The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-04
''THE DESP0TISM OF i. Fl.
COMBINED MILLIONS"

/ )
The Era is publishing series OF ar.i-
{cles BY Henry shedd Bcardsley entitled
5"The pesput,sm OF Combined Millions;
4 How thcS Giant Life Insurance Combine
Employs Vast d Trust Funds Of Policy
holders in Wall Streets Ruthless Spec
ulatlve Schemes. At tho outset Mr..
Bcardsley states that there Is no ques-
! tions OF solvency$tn nor any dispute as to
1 the bcncilce mt purpose sQf life Insurance..
t'l,he 4revelat ions We shall make, Z, II says,
I5''concern IRA Their 4 lc persistent disregard
! ny the companies OF 3thcsnquttablos rights
uffhei1' policyhol ders, 6 the wi hholdlng OF
| enormous amounts { or divlsble1 surpluy.
Aher. coalition with Wall Street in sup-
sl1rtso of tho most ,audacious schemes &of
speculation and Their defiance or salutnry
legal requirements 53} 81
Il. In order to show the Importance OF lifc
|.ijisurnrce It Is shown that tile assets OF
these compnnt that is,Ethe actual prop
|. greEato TO moro than $4,000, 00O, 900. Most
Of The business is done by what the era
calls !. The sBig I,.hree'-,he Mutual life:
Insurance Company, the Equita bic Life
Assurance Society and the New York
Life 1nsalrancc Company all OF New
York Their total assets on January ],
1Do$, amounted to s1,134, 17S 600. These COM
Tanies profess to be IN utual.' = which
means that the policyiolders become part
,ners III the sbu siness and participate In the
ssarningS dIshe Era claims t .sat this
( tn5gsS0, the incorne.of tho Mutual was
Sir 200, 90; in 1908. 81 ,ottsd0Q III 1850 the
Income OF stie Equitable was not quite
900 Geo; In 1863 nearly 81, 900 00o. In 1880
the income OF the New York Life was
less than 50, 0o0, 900; In 1903. sSs. 0C0.0o9 In
1855, according to the Era man. with an.
income OF less than sS5, 900. oCO combined.
sthc three companies paid to its policy
.holders 5iu dividends moro than So, 000. 0o0,t
but III 1909 with an income grca ter than
s22S3o, 00y, 900, they paid back In dividends
to the policyholders less than 81. 900, 900.
scrs iii premiums IN 1880 between $25, ZOO o0o
and $4,000 900, and paid back more than
$4,000 600 The pdlicyholders In 1880 got
black twenty four and la51unrter percent.
of the money paid; + in 4l30S they paid III
premiums 1893, 900, 600 and received back
4in,dividellds seven and Ia quarter per cent.
ofsthat imount. b " ls{ 10
The Era man. charges hat the affairs
OF these Big companiesIhave been carried
on Nith.the most lavish v:rny, gtt:lc.a and
emphasizes that every dollar wasted in
.extravagants expense comes M from tthe
pockets Of the policy holders SNAnswering
tho Quest ton whyth companies have not
been fprcviously exposed IT REPLIES THAT
tho ;nnsweri#is ono Of tho most stonish-|
ing. features OF lie story, us tho COM
puIhies exert q powerful Influence which
is maintained by spending enormous sums
every ycartO control publtc sentiment and
smother Investigation. NJ
Il The writer makes tllis.broad statement.
but does not go into details and tell
how the thing is done, IIo simply as
serts that IT is done, but says that inves-
legations have Eeen stnrtcdinn tina SOON
err Or later tho. companies willtbe exposed.
III o makes moro specific charges "a to tho
expenses or the companies 1T said that
last year the Big Three spent II. Items
which We're included In tho cost OF con-
ductIng It's business nearly $4,000, 600, be-
ing almost half the money paid out 10
policy holders through all channels. in
5cluded iii this amount Is $7G7,0O) for legal
expenses and he shows l,y comparison
that six smaller American companies,
which did q total business In 1909 about
equal to that done by each member OF
the combine had all income from pre-
nliums Of nearly $4,000. 0OO and legal cx.
pcllscs of only $7SOO0,00o, Ia says that /
tho officers OF these companies receive
enormous salaries. some OF them as much
ms 100000 Il year &1Ie says TINT tho most
startling ana significant fact also is that
moro than threc-quartcrs Of n'million dol
lars spent last ycnr WAS described un-
der tho head o ( "al her d!sburselnents,''l
and was tentirely unclasslflcd. Iio! says
tllpt,Snlthough the Big Three last year
paid out In ) dividends to policy holders
less than SN,Co0,0oo they spent IN their
efforts tOsprocure new business more
Than $40, 100000. 40 capture new business
tho Big Three gave away lii commissions