 13eardsley says in the Era
magazine for December that the safe
1 guards which, were thrown around the In
4 broken down one by one until the Mu-
] tual, the Equitable and the New York
/ Life are plunged deep into the Very ex-
| ccsses which were forescen by the men
/ who knew that life insurance company
/. properly conducted Should be an institu-
4 ton of great good" With the growth
OF these companies their field for invest
ment was widened and they were per-
mitted to buy stocks and bonds other
I than those Of the government State,
county or city But Mr.. Beardsley de-
clares that they have not only used this
privilege to their advantage and to the
Injury Of the policy holders, but have
| gone farther and become abettors Of some
1 Of the most odious Of the Wall Street
| flotation syndica ties. He asserts that the
| big Three" with their combined annual
income Of about s239. ,OoO, are directly
| in league with the Wall Street interests;
4 that with their colossal assets, millions
1 Of which can be converted at once into
cash when necessary, with their enorm-
Gus surplus and with enormous funds in
banks and trust companies, they provide
i q Soodly share OF ready money which Is
the implement in the hands Of Wall Street
! gamblers to prey upon the American pub
lie.
/, .'rhc plan of operation says he, us
this: Tho mon who control tho finances
i Of a member OF the insurance combine
| organize or obtain control, of q trust COM
pany. On the statement Of the assets Of
the insurance company. there then ap.
pears an item showing an investment in
the stock OF this trust company. This
4 means that the trust company, from tie
funds OF the insurance company (bciong-
ing TO the policy holders) has been pro-
4 yided with the sinews of business. AT
;, the same time the insurance company
deposits part Of Its ready cash with the
trust company TO give the latter more
money to make profits with. With this
generous supply, the trust company is able
/ TO engage extensively IN the enterprises
. which arc organized BY tile boss gamb-
. crs Of Wall street. These enterprises
being immensely profitable to the boss
gamblers Gas they are Improbable TO the
o public, which is playing the onc.sdcd
t game, the trust company shows good
. increase in earnings. Consequently, Its
: stock rises to an extremely high figure
y The men who organized or gained con.
ii troll or the trust company reach the con.
J clusion that the tlmo has como TO make
J. one great sweeping profit. They do this
i by selling stock Of the trust company L
u tho Insurance company The difference
" Is usually millions The insurance CON
l. pany. having Il majority Of the stock o
q the trust company, now controls It. bu
l. the same individuals as before remain u
l. the management of the trust company
is because they handle the money of the In
~ SuEdlcc 'COlllptt'S.
rs lie then goes on TO show that Gcors
rs w. Perkins, rcc-prcSident and chair
~ man OF the Finance Committee of IN
VI New York Life. is partner and persona
u surancc company, and that by reason .
'' this dual position, Mr.. Pcrkins's authorl
nc ty IN directing Tie Ncw York Life
~ greater than that Of President John
M Mccall, !. T.. Morgan, being the real an
II supreme power behnd the throne. vii
on this explanation he reviews the lislo,
Of the steamship trust. under which
hs was proposed to unite several transa
sR antc steamship lines With n capital sioc
nt OF 3Ono,UD and bonds OF s5o,0y,OD, "A
M hought the combined capital stock Of 81
lat lines in The deal WAS only ses,5oo,ooo ~
ma firm or j. T., Morgan Company, organic
en- n syndicate which agreed 10 raise SIC
md CU.GDJ in cash 10 assist IN the form,
,ge ton OF this trust and he asseris that Il
ms, New York l.fn contributed 10 tits gy
ms dcate the round sum Of S3,3DoUO0. NJ
I'm licardstey also declares llai the trll
in funds .ol the insurance companies play
ach a prominent part in he Organization
10 the notorious bodybuilding trust" and
en- conclusion, he ntilnates that the ASS
Glazed Press Is influenced in It's ne;
enl reports BY the insurance combine.
OBJ These are all very grave onarges \
by know nothing OF their f-uthfulnesa i,
men DO we know anything about the amin